Focus of recent Compliance Reviews. 1. Outreach with Documentation 2. Applicant Tracking 3. Understanding & Confidence with Compensation System
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4 Focus of recent Compliance Reviews 1. Outreach with Documentation 2. Applicant Tracking 3. Understanding & Confidence with Compensation System
5 Outreach with Documentation Kentucky OFCCP Louisville KY Office Going into Review
6 Outreach with Documentation Kentucky OFCCP Louisville KY Office
7 Outreach with Documentation Kentucky OFCCP Louisville KY Office OFCCP requested documentation of LOCAL outreach other than National Job Postings RESULT 2 Year Conciliation Agreement OFCCP provided list of Outreach places for reporting Also had to provide documented proof of EEO Training for Managers & Supervisors
8 Outreach with Documentation Mississippi OFCCP Jackson MS Office
9 Outreach with Documentation Mississippi OFCCP Jackson MS Office Outside vendor s documentation for state posting did not match state records NO RECORD OF STATE POSTING in 2yrs
10 Outreach with Documentation Mississippi OFCCP Jackson MS Office RESULT 2 Year Conciliation Agreement
11 Outreach with Documentation Mississippi OFCCP Jackson MS Office 2 YEARS : 2 : 28 After the acceptance of FINAL Conciliation Agreement Report Compliance Review Letter received
12 Lessons Learned Don t take Chances The Contractor is always liable not the outside vendor Document all communications with state offices & outreach organizations to include, but not be limited to, s and postings Focus of Outreach should not just be on underutilization. Take the approach that Diversity is NO LONGER BLACK & WHITE.
13 Applicant Tracking South Carolina OFCCP Columbia SC Office Going into Review:
14 Applicant Tracking South Carolina OFCCP Columbia SC Office Great Excuse: The intern had mistakenly purged records of Applicant Tracking System for review period Because giving an intern full administrative access to our ATS is how we conduct business!
15 Applicant Tracking South Carolina OFCCP Columbia SC Office Because no record of Disposition Codes, and no written process on Applicant Tracking (especially for recruiters & hiring managers), limited resources forced organization to hire another company to go through 27k applicants & resumes and assign dispositions. RESULT Ongoing Investigation After two years, attorney fees alone have exceeded $150k
16 Applicant Tracking Pennsylvania OFCCP Pittsburgh PA Office Going into Review:
17 Applicant Tracking Pennsylvania OFCCP Pittsburgh PA Office OFCCP Requests: Provide individual flow logs separating applicants by job groups. If multiple requisitions in a job group, provide job titles for each position to include posted job descriptions. Provide documentation of recruitment efforts for vacancies in each job group for each job filled through external hires specifically those for female & minority applicants.
18 Applicant Tracking Pennsylvania OFCCP Pittsburgh PA Office Audit lasted 8 long months (bi-weekly comm.) For each of the 50 jobs where we made a hire (60 HIRES), we had to provide documentation showing that each posting made it to the ESDS & designated outreach for Women, Minorities, Individuals with Disabilities and Veteran organizations Titles on Job Postings MUST match titles on Employee Data Result: Letter of Compliance
19 Lessons Learned Maintain all records Ensure that you have a formal system for documentation Document all communications with ESDS & outreach organizations to include, but not be limited to, screenshots, s and actual job postings. Perform Audits of internal processes to validate that you are collecting required documentation AND that personnel are following recordkeeping requirements.
20 Confidence with Compensation Illinois OFCCP Chicago IL Office Going into Review: NO ADVERSE IMPACT or UNDERUTILIZATION Location was previously audited six years earlier with a Letter of Compliance. Previous audit lasted 3 years. Client had just completed updating Compensation Structure and defining Pay Grades 3 year process
21 Confidence with Compensation Illinois OFCCP Chicago IL Office OFCCP Requests for 450 employees: Provide performance ratings for the last 3 years to include: policy, explanation of rating system and training of personnel on policy. Describe bonuses & eligibility? Variance between employees? Provide Compensation Policy The above was requested in addition to full compensation info
22 Confidence with Compensation Illinois OFCCP Chicago IL Office OFCCP was advised by HM that the time allotted for the request was unreasonable due to resources. Due date extended from two to five weeks. Result: After 1 year & 4 months, Letter of Compliance
23 Confidence with Compensation New York OFCCP New York NY Office NO UNDERUTILIZATION ADVERSE IMPACT IN NEW HIRES FOR MINORITIES ADVERSE IMPACT IN NEW TERMINATIONS FOR WOMEN
24 Confidence with Compensation New York OFCCP New York NY Office After a short review of compensation data, auditor requested a phone conference call with client to discuss compensation structure;. Request was granted after we provided a written compensation policy, pay grade structure with bonus assignments, and market research values.
25 Confidence with Compensation New York OFCCP New York NY Office During phone call, first thing auditor noted was the current earnings per share of client on the Nasdaq and that business was apparently good. After the pause, explained compensation policy as outlined in previously provided documents. Any question that seemed confidential (not in policy), we requested it in writing so that it could go through legal department. Nothing sent in writing No further inquires after call After 9 months of no communication, received Letter of Compliance
26 Lessons Learned Know your Comp! Maintain enough knowledge on compensation policy to be able to explain (verbally), if necessary. Become Confident on pay structure of employees. Review pay structures and conduct compensation analysis to ensure that employees are equally paid for similar work. Start by reviewing Job Titles. If there is a notable pay difference, provide documentation to support and validate pay disparity.
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