Julia M éndez, CAAP, PHR, CELS Director, Workforce Compliance & Diversity Solutions Peopleclick Authoria Research In

1. Convincing Hiring Managers to Hire Affirmatively April 19, 2011 Julia Méndez, CAAP, PHR, CELS Director, Workforce Compliance & Diversity Solutions Peopleclick Authoria Research Institute

2. Today’s Agenda • Defining EEO, AA, Diversity • AA Statistics • Case For Hiring Affirmatively • Ways to Measure Success • Consequences of Not Hiring Affirmatively

3. Question What are the differences among Equal Employment Opportunity, Affirmative Action and Diversity

4. Equal Employment Opportunity (EEO)? • Requirement under the Civil Rights Act of 1964 (Title VII) for employers with 15 or more employees • Protects individuals from discrimination based on race, color, religion, national origin and gender • Other EEO laws protect against discrimination due to age and disability • Enforced by Equal Employment Opportunity Commission (EEOC) and other various state and local agencies

5. Equal Employment Opportunity (EEO) • Discrimination Practices under Federal EEO Laws: • Cannot discriminate in the following practices: • Recruiting, hiring and advancement • Pre-employment inquiries • Cannot harass or create a hostile work environment due to protected class • Compensation & other employment terms, conditions and privileges • Segregation and classification of employees • Cannot retaliate due to a complaint of discrimination being filed

6. Required Posting – Revised 11/09 http://www.eeoc.gov/employers/upload/eeoc_self_print_poster.pdf

7. What is Diversity? • Individual differences and similarities based on: • Age, ethnicity, gender, race, sexual orientation, religion, work experience, education, family status, organizational role/level, mental/physical abilities, first language, geographic location, communication style, work style, or status, etc. • Company implemented and monitored

8. What is Diversity? • It is no longer a choice, but a business reality. • It is valuing differences in people based on their identification with various groups. • It is a collective mix of both individual similarities and differences in the workplace. • It drives one to look beyond race and gender. • It enables organizations to create an atmosphere of full acceptance.

9. Business Case for Diversity • Diversity will be required of organizations to remain competitive in the shifting marketplace. • The ability for an organization to remain competitive will be dependent upon its ability to mold to the changing workplace. • Embracing a culture of diversity helps to improve financial results. . .it also strengthens a company’s brand, unifies the corporate culture and empowers stakeholders.

10. Business Case for Diversity • It’s all about that innovation that happens with a diverse team of people…They bring in diverse cultures, skills and talents to a team. • Success requires a global perspective as well as knowledge of other cultures.. .People want to see others who look like them in their local businesses. • Employees will work at companies where they feel welcomed and valued.  • Diverse companies outperform companies that are not because they have stronger teamwork and a greater understanding of customers, partners and suppliers. The Business Case for Diversity: How Companies Keep Their Competitive Edge By Tammy WorthNovember, 2009

11. What is Affirmative Action? • Proactive action-oriented programs designed to ensure equal opportunity of qualified women, minorities, disabled individuals and veterans in the employment process • Enforced by the Office of Federal Contract Compliance Programs (OFCCP)

12. What is Affirmative Action? • Designed to • Promote equal employment opportunity • Eliminate discrimination for protected members • Create an opportunity to make a difference • Remove barriers in the workplace • Level playing field in every phase of the employment process

13. Exercise Make your case to management for recommending diversity initiatives to strengthen your AAP and minimize EEO complaints.

14. Which Laws Are Enforced by the OFCCP? • Executive Order 11246 (Race, Color, Religion, Gender, National Origin) • Section 503 of the Rehabilitation Act of 1973 (Individuals with Disabilities) • Section 4212 of the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA) (Covered Veterans)

15. EO 11246 • Prohibits discrimination based on race, color, religion, gender, or national origin • Requires companies to engage in affirmative action for women and minorities • Requires companies to maintain data on applicants, hires, promotions, transfers and terminations by race and sex

16. Section 503 of Rehabilitation Act of 1973 • Prohibits discrimination based on an individual’s physical or mental disability • If federal contract exceeds $10,000, requires contractor to employ and advance in employment qualified individuals with disabilities • Requires companies to take affirmative action to ensure individuals with disabilities are included in all employment activities • Requires companies to make reasonable accommodation due to physical and mental limitations

17. Vietnam Veterans’ Readjustment Act • Prohibits discriminations based on protected veteran status • If federal contract prior to 12/01/2003 exceeds $25,000, (on or after 12/01/2003, $100,000) requires contractor to employ and advance in employment qualified covered veterans • Requires companies to take affirmative action to ensure covered veterans are included in all employment activities

18. Affirmative Action Reporting

19. Difference Between Permissible Goals & Unlawful Preferences • Goals should NOT be interpreted as permitting unlawful preferential treatment and quotas. • Goals are neither quotas, set-asides, nor a device to achieve proportional representation of equal results. • Goals do not require that any jobs be filled by a person of a particular gender, race, or ethnicity. • Goals are not a ceiling or a floor for employment. • The goal-setting process is used to target and measure the effectiveness of AA efforts to eradicate and prevent barriers to EEO.

20. Placement Goals Identifies goals based on tests used to determine underutilization Goal Placement Rate **NOT A QUOTA** Only job groups with a goal will appear

21. Goal Attainment Only job groups with a goal last year will appear on this report Prior Year Goals Progress Towards Goal Prior Year Employees If actual placement rate is greater than goal placement rate, the goal has been met

22. Impact Ratio Analysis - Hires 2 Standard Deviations

23. Question How does your organization currently measure effectiveness of recruiters with respect to AA?

24. Responsibility of Recruiters • Separate all information regarding race/ethnicity/gender from applications. • Does applicant pool mirror the available qualified workforce? • Are you using recruiting sources that somehow limit the gender and/or race of potential applicants?

25. Responsibility of Recruiters • Include an “applicant source” column in the applicant log that indicates where each applicant found a particular job posting. • Take note of whether or not certain recruitment efforts are yielding fewer (or no) qualified candidates. • Take note of recruiting sources that yield qualified candidates with respect to covered groups: Females, Minorities, Disabled, Veterans. • Focus recruitment efforts accordingly.

26. Responsibility of Recruiters • Determine whether money is being spent wisely with respect to recruiting sources that yield the most effective results • Assess whether you are helping the company improve with respect to goals

27. Rating Performance of Recruiters • Number of Recruitment Companies • Number of Recruits • Number that Passed Internet Applicant definition • Diversity percentages • Number hired • If recruiters are responsible for determining who gets interviewed, who is an applicant, etc., audit the disposition information for accuracy.

28. Question How does your organization currently hold managers responsible for AAP success?

29. Responsibilities of Management • Be well versed on laws/regulations regarding affirmative action and equal opportunity. • Be aware of issues within your own department. • Create a plan of action for making progress with respect to goals or deficiencies. • Create an atmosphere free of discrimination. • Generate ideas to assist the company in meeting relevant objectives.

30. Types of Information You Should Disseminate to Management • Placement Goals • Goal Attainment Results • Areas with Adverse Impact • Issues at Departmental Levels • Compensation Issues • Problem Areas • Narrative AAPs • Training on EEO/AA

31. Case for Hiring Affirmatively

32. Reasons for Hiring Affirmatively • It’s the law • Brings diversity into the workplace • Focus during today’s OFCCP audits • Competitive advantage • Reduces turnover

33. Current OFCCP Focus Patricia Shiu - OFCCP • Adverse Impact Analysis • Compensation Data • Rescission of 2006 Compensation Analysis Guidelines • 2% or $2000 test • Analysis of Good Faith Efforts • Training & documentation of training • Active Case Enforcement – chance audit continues beyond desk audit phase

34. Requests in Recent Audits • Proof of GFE for veterans and persons with disabilities • Review of accessibility of website if accept online applications • List of veterans and persons with disabilities hired in AAP year • Copies of training documents proving managers trained on AA obligations • Accommodations made for religion, veterans status, disabilities and list of names • Details on hiring process • List of protected individuals who were not promoted but considered • List of individuals that were out on maternity leave • List of terminations along with reason

35. VEVRAA Origin • Title 38 of the U.S. Code, Section 4212, Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA) of 1974 law requires that employers with Federal contracts or subcontracts meeting dollar threshold provide equal opportunity and affirmative action for covered veterans.

36. Outreach Requirement • Note that OFCCP can request to view VETS-100 report in order to determine if contractor is meeting AA obligations to recruit, retain, and promote veterans • Posting positions through State Employment Office might be deemed insufficient if VETS-100 figures show no veterans or very small percentage of covered veterans employed by your company

37. 10 Reasons to Hire Veterans • Accelerated learning curve • Leadership • Teamwork • Diversity and inclusion in action • Respect for procedures • Efficient performance under pressure • Conscious of health and safety standards • Triumph over adversity • Technology and globalization • Integrity Source: www.hirevetsfirst.gov

38. Veteran Facts: Census Bureau 2009 • 21.9 million - number of military veterans in the U.S. • 1.5 million - number of female veterans • 2.3 million black veterans • 1.1 million Hispanic veterans • 258,000 Asian veterans • 153,000 American Indian or Alaska Native • 30,000 Native Hawaiian or Other Pacific Islander • 3 states with 1 million or more veterans: CA, FL, TX

39. Veterans Facts: Census Bureau 2009 • 26% percent of veterans with at least a bachelor’s degree • $35,402 median income • 9.8 million 18-64 in the labor force • 5.5 million veterans with a disability

40. American with Disabilities • 19% of U.S. resident reports some level of disability in 2005 • 54.4 million Americans are roughly equal to populations of California and Florida • 46% of people age 21 to 64 with a disability were employed • Changes of having a disability increase with age: • 52% people 65 and older • 71% people 80 and older

41. Hiring Persons with Disabilities • Skills – People with disabilities are just as skilled as other applicants. Finding and keeping skilled workers is essential for short-term money-making and long-term sustainability in the market. • Customers – People with disabilities come from many walks of life and could acquaint your company with a brand new customer base. • Retention – Workers with disabilities have a higher retention rate and are more loyal to their companies than able-bodied employees. “Myths about hiring people with disabilities”

42. Hiring Persons with Disabilities • These workers are loyal to their employers and tend to reduce turnover. • Workers with disabilities tend to boost customer loyalty, cut worker’s compensation costs, and provide financial incentives to their employers. • 92 percent of consumers surveyed felt more favorable toward employers who hired workers with disabilities.

43. Hiring Persons with Disabilities • Meet diversity recruiting and hiring goals. • Promote your company’s commitment to a diverse workforce and a positive work environment. • Save money and time by lowering your turnover rate. Employees with disabilities statistically have a higher rate of loyalty and longevity.

44. Hiring Persons With Disabilities • The federal government has developed a program designed to encourage employers to hire workers with disabilities. It is called the Work Opportunity Tax Credit (WOTC). It has the potential of reducing an employer’s federal tax liability by as much as $2,400 per qualified worker. An employer can take as much as 40 percent of the first $6,000 of wages paid during the first 12 months of employment for each new hire.

45. Hiring Persons With Disabilities • Additionally, the U.S. Social Security Administration’s (SSA) Ticket to Work Program (TTW) provides employers up to $4,800 in the first nine months of employment when they hire a Social Security beneficiary with disabilities.

46. Accessibility Case • Baltimore, Maryland (August 27, 2008): The National Federation of the Blind (NFB) and Target settled a class action lawsuit • $6 million fund established for individuals in California to claim up to $7000 each if they tried to use Target.com and encountered barriers

47. Accessibility Cases • September 26, 2008 • iTunes • $250,000 contribution • February 11, 2010 • Major League Baseball’s official Web site

48. OFCCP Accessibility Watch List Reasonable Accommodations Ability to Navigate Audio / Text • Captions • Text descriptions • Navigation link • Use without a mouse • Use screen reader • Avoids triggers for epileptic seizures • Online forms • Ability to request additional help

49. Female Facts: Census Bureau 2010 • 157.2 million women in the U.S. as of 10-1-10 • 153.2 million males • At 85 and older, there were more than twice as many women as men • $36,278 median annual earnings of women 15 or older in 2009 • Women earn 77 cents for every $1 earned by men • States with highest ratio of women-to-men earnings: D.C., AZ, CA, NV, NY, FL NC, TX, MD

50. Female Facts: Census Bureau 2010 • 29.9 million women 25 or older with a bachelor’s degree in 2009 (30%) • 28.7 million men had a bachelor’s degree • 55% - percentage of college students in fall 2008 were women