How to Choose Applicant Tracking Software to Ensure EEO/OFCCP Compliance
compliance tracking software

How to Choose Applicant Tracking Software to Ensure EEO/OFCCP Compliance

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.

More to Discover

HR

Ban the Box: State-by-State

Ban the Box: State-by-State

One in Three American Adults Have a Criminal History In the past, having a criminal history prevented some potentially great job candidates from being hired, regardless of how long ago the crime took place, how minor the infraction was, or how good of a fit they might be for the role. When you consider that an estimated 70 million Americans—one in three Americans who are of working age—have some kind of criminal history, it’s not difficult to understand how requiring a squeaky-clean record could become problematic for some jobs. Even People Without Convictions Can Be Discriminated Against Many criminal background checks fail to distinguish between someone being arrested or charged and actually being convicted. Potential employees are...

HR

Are Domestic Partner Benefits Mandatory?

Are Domestic Partner Benefits Mandatory?

A Brief History: Only What You Need to Know The roots of domestic partner benefits stretch way back to 1982, when the City of San Francisco enacted legislation to offer health insurance coverage to the same or opposite sex partners of its unmarried employees. “Domestic partner” soon became the official legal term used by insurers and private and public employers. Also, in 1982, New York City newspaper The Village Voice became the first private employer to offer domestic partner health care benefits. Many other companies and municipalities followed suit. Fast forward to more than 30 years later when, in 2015, the United States Supreme Court ruled that domestic partner benefits apply to both same-sex and unmarried opposite-sex couples....

Managing Contractor Payroll: What You’ll Need to Know

Managing Contractor Payroll: What You’ll Need to Know

As a business owner, it’s a given that you’re expected to pay your employees accurately and on time. But something almost as important is making sure you don’t pay your contract or freelance workers the same way you pay employees. Let’s clarify. Independent contractors are not classified as employees by the Internal Revenue Service (IRS), so instead of being paid through your payroll system, they’re paid separately as a business expense. When your business requires hiring both employees and independent contractors, it’s important that you understand the distinctions between the two. Why? Three letters: IRS. FLSA – How to Classify Employees and Independent Contractors The IRS looks at the business relationship your company has with a...

Case Study: FRG

Case Study: FRG

A poor implementation experience, a lack of consistent customer service and a time-consuming payroll process led FRG to find a more dependable HR & payroll partner. Now with Paycor, FRG can track critical documents for each brand and employee, receive notifications when documents are set to expire and store them within one, accessible system. Explore the case study and learn how Paycor helped FRG save 15+ hours processing payroll each pay period with a streamlined process and enhanced user experience.