TM - June 2008 - (Page 20) recruitment & retention assessment & evaluation compensation & benefits performance management learning & development succession planning resume-database searches to all resumes retrieved from a university job fair. With the new regulation, the agency also defined specific electronic data techniques that would be considered in determining compliance when gathering and reviewing electronic expressions of interest. The ruling introduced a new “basic qualifications” standard, which in combination with the other criteria defining an Internet Applicant, set clear guidelines on the records government contractors must keep as they receive electronic expressions of interest. With the OFCCP’s changing focus, the Internet Applicant regulations now require government contractors to cap- experience, likely will increase the frequency and the analytical nature of the audits. Compliance Is Costly As noted earlier, preparing for compliance can be an expensive proposition. But it’s not nearly as expensive as the penalty for noncompliance, which can easily reach seven figures or more. Many companies are unaware of the potentially dire consequences of a failed audit. When a scheduling letter is received, the company must conduct an internal investigation of hiring practices and work to gather appropriate information in the 30 days allowed to respond to the audit. During that process, valuable time is taken away from the daily work tasks of recruiting and hiring managers, legal counsel, internal employees and other management. In 2006 and 2007 combined, the OFCCP collected more than $100 million in settlements from federal contractors with noncompliant recruitment and hiring practices. ture data that will allow the OFCCP to more easily assess and identify the presence of systemic discrimination. A Shift in Focus Once focused primarily on good-faith efforts, the OFCCP now heavily targets systemic discrimination, be it intentional or unintentional. The rationale is that, regardless of intent, discrimination inflicts damage on an organization’s applicants. The OFCCP’s shift in focus has increased federal contractors’ risk of noncompliance by expanding what data government contractors are required to track. The OFCCP indicates that in 30 percent of its audits, recordkeeping violations are uncovered. Prior to the OFCCP’s heightened scrutiny, companies were able to make changes or correct problems at their convenience. Now, once a company has been issued a violation, the agency seeks data to confirm it has promptly implemented compliant recruitment processes. Therefore, the longer companies wait to amend flawed practices, the greater the likelihood the OFCCP will uncover and penalize them for systemic discrimination in hiring practices. Since the implementation of the Internet Applicant ruling in early 2006, companies have had more than two years to re-evaluate and, where necessary, correct their recruitment processes to ensure regulation compliance. As the ruling ages and all OFCCP auditors become focused on enforcing the regulation, the number of recordkeeping audits has increased. Many of the OFCCP auditors are new and, as they gain additional Regardless of the OFCCP’s final decision in a case, the work required to defend questionable recruitment processes can become lengthy and expensive. Noncompliance causes a multiplier effect of penalties, including loss of time and work focus. It also can result in top talent leaving the company and top candidates refusing to consider opportunities with the organization. Thus the risks associated with noncompliance can be extremely significant to an organization’s growth and progress. New Era, New Penalties Before the Internet Applicant regulations and the OFCCP training initiative, penalties for noncompliance were not as substantial as they are today. Prior to the OFCCP’s shift in focus to systemic discrimination, a poultry processing company accused of discrimination was forced to pay $75,000 in back pay and interest, as well as make job offers to affected class members until 23 people accepted positions. Although this penalty is significant, the repercussions for discrimination are much more severe now that auditors have training and access to additional data mandated by the regulations. In 2007, the same poultry processing corporation was forced to pay $1 million in back pay and interest and extend offers to 462 people in the classes affected by the systemic discrimination. Clearly, the OFCCP is focused on class-action, make-whole remedies, rather than individual cases of discrimination. Data undiscoverable years ago is now accessible due to the increased recordkeeping required by the Internet Applicant regulations. Since the auditors are more experienced, more knowledgeable and privy to additional recruitment data, OFCCP fines should continue to increase. In the age of systemic discrimination, it is imperative federal contractors are in compliance with regulations to avoid escalating penalties. 20 June 2008 talent management magazine www.talentmgt.com http://www.talentmgt.com
Table of Contents Feed for the Digital Edition of TM - June 2008 TM - June 2008 Editor’s Letter Contents Human Performance Leading Edge Foundations The New Components of Compliance Candid Culture: Embracing Employee Complaints Transitioning to a New Era: C&B at Nonprofits Three Ways to Build Successful Manager-Employee Relationships Implementing Successful Learning Programs The Succession Fix Fifth Third Bank: Putting People First Zaxby’s: Making Employees’ Jobs as Palatable as Its Menu Workforce Readiness: Preparing Personnel to Meet Business Goals Kelley Blue Book: Writing the Book on Performance Management Advertisers’ Index Editorial Resources Full Potential TM - June 2008 TM - June 2008 - (Page Intro) TM - June 2008 - TM - June 2008 (Page Cover1) TM - June 2008 - TM - June 2008 (Page Cover2) TM - June 2008 - TM - June 2008 (Page 3) TM - June 2008 - Editor’s Letter (Page 4) TM - June 2008 - Editor’s Letter (Page 5) TM - June 2008 - Editor’s Letter (Page 6) TM - June 2008 - Editor’s Letter (Page 7) TM - June 2008 - Editor’s Letter (Page 8) TM - June 2008 - Contents (Page 9) TM - June 2008 - Contents (Page 10) TM - June 2008 - Contents (Page 11) TM - June 2008 - Human Performance (Page 12) TM - June 2008 - Human Performance (Page 13) TM - June 2008 - Leading Edge (Page 14) TM - June 2008 - Leading Edge (Page 15) TM - June 2008 - Foundations (Page 16) TM - June 2008 - Foundations (Page 17) TM - June 2008 - The New Components of Compliance (Page 18) TM - June 2008 - The New Components of Compliance (Page 19) TM - June 2008 - The New Components of Compliance (Page 20) TM - June 2008 - The New Components of Compliance (Page 21) TM - June 2008 - The New Components of Compliance (Page 22) TM - June 2008 - The New Components of Compliance (Page 23) TM - June 2008 - Candid Culture: Embracing Employee Complaints (Page 24) TM - June 2008 - Candid Culture: Embracing Employee Complaints (Page 25) TM - June 2008 - Candid Culture: Embracing Employee Complaints (Page 26) TM - June 2008 - Candid Culture: Embracing Employee Complaints (Page 27) TM - June 2008 - Candid Culture: Embracing Employee Complaints (Page 28) TM - June 2008 - Candid Culture: Embracing Employee Complaints (Page 29) TM - June 2008 - Transitioning to a New Era: C&B at Nonprofits (Page 30) TM - June 2008 - Transitioning to a New Era: C&B at Nonprofits (Page 31) TM - June 2008 - Transitioning to a New Era: C&B at Nonprofits (Page 32) TM - June 2008 - Transitioning to a New Era: C&B at Nonprofits (Page 33) TM - June 2008 - Transitioning to a New Era: C&B at Nonprofits (Page 34) TM - June 2008 - Transitioning to a New Era: C&B at Nonprofits (Page 35) TM - June 2008 - Three Ways to Build Successful Manager-Employee Relationships (Page 36) TM - June 2008 - Three Ways to Build Successful Manager-Employee Relationships (Page 37) TM - June 2008 - Three Ways to Build Successful Manager-Employee Relationships (Page 38) TM - June 2008 - Three Ways to Build Successful Manager-Employee Relationships (Page 39) TM - June 2008 - Implementing Successful Learning Programs (Page 40) TM - June 2008 - Implementing Successful Learning Programs (Page 41) TM - June 2008 - The Succession Fix (Page 42) TM - June 2008 - The Succession Fix (Page 43) TM - June 2008 - The Succession Fix (Page 44) TM - June 2008 - The Succession Fix (Page 45) TM - June 2008 - The Succession Fix (Page 46) TM - June 2008 - The Succession Fix (Page 47) TM - June 2008 - The Succession Fix (Page 48) TM - June 2008 - The Succession Fix (Page 49) TM - June 2008 - Fifth Third Bank: Putting People First (Page 50) TM - June 2008 - Fifth Third Bank: Putting People First (Page 51) TM - June 2008 - Zaxby’s: Making Employees’ Jobs as Palatable as Its Menu (Page 52) TM - June 2008 - Zaxby’s: Making Employees’ Jobs as Palatable as Its Menu (Page 53) TM - June 2008 - Zaxby’s: Making Employees’ Jobs as Palatable as Its Menu (Page 54) TM - June 2008 - Zaxby’s: Making Employees’ Jobs as Palatable as Its Menu (Page 55) TM - June 2008 - Workforce Readiness: Preparing Personnel to Meet Business Goals (Page 56) TM - June 2008 - Workforce Readiness: Preparing Personnel to Meet Business Goals (Page 57) TM - June 2008 - Workforce Readiness: Preparing Personnel to Meet Business Goals (Page 58) TM - June 2008 - Workforce Readiness: Preparing Personnel to Meet Business Goals (Page 59) TM - June 2008 - Kelley Blue Book: Writing the Book on Performance Management (Page 60) TM - June 2008 - Kelley Blue Book: Writing the Book on Performance Management (Page 61) TM - June 2008 - Kelley Blue Book: Writing the Book on Performance Management (Page 62) TM - June 2008 - Kelley Blue Book: Writing the Book on Performance Management (Page 63) TM - June 2008 - Kelley Blue Book: Writing the Book on Performance Management (Page 64) TM - June 2008 - Editorial Resources (Page 65) TM - June 2008 - Full Potential (Page 66) TM - June 2008 - Full Potential (Page Cover3) TM - June 2008 - Full Potential (Page Cover4)
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