2- 1 © SHRM Module 2: Workforce Planning and Employment - PowerPoint Presentation

2- 1 © SHRM Module 2: Workforce Planning and Employment24% PHR17% SPHR Any student use of these slides is subject to the same License Agreement that governs the student’s use of the SHRM Learning System materials.

Title VII of the Civil Rights Act (1964) 2- 2 © SHRMTitle VII of the Civil Rights Act (1964)

2- 3 © SHRM Terminology

Discrimination © SHRM 2- 4

2- 5 © SHRM General Provisions of Title VII

Which of the following organizations would be subject to the EEOC rules and regulations specified in Title VII and its amendments? A. A five-person, family-owned computer repair businessB. An independent college with 80 employees C. A franchise operation with two full-time managers and ten part-time employeesD. A new labor union with 14 members 2-6© SHRM

Title VII Exceptions Several exceptions to the definition of discrimination exist, including: 2-7 © SHRM

Civil Rights Act (1991) Allows jury trials when a plaintiff seeks compensatory or punitive damages.Compensatory damages are awarded to make an injured person “whole.”Under federal law, punitive damages are not possible against a governmental unit or agency. Amount of compensatory and punitive damages is based on the size of the employer’s workforce. Related case: Kolstad v. American Dental Association2-8 © SHRM

Compensatory and Punitive Damages Maximum Recovery per Individual Number of Employees $50,000 15–100 $100,000 101–200 $200,000 201–500 $300,000 501 or more The maximum recovery amount is for a total of compensatory and punitive damages. 2- 9 © SHRM

Age Discrimination in Employment Act (1967) 2- 10 © SHRM

ADEA Exceptions 2- 11 © SHRMAge can be a BFOQ if necessary for the normal operation of the business.Exceptions can occur when:

Pregnancy Discrimination Act (1978) An organization:May not refuse to hire or fire a woman simply because she is pregnant.May not force a pregnant employee to leave if she is ready, willing, and able to work. Must treat pregnancy the same as any other temporary disability. 2-12© SHRM

2- 13 © SHRM Americans with Disabilities Act (1990)

ADA Terms 2-14 © SHRM

2- 15 © SHRM ADA Amendments Act (ADAAA)

Which of the following are the only mitigating measures allowed by the ADAAA when assessing whether an impairment substantially limits a major life activity? A. Medications B. Implantable hearing devices C. Ordinary eyeglasses or contact lensesD. Prosthetic devices 2-16© SHRM

2- 17 © SHRM Modifying or adjusting a job application process, a work environment, or the circumstances under which a job is usually performed Reasonable Accommodation Examples A reader to help an applicant who is visually impaired Construction to provide accessibility Alternative formats for employee training A telephone device for a person who is hearing-impaired

Genetic Information Nondiscrimination Act (2008) Prohibits discrimination against an individual in hiring, firing, compensation, or terms or privileges of employment on the basis of genetic information about the individual or a family member.With limited exceptions, prohibits an employer from requesting, requiring, or purchasing genetic information on the individual or a family member. 2- 18© SHRM

Lilly Ledbetter Fair Pay Act (2009) Creates a rolling or open time frame for filing wage discrimination claims.Retains the 180-/300-day time frame outlined in Title VII.Restarts the statute of limitations each time an employee receives a paycheck based on the decision. Expands the plaintiff field. 2-19© SHRMRelated case: Ledbetter v. Goodyear Tire & Rubber Co.

2- 20 © SHRM Uniform Guidelines on Employee Selection Procedures (1978)

An organization interviews 60 males and 40 females. They hire 30 males and 10 females. What is the selection rate of females? A. 25%B. 30% C. 40%D. 50% 2-21© SHRM

Is there adverse impact? Answer:Yes. Here is the calculation: 50% of the males were hired. To determine adverse impact, multiply 4/5 or 80%  50% = 40%. Adverse impact occurred because 25% of the females were hired, not the required threshold of 40%.2-22 © SHRM

Affirmative Action Obligations Federal laws that apply to federal government contractors and impose AA obligations include:Executive Order 11246.Vietnam Era Veterans Readjustment Assistance Act and Jobs for Veterans Act.Section 503 of the Rehabilitation Act. Legal obligations on employers depend on:Value of the federal contracts/subcontracts. Number of employees. 2-23© SHRM

Rehabilitation Act (1973) 2-24 © SHRM

Defines “alien” as any person lacking citizenship or status as a national of the United States. Differentiates aliens as: Resident and nonresident.Immigrant and nonimmigrant.Documented and undocumented. 2-25 © SHRM Fundamental body of U.S. immigration law applying to all employers. Immigration and Nationality Act (1952)

Immigration Reform and Control Act (1986) 2-26 © SHRM

Which document would prove identity and right to work in the U.S.? A. U.S. military ID cardB. Social Security cardC. Driver’s license with photo D. Permanent Resident Card 2-27© SHRM

2- 28 © SHRM e-Verify

Visa Categories 2- 29 © SHRM

WARN Act (1988) 2- 30 © SHRMWorker Adjustment and Retraining Notification (WARN) Act Limited exceptions: faltering company, unforeseeable business circumstances, natural disaster

EEOC Complaint Process 2- 31 © SHRM

Employee Polygraph Protection Act (1988) Regulates the use of lie detectors. Allows the use of lie detector tests when:The employer is the federal, state, or local government. Prospective employees will work in security-sensitive, drug manufacturing, or intelligence situations. Current employees are under reasonable suspicion of involvement in workplace incident that results in economic loss. Employer may not discharge an employee based solely on test results or refusal to test.2-32© SHRM

© SHRM 2-32Consumer Credit Protection Act (1968)

Fair Credit Reporting Act (1970) Applicant/employee must provide written authorization before a consumer report is ordered.Employer must provide: 2-34 © SHRM

Fair and Accurate Credit Transactions Act Provides relief to employers using third parties for workplace investigations.Amends the FCRA by eliminating the consent and disclosure requirements when a third party conducts an investigation involving:Suspected misconduct. A violation of law or regulations.A violation of any preexisting written policies of the employer.Includes directives aimed at uncovering and preventing incidents of identity theft. 2-35 © SHRM

If any adverse action is taken against an applicant or employee, either partly or wholly because of information contained in aconsumer report, additional notification requirements include:The individual’s credit score that was used. The range of credit scores possible under the credit scoring model used.Each of the factors that adversely affected the individual’s credit scoreThe date the score was created. The name of the consumer reporting agency or person that furnished the credit score.Amendment to FCRA by Dodd-Frank Act© SHRM 2- 36

Equal Employment Opportunity Race.Sex.Ethnicity. Religion. Age.Color. Military/veteran status.Disability.The term “protected classes” refers to people who are covered under a federal or state antidiscrimination law. Laws require employment decisions to be job- and business-related and not made on the basis of: 2- 37 © SHRM

Types of Discrimination 2- 38 © SHRM

Griggs v. Duke Power Landmark case that recognized adverse impact discrimination.Established that employment discrimination need not be overt or intentional.Found that employment practices can be illegal even when applied to all employees. Places burden on the employer to prove that requirements are job-related. 2-39© SHRM

McDonnell Douglas Corp. v. Green Landmark case that established criteria for disparate treatment.Ruled that a prima facie case can be shown if an employee: Belongs to a protected class.Applied for a job when the employer sought applicants.Was qualified and yet was rejected.Was rejected but the employer kept looking. 2-40© SHRM

Other Key Cases Albemarle Paper v. MoodyAny test used for promotion/selection must be a valid predictor for job success.Washington v. DavisDisproportionate impact of a test does not warrant conclusion that it is purposely discriminatory. 2- 41© SHRMSt. Mary’s Honor Center v. Hicks An employee must prove that an employer’s reason for an adverse action is based on a lie and that the lie was to cover up discrimination. McKennon v. Nashville Banner Publishing Co. After-acquired evidence cannot free an employer from discrimination liability.

EEO Reporting 2-42 © SHRM September 20XX                              30 Posters and officially approved notices must be put in prominent locations where they can be seen by employees. Annual reporting is required for: Employers with 100 or more employees. Federal contractors with at least 50 employees and contract of $50,000. Reports are due by September 30.

The EEO-1 report requires many employers to provide a count of their employees by job category and then by A. job title, gender, and race.B. race, ethnicity, and gender. C. wage rate or salary range.D. total number of male and female incumbents against placement goals. 2-43© SHRM

Internet Job Applicants 2-44 © SHRM OFCCP final regulations apply to federal government contractors and subcontractors.For purposes of Title VII, the EEOC recommends that employers who are not federal contractors or subcontractors look to the OFCCP definition of applicant.

Internet Job Applicants Final regulations require that:The individual expresses interest in employment over the Internet or related electronic data technology. The employer considers the individual for employment in a particular position.The individual’s expression of interest indicates that the individual possesses the basic qualifications for the position. The individual does not remove himself or herself from consideration at any point in the employment process.2-45 © SHRM

Applicant Flow Data Federal government contractors must be able to identify, when possible, the race, gender, and ethnicity of applicants. Used to evaluate differences in selection rates among different groups to determine if there is adverse impact.Is obtained by:The use of paper or electronic self-identification form (preferable). A visual survey of applicants. 2-46© SHRM

Affirmative Action Employers:Make efforts to increase presence of women, minorities, covered veterans, and disabled individuals in workplace.Take positive steps to correct their underutilization. 2- 47© SHRM Organization XYZ AAP 20XX

Major Elements of AAP 2- 48 © SHRM

Availability Analysis Requires that organizations consider internal and external availability to determine the theoretical availability of women and minorities.Organization compares the percentages of women and minorities in each group with the theoretical availability.A variety of statistical methods can be used for calculating the comparison: “any difference rule,” “80% rule” (“four-fifths rule”), “two standard deviations analysis.” Placement goals are set when the percentage of minorities or women is less than reasonably expected given their availability percentage. 2-49© SHRM

Which of the following is frequently a trigger for an AA audit by the OFCCP? A surge of workers’ compensation claims Membership in a technology-based industry A mass layoff of management employees A federal contract of over $10 million2-50 © SHRM

Types of Audits 2- 51 © SHRM Focused review Off-site review Compliance review Audits Compliance check

Focuses on a contractor’s obligation to make good-faith efforts to ensure that equal employment opportunity extends to all levels of the workforce. 2-52 © SHRM Designed to ensure that qualified minorities, women, persons with disabilities, and protected veterans do not encounter artificial barriers to future advancement into mid-level and senior corporate management. Purpose Focus Corporate Management Compliance Evaluations and the Glass Ceiling

Fairness Issues 2- 53 © SHRM

Employment Practices Liability Insurance EPLI covers businesses against claims by workers that their employee rights have been violated.Policies cover legal costs whether the company wins or loses.Policies usually do not cover: Punitive damages or civil and criminal penalties.Liabilities covered by other insurance such as workers’ compensation.Employer may have a duty to notify the carrier upon receipt of a letter from a lawyer, even if no claim has been filed. If not done, coverage could be waived. 2-54© SHRM

Sexual Harassment 2- 55 © SHRM

Sexual Harassment Cases 2- 56 © SHRM

2- 57 © SHRM Vicarious Liability

Harassment Policy/Prevention Have a written policy with a clear definition of harassment and a statement that it will not be tolerated.Establish a complaint procedure.Provide training and education. Investigate every complaint.Discipline if necessary.Communicate via multiple methods to management and employees. 2-58© SHRM

Analyzes organizational workforce and prepares for future needs.Forecasts future conditions and identifies gaps between current and future staff. 2- 59 © SHRMProvides qualified individuals for jobs in the organization.Addresses current and future needs for knowledge, skills, and abilities. Staffing Workforce Planning Workforce Planning

2- 60 © SHRM Workforce Analysis Process

Trend Analysis Determines the relationship between two variables. 2- 61© SHRM

Trend Analysis Plots the number of employees for the last six years and projects the trend out for two more years. 2- 62© SHRM

Turnover Analysis Most often expressed using an annualized formula. Calculated by dividing the number of separations per year by the average number of employees per month. 65 separations per year ÷ 225 average employees per month = 28.9% turnover. May also be calculated quarterly and used to project the annual turnover.2-63 © SHRM

Flow Analysis Projects future movement. 2- 64© SHRM

Demand Analysis Techniques Project the number of employees and the types of skills needed for the future. 2- 65© SHRM

Organizational Approach to International Business SPHR only Ethnocentric PolycentricRegiocentric Geocentric Four terms describe how a firm manages its international operations. 2- 66 © SHRM

Types of International Workers SPHR only Ethnocentric PolycentricGeocentric 2- 67 © SHRM Short-term assignees Long-term assignees Sequential/rotational employees Commuting employees (international commuters) Frequent flyers/extended business travelers Stealth expats/stealth pats/stealth assignees Local hires (local nationals) Localized employees Permanent assignees (permanent locals) Interns/trainees (temporary, nonimmigrants) Returnees Virtual employees Retirees Part-time employees Temporary (contingent) employees Temp-to-hire (temp-to-permanent) employees Outsourced employees

Job Analysis and Employee Jobs 2- 68 © SHRM

Job Analysis 2- 69 © SHRM

2- 70 © SHRM Job Analysis Methods

Job Analysis Uses 2- 71 © SHRM

2- 72 © SHRM Job Descriptions

Which of the following would MOST likely be an essential job function? A. Devotes approximately 8% of time to direct customer contactB. Regularly reviews engineering design documents C. As time permits, participates in an ongoing employee committee assignmentD. May delegate template preparation to administrative support 2-73© SHRM

Job Specifications 2- 74 © SHRM

2- 75 © SHRM Job Competencies

2-7 Recruitment p.164-193 2-8 Flexible Staffing p.196-2022-9 Selection p.206–2442-10 Retention p.248-261 2-11 Organizational Exit p.264-2782-12 Employee Records p.282-294 © SHRM2-76

The FIRST step in determining which candidates are qualified for an open position is a(n) A. review of the job description.B. assessment of the organization's ability to pay.C. review of the candidates’ résumés. D. evaluation of internal candidates. 2-77© SHRM

Internal Recruitment Sources 2- 78 © SHRM

External Recruitment Sources 2-79 © SHRM Several Possibilities Former employees Labor unions The Internet Educational recruiting Trade and professional associations Media advertising School-to-work programs Minority recruiting Nontraditional labor pools Social media Previous applicants Walk-ins Third-party sources

Employment Branding Positions the organization as an “employer of choice” in the labor market.Must be aligned with strategic plan, vision, mission, and values.Uses the same tools used to market the product to create an image of what it is like to work for the organization. 2- 80© SHRM

Performance of hiresTurnover Absenteeism per hireTraining costs2- 81 © SHRMTime to recruit applicantsSelection and acceptance ratesCost per applicant hiredQuantity and quality of applicants EEO implications Short-term Long-term Recruitment Effectiveness

Evaluating Recruitment Sources 2- 82 © SHRM

An organization made 30 offers, and 18 were accepted. What is the yield ratio of acceptance to offers? A. 35%B. 45%C. 55% D. 60% 2-83© SHRM

Flexible Staffing Uses alternative recruiting sources and workers who are not regular employees. The choice of arrangement depends on:Function.Level of supervision required. Time constraints.Financial constraints.Legal risks and liability. 2-84© SHRM

Co-Employment Organization and alternative staffing supplier share joint responsibility for alternative workers.Agreement summarizes:Legal relationship.Rights and obligations.Potential liability varies depending on the nature of the agreement. 2- 85© SHRM

Selection Process 2- 86 © SHRM

Step 1: Analyzing Application Forms 2- 87 © SHRM

Step 2: Interviewing 2-88 © SHRM All interview questions should be job-related and nondiscriminatory. Structured Patterned Stress Directive Nondirective Behavioral Situational Group Step 2: Interviewing Types of Interviews Most prescreening is done over the telephone.

2- 89 © SHRM Interviewer Biases

An interviewer assumes that a woman will do poorly in a job that requires math and analytical skills. This interviewing bias is known as A. horn effect.B. cultural noise.C. stereotyping. D. negative emphasis. 2-90© SHRM

Work referenceVerification of academic credentials Credit historyMotor vehicleCriminal background 2- 91© SHRMCognitive ability Personality Aptitude Psychomotor Assessment centers Honesty/integrity Polygraph Substance abuse Tests Background Checks Step 3: Testing and Background Investigation

Selection Reliability Ability to measure or predict behavior with consistency.Example: Scores for a test that is taken twice should be similar.The following errors may create inconsistent results:Failure to measure an important attribute Irrelevant questions in an interviewDifferent time limits for people taking a testRater bias in evaluating candidates 2-92© SHRM

Selection Validity Content validityDegree to which a test measures knowledge, skills, and abilities that are part of the jobConstruct validityDegree to which a test measures a trait such as intelligence Criterion-related validityCorrelation of test results to job performancePredictiveConcurrent 2-93© SHRM

Criterion-Related Validity The greater the overlap between predictors and variables, the better the predictor. Complete correlation = +1 or –1 2-94© SHRM

Approaches to Establishing Criterion-Related Validity: Concurrent Validity 2- 95 © SHRM

Approaches to Establishing Criterion-Related Validity: Predictive Validity 2- 96 © SHRM

Realistic Job Previewing Helps a candidate make an informed decision.Allows the organization to objectively portray the job.Examples of job preview techniques may include:Workplace tours. Interviews with job incumbents.Job simulations.Video or CD-ROM presentations.Automated job telephone information line. 2-97© SHRM

2- 98 © SHRM Step 4: Contingent Job OfferA conditional job offer may depend on:

Step 5: Employment Offer Formally communicated through an offer letter.Clearly states terms of the offer. Avoids language that implies a contract (states that employment is at will).Clarifies contingencies (physical exam).Clarifies acceptance details and deadline. 2-99© SHRM

Employment Contracts Agreement between employer and employee that explains the employment relationship.Express contract is based on oral or written words.Implied contract results from actions or conduct.Employment-at-will is presumed if a written employment contract does not exist. 2- 100© SHRM

Which type of employment situation would MOST likely warrant a written employment contract? A. A part-time employeeB. A salespersonC. A graphic artist D. A department manager 2-101© SHRM

Retention 2-102 © SHRM The ability to keep talented employees in the organization. Involves strategic actions to keep high performers motivated and focused. Preserves and develops an organization’s human capital. Reduces voluntary turnover costs.

Retention Strategies 2-103 © SHRM

2- 104 © SHRMOnboarding Encompasses orientation. Teaches about the employee role in terms of task and socialization. Integrates the employee into the established organizational culture and norms. Builds relationships and creates a sense of acceptance.

2- 105 © SHRMSPHR only Succession Planning

Organizational Exit Manages the way people leave an organization.Layoffs or RIFs are based on:Skills.Work record.Seniority. Disparate impact implications.EEO/legal considerations. Management should document the criteria used to make layoff decisions.Separation should be considered a termination if there is no chance of a recall.Severance packages are not required by federal law.2-106 © SHRM

An organization is laying off 15% of its workforce due to declining global markets. What can HR do to help the remaining employees through the transition? A. Run a series of regional focus groups with mid-level managers. B. Publicize that exit interviews were conducted with all separated employees.Regularly communicate with employees about ongoing business challenges. D. Hold an organization-wide teleconference to address rumors.2-107 © SHRM

Wrongful Terminations 2-108 © SHRM

Voluntary Retirement Management must:Identify what units of the company are eligible to participate in a voluntary program. Communicate that the plan is voluntary.The plan must comply with the Older Worker’s Benefit Protection Act.Voluntary waivers or claims under ADEA are valid only when waivers are “knowingly and voluntarily” made. 2-109© SHRM

The OWBPA requires that employees signing a waiver of their ADEA rights must A. be given at least 14 days to consider the agreement.B. receive severance pay or something of value.C. consult an attorney prior to signing the waiver. D. have at least three days to revoke the agreement after it is signed. 2-110© SHRM

Exit Interviews Gain candid information from departing employees.Are conducted most often when terminations are voluntary. Are conducted by a neutral party. Exit form may be used to collect information.Comments are typically kept confidential.Assurance may be given that remarks will not be shared with a supervisor.2-111 © SHRM

2- 112 © SHRM Records Management

2- 113 © SHRMElectronic Communication and Record Keeping

© SHRM 2-114