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Affirmative Action Plans

What is an Affirmative Action Plan (AAP) and what is required of me that is different from what we were doing? While many companies believe that having an equal employment opportunity statement and policy is sufficient for meeting these requirements, it is not. An AAP is a formal plan that has three components: required text that states that the company does not discriminate on the basis of federally protected statuses (including race, sex, Veteran’s status and disability); a statistical analysis that looks at the company’s current demographic makeup and compares it against recruitment areas in order to set goals for the current year; and the third component looks back at the previous year analyzing hires, promotions, terminations and applicant flow to assure there was no discriminatory patterns taking place.

Being an AAP employer requires you to collect various demographic data for the purpose of complying with the order. It also requires you to gather and report your applicant activity, hires, promotions and terminations. EEO-1 and Vets-100 reporting is necessary each year. While there is no requirement for “quota” hiring, a company must perform the analysis and show that good faith effort has been made to overcome underutilization.

While many of the AAP requirements may seem daunting at first, most companies find that it forces good business process and record keeping. Additionally, the AAP can become a tool for analyzing recruiting trends and assisting with talent management and diversity initiatives. Once a compliant AAP is in place and processes for tracking and reporting, many companies find that it enables them to pursue revenue streams they had ignored before.

Once you determine that you are an AAP employer, what are the next steps you should take:

1. Assure that your current employee data is “clean” – EEO-1 codes reviewed and verified for accuracy; race and gender information collected on current employees. If employees choose to not self-identify, the regulations allow for a visual survey to populate this field on your HRIS.
2. Assure that your HRIS has the ability to report hires, promotions and terminations for a particular time period. Define what a promotion is in your organization and have a way to report it.
3. Develop a self-id form for race and gender voluntary disclosure in your application process. Determine how it will be distributed and tracked.
4. Determine how you will define and track applicants. For most employers, large and small, this is the most burdensome part of the AAP process. Those who are using an electronic Applicant Tracking System (ATS) must define who is an applicant for AAP purposes and have a way to report that subset. For those not collecting applicant data, developing a solution for tracking. Often this is an excel spreadsheet.
5. Once data is clean and collected, prepare the AAP.
6. Train and educate hiring managers and supervisors about the AAP requirements.

Affirmative Action Planning Check List

Federal regulations require that you keep your current year’s Affirmative Action Plan and your previous year’s Affirmative Action plan. Maintain all records for both years. Refer to your company’s records retention and destruction policy for all other previous year plan copies and employment records.

Tactical:

• REVIEW text and assure compliance with stated text.
• REVISE text as needed.
• REVIEW all data utilizing the employee listing to assure race, gender, eeo-1 data is accurate.
• SIGN and DATE all policies.
• POST policy reaffirmation statements each plan year at all sites.
• UPDATE any state and federal EEO postings at each site.
• DOCUMENT any disability accommodations made by the organization.
• POST all jobs with the State job service for each facility.
• ADD Equal Employment Opportunity/Affirmative Action (EEO/AA) tagline to all advertising.
• INCLUDE EEO/AA statement in all purchase orders and contracts.
• COLLECT voluntary race and gender information prior to hire. Do not maintain with the application or the personnel file.
• COLLECT voluntary disability and veteran status post-hire.
• DEFINE applicant within your organization.
• MAINTAIN applicant flow in an electronic format.
• ASSURE all hires are on the applicant flow log. Although some positions will not have multiple applicants (i.e. temp to perm hire), all hires should be on the log for meaningful analysis.
• DEFINE EEO/AA promotion within your organization.
• DEVELOP method for reporting promotional activity.
• REVIEW personnel files to assure that medical information has been separated. Assure that other nonessential documents (i.e. EEO Charges) are not in the personnel file.
• MAINTAIN I-9 records in a separate location.
• AUDIT I-9s to assure completeness and correctness; photocopies of records not required.
• SUBMIT Vets 100 and EEO-1 forms annually by September 30.
• INFORM unions (if applicable) of EEO/AA compliance. Post Beck Notices (if applicable).
• INFORM all recruitment sources of EEO/AA compliance (if not covered by purchase orders and contracts).

Strategic:

• REVIEW areas of underutilization. Develop a meaningful action oriented program to address areas of underutilization. If you’ve got internal minority and female “feeder pools,” develop a strategy for upward mobility. If you don’t have the bench strength in house, or are recruiting entry level, develop an external strategy.
• DOCUMENT all good faith efforts at overcoming underutilization.
• COMMUNICATE areas of underutilization to supervisors/managers.
• DOCUMENT selection processes, for hires and promotions. Should be able to explain the rationale for each selection.
• TRAIN managers and supervisors in EEO/AA regularly.
• TRAIN employees in EEO regularly.
• ANALYZE compensation equity, at least once per year, to assure that people who are in the same job and have equal skill, effort and responsibility, are being paid similarly. All variances should be able to be explained with valid business reasons (i.e. more education, better performance, shift differential, tenure with organization, tenure in field of expertise, etc.).
• CREATE a plan to adjust pay discrepancies.
• DEVELOP a strategy to assure compensation equity upon hire.

Preparing for an audit:

• AVOID requests for an extension unless there is some unique and compelling business reason (i.e. merger, acquisition, migration to new information system). The OFCCP frowns upon extensions and it can increase your chance of an on-site visit. However, if you are in the midst of divestiture, acquisition or merger, the OFCCP is typically sympathetic and will reschedule the audit.
• PROVIDE all requested materials in a timely fashion. However, if you are unsure of the relevance of a request or curious why the auditor is requesting particular information, it’s advisable to question the request. Often times, they don’t understand your organization.
• MEET with managers and supervisors prior to an on-site to communicate expectations.
• PROVIDE reasonable access to records and employees. Sit in with managers/supervisors; employee interviews are held privately.
• DEVELOP rapport with the auditor for honest exchange of information.

AAP's are produced one time per year, and most be updated each subsequent year. The Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) conducts spot checks on contractors to ensure AAP completion and reporting. Establishing an up-to-date and compliant AAP is critical. For more information about EPS’ cost-effective, timesaving, compliance guidance for AAP services and government audits, contact us at eps@EPSpros.com.