How to Choose Applicant Tracking Software to Ensure EEO/OFCCP Compliance
Posted on April 17, 2013
Since May 2006, the Office of Federal Contract Compliance Programs (OFCCP) has been enforcing a landmark ruling that sets explicit regulations on the collection, storage and reporting of Equal Employment Opportunity (EEO) data for internet applicants. It also defines internet applicants, identifies electronic data collection methods, creates basic qualification standards and establishes recordkeeping requirements for compliance.
While OFCCP regulations are specifically for companies with federal contracts, it is the responsibility of every employer to eliminate discrimination in their hiring process. It is not enough to just consult an attorney. In today’s world, where applicants can easily apply to hundreds of openings with a few mouse clicks and each job attracts hundreds of candidates, using a spreadsheet to track all of this information is possible but ensuring its accuracy or drawing any insight out of this information is impossible. Regardless, manually tracking this information has gotten increasingly more cumbersome and maintaining the integrity of this data has been riddled with human error as the volume of recruiting data continues to increase.
To help ensure that your company remains compliant with these types of government regulations, your organization should be storing, tracking, and analyzing hiring information with a solution that can handle large amounts of data while minimizing the need to copy information from one form to another. As such, this recruiting solution must have these four critical capabilities:
* Ask every potential employee to identify their EEO info
* Capture the reasons why you have chosen NOT to hire someone (every time)
* Continuously analyze this information in real-time
* Be able to create reports that you can use for compliance reporting
But there is good news: tracking the information that can help your company stay in compliance, perhaps even reduce hiring discrimination, has really never been easier….as long as you choose the right recruiting application.
Here is a list of six things that you need to consider when evaluating an applicant tracking system:
1. Request EEO information for every job from your careers page. Just about any applicant tracking system will include a feature that requests voluntary EEO information from applicants during the online application process.
2. Automatically capture “reasons for non-selection” for every applicant. OFCCP regulations require employers to capture a reason for non-selection for every candidate they receive. When evaluating recruiting software, you must determine how it will capture reasons for non-selection. This information is critical and most legacy applicant tracking systems have no way of capturing this data. Those that do often require you and your team to take time consuming extra steps and force you to enter loads of data manually. Choose a system that enables everyone in your company to easily, accurately and automatically capture pre-selected reasons for non-selection without creating extra steps in your recruiting process.
3. Ask minimum qualification questions for every job. Asking minimum qualifications is best accomplished during the online application process. When applicants do not meet a job’s minimum qualifications, the government does not require you to track them as an applicant. Choose recruiting software that allows you to automate this process, and you’ll save time by ensuring that you are processing only the applicants that are qualified for your jobs.
4. Create applicant flow logs automatically for any job. Every federal contractor must generate applicant flow logs that record all the information required by the OFCCP regulations for conducting an adverse impact analysis. If an applicant tracking system is already tracking all the relevant information that comprises a flow log (data received, name, position, job group, race and sex, veterans status, reason for non-selection, date of hire), generating a report should be simple.
5. Create hire/offer logs instantly. The purpose of this report is to record each hire or job offer made by your company during the reporting period being analyzed. Again, you’ll want to select software that automatically tracks all the required information to fulfill the OFCCP’s requirements.
6. Audit your EEO statistics anytime from an online dashboard. Now, it’s up to you to monitor and regularly audit your EEO data. Proactive assessment and management can prevent costly litigation. Purchasing software that allows to view EEO data online and to generate custom reports is essential and is a good way to take preventative steps against risks.
Finally, you’d probably expect that recruiting software that will capture, track and report EEO/OFCCP data automatically would be expensive and difficult to implement. But Paycor has affordable technology that can be set up in a matter of days. Compared to the cost of a discrimination lawsuit, this is a no-brainer. To learn more and schedule a demo, get in touch with us today.