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The Advantage

April 2002

Volume 14, No. 4, April, 2002
Employee Management Consulting, Training and Support Newsletter

The Management Advantage, Inc.
P.O. Box 3708, Walnut Creek, CA 94598
(925) 671-0404 - FAX: (925) 825-3930

Please Note: The Advantage is published quarterly for the benefit of our clients and friends. The information contained herein has been abridged from numerous sources and should not be construed as legal advice or opinion, and it is not a substitute for the advice of counsel.

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Click here to go to Profiles in Diversity Journal

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How Do We Compute a 2-Factor Analysis for Our AAP?

By William H. Truesdell, SPHR

For over 20 years, this part of the process was referred to as the 8-factor Analysis. It was mis-named because most contractors only used two or three of the factors in their final computation of availabilities. With the regulation changes made effective 12/13/2000, the government has yielded to the practical nature of the exercise and now only requires contractors to consider those sources actually used in recruiting job candidates.

Calculating availability is the way to establish a benchmark of "qualified, available candidates" for each job group. Against this benchmark we can measure our own job group make up.

Job Group Analysis gives us the demographic picture of actual minority and female representation in our workforce, expressed as a HORIZONTAL SLICE of the organization. We isolate job groups by function.

Once we know what our actual workforce looks like in each job group, and we have computed the availability of qualified candidates, we can measure how close we are to that availability. Measuring that distance is expressed in affirmative action terms as our "Utilization."

So, we need to create our benchmarks for each job group. The "stake in the ground" from which we can measure our own accomplishments at influencing the sex and ethnic composition of our job groups.

Explanation of Factors Specified in Regulations

Factor 1: Percentage of minorities and women among those having requisite skills in reasonable recruiting labor area.

Here, we are going to identify the quantity of people in our recruiting territory who have the skills and qualifications for the type of work done in this Job Group. This is based on another presumption, but an important one. The presumption is this: If you were counted as performing a given job when the Census was taken, you are presumed qualified for that job. Theoretically, if you are not qualified for the job you hold, you should not be in that job.

To find the data I need, I will scan the list of 512 occupational categories looking for one which approximates the content of the Job Group I am working on at the moment. If my Job Group is a composite of titles that can best be described as an entire EEO category, then I should look for Census data which has been summarized by EEO category.

If my job group has job titles in it that are representative of quite varied duties and responsibilities, the regulations require that I use data for each job group and compute a weighted sum for those sources.

In addition to Census data, your external sources might include:

  • College or University demographics for graduating specialists you recruit
  • Union demographics for qualified people you must hire through union sources
  • State employment agency data for those qualified in the job group work
  • Trade school demographics for graduates in the specialties you seek (e.g., culinary specialists, carpenters, welders, truck drivers, artists, etc.)

Since the regulations say we must enter data for each job title if possible, we must understand how to weight that data and derive a composite demographic for qualified workforce in each Job Group. Here's an example:

Weighting Multiple External Feeder Groups into Factor 1

Feeder
Group
Total Black Hispanic Asian AI/AN Female
Step1: Identify Individual Job Title Demographics
Human Resource Managers
(008 Personnel & Labor Rel Mgrs) 972 66 64 58 14 500
% 100 6.8 6.6 6.0 1.4 51.4
Accounting Managers
(007 Financial Managers) 4463 171 198 481 20 2112
% 100 3.8 4.4 10.8 0.5 47.3
Step 2: Compute Individual Job Title Contribution to Total Feeder Group
Total population of combined supply is 5435 people. Compute percentage of each category based on this total of 5435.
Human Resource Managers 972/5435 66/5435 64/5435 58/5435 14/5435 500/5435
% Contribution 17.9 1.2 1.2 1.1 0.3 9.2
Accounting Managers 4463/5435 171/5435 198/5435 481/5435 20/5435 2112/5435
% Contribution 82.1 3.1 3.6 8.9 0.4 38.9
Step 3: Add Individual Job Title Contributions to Determine Total Demographics
Human Resource Managers 17.9 1.2 1.2 1.1 0.3 9.2
Accounting Managers 82.1 3.1 3.6 8.9 0.4 38.9
Total Source Group % 100 4.3 4.8 10.0 0.7 48.1

* Data comes from Census data for these job titles. We are using Contra Costa County as the recruiting territory in our example.

The "Total Job Group %" is what we would enter into our Availability Factor Analysis Form on the line for Factor 1 in the "Raw Data" columns.

Factor 2: Percentage of minorities and women among those promotable, transferable or trainable within the facility.

Census data won't help us here. This is an internal supply - promotable, transferable or trainable from within the facility. Well, how do we know who is transferable, promotable or trainable...as a group?

The most reliable way to determine these internal "feeder groups" is to look at our most recent year's experience in movement of people into this Job Group. That is on our Promotions and Transfers Log, right? Look at the P/T Log and determine how many people moved into this Job Group during the most recent twelve months.

Then identify what Job Groups they came from. You may find, for example, if you have Junior Clerical and Senior Clerical Job Groups, that Junior Clerical is a feeder group for Senior Clerical. Those are logical kinds of feeder group flows one might expect to find. What is not always obvious, however, are the feeder arrangements between Professionals and Officials and Managers or Technicians and Officials and Managers. Other inter-EEO category feeder relationships may exist which are not immediately obvious until you examine the P/T Log data.

We should also consider apprenticeship programs, classes of trainees and any other formal training program demographic.

What happens if you have more than one feeder group supplying candidates to the current Job Group? Well, you identify each feeder Job Group and then weight its contribution to the total of the internal candidate supply. Here is an example:

Weighting Multiple External Feeder Groups into Factor 2

Job
Group
Total Black Hispanic Asian AI/AN Female
Step1: Identify Individual Job Group Demographics
Source Job Group ?A? 40 3 5 2 1 30
% 100 7.5 12.5 5.0 2.5 75.0
Apprenticeship Program
50 4 8 2 2 30
% 100 8.0 16.0 4.0 4.0 60.0
Step 2: Compute Individual Job Group Contribution to Total Feeder Group
Total population of combined supply is 90 people. Compute percentage of each category based on this total of 90.
Source Job Group ?A? 40/90 3/90 5/90 2/90 1/90 30/90
% Contribution 44.4 3.3 5.6 2.2 1.1 33.3
Apprenticeship Program 50/90 4/90 8/90 2/90 2/90 30/90
% Contribution 55.6 4.4 8.9 2.2 2.2 33.3
Step 3: Add Individual Job Group Contributions to Determine Total Group Demographics
Group "A" Contribution 44.4 3.3 5.6 2.2 1.1 33.3
Apprenticeship Program 55.6 4.4 8.9 2.2 2.2 33.3
Total Source Group % 100 7.7 14.5 4.4 3.3 66.7

* Data comes from Job Group Analysis profiles already completed for this establishment and from the demographic data that represents makeup of our apprenticeship program.

The "Total Source Group %" is what we would enter into our Availability Factor Analysis Form on the line for Factor 2 in the "Raw Data" columns.

Availability Analysis Form

Assembling All the Pieces You Need

If you have ever baked a cake from scratch, you know the easiest approach is to first get all the ingredients you need spread out on the counter within easy reach. When you start to mix things up, you won't have to waste time and risk spoiling the batter by stopping every few minutes to fetch another ingredient. Having everything handy to your work area is the smart way to bake.

Completing Availability Factor Forms is much the same as baking a cake. It is important to have each of the multiple ingredients within easy reach as you get ready to start filling in the form. It makes no more sense to start Availability computations without a vital piece of data than it would to start mixing cake batter without having the flour you need.

Assemble all the raw data you need before you begin.

Data Needed for Availability Computations

  • Census Data - EEO File for Each Recruiting Geography
  • Job Group Analysis forms for this establishment
  • Promotion and Transfer Logs from previous year
  • Hew Hire Logs from previous year
  • Sex/Ethnic Demographics of Training Institutions used as supplier of candidates for any Job Group
  • Sex/Ethnic Demographics of Internship or Apprenticeship groups which supply candidates to any Job Group

Materials Needed for Availability Computations

  • Supply of blank Availability Factor Forms
  • Supply of pencils
  • Pencil sharpener
  • Large eraser
  • Calculator with fresh batteries
  • Scratch paper

Once you have assembled all you need at your desk, arrange for some uninterrupted time. As you will see, there is nothing mysterious about Availability calculations. They are detailed, however. And, you will be involved in multiple arithmetic calculations for several hours if you are doing Availability for more than one or two Job Groups. You need some quiet time so you can concentrate. If you can't get it, be very careful about how you complete your Availability forms. Errors are VERY EASY to make.

If you are not used to working on spreadsheets or long strings of calculations, give yourself permission to get up from the desk and stretch periodically so you can clear your head. It won't take long to feel like you are tired of "number crunching." When that feeling hits you, take a break. Walk around the office for a while or go out for some fresh air. Do anything you can to allow your head to clear. Then go back and hit it again. You will make fewer mistakes if you give yourself these short periods of recovery.

I have heard some people say that Availability Analysis is so complex that they are the only ones in their entire organization who can understand how to do it. That sounds a lot like job security positioning to me.

-------------- Excerpted from Secrets of Affirmative Action Compliance - 5th Edition, Chapter 7. An invaluable aid to anyone involved in preparing or implementing affirmative action plans. Get your copy at the HR Web Store at HR Web Store - AAP Book.

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Spotting Phony Resume Cover Letters

By Wayne D. Ford, Ph.D.

"Just the Type of Job I'm Looking For"

Cover letters are often used as a method of "customizing" the application to fit a certain position offering. Resumes and cover letters are often rewritten for a certain job, and that's OK, but it is not OK to falsify information while doing it. An applicant cannot and should not try to write an autobiography, so only a very small number of the literally thousands of experiences a person has had in a lifetime can be listed. Listing different ones for different jobs is actually quite reasonable as long as all on the list are true.

Cover letters can be used to explain things which could not logically be included in a resume such as why the applicant is interested in your job opening; an explanation of why certain things in the resume may look illogical; that the applicant may live in a different town but is re-locating to the city the job is in; and much more of a specific nature to this job. A cover letter can demonstrate your applicant's passion the applicant for this type of work. A list of reasons can be included for hiring the applicant. Special circumstances can be reviewed in great detail which make a strong case for hiring the applicant. A cover letter personalizes the process as a communication from the applicant to the hiring manager. It fills in the gaps a resume may leave due to its structure and format. It fulfills the required protocol of many organizations and individuals. The "naked" resume seems to say the applicant either does not care about the position or is sending out great numbers of resumes without regard for the individual job offered.

What Should Make You Suspect False Information in a Cover Letter

One of the most common application formats is a combination of the standard resume and a custom cover letter. The problem with many of the more desperate but less than honest applicants is that they will say almost anything in the cover letter regardless of what the resume contains. These are often easy to spot; and sometimes so clumsy, they are quite humorous. However, the humor quickly fades when you consider that the applicant is trying to defraud you.

Closely compare the facts, dates, and details of the cover letter and resume. If the job announcement or ad asks for five years of experience, and the cover letter claims five years of experience, does the resume reflect this? If it only shows two years, and in a slightly different position, be suspicious.

If the cover letter states how much the applicant has always wanted to be (whatever the job is), and this is the great opportunity, look for any previous jobs, education, courses or other preparation that would back up that claim. Some applicants claim on every cover letter that this position is exactly what they have looked for their entire lives. Look for proof, either in the cover letter or the resume. Wilder claims tend to be made in a cover letter than in the resume. Check the facts in the letter just as closely as you do anything in an application form, resume, or qualifications brief.

----------------- Excerpted from How to Spot a Phony Resume - 2nd Edition by Wayne D. Ford, Ph.D. You can get your copy of this valuable reference at the HR Web Store by going to HR Web Store - How to Spot a Phony Resume.

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Doing Background Checks? Watch Out!

As of January 1, 2002, California employers are required to give copies of all third-party investigations to the subject employee or applicant. Employers must also give written notice to employees or applicants who are to be the subjects of a background check. (Cal. Civil Code §1786)

This new requirement comes to us from amendments made by the California Legislature to the state's Investigative Consumer Reporting Agencies Act (ICRA). Much like the federal Fair Credit Reporting Act (FCRA), it too, requires employers to give notice of any investigation conducted by a third-party. For example, if the employer hires a consultant or attorney to prepare a background verification report on the two finalists in a job placement process, each of those individuals would have to be given written notice in advance of the investigation and a complete copy of the final report submitted by the contractor to the employer.

Legislators say that the reasoning behind this move is to reduce the risk of identity theft.

What about in-house investigations? Federal rules don't interfere with employers doing their own investigations. However, California now requires that copies of information and reports developed during investigations conducted by employers must also be given to the individual being investigated.

The Legislature is hoping that this new requirement to provide copies of all investigative reports to employees and applicants will help them discover if someone else has assumed their identity.

Technically, the new requirements apply to "investigative consumer reports." These are defined in the context of ICRA as including criminal records checks, bankruptcy filings, and employment verification checks.

So. What happens if I just ignore the new requirements and keep on doing the background checks "under the table," as it were? Well, here's the deal...

Failure to comply with the California requirement will cost $10,000. That is, of course, in addition to the $25,000 penalty that can be assessed on a consumer reporting agency the employer hires to conduct the investigation. Punitive damages are also possible if a court decides the violation was willful or grossly negligent. Multiply the number of job applicants you see each year by these numbers and you have the potential financial impact of this new law on your organization.

What is an employer to do?

Well, you can just stop doing background checks, but we don't recommend that course of action. Employers are sort of caught between a rock and a hard spot because failure to do background checks can lead to negligent hiring lawsuits when the new employee injures someone in the course of their work. Doing background checks, and not properly informing employees and applicants, can cost multiples of $10,000.

Here are some suggestions:

First: Notify any consumer reporting agency, employment agency, or background checking firm you have working for you that there is a new requirement in California. (They should already know this. If they don't, you might consider using someone else.) Tell them that they must deliver to you a complete written report of their findings for every investigation and that you will be providing a copy of that report to the employee or applicant in each case.

Second: Prepare a written authorization form you can have employees and applicants sign when you must conduct an investigation or background check. Get help from your management/labor attorney to be sure it meets all requirements.

Third: Be sure you maintain accurate records of all investigations and that you archive files for at least two years. Each file should have a notation about the date when you provided the individual with a copy of the investigation or background check report.

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A Gentle Word on Behalf of Our Business

When you need help developing your affirmative action program, give us a call. We specialize in AAP development, implementation training and compliance review support for clients all over the country. Find out more about our AAP development service by looking at our sample agreement and other information. You will find it all at http://www.management-advantage.com.

You wouldn't go to an IRS audit alone. Why think about going into a Department of Labor compliance review without professional support? The stakes are just as high either way.

We are ready to give you the support you need.

And while you're at it, think about ordering a copy of our reference and training book on preparing affirmative action plans and managing compliance reviews. You will find it an invaluable resource at a price that just can't be beat.

Secrets of Affirmative Action Compliance, new 5th edition, contains over 480 pages of the latest and current regulation requirements and practical suggestions for your organization. Includes new Federal Regulations. $99.95 plus $7. shipping/handling and CA sales tax for CA destinations. Credit Card Orders ... Call Toll Free:

1-888-671-0404

We can help with your other human resource management needs as well. Think of us the next time you need:

  • Employee Handbooks
  • Management Training in Compliance Issues
  • Affirmative Action Plan Development
  • Affirmative Action Statistical Analysis
  • Disparate Impact Testing for New Hires, Promotions, Transfers, Terminations
  • Expert Witness
  • Books, Software or Other Support Materials for HR Professionals

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or simply give us a call and tell us in person. Our office number is 925-671-0404. We appreciate your feedback.

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