It's an entirely different world in applicant management than the one employers faced three years ago. In the past three years, significant changes have occurred that have a much greater impact on employers than they might imagine.
One significant change involved the OFCCP and EEOC uniting in a definition of an internet applicant which has, by default, become the recognized definition of an applicant in general. To be considered an applicant under this new definition, the following requirements must be met:
" The employer has a job opening
" The employer makes job seekers aware of the opening
" The job seeker adheres to the employer's specified application process
" The job seeker has the minimum qualifications for the job
" The job seeker at no point in the employer's selection process prior to receiving an offer of employment from the employer removes himself or herself from further consideration or otherwise indicates that he or she is no longer interested in the position.
When these criteria are met, an applicant has been identified from the job seeker pool and the employer who must be EEOC or OFCCP compliant is required to keep records that substantiate which individual job seekers were qualified applicants and why. Additionally, for OFCCP compliance, applicants must be tracked through each stage of the employer's selection process to record each decision made regarding an applicant. The bottom line is that employer's who must comply should collect and retain applicant data on an ongoing basis or be subject to horrendous cost to reconstruct this data after the fact to submit to the OFCCP in the event of an OFCCP desk audit, compliance audit, or for EEOC reporting or defense in a claim of adverse impact.
WHO MUST COMPLY
Another significant change affecting applicant management involved the way the OFCCP determines which employers to audit. Prior to 2006, the OFCCP generally focused their efforts on auditing employers that held prime government contracts. Beginning in 2005, however, the OFCCP began requiring that prime contractors report electronically those vendors from whom they purchased $50,000 or more in goods or services to be used in the performance of their contracts. These vendors are defined as second tier contractors or subcontractors even though a contract rarely exists identifying them as such. This reporting requirement by the OFCCP effectively created a database that the OFCCP could then begin to utilize to audit second tier contractors. Many of these employers are surprised to learn that although they hold no paper contracts with a prime contractor, they must meet all OFCCP compliance requirements as well. The reality sets in when they are told they must provide the OFCCP applicant data they did not collect or retain and must now reconstruct this data for the prior year and supply it in a format the OFCCP requires for review. Reconstruction of applicant data for a year and differentiation after the fact of applicants from job seekers can be a real nightmare no employer wants to face.
Another significant change was that the OFCCP's budget was increased substantially in 2007 over 2006 to facilitate 10,000 desk audits, up from 800 in 2006. The focus of these audits is generally on 2nd tier organizations, those employers who provide $50,000.00 per year or more to prime contractors for use in the performance of government contracts. Additionally, 20% of the 10,000 desk audits projected for 2007 are likely to become full compliance audits. Full compliance audits involve OFCCP personnel being on site at the employer for considerable periods interviewing line supervisors behind closed doors investigating hiring practices and exploring potential pay differentials. No employer wants to experience a full company audit by the OFCCP.
HOW TO COMPLY
Considering today's regulatory environment, employers face two imperatives with regard to applicant management:
1. Make recruiting and selection more effective and efficient
2. Meet all compliance requirements.
The logical approach to this two fold need - to provide effective and efficient applicant data collection, screening and retention and allow access to that data for EEOC and OFCCP compliance - requires harnessing online technology to accomplish both purposes.
DON'T BE DECEIVED
Monster, Career Builder, HotJobs, other job boards and the payroll services companies like ADP offer online technology that will "help you with compliance. "Help is the operative word. There is a big difference between "help and "compliant.
To understand the difference, an employer must be knowledgeable about what is required for compliance to ensure that the employer is collecting and retaining all the data needed. The job boards and payroll companies provide a needed initial step in the recruiting and compliance process, but do not provide the complete process as required for compliance.
THE SOLUTION
To meet both recruiting and compliance objectives, CRI (www.criw.com) has developed a solution that provides the complete process. The CRI system provides applicant screening and tracking technology that collects and retains all data needed for compliance. The CRI system also contains the algorithm used by the OFCCP to determine adverse impact. Thus, an employer using CRI's system can proactively monitor the entire selection process at any location to ensure compliance as well as easily retrieve the data required for EEOC reports and OFCCP audits.
CRI deploys its online technology for dozens of employers of all sizes across America with this technology seamlessly meeting these employer's needs for efficient recruiting and applicant tracking features while providing the tools needed for EEOC and OFCCP compliance. Upon reviewing the CRI technology being used by a west coast employer, a former OFCCP District Director commented that it was the best he had ever seen and certainly provided the data necessary for OFCCP compliance.
To view a demo of CRI's customized system, visit www.criw.com and click on Applicant Management Systems or call CRI for a personal walk through of the system at (800) 328-1940, ext. 199.
