METRICS MATTER: MEASURING THE SUCCESS OF YOUR COMPANY’S DIVERSITY EFFORTS

Beth Ronnenburg, SPHR

George Johnston, Esq.

Objectives

The purpose of this session is to help HR and compliance professionals

understand how to measure the success of their diversity initiatives.

We will explore the relationship between affirmative action plans

(AAPs) and diversity initiatives, and how these traditional AAP metrics

can be used to create diversity scorecards and self-audit HR practices

to ensure inclusion.

Inclusion & Fairness

DiversityAwareness

The Diversity Continuum

EEO Compliance/Affirmative Action

• Develop business case for diversity

• Create diversity mission statement

• Broader definition of diversity

• Implement policies and systems to manage EEO, inclusion, and fairness

• Hiring/promotion of women and minorities

• Training

• Workforce & HR assessments

• Ensure compliance with

EEO laws and regulations

• Fair employment practices

• Establish and implement

AAPs

• Compensation equity

• Value and appreciate diversity

• Employee engagement

• High performing individuals and teams

• Leveraging diversity for business success

• Enhance capacity to manage inclusion and fairness

1 2 3

Affirmative Action is…

• Organizations having and abiding by an equal opportunity policy

• Organizations analyzing its workforce to assess representation of

women and minorities

• Organizations developing and implementing action plans to ensure

appropriate representation of women and minorities, and also

Protected Veterans (PV) and Individuals with Disabilities (IWDs)

The goal of AA is a diverse workforce.

SELECT A PRACTICAL AND STRATEGIC APPROACH TO MEASUREMENT

STEP ONE

Unit of Analysis

Grouping of Employees

Affirmative

Action Plans

Diversity

Initiatives

Based on similar

content, wage

rates, and

opportunities

Based on

establishment

Employees can

be grouped in a

variety of ways

such as by

region, business

unit, manager,

etc.

Unit of AnalysisApproach Content Driven Opportunity Driven

Description Jobs are grouped together

based on similar content

Jobs are grouped together by

level, wage rate, or opportunity

Example 2A: All administrative

professionals

2B: All technical professionals

2A: All senior level

professionals

2B: All entry level professionals

Advantage Easily defined recruitment

areas

Reflects promotional movement

in goal attainment

Disadvantage Limits movement in goal

attainment

Diversity in job titles may result

in broad recruitment areas

Data Requirements

Roster

snapshot

Applicants

New hires

Transfers

Promotions

Terminations

Implementation

Monitoring

Analysis Date

1/1/2015

Personnel Actions

1/1/14–12/31/13

Diversity Planning

1/1/15–12/31/15

CREATE DEPARTMENT

PROFILE

STEP TWO

Organizational Profile

Provides an overview of the workforce by department/organizational unit and may assist

in identifying areas where underrepresentation or concentration exist

Executive ManagementCEO: 1WM

Total Employees: 94WM/2WF/1HF/1AM

Sales and MarketingVP Marketing: 1WMTotal Employees: 6

3WM/1BM/1WF

AdministrationVP of Operations: 1BM

Total Employees: 103WM/2WF/2BF/1HF/1HM

ProductionProduction Manager: 1WM

Total Employees: 155WM/6WF/2BF/1AF

PREPARE INCUMBENCY

METRICS

STEP THREE

CALCULATE AVAILABILITY

METRICS

STEP FOUR

Availability Estimates

• Statistical analysis of the percent of minorities and women available

to work within an organization

• At least two factors that should be considered in determining

availability

External Availability: based on reasonable recruitment areas and

census codes

Internal Availability: based on promotion pools

Regional Minority Population

27%

19%

34%

42%

31%

22%

40%

47%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Northeast Midwest South West

2000

2010

EEO-1 Job Patterns—Minorities

14%

19%

24%

27%

19%

25%

30%32%

0%

5%

10%

15%

20%

25%

30%

35%

O&M Prof Tech Sales

2000

2010

EEO-1 Job Patterns—Minorities

30%

23%

35%

48% 46%

34%

29%

40%

54%50%

0%

10%

20%

30%

40%

50%

60%

Admin Craft Operative Laborer Service

2000

2010

EEO-1 Job Patterns—Women

34%

51%

45%

56%

37%

54%50%

54%

0%

10%

20%

30%

40%

50%

60%

O&M Prof Tech Sales

2000

2010

EEO-1 Job Patterns—Women

80%

13%

29%35%

57%

76%

8%

25%

32%

59%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Admin Craft Operative Laborer Service

2000

2010

Reasonable Recruitment Areas

1.1 USA

1.2 50% USA; 50% State

2 State

3 85% State, 15% MSA

4 USA

5 County

6 MSA

7 MSA

8 MSA

Estimating External Availability

Group 2A: Professionals Census Data Weighted Data

Job Code Job Title Census

Code

Total

Emp’s

Weight Min Fem Min Fem

PTATPatent

Attorney 2100 1

DBA IIDatabase Admin II 1060 5

TCHWRTechnical

Writer 2840 2

DBADatabase

Admin 1060 7

HRSPECHR

Specialist 0630 3

ACCTAccounting Specialist 0800 6

SYSA System Analyst 1006 8

32

0.03

0.16

0.06

0.22

0.09

0.19

0.25

1.00

15.86

44.48

40.09

38.65

34.64

21.13

44.48

35.13

46.29

62.93

46.29

69.70

54.57

33.75

0.48

7.34

8.66

3.61

7.12

1.27

9.79

1.05

7.41

3.78

10.18

6.27

10.37

8.44

38.27 47.50

Estimating Internal Availability

Group 2A: Professionals Number of Employees

Job Code Job Title Job Group Total Min Fem

Totals:

Percent:

CSSPECII

ADMINII

HRASSTII

ACCTCLRKII

Computer Support Specialist II

Administrative Assistant II

HR Assistant II

Accounting Clerk II

3A

5A

5A

5A

77

4

5

4

2

1

2

1

3

9

2

25 9 13

36.00% 52.00%

Estimating Total Availability

Group 2A:

Professionals

Factor 1 &

2 Data

Weighted

Data

Factor Description Min Fem Weight Min Fem Source of

Statistics

1 % of minorities or

women with the requisite

skills in the reasonable

recruitment area

38.27 47.50 .60 Washington

DC-MD-VA-

WV

PMSA

2 % of minorities or

women among those

promotable, transferable,

and trainable within the

contractor’s organization

36.00 52.00 .40 Promotion

pool from

3A & 5A

Availability 1.00

22.96

14.40

28.50

20.80

37.36 49.30

CREATE A DIVERSITY

SCORECARD

STEP FIVE

Compare Employment to Availability

Compares the percent of employment by race and gender within each

job group to the percent available

When the percentage of minorities and women employed in a particular

job group is less than would reasonably be expected given their

availability, the organization could establish a placement goal

Utilization Rules

Rule Definition

Any Difference Using the any difference utilization rule sets a placement

goal when availability exceeds employment by any amount.

Whole Person Using the whole person utilization rule sets a placement goal

when availability exceeds employment by at least one whole

person.

Eighty Percent Using the eighty percent utilization rule sets a placement

goal when employment percent is less than 80% of the

availability percent.

Significant

Difference

Using the significant difference utilization rule sets a

placement goal when the difference between availability and

employment is at least two standard deviations.

MEASURE GOAL ATTAINMENT

STEP SIX

Goal Attainment Metrics

Goal attainment metrics shows progress made towards diversity

scorecard targets

Goal attainment is determined by evaluating the placement

opportunities (hires and promotions) and determining whether or

not the target was met

Summarize Personnel Activity

Jan. 2014Jan. 2013 Jan. 2015

Review

Personnel

Actions & Goal

Attainment for

2013 Goals

Set Goals for

Jan. 2013 –

Dec. 2013

Set Goals for

Jan. 2015 –

Dec. 2015

Set Goals for

Jan. 2014 –

Dec. 2014

Review

Personnel

Actions & Goal

Attainment for

2014 Goals

SELF-AUDIT TO INSURE

INCLUSION

STEP SEVEN

Adverse Impact

• An analysis of employment practices that determines if a negative

consequence occurs more often for members of a protected group

than for members of the non-protected group.

• A selection ratio of less than 80% for members of a protected group

indicates adverse impact exists in the selection process.

• A result of adverse impact does not indicate discrimination has

occurred, only that more research is needed to determine why the

protected class has been less successful than the non-protected

group.

A selection ratio of less than .80 for members of a protected group

indicates adverse impact.

Summarize Personnel Activity: Adverse Impact

Min Hires:

Min Applicants:

Non-Min Hires:

Non-Min Applicants:

5

5

100

10

=

=

.05

.50

= .10

VETERANS AND INDIVIDUALS

WITH DISABILITIES

BEYOND RACE AND GENDER

Hiring Benchmarks and Utilization Goals

National percentage of PV as

published by OFCCP (7.2%)

Benchmark is compared to new

hire activity

Utilization Goals

Goal established by OFCCP (7%)

Compared to percentage of IWDs

in total workforce (active roster)

Comparison may be by EEO code

or total workforce (depending on

size of the organization)

Hiring Benchmark

Hiring Benchmarks for Protected Veterans

Hiring Benchmark Analysis

OFCCP Annual Hiring

Benchmark7.2%

PV Hires 1

Number of Hired

Applicants19

Hiring Percentage of PV 5.26%

Utilization Goals for IWDs

Sales Workers

Total

Employees

32

Total

IWD

2

IWDs

Employment %

Utilization Goal 7.00

6.25

MEASURING OUTREACH AND

RECRUITMENT

TAKING ACTION

If Benchmark or Utilization Goal is Not Met

• Evaluate effectiveness of outreach efforts

• Document and develop criteria to be used for evaluation

• Identify alternative methods of outreach

• Develop a means to audit personnel and recruitment processes

• Mitigate any areas in personnel or selection processes that may

be unintentionally discriminatory towards PV

Targeted Outreach and Recruitment

Evaluation Criteria

1. Did the activity attract qualified applicants with a disability or PV?

2. Did the activity result in the hiring of qualified IWDs or PV?

3. Did the activity expand your organization’s outreach to IWDs or PV?

4. Did the activity increase your organization’s capacity/capability to

include IWDs or PV in its workforce?

Sample Outreach EvaluationOutreach/

Recruitment

Activity

Date of

ActivityDescription Evaluation

* Briefing of Local

Disability

Advocates (LDA)

*8/1/2014

* Briefed representatives of

LDA, a local disability

advocacy group, regarding

Acme Inc.’s services and job

opportunities for IWDs, and

provided a tour of Acme’s

facility.

* LDA will begin sending job

applicants to Acme Inc. starting in

2015 and include Acme Inc. in its

list of companies that are

undertaking affirmative action to

hire IWDs. Acme Inc. will also

participate in LDA activities and

LDA sponsored job fairs in 2015.

* Outreach event at

Local Community

College

* Participated in

Disability Job Fair*10/1/2014

* Conducted outreach event at

local community college to

attract students who are

IWDs

* Received 15 applications from

qualified IWDs. One was hired.

Résumés were retained for

consideration in future job

openings.

If Using a Diversity Scorecard…

• Ensure the goals are based on a self-analysis

• Reward managers not for simply achieving goals (and be careful not to penalize those who fail to achieve goals)

• Conduct training

• Incorporate diversity goals and objectives in the performance appraisal and compensation processes

• Include goal attainment in development plans for leaders and employees

• Perform follow-up analyses and adverse impact analyses (by manager, if possible)

What Does Success Look Like

• Workforce demographics that are reflective of the communities you serve

• Employees of color and women in leadership positions

• Established pipeline relationships with organizations that target diverse communities—HBCUs, professional women organizations, Veteran organizations, etc.

• Equal employee access to formal and informal mentoring opportunities

• Equitable processes and personnel activity—promotions, termination, compensation

• Linking diversity goals to leadership performance

• Ongoing learning

For over 30 years Berkshire has offered services and software to help overcome HR challenges.

Affirmative Action• Plan Preparation Services

• OFCCP Audit Support

• Adverse Impact Analyses

• BALANCEaap Software

• BALANCEact Software

Applicant Management• Compliance Audit

• Definition of an Applicant

• Process and Procedure

Development

• BALANCEtrak Software

Compensation• Base Compensation Planning

• Market Analysis

• Salary Equity Analyses

• Job Descriptions

• BALANCEpay Software

Training• Affirmative Action

• Applicant Tracking

• Disability & Veterans

Compliance

• Diversity & Inclusion

Beth Ronnenburg, SPHRPresident, Berkshire Associates

800.882.8904, ext. 1202

bethr@berkshireassociates.com

For additional compliance resources, please visit:

Info.berkshireassociates.com/beth

George Johnston, Esq.Venable LLP

410.244.7585

GWJohnston@venable.com

To find out how Berkshire Associates can help you with your

Affirmative Action needs, please contact us at 800.882.8904.

www.berkshireassociates.com