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1 Introduction to Applicant Tracking Systems Copyright 2009, Biddle Consulting Group Institute All Rights Reserved Copyright BCG Institute 1 Visit BCGi Online While you are waiting for the webinar to begin: Don t forget to check out our other training opportunities through the BCGi website. Join our online learning community by signing up (its free) and we will notify you of our upcoming free training events as well as other information of value to the HR community. Copyright BCG Institute 2 1

2 HRCI Credit BCG is an HRCI Preferred Provider CE Credits are available for attending this webinar Only those who remain with us for at least 80% of the webinar will be eligible to receive the HRCI training completion form for CE submission Copyright BCG Institute 3 About Our Sponsor: BCG Assisted hundreds of clients with cases involving Equal Employment Opportunity (EEO) / Affirmative Action (AA) (both plaintiff and defense) EEO Litigation Support / OFCCP (federal contracting) Audit Support Compensation Analyses / Test Development and Validation Published: Adverse Impact and Test Validation, 2 nd Ed., as a practical guide for HR professionals Editor and Publisher: EEO Insight an industry e-journal Creator and publisher of a variety of productivity Software/Web Tools: OPAC (Administrative Skills Testing) CritiCall (9-1-1 Dispatcher Testing) AutoAAP (Affirmative Action Software and Services) C 4 (Contact Center Employee Testing) Encounter (Video Situational Judgment Test) Adverse Impact Toolkit (free online at AutoGOJA (Automated Guidelines Oriented Job Analysis ) Industry Leader Copyright BCG Institute 4 2

3 Patrick Nooren, Ph.D. Jim Higgins, Ed.D. Biddle Consulting Group, Inc. 193 Blue Ravine, Ste. 270 Folsom, CA Copyright BCG Institute 5 Questions? Should you have any questions during the webinar you have two options: 1. Send an to and we will try to answer it during the webinar. 2. Ask a question through the GoToMeeting screen console and we will try to address it at the end of the webinar. Should you have any questions regarding OFCCP Audits, Testing and Selection, or Statistical Analysis, visit: Copyright BCG Institute 6 3

4 Presentation Overview What is an Applicant Tracking System (ATS) Defensibility, Fairness, Productivity Why is an Applicant Tracking System Important Disposition Codes A Sample Applicant Tracking System Implications for Employers Copyright BCG Institute 7 What is an ATS? An ATS is very similar to a Human Resource Information System (HRIS) It is an electronic system designed to support an employer s recruitment and selection processes as well as collect and retain all necessary data When implemented correctly, an ATS can help to automate/standardize much of the recruitment process Copyright BCG Institute 8 4

5 What is an ATS? Recruitment Application Assessment (Written/Oral) Qualification Screening Hired Not Hired Copyright BCG Institute 9 Why is an ATS Important? 1. Support HR/Recruitment in the Selection Process 2. Store Applicant Data 3. EEO Compliance Copyright BCG Institute 10 5

6 Why is an ATS Important? 95+% of the OFCCP s financial remedies are based on adverse impact in hiring Most prevalent issues in conciliation agreements are applicant tracking/recordkeeping and adverse impact in the hiring process Both issues are related to the accurate collection and analysis of applicant data. Why do they appear so often in conciliation agreements? Because it is not easy! Copyright BCG Institute 11 Support the Selection Process A well-designed ATS will be a repository for all applicants Allows recruiters/staffing to effectively filter applicants to determine who to consider, who to interview, and eventually who to hire Reduces the amount of time necessary to obtain important information Standardizes the application tracking process across the entire organization Can be used to correspond with applicants External Databases (e.g. Monster) ATS External Applicants (e.g., via website) Internal Databases Copyright BCG Institute 12 6

7 Store Applicant Data Key Fields (e.g., Gender, Race, Requisition, etc.) Data for Analyses (e.g., AAP, Adverse Impact) Linkages to Other Data (e.g., Performance) Reports (e.g., EEO-1, Diversity) Copyright BCG Institute 13 EEO Compliance: Adverse Impact Analyses Title VII of 1964/ Civil Rights Act An unlawful employment practice based on disparate impact is established under this title only if: A(i) a complaining party demonstrates that a respondent uses a particular employment practice that causes a disparate impact... **OFCCP Insight** The OFCCP has every right to investigate the individual practices, procedures, and tests contractors use to screen applicants. However, due to resource constraints they will not typically do so unless there is adverse impact in the overall hiring process. Overall adverse impact has become the red-flag used to identify where/when to investigate further. Copyright BCG Institute 14 7

8 EEO Compliance 1. Applications Submitted Census Hiring Process Data 2. Application Review Applicant Pool 3. Invitation ti to Interview 4. Interview 5. Offer/Hire Q1: How would you conduct an overall analysis? Q2: How many steps are there in the process (subject to AI)? Q3: How would you analyze the BQ s for AI? Q4: How would you analyze the pool of applications received (i.e., is the pool tainted )? Copyright BCG Institute 15 Disposition Codes At the heart of a well-developed ATS are disposition codes. A disposition code is a device that identifies ALL specific decisions or actions that have been taken relative to an Applicant. 1. Application Received 2. Qualification Review 3. Written Test 4. Invitation to Interview 5. Interview Considered for a Specific Position Not Considered for a Specific Position Pass Basic Qualifications Fail Basic Qualifications Pass Written Test Fail Written Test Invited to Interview Not invited to Interview Passed Interview Failed Interview 6. Post-Offer Assessments Passed P/O Assessments Failed P/O Assessments Copyright BCG Institute 16 8

9 Will one set of disposition codes suffice? Job #1: General Job #2: Above-Entry Job #3: Entry-Level 1. Application Screening 1. Application Screening 1. Application Screening 2. Written Test 2. Written Test 2. Data Mgmt Technique 3. Selection for Interview 3. Selection for Interview #1 3. Interview 4. Interview 4. Interview #1 4. Post-Offer Assessments 5. Post-Offer Assessments 5. Selection for Interview #2 5. Hire 6. Hire 6. Interview #2 7. Post-Offer Assessments 8. Hire How would you analyze the written test for impact if jobs 1 and 3 are combined? What if all jobs were forced to use the same codes? Copyright BCG Institute 17 Sample Disposition Codes 1. Not an Applicant a) Did not complete online application process b) Lied on application c) Not considered for a specific position d) Not considered for a specific position - DMT 2. Failed Basic Qualification Screening a) Age b) Licenses (ex. CDL) c) Lifting (ex. 50lbs.) d) Education (ex. Bachelor s) 3. Not Interested a) Shift b) Location c) Salary d) Hours 4. Invited to Take Written Test No Show 5. Invited to Take Written Test Unable to Contact This is just a starting point the disposition codes MUST match your organization s selection processes! 9

10 Sample Disposition Codes (cont.) 6. Failed Written Test 7. Passed Written Test Forwarded to Specific Requisition 8. Not Selected for Interview 9. Invited for Interview No Show 10.Invited for Interview Unable to Contact 11. Failed Interview 12.Offer of Employment Declined 13.Offer Accepted Failed Drug Test 14.Offer Accepted Failed Medical 15.Offer Accepted Failed Background 16.Offer Accepted No Show 17. Offer Accepted Hired IMPORTANT: It is highly recommended that hiring managers be required to use a pulldown of articulated legitimate non-discriminatory reasons for non-advancement in the process. Legal Implications For Employers 1. Lack of recordkeeping and documentation is the number one issue in conciliation agreements 2. The OFCCP s primary focus is adverse impact in the hiring process (which is intimately tied to the ATS) 3. An inability to analyze the steps in the selection process leaves an employer vulnerable and unable to rebut overall adverse impact 4. Adverse impact in hiring leads to millions of dollars in make-whole relief by the OFCCP 5. Irrespective of the OFCCP, tracking this information is required by law and can leave employers vulnerable to Title VII claims (where the serious damage can occur) Copyright BCG Institute 20 10

11 Practical Implications For Employers 1. A well-designed ATS is critical to understanding the success of a company s diversity initiatives 2. A well-designed ATS will allow employer s to pinpoint barriers in the selection process 3. An ATS can help to control applicant flow 4. An ATS contains personal and confidential data - steps must be taken to secure the data against unauthorized access 5. Consider the ways the ATS may link with and interact with other components of the company s HRIS Copyright BCG Institute 21 A Sample Selection Process External Applica ants BQ Screening Pre-Screened Applicant Pool (General, noncomparative BQs ONLY! Hire Copyright BCG Institute 22 11

12 Additional Questions? Validation Statistics Audit Support Copyright BCG Institute 23 12

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