|Frequently Asked Questions |
about Affirmative Action
- What is Affirmative Action?
- What is an Affirmative Action Plan (AAP)?
- What are the Main Statistical Reports included in the AAP for Minorities & Females?
- What is the Organizational Profile?
- What is the Workforce Analysis?
- How do I read the Workforce Analysis Report?
- What is the Organizational Display Report?
- What is a Job Group?
- How do I read the Job Group Analysis Report?
- What is an Annotated Employee?
- How do I read the Annotated Employee Report?
- What is the Availability Analysis?
- How is Internal Availability Determined?
- How is External Availability Determined?
- How are Internal Feeder and External Census Data Combined?
- How do I read the Incumbency vs. Estimated Availability Report?
- How are Placement Goals Determined?
- How do I read the Placement Goals Report?
- What is the goal attainment report?
- What are the Adverse Impact Analyses Reports?
- What are the Personnel Action Summaries Reports?
- What is the Feeder Job Computation Report?
- What is the Requisite Skills Computations Report?
- What is the Share of Opportunities Report?
- What is the Number of Persons to be Fully Required Report?
1. What is Affirmative Action?
Affirmative Action is a set of focused procedures and good faith efforts, which an employer carries out to ensure that equal employment opportunities are provided for all employees and applicants.
2. What is an Affirmative Action Plan (AAP)?
Two types of affirmative action plans are required – the AAP for Minorities and Females, that consists of statistical and narrative sections, and the AAP for Veterans and Individuals with Disabilities, that consists of a narrative section only.
In the AAP for Minorities and Females, employment statistics (for active employees on the payroll on the plan date) are evaluated at least once each year to compare the composition of the organization to the composition of the relevant labor pools by department, type of work, race, ethnicity and gender. In addition, personnel activity (usually hires, promotions, transfers, terminations, and applicant flow) is evaluated for a period of time, usually 12 months prior to the plan date, to ensure that employees are treated fairly without regard to race, ethnicity, gender or other potentially discriminatory factors. The narrative reports of both AAPs describe and summarize the organization's policies, practices, results, good faith efforts and action plans to correct any deficiencies with regard to affirmative action. Please note that the narratives provided by Berkshire Associates Inc. are drafts and require customization by the company to be in compliance.
3. What are the Main Statistical Reports included in the AAP
for Minorities & Females?
The AAP for Minorities and Females contains the following primary statistical reports.
If applicable, the following reports are also included within the Identification of Problem Areas section of the narrative:
- Organizational Profile
- Workforce Analysis or Organizational Display
- Job Group Analysis
- Availability Analysis
- Incumbency vs. Estimated Availability
- Significance of Incumbency vs. Estimated Availability
- Placement Goals
Each report is detailed further below.
- Goal Attainment
- Applicant Detail by Race and Gender
- Personnel Action Summaries – New Hires Summary by Job Group
- Personnel Action Summaries – Promotions Summary from/within Job Group
- Personnel Action Summaries – Terminations Summary by Job Group
4. What is the Organizational Profile?
The Organizational Profile is a depiction of the staffing pattern within an establishment. It is one method contractors use to determine whether barriers to equal employment exist in their organizations. The profile provides an overview of the workforce at the establishment that may assist in identifying organizational units where minorities or females may have goals or be concentrated. The contractor must use either the Workforce Analysis or the Organizational Display as its organizational profile.
5. What is the Workforce Analysis?
The Workforce Analysis shows employment numbers in each department broken down by race and gender. This report serves as a tool to help organizations determine if people are employed across departments and job levels without regard to race, ethnicity and gender. A review of this report allows an organization to determine if there is a concentration or segregation of minorities and women within certain departments, divisions or other significant management units.
Departments in the Workforce Analysis should print in hierarchical order, and the jobs within each department should print from lowest to highest. Also included with this report is a list of annotated employees (if applicable). For further information on annotated employees, please refer to the question "What is an Annotated Employee?”
6. How do I read the Workforce Analysis Report?
The Workforce Analysis report lists each department included in the plan. Within each department, there is a listing of each staffed job in that department. Departments in the Workforce Analysis should appear in hierarchical order, and the jobs within each department should be from lowest to highest. For each job, there are employee totals for that job, broken down by race and gender. Also included with this report is a list of annotated employees (if applicable). For further
information on annotated employees, please refer to the question "What is an Annotated Employee?”
7. What is the Organizational Display Report?
The organizational display report is a detailed text presentation of the contractor’s organizational structure that shows the relationship of each department to the others. It lists all active departments in hierarchical order detailed with the total number of active employees and the racial and gender makeup of those employees followed by the race and gender of supervisors.Included with the organizational display report is the Supervisors by Department report, which is
a list of all supervisors, accompanied by their race and gender codes. Last is a list of annotated employees (if applicable). For further information on annotated employees, please refer to the question "What is an Annotated Employee?”
8. What is a Job Group?
A Job Group includes one job or a group of jobs from the same EEO Category that are similar in content, compensation or opportunity. Similarity in content refers to duties or responsibilities; similarity in opportunity refers to training, promotions, pay, mobility, and other enhancement opportunities. Job groups are the fundamental unit of analysis in an AAP. Reports such as the Job Group Analysis, Availability Factor Computation, Incumbency vs. Estimated Availability, Goals, Adverse Impact Analysis, and Goal Attainment are organized by
9. How do I read the Job Group Analysis Report?
The Job Group Analysis is the first step in contractor’s comparison in the representation of minorities and women in its workforce with the estimated availability of minorities and women able to be employed. The report shows employment numbers and percentages broken out by minorities and females, job title, and job group. Also included with this report is a list of annotated employees (if applicable). For further information on annotated employees, please refer to the question "What is an Annotated Employee?”
10. What is an Annotated Employee?
Simply, an annotated employee is an employee who reports to a different plan than the one in which they work. Employees who work at an establishment other than that of their manager must be annotated and included in the AAP of their manager, and employees for whom selection decisions are made at a higher level of the organization must be annotated and included in the AAP where the selection decisions are made. Employees that work in locations with less than 50 employees may be reported in three ways: in an AAP for that establishment, annotated in an AAP that handles the HR function, or annotated in the AAP of the official to whom the small location ultimately reports.
When employees are marked as reporting into a plan they will be included in all reports related to the active employee roster, including the Job Group Analysis report, the Workforce Analysis and Organizational Display, and the annotated employee list, if applicable. When employees are marked as reporting out of a plan, they are excluded from all reports except the annotated employee report.
As an example, manufacturing plant managers may report to a regional manager at another location. In the plan for their physical location, the plant managers will be annotated as reporting out and will only be included in the Annotated Employee Reports Out list that accompany the Job Group Analysis, Workforce Analysis and Organizational Display. In the regional manager's location, the plant managers will be annotated as reporting into the plan, counted as an employee of that plan, and therefore included in the Job Group Analysis, Workforce Analysis, Organizational Display and listed as Reports In for the annotated employee reports that accompany them.
11. How do I read the Annotated Employee Report?
When viewing the report there are up to three sections marked Reports In, Reports Out, and Within Plan – Different Work Location. The Work Location is the physical work location of the employee, and the Report Location is the plan to which the employee reports.
12. What is the Availability Analysis?
Availability is an estimate, expressed as a percentage, of the number of qualified minorities and women available for employment in a particular job group. It serves as a benchmark against which the composition of the contractor’s workforce can be compared in order to determine whether barriers to equal employment opportunity exist in each job group. The availability analysis considers two factors: 1) internal and 2) external. It is from the external and internal factors that the representation of people available to perform the work in each job group is
13. How is Internal Availability Determined?
One or more internal factors reflect the opportunity for the organization to train, transfer, and promote people from within the organization. Feeder jobs are used to determine the percentage of a protected class available for employment opportunities within a particular job group at the organization. Feeder jobs are identified as positions that provide a normal promotion path into each job group. While feeder jobs can be identified manually, the identification should be based
upon past promotion activity or upon a reasonable expectation of future promotion activity.
For example, it is reasonable to assume that jobs in a mid-level manager job group can promote into a top-level manager group, even if no actual promotions occurred during the past year. Each job group will have different feeders and some job groups will have no feeders at all. If a job group has no feeders, only external availability will count towards total availability of people who can perform work within the group.
14. How is External Availability Determined?
One or more external factors reflect the opportunity for the organization to bring in new employees from outside the organization. One factor used is the percentage of minorities and women with the requisite skills in a reasonable recruitment area. Data for external availability typically comes from the US Census Bureau.
15. How are Internal Feeder and External Census Data Combined?
Once the appropriate census data and feeder job/promotion statistics have been identified, external and internal availability are combined by considering the relative importance of each factor and by assigning appropriate factor weights. In the weighting procedure, a total weight of 100% is divided between internal and external availability factors. For example, if 80% of the entrants to the job group are promoted from other job groups, then the weight on the internal factor should be 80%. This leaves 20% weight for the external factor. The overall "availability” for the group is determined by adding the two weighted percentages (external and internal) together.
16. How do I read the Incumbency vs. Estimated Availability Report?
The Incumbency vs. Estimated Availability report shows the employment and availability percentages for each job group and shows whether a placement goal is required. The Placement Goal? Min/Fem column answers the question of whether a placement goal is set for each group.
A second report entitled Significance of Incumbency vs. Estimated Availability is also included. This report allows the organization to determine if the differences between employment and availability are statistically significant. The areas that are significant require the closet attention when implementing plans to address areas of goals.
17. How are Placement Goals Determined?
The percentages of minorities and females employed within the organization are compared to availability percentages in the Incumbency vs. Estimated Availability report. When the percentage of minorities or women employed in a particular job group is less than would be reasonably expected given their availability in that particular job group, the contractor must establish a placement goal. There are four different rules that can be used. They are as follows:
- Any Difference Rule - A goal is set when availability exceeds employment by any difference. Selecting this method results in the greatest number of goals and represents a clear statement of good faith, but often results in a large number of goals for an organization.
- Whole Person Rule - A goal is set when availability exceeds employment by at least one whole person. Selecting this method typically results in goals that are considered practical and reasonable since it is impossible to hire or promote part of a person. From an implementation point of view, this rule makes the most sense to managers and is easiest to communicate.
- Eighty Percent Rule - A goal is set when employment is less than 80% of
availability, which usually results in practical and reasonable goals.Compared to the Whole Person Rule, selecting this rule will result in a greater number of goals when job group employment and/or availability numbers are small, and fewer goals when job group employment and/or availability numbers are large.
18. How do I read the Placement Goals Report?
- Significant Difference Rule - A goal is set when availability exceeds employment by two or more standard deviations. Often favored by legal counsel, this rule is the easiest to meet and results in the fewest number of goals.
Placement goals serve as targets or objectives reasonably attainable by applying good faith efforts to recruiting practices. This number is not a quota. In all employment decisions, selections must be made in a non-discriminatory manner. The idea is that the company will make efforts to expand the pool of candidates by reaching out to areas that may have been previously overlooked and by doing so will increase the number of qualified minorities and women who are eligible for
employment with the company. The percentage next to the job group is a placement rate goal equal to the availability for that job group. If numbers do not appear under any of the columns, there are no goals for the plan year.
19. What is the Goal Attainment Report?
The Goal Attainment report shows the progress made toward meeting each of the goals set in the prior year’s AAP. For each goal, the number of protected class and total entrants to the job are listed. Entrants are external hires or promotions resulting in changing job groups. The percentage of protected class entrants is compared to the goal percentage to determine if the goal is met. Goals are achieved if the protected class entrance rate is within one person of exceeding the goal percentage. A result of limited opportunity occurs when the number of job opportunities multiplied by the goal percentage results in less than one whole person.
20. What are the Adverse Impact Analyses Reports?
Adverse Impact Analyses reports examines personnel activity that occurred last year and compares the personnel actions of the protected groups versus the non-protected groups to identify if there is adverse impact. Selection rates are the number of actions (hires, promotions, transfers and terminations) divided by the number of incumbents (or applicants). Adverse impact is declared when the protected class selection rate is less than 80% of the non-protected class rate.
For negative actions such as terminations, the formula is reversed and adverse impact is declared when the non-protected class selection rate is less than 80% of the protected class rate. There are four reports that we include in our AAPs that relate to adverse impact. Each report is generated
for each personnel action (PA) that is submitted.
- PA Detail – The detail report lists by job group, the number of selections and incumbents (applicants) for each protected class. For most of the personnel actions, this report shows race and gender on the same report, but for applicants they are separated. This is due to the fact that there may be some applicants where race is known but gender is not, or vice versa.
- Adverse Impact Summary for PA – This report summarizes the adverse impact information. It shows the selection rate, a Yes or No if there is adverse impact and a Yes or No if it is statistically significant.
- Adverse Impact Detail for PA – This report shows more detailed adverse impact information. It shows the selection rate, a Yes or No if there is adverse impact, the statistical value, and if there was adverse impact it will show the swap (or sub) and the adjusted rate. The statistical value uses the standard deviation test for groups over 30 and the Fisher’s Exact test for groups fewer than 30 to determine significance. The swap shows how many protected class selections would have been needed to replace non-protected selections to avoid having adverse impact. The adjusted rate with the swap shows what the selection rate would have been if the swap was made. The sub shows how many less protected class selections would have to been made to avoid having adverse impact. The adjusted rate with the sub shows
what the selection rate would have been if the subtractions were made.
21. What are the Personnel Action Summaries Reports?
- Adverse Impact Summary with Shortfall for PA – This report shows the selection rate, a Yes or No if there is adverse impact and the shortfall. Shortfall numbers indicate the expected number of additional protected class member selections if all groups had been selected at the same rate. A value of zero indicates a shortfall of less than one whole person. This report is
important in the OFCCP’s focus on systemic discrimination, as they have indicated that they will research any shortfalls of ten or greater.
These reports show the number of personnel actions (applicants, hires, promotions, transfers, terminations, or other actions) broken down by total employees, minorities, females, job group and EEO category.
22. What is the Requisite Skills Computations Report?
The Requisite Skills Computations Report shows the weighted average calculation used to determine raw statistics for factor 1 - external availability. For each job group, the individual job titles are listed along with the census code to which they were matched. The census data is multiplied by the weight within the job group (determined by the number of employees in the job), and the weighted census data is added to determine the final numbers for external availability.
23. What is the Feeder Job Computation Report?
The Feeder Job Computation Report shows the calculation used to determine the raw statistics for factor 2 - internal availability. For each job group, the individual job titles identified as feeders to that group are listed along with the employment numbers by protected class. A weight is assigned to each feeder job. This number is multiplied by the number of protected class members currently staffed in the feeder job divided by the total number of employees currently staffed in the job.
The sum of all feeder jobs for a job group is the internal availability raw statistic for that group.
24. What is the Share of Opportunities Report?
The Share of Opportunities report shares a similar format to the Goal Attainment report. However, statistics are listed for all protected classes in all job groups regardless of whether a goal was set in the prior year’s AAP. This report not only shows whether last year’s goals are being met, but also allows the organization to identify possible future problem areas. Even though a placement goal may not currently exist for a job group, it may be present in the future if the protected class entrance rate is consistently less than the availability percentage.
25. What is the Number of Persons to be Fully Required Report?
The Number of Persons Required to be Fully Utilized report shows the number of employees required to correct any under representation by race or gender. Unlike the Incumbency vs. Estimated Availability, which shows the employment and availability in percentages, the Shortage report shows the exact number of employees to be fully utilized. The Persons Required column shows how many protected class employees (if any) would need to be added to correct the underutilization. The Persons Required column takes into account the utilization rule being used.
Thank you for the privilege to serve you while completing your AAP.
While we have tried to outline the most common questions about our plans in this document, if you have questions regarding your reports
or implementation of your AAP, please contact us.