PHR SHRM Module (TWO) pdf111 PDF

PHR SHRM
Modul e ' Two'

Modul e Two
Workforce Planning
and Employment
y
r
The SHRM Learning System'
Module 2 Checklist
Section
2-1: Key Legislation Affecting
Employee Rights
Start
Date
Completion
Date
2-2: Key Legislation Affecting Privacy
and Consumer Protection
2-3: Equal Employment
Opportunity/Affirmative Action
2-4: Gender Discrimination and
Harassment in the Workplace
2-5: Organizational Staffing
Requirements
2-6 J ob Analysis and Documentation
2-7 Recruitment
2-8 Flexible Staffing
2-9 Selection and Retention
2-10: Organizational Exit
2-11: Employee Records Management
Score for Module Review Test One*
Score for Module Review Test Two*
* Look for these t est s on the Web at www.l ear nhr m.com.
LI CENSE AGREEMENT FOR SHRM LEARNI NG SY STEM STUDENT MATERI ALS
By using these SHRM Learning Systemstudent materials (the "Materials"), the user ("User")
hereby agrees as follows:
(i) That the Society For Human Resource Management is the exclusive copyright owner
of the Materials.
(ii) Provided that the required fee for use of the Materials by User has been paid to
SHRM or its agent, User has the right, by this License, to use the Materials solely for his/her
own educational use.
(iii) User has no right to print or make any copies, in any media, of the materials, or to
sell, or sublicense, loan, or otherwise convey or distribute these materials or any copies thereof in
any media.
SOC IETY FOR HUMAN
RESOURCE MANAGEMENT
Printed on 30% post-consumer waste recycled paper.
WORKFORCE PLANNING AND EMPLOYMENT
Contents " i
I ntroduction 2-1
Section 2-1: Key Legislation Affecting Employee Rights 2-2
Employee Rights Legislation 2-4
Section 2-2: Key Legislation Affecting Privacy and Consumer P rotection 2-44
Privacy Legislation 2-46
Consumer Protection Legislation 2-48
Section 2-3: Equal Employment Opportunity/Affirmative Action 2-56
The Concept of Equal Employment Opportunity 2-58
Precedent-Setting Discrimination Cases 2-60
EEO Reporting Requirements 2-64
Affirmative Action Plans 2-69
Fairness Issues 2-81
Employment Practices Liability I nsurance 2-87
Section 2-4: Gender Discrimination and Harassment in the Workplace 2-92
Workplace Harassment and Discrimination 2-94
The Background of Sexual Harassment Legislation 2-94
Employer Responses to Harassment 2-99
Sexual Orientation Guidelines 2-100
Section 2-5: Organizational Staffing Requirements 2-104
Internal Workforce Planning 2-106
Supply Analysis Techniques 2-107
Demand Analysis Techniques 2-114
I nternational Workforce Planning 2-118
Section 2-6: J ob Analysis and Documentation 2-126
J ob Analysis and J ob Description Methods 2-128
J ob Analysis 2-128
Essential J ob Functions 2-132
J ob Descriptions 2-135
WORKFORCE PLANNING AND EMPLOYMENT
J ob Specifications 2-139
Guidelines for Writing J ob Descriptions and Specifications 2-140
J ob Competencies 2-140
Section 2-7: Recruitment 2-146
Recruitment Objectives and Selection Criteria 2-148
Recruitment Methods and Sources 2-148
Employment Branding 2-162
Recruitment Effectiveness 2-164
I nternational Recruiting 2-167
Section 2-8: Flexible Staffing 2-174
Flexible Staffing Alternatives 2-176
HR's Role in Flexible Staffing 2-179
Section 2-9: Selection and Retention 2-184
The Selection Process 2-186
Step 1: Analyzing Application Forms 2-187
Step 2: I nterviewing 2-190
Step 3: Testing and Background I nvestigation 2-198
Step 4: Contingent J ob Offer 2-212
Step 5: Employment Offer 2-214
Retention 2-219
Section 2-10: Organizational Exit 2-226
Downsizing 2-228
Exit I nterviews 2-237
Outplacement 2-239
Employer Defenses Against Litigation 2-240
Section 2-11: Employee Records Management 2-244
Records Management 2-246
Legal Compliance 2-253
Bibliography 2-256
Glossary 2-261
Index 2-271
SHRM acknowledges the contributions of its volunteer leaders and staff members who have served as
subject matter experts for the 2011 Learning System.
Module subject matter experts
Wendy Bliss, J .D., SPHR
Principal, Bliss & Associates
Colorado Springs, Colorado
Deborah Keary, SPHR
Human Resources Director,
Society for Human
Resource Management
Alexandria, Virginia
J ennifer Loftus, SPHR-CA, GPHR,
CCP, CBP, GRP
National Director, Astron Solutions
New York, New York
Lynn C. Outwater, J .D., SPHR
Managing Partner, J ackson Lewis LLP
Pittsburgh, Pennsylvania
Gayle Porter, PhD, SPHR, GPHR.
Professor of Management
Rutgers, The State University
School of Business
Camden, New J ersey
Nancy Volpe, SPHR, GPHR
Chief People Officer
Center for People Solutions LLC
Grandville, Michigan
For past contributions
Cornelia Gamlem, SPHR
President, GEMS Group Ltd.
Herndon, Virginia
Gary Kushner, SPHR, CBP
President and CEO, Kushner
and Company
Portage, Michigan
Michael Losey, SPHR, CAE
President and CEO, Society for
Human Resource Management
(retired)
President, MikeLosey.com
Fleming Island, Florida
Dr. Fraya Wagner-Marsh, SPHR,
GPHR
Department Head, Department of
Management, Eastern Michigan
University
Ypsilanti, Michigan
For test question contributions:
Brenda J imenez, SPHR
Senior Consultant
Diversity
Verizon Communications
Basking Ridge, New J ersey
Gena J ones, DM, SPHR
Assistant Vice President for Human
Resources
Texas Tech University Health
Sciences Center
Lubbock, Texas
Randy McCamey, PhD, SPHR
Associate Professor of Management
and Human Resources
Tarleton State University
Stephenville, Texas
For legal compliance:
J onathan A. Segal
Partner, Duane Morris LLP
Philadelphia, Pennsylvania
Linda B. Hollinshead
Partner, Duane Morris LLP
Philadelphia, Pennsylvania
WORKFORCE PLANNING AND EMPLOYMENT Section 2-1
Introduction
As delineated by the HR Certification Institute, workforce planning and
employment involves the processes of developing, implementing, and
evaluating sourcing, recruitment, hiring, orientation, succession planning,
retention, and organizational exit programs necessary to ensure that the
workforce will meet the organization's goals and objectives.
Staffing your organization with qualified employees who have the key skills and
vision your organization needs is a primary concern of human resource
management. To be viable, workforce planning and employment strategies must
be assimilated into the organization's strategic objectives. In so doing, HR
professionals must consider both short-termand long-termneeds of the
organization so that staffing requirements can be anticipated in a timely manner.
This self-study module examines several important aspects of workforce planning
and employment, including key legislation affecting employee rights, employee
privacy, and consumer protection as well as equal employment opportunity,
affirmative action programs, discrimination issues, recruitment, flexible staffing,
selection, organizational exit, and employee records management.
While the module includes legal content, it should not be construed as legal
advice or as pertaining to specific factual situations. No general statement of law,
no matter how seemingly simple, can be applied to any particular factual situation
without a full, careful, and confidential analysis of all relevant facts, the
employer's policies and practices, and the applicable federal, state, and local laws
of the jurisdiction(s) in which the employer operates.
Progress checks are included at the end of each section in the module to help you
monitor your learning. These will be more useful if you check your written
responses against the recommended answers and the content of the section.
The content in this, module accounts for 26% of the PHR exam(59 questions) m
and 17% of the SPHR exam(38 questions).
2011 SHRM
2-1
Workforce Planning
and Employment
2.1
HR responsi bi l i ti es rel ated to thi s sect i on i ncl ude:
Ensure that workforce planning and employment
activities are compliant with applicable federal, state, and
local laws and regulations.
Implement and/or administer the process for non-U.S.
citizens to legally, work in the United States.
Thi s secti on is desi gned t o i ncrease your knowl edge of:
Federal/state/local employment-related laws and
regulations related to workforce planning and
employment.
Organizational documentation requirements to meet
federal and state requirements.
Employee Rights Legislation
A plethora of federal laws and regulations designed to end discrimination and uphold
employee rights has been enacted during the past four decades. Understanding and
complying with employment law helps organizations and managers do the right
thing and minimizes potential organizational and individual liability.
Key antidiscrimination laws and agency guidelines include:
Title VI I of the Civil Rights Act.
Civil Rights Act of 1991.
Age Discrimination in Employment Act.
Pregnancy Discrimination Act.
Americans with Disabilities Act and ADA Amendments Act.
Genetic I nformation Nondiscrimination Act.
Lilly Ledbetter Fair Pay Act.
UniformGuidelines on Employee Selection Procedures.
Laws affecting both affirmative action and antidiscrimination include:
Executive Order 11246.
VietnamEra Veterans Readjustment Assistance Act and J obs for Veterans Act.
Rehabilitation Act.
Executive Order 13496
Other key legislation includes:
I mmigration Reformand Control Act.
Worker Adjustment and Retraining Notification Act.
Congressional Accountability Act.
Uniformed Services Employment and Reemployment Rights Act.
In addition to the federal legislation covered in this module, you should educate
yourself about state/local requirements that may be applicable to your environment.
. A note to "test takers: The certification examination does not test state-specific
laws or regulations. Dates of laws and court cases are also generally not
tested. However, given the tendency for one law or court decision to influence
additional legislation or future cases, it is desirable to recognize the general
timing and sequence of key legislation and court cases.
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Title VIS of the Civil Rights Act (1964)
The cornerstone of federal antidiscrimination legislation is the Civil Rights Act
of 1964. This landmark piece of U.S. legislation was the nation's first
comprehensive federal law making it illegal to discriminate in employment on
the basis of race, color, religion, sex, or national origin. Title VII of the act was
passed to bring about equality in hiring, transfers, promotions, compensation,
access to training, and other employment-related decisions.
Gener al pr ovi si ons
General provisions of Title VII include the following.
Prohibits discrimination or segregation in all terms and conditions of
employment based on race, color, national origin, religion, and gender.
Several state and local laws have expanded these protected classes to
include, for example, sexual orientation, marital status, or status in regard to
public assistance. Title VII does not protect people based on these
characteristics or based on individuals' genetic predisposition to health
conditions. Nor does Title VII require "all empl oyees... to have equal
working conditions."
Makes it unlawful to limit, segregate, or classify employees in any way that
would deprive themof employment opportunities or otherwise adversely
affect their career progressions based on their race, color, national origin,
religion, or gender. It protects all employees, for example, frombeing
denied promotions based on their status as members of a protected class.
As amended by the Pregnancy Discrimination Act of 1978, makes it illegal
to discriminate because of pregnancy, childbirth, or related conditions.
Provides equal opportunity to participate in training programs, giving all
employees equal opportunity for advancement.
Prohibits sexual harassment and harassment based on the other protected
categories. In order to avoid illegal harassment and protect against legal
liability, employers should develop a policy prohibiting sexual and illegal
forms of harassment, including an internal complaint procedure, and
2011 SHRM
2-5
disseminate it to all employees. (This topic is discussed more fully in
Section 2-4 in this module, "Gender Discrimination and Harassment in the
Workplace.")
Prohibits discrimination in compensation practices. Best employer defenses
include basing these practices on seniority, merit, performance, or systems
that measure the quality and/or quantity of work.
As amended by the Equal Employment Opportunity Act of 1972, which
expanded its coverage, Title VII applies to most employers in the United States.
Any organization meeting one of the criteria listed below is subject to the rules
and regulations of the Equal Employment Opportunity Commission (EEOC),
the specific government agency set up to administer the act:
Most private employers who have 15 or more persons on the payroll for
each working day of 20 or more weeks in the current or preceding year
All educational institutions, public and private
Federal, state, and local governments
Public and private employment agencies when functioning as employers and
when referring individuals for employment
Labor unions with 15 or more members
J oint (labor-management) committees for apprenticeships and training
Except i ons
Several exceptions exist regarding the definition of discrimination.
Work-related requirements
An employer may be able to defend a practice that has a disparate impact on
a class of people but is job-related and required by business necessity. For
example, firefighters must be able to lift a certain amount of weight over
their shoulders, and fewer women may be able to pass this requirement.
Bona fide occupational qualification (BFOQ)
If gender, religion, or national origin is abona fide occupational
qualification (BFOQ) reasonably necessary to carrying out a particular job
function in the normal operations of the business or enterprise, the factors
2-6 . 2011 SHRM
may be used in employment practices. For example, being female can be a
BFOQ for a women's bathing suit model.
Seniority systems
Seniority systems that were not designed to discriminate are lawful under
Title VII.
Civil Rights Act (1991)
According to the Civil Rights Act of 1991, jury trials are allowed in cases
where the plaintiff seeks compensatory or punitive damages.;
This act provides for but limits the damage awards available to victims of
intentional discrimination in violation of Title VII, the Americans with
Disabilities Act, and Section 501 of the Rehabilitation Act of 1973 (which
applies to federal government employees only).
Compensatory damages under the act are awarded to make an injured person
"whole"; they include compensation for damaged property, lost wages or
profits, pain, bereavement, medical expenses, etc., and financial payment for a
person's out-of-pocket losses and future expenses due to injury, disability,
disfigurement, pain, and suffering, and all actual losses, whether economic or
noneconomic.
The Supreme Court case Kolstad v. American Dental Association (1999)
addressed the issue of punitive damages authorized by the Civil Rights Act of
1991. The Court held that the availability of punitive damages depends on the
motive of the discriminator rather than the nature of the conduct.
The Court rejected the American Dental Association's claimthat an employee
must prove that a discriminatory act was "egregious or outrageous." To recover
punitive damages, an employee must prove that the employer acted with malice
or reckless indifference to his or her rights. While there is no independent
requirement that the employer's conduct be egregious or outrageous, the
egregiousness or outrageousness of the conduct may serve as evidence of the
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employer's mental state, which is the focus for determining the availability of
punitive damages.
The Court did create a safe harbor frompunitive damages by recognizing that
an employer may not be liable for the discriminatory employment decisions of
managerial agents where these decisions are contrary to the employer's good-
faith efforts to comply with Title VII.
Punitive damages are not possible against a governmental unit or agency under
federal law. However, they may be available under state law.
The maximumamount of both compensatory and punitive damages available
under the Civil Rights Act of 1991 is limited according to the size of the
employer's workforce, as follows:
Maximum Recovery per Individual* Number of Employees
Age Di scr i mi nat i on in Empl oyment Act (1967)
The Age Discrimination in Employment Act (ADEA) of 1967 prohibits
discrimination in employment against persons age 40 and over. It forbids
limiting or classifying employees in any way that adversely affects their status
because of age (such as discontinuing pension accruals after age 65).
Amendments to the ADEA passed in 1978 and 1986 first raised and then
eliminated mandatory retirement ages, except in certain limited circumstances.
Except i ons
There are exceptions to the ADEA's prohibition against age discrimination. Age
discrimination is permissible under ADEA if age is a bona fide occupational
qualification for reasons that are reasonably necessary to the normal operation
of the enterprise.
$50,000
$100,000
$200,000
$300,000 501 or more
..15-100
101-200
201-500
For both compensatory and punitive damages
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For example, an employer can hire a young person to model teenage clothing in
a magazine advertisement. Or, in the case of public safety officers, such as
firefighters and police, the act permits upper age limits in hiring and mandatory
retirement at any age specified by state or local law if such requirements meet
the ADEA's standards for a bona fide occupational qualification.
Other exceptions to ADEA's nondiscrimination requirements may occur
under the following circumstances:
The employer is adhering to a genuine seniority or benefit plan
;
The employer is disciplining or firing a person for good cause.
The employee is a top executive or policy maker; (High-level managers
and certain bona fide executives or high poli,cy makers can be required to
retire at age 65 if they are entitled to receive company-sponsored
retirement benefits of at least $44,000 per year and have held their
position for two years prior to retirement.)
The top executive exception to the prohibition on mandatory retirement does
not apply in some states. I f the exception does not apply in a particular state,
then the federal exception is irrelevant in that estate. In some states, however,
while there is not a top executive exception, there may be a cap of age 70 for
protection. In those states, a top executive can be required to retire only if he
or she meets the criteria established under federal law and is age 70 or older
under state law.,
In addition, special rules regarding retirement plans and insurance may legally
apply to those who are age 65 and older:
Since 1988, the Employee Retirement I ncome Security Act (ERI SA) has
barred plans fromceasing or reducing retirement benefit accruals and/or
contributions for employees who work past normal retirement age.
Employers must offer employees age 65 and older and their spouses the
same group insurance coverage provided to younger workers and their
spouses. Medicare is secondary until retirement.
The ADEA covers all private and public employers with 20 or more employees,
unions with 25 or more members, employment agencies, and apprenticeship and
2011 SHRM
2-9
training programs. Unlike Title VI I , which didn't get this coverage until 1991,
the ADEA has always allowed for jury trials. Instead of punitive damages, the
ADEA provides for doubling of the damages awarded by the jury for a "wi l l ful "
violation; compensatory damages aren't allowed.
The Supreme Court has long held that claims of disparate impact based on race,
color, gender, religion, and national origin exist under Title VII; however, the
Court did not recognize such claims under the ADEA until 2005, in Smith v.
Jackson, Mississippi. In Smith, the Court held that, like Title VI I , the ADEA
authorizes recovery on a disparate impact theory.
The Court did find that the scope of disparate impact liability under the ADEA is
narrower than that under Title VI I . In defending against a claimunder Title VI I , an
employer must show that, although the policy or practice at issue may have had a
disparate impact on a protected class of employees, the policy or practice was
consistent with business necessity and there was no other way for the employer to
achieve its goals. In its decision in Smith, the Supreme Court held that, in
defending against a claimof disparate impact under the ADEA, an employer need
show only that its practice or policy was based on reasonable factors other than
agea significantly lesser standard than required under Title VI I .
While federal law protects only applicants and employees who are age 40 and
older, some state laws protect applicants and employees regardless of their age.
In these states, it would be unlawful to take adverse action against someone
because they look too young (but not because they do not have the experience
required by the job).
Pr egnancy Di scr i mi nat i on Act (1978)
The Pregnancy Discrimination Act of 1978 amended Title VI I to prohibit
discrimination on the basis of pregnancy, childbirth, or related conditions; it
requires employers to treat pregnancy the same as any other temporary disability.
Employers must provide access to medical benefits and sick leave on the same
basis as such benefits are provided to other employees or for other conditions.
Under the Pregnancy Discrimination Act, it is illegal to:
Refuse to hire a woman simply because she is pregnant.
Fire a woman simply because she is pregnant.
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2011 SHRM
Force a pregnant employee to leave work if she is ready, willing, and able to
performher job.
Stop the accrued seniority of an employee who has taken a leave to give birth
or have an abortion (unless seniority does not accrue to other disabled workers
under similar circumstances or unless a leave is taken under the FMLA).
Americans with Disabilities Act (1990) and ADA Amendments Act (2008)
The passage of the Americans with Disabilities Act (ADA) of 1990 created
many rights for individuals with disabilities and established many
responsibilities relating to this class of individuals for employers with 15 or
more employees. Title I of the ADA prohibits discrimination against a qualified
individual with a disability because of his or her disability. The ADA protects
qualified individuals with disabilities fromunlawful discrimination in the
workplace, including access to training and career development. A qualified
individual with a disability is one who can performthe essential functions of the
j ob with or without reasonable accommodation.
The ADA's definition also includes individuals who have a record of, or who
are perceived or regarded as having, such an impairment. This definition closely
parallels the definition of "individual with a disability" found in the
Rehabilitation Act (which is covered later in this section).
The ADA also prohibits discrimination against a qualified individual because of
a known or perceived disability of an individual with whomthe qualified
individual has a relationship or association.
The ADA Amendments Act (ADAAA) amends the ADA in significant areas.
It prohibits consideration of mitigating measures in determining whether an
individual has a disability, with the exception of ordinary eyeglasses and
contact lenses. In other words, employees will be evaluated without regard
to the hearing aids, medication, prosthetic devices, and other measures they
use to manage their impairments.
It expands the definition of "regarded as" by providing that an individual is
"regarded as" having a disability if the employee establishes that he or she
has been discriminated against because of an actual or perceived physical or
2011 SHRM
2-11
mental impairment, whether or not the impairment limits or is perceived to
limit a major life activity. The impact of this change is that people who
suffer adverse employment actions, such as being fired, because they are
regarded as having an impairment can prevail if they prove that they were
discriminated against. However, the "regarded as" requirement does not
apply to transitory and minor impairments with an actual or expected
duration of less than six months.
Disability was originally defined by the ADA as a physical or mental impairment
that substantially limits one or more major life activities. Examples of major life
activities as recognized by the courts include (but are not limited to):
Transferring/mobility.
Toileting/personal hygiene.
Bathing and dressing.
The ADAAA expands the definition of disability by introducing a new,
nonexhaustive list of major life activities that include caring for oneself, performing
manual tasks, seeing, hearing, eating, sleeping, walking, standing, lifting, bending,
speaking, breathing, learning, reading, concentrating, thinking, communicating, and
working. For the first time, major life activities will also include the operation of
major bodily functions, including but not limited to functions of the immune
system; normal cell growth; and digestive, bowel, bladder, neurological, brain,
respiratory, circulatory, endocrine, and reproductive functions.
Most temporary conditions are not covered by the ADA. In contrast, many but
not all long-termor permanent conditions are covered. The Supreme Court has
mandated that an individualized determination must be made as to whether a
particular person is disabled. Employers cannot make determinations based
solely on the nature of the condition. Even so, the following conditions often are
covered by the ADA:
Alcoholism
Cancer
Cerebral palsy
Diabetes
Drug addiction (rehabilitated drug users and those undergoing treatment)
Emotional illness
Epilepsy
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Hearing and speech disorders
HI V disease
Mental retardation
Multiple sclerosis
Specific learning disabilities
The act specifically states that homosexuality, bisexuality, transvestitism, and
compulsive gambling are not physical or mental impairments.
ADA charges have been filed most often for disabilities such as bad backs,
neurological impairments, emotional/psychological impairments, and a variety
of physical impairments affecting the heart, vision, and hearing.
The; termessential functions refers to the primary j ob duties that a qualified
individual must be able to perform, either with or without accommodation. A
function may be considered essential for a variety of reasons, including (but
not limited to) the following items: '
5
The reason the j ob exists is to performthe function.
There are a limited number of employees available among whom
performance of the j ob function can be distributed.
The function may be highly specialized and require specific expertise or
ability.
"Engaging in reasonable accommodation means modifying or adjusting a j ob
application process, a work environment, or the circumstances under which a
. j ob 'Is usually performed to enable a qualified individual with a disability to be -
considered for the j ob and performits essential functions. ^The AD AAA makes
it clear that employers will not be required to provide reasonable
accommodation to individuals who are regarded as having an impairment/
While the reasonableness of any particular accommodation must be considered
on a case-by-case basis, examples of potential reasonable accommodations
include the following:
Assigning a reader to help an applicant who is visually impaired
Constructing ramps or providing a wheelchair-accessible desk
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Lowering counters or drinking fountains
Designing alternative formats for employee training
Providing a telephone device for a person who is hearing-impaired
The ADA does not require employers to take actions that involve undue
hardship. Factors in deciding whether accommodation is necessary are:
The individual's needs and desires for accommodation.
The individual's abilities and limitations in performing a specific job.
The nature of the business and the job.
The resources of the employer.
The options for accommodation.
The extent of hardship for the employer in making the accommodation.
I dentifying a reasonable accommodation is an interactive process between the
employer and the employee requesting the accommodation. It involves five key
steps, as shown in Figure 1.
Step 1. Individual asks for accommodation.
Step 2. Identify the barriers to performance of
essential job functions for each individual.
Step 3. Identify possible accommodations that
might behelpful in overcoming the
barriers.
Step 4. Assess thereasonableness of the
accommodations, including whether they
arethe employer's responsibility and
whether they impose an undue hardship.
Step 5. Choose the appropriate accommodation
for each individual.
Figure 1. Identifying a Reasonable Accommodation
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Failure to make reasonable accommodation can be proven if it can be shown that:
The person with the disability was otherwise qualified for the position.
A reasonable accommodation existed that would have enabled the person to
performthe essential functions of the job.
Reasonable accommodation was requested but not provided.
If an employee returns to work following a personal or job-related injury or illness
that results in a permanent limitation, the employer needs to be sure that necessary
accommodations are evaluated and implemented to enable the employee to
performthe essential functions of the j ob and to ensure the safety of both the
employee and coworkers. Often employees' j ob duties can be modified so they can
performthe essential functions of j obs with their disabilities.
The ADA, the Family and Medical Leave Act (FMLA), and workers'
compensation are sometimes intertwined when dealing with an injured employee.
Module 4: Total Rewards discusses the FMLA in Section 4-5 and workers'
compensation in Section 4-6.
Genet i c Inf or mat i on Nondi scr i mi nat i on Act (2008)
The Genetic Information Nondiscrimination Act (GINA) prohibits
discrimination against individuals on the basis of their genetic information in both
employment and health insurance. President Bush signed GI NA into law on May
21, 2008. GI NA employment provisions became effective in November 2009.
GI NA prohibits an employer fromdiscriminating against an individual in hiring,
firing, compensation, or terms or privileges of employment on the basis of genetic
information about the individual or a family member of the individual. It prohibits
an employer fromrequesting, requiring, or purchasing genetic information on the
individual or family member with the following exceptions:
Where the employer inadvertently requests or requires family medical history
of the employee or family member of the employee
For genetic services offered by the employer, including wellness programs
For purposes of complying with the Family and Medical Leave Act
Where the employer purchases documents that are commercially available
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GI NA describes a family member as the spouse of the individual; a dependent
child of the individual, including a child who is born to or placed for adoption
with the individual; or any first-, second-, third-, or fourth-degree relative of the
employee. For instance, this would include a parent, grandparent, or great-
grandparent.
GI NA does allow for genetic monitoring of the biological effects of toxic
substances in the workplace. This is discussed in Module 6: Risk Management.
The act also has provisions regarding health-care coverage protections, exceptions
for genetic testing for health-care treatment, and confidentiality of genetic health-
care information. These provisions are discussed in Module 4: Total Rewards.
The EEOC has revised its "Equal Employment Opportunity Is the Law" poster to
reflect changes required by the Title II employment provisions of GI NA. The
poster (or the "EEO Is the Law" poster supplement) can be found at
www.eeoc.gov/employers/poster.cfm.
Li l l y Ledbet t er Fai r Pay Act (2009)
The Lilly Ledbetter Fair Pay Act creates a rolling or open time frame for
filing wage discrimination claims. The law retains the 180-/300-day time
frame outlined in Title VI I , but now the clock renews each time employees
receive compensation that is based on an allegedly discriminatory decision by
the employer.
This act amends Title VI I of the Civil Rights Act of 1964, Title I and Section
503 of the Americans with Disabilities Act of 1990, Sections 501 and 504 of the
Rehabilitation Act of 1973, and the Age Discrimination in Employment Act of
1967.
The Ledbetter Act became the first bill signed into law by President Obama.
Lilly Ledbetter was paid less than her male coworkers for almost two decades.
The act overrules the U.S. Supreme Court's May 2007 decision in Ledbetter v.
Goodyear Tire & Rubber Co. In that case, the Court held that the 180-day time
limit for filing a charge under Title VI I of the Civil Rights Act starts after the
2-16 . 2011 SHRM
initial alleged unlawful employment action and does not restart upon receipt of
each successive paycheck.
The act provides that the charge-filing periods (300 days in most states and 180
days in states that do not have a fair employment agency) begin when:
A discriminatory compensation decision or other practice is adopted.
An individual becomes subject to the decision or practice.
An individual is affected by the application of a decision or practice,
including each time wages, benefits, or compensation is paid, resulting in
whole or in part fromsuch a decision or other practice.
Effectively, the statute of limitations starts each time an employee receives a
paycheck based on the decision.
The law also expands the plaintiff field and provides that an unlawful
employment practice occurs when "an aggrieved person" is affected by a
discriminatory compensation decision or practice. Now, nonemployees such as
family members, including spouses and children of a deceased worker, and
potentially others, may become plaintiffs in discrimination suits claiming that
pension benefits are reduced because of a discriminatory decision.
Additional information on the laws enforced by the Equal Employment
Opportunity Commission (EEOC) can be found at www.eeoc.gov.
The EEOC complaint process is discussed in detail in Section 5-1 of Module 5:
Employee and Labor Relations.
Uni f or m Gui del i nes on Empl oyee Sel ect i on Pr ocedur es (1978)
The Uniform Guidelines on Employee Selection Procedures covers all
aspects of the selection process, including recruiting, testing, interviewing,
and performance appraisals (to the extent that they are used to make
employment decisions). It is a procedural document that is published in
several places in the Code of Federal Regulations (including 29 CFR Part
1607 and 41 CFR Part 60-3) to assist employers in complying with Title VI I ,
Executive Order 11246, and other equal employment opportunity
requirements of federal law.
2-17 . 2011 SHRM
^ ^ Printed on 30% posl-consumer waste recycled paper.
The guidelines recommend that employers (including federal contractors) be
able to demonstrate that selection procedures that have an adverse impact (or
disparate impact) upon minorities or women are valid in predicting or
measuring performance in a particular job. Any selection procedure that has an
adverse impact on the hiring of any protected class will be presumed
discriminatory and inconsistent with the guidelines unless the procedure has
been validated in accordance with the UniformGuidelines or an alternative
selection procedure is used instead, provided the alternative procedure
eliminates the adverse impact, is lawful, and is as job-related as possible.
Under the guidelines, adverse impact occurs when the selection rate for an
employment decision works to the disadvantage of a protected class. As a rule
of thumb, this occurs when the selection rate for a protected class is less than
80% of the rate for the class with the highest selection rate. This is commonly
known as the 80% rule or four-fifths rule.
A revision of the UniformGuidelines introduced the "bottom-line concept,"
which specifies that federal enforcement agencies will not expect an employer
to evaluate each component of the selection process individually if the total
selection process does not have an adverse impact.
Checki ng f or adver se i mpact
Let's look at an example of how to internally assess adverse impact using the
80% rule and where the majority group is the non-protected class group.
Example: Assume that a company interviewed the following people for
factory assembly positions:
Group Number Interviewed Number Hired
Males 40 20
Females 30 6
To determine adverse impact:
1. Identify the selection rate (the percentage hired) for each group.
The male selection rate is 50% (20 - 40 = 50%).
The female selection rate is 20% (6 +30 = 20%).
2. Identify the group with the highest selection rate (males at 50%). This is
the majority group.
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2011 SHRM
3. Divide the lowest selection rate by the highest selection rate
(majority group).
20 - 50 = 40%
4. Adverse impact is indicated if the selection rate of the minority group (in
this example, females) is less than 80%, or four-fifths, of the selection
rate of the majority group (in this example, males).
In this case, adverse impact is indicated, since the selection rate of females
is not 80% that of males. The female selection rate must be at least 40% to
avoid a presumption of adverse impact (40/50 =80%). However, they are
hired at a rate of 20%.
When the 80% rale is violated and adverse impact occurs; employers have
the following alternatives:
Analyze the data more rigorously to determine whether there is in fact
adverse impact. This may include both statistical and practical analyses.
(Note: This alternative may be the first step toward meeting the "strong
basis in evidence" standard set by the Supreme Court in Ricci v.
DeStefano in 2009, but it is not the only step.)
Abandon the procedure. (Note: Under Ricci v. DeStefano, abandoning the ,
s
procedure and discarding the existing results because it creates adverse
impact appear to no longer be permitted if the test has been announced,
its intended use has been communicated, arid it has been implemented,
unless there is a strong basis in evidence that the procedure has an
- impermissible disparate impacti.e., the procedure adversely impacts a .
protected group-and it [1] is not job-related and consistent with business "
necessity [i.e., is not valid] or [2] is valid but there is an equally valid,,
v
less discriminatory testing alternative.
x
>.
s
Modi fy the procedure to eliminate adverse impact. \ ,
>>' Validate the job-relatedness of the selection procedure (e.g., validation
studies, detailed records, and fact finding about alternatives with less
adverse impact).
J ustify the procedure as a business necessity. (Note: The guidelines do not
specifically refer to "business necessity"; however, a compelling business
necessity defense may be used to counter an adverse impact charge.)
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Specific information on the Ricci v. DeStefano Supreme Court decision referenced in
this section can be found in the discussion of fairness issues and reverse discrimination
in Section 2-3 of this module, "Equal Employment Opportunity/Affirmative Action."
Employees can use statistical evidence to show potential discrimination against
women and minorities in discrimination claims. Moreover, any evidence that an
employer has a selection procedure that excludes members of a protected class,
whether intentional or not, may constitute adverse impact. An employer can
rebut the presumption of adverse impact by validating that the selection
procedure is job-related for the position at issue and is consistent with business
necessity or can challenge the validity of the empl oyee's statistical analysis.
Additional information about the UniformGuidelines on Employee Selection
Procedures can be found at www.access.gpo.gov/nara/cfr/waisidx_06/
29cfrl 607 06.html.
Execut i ve Orders and Legi sl at i on Af f ect i ng Af f i r mat i ve Act i on
Most government contractors are covered by the antidiscrimination laws
discussed earlier in this section, such as Title VI I of the Civil Rights Act of
1964 and the Americans with Disabilities Act. Companies that do business
with the federal government must comply with additional laws and presidential
executive orders that prohibit discrimination and require affirmative action.
Affirmative action (AA) is the practice in which employers identify
conspicuous imbalances in their workforce and take positive steps to correct
underrepresentation of protected classes.
The federal laws for affirmative action obligations that apply to federal - ?S
government contractors and subcontractors include:
Executive Order 11246, which covers women and minorities.
The Vietnam Era Veterans Readjustment Assistance Act (VEVRAA), as
amended by the Jobs for Veterans Act (J VA), which covers veterans (and
which is discussed later in this section).
:
, Section 503 of the Rehabilitation Act, which covers disabled workers.
Executive Order 13496, which covers employee rights under the NLRA.
2-20 . 2011 SHRM
These laws are enforced by the Department of Labor's Employment
Standards Administration's Office of Federal Contract Compliance Programs
(OFCCP). All these laws prohibit illegal discrimination and require
affirmative action. The penalties for noncompliance can include withholding
of contracts or other administrative sanctions, including being debarred from
receiving future federal government contracts.
The laws and regulations above impose different legal obligations on
employers, depending on the value of the federal contracts/subcontracts and/or
the number of employees employed.
Executive Order 11246 requires contractors with 50 or more employees and a
federal contract or subcontract of $50,000 or more to create and annually
update an affirmative action plan (AAP) for women and minorities.
VEVRAA and J VA require affirmative action plans for covered contractors:
VEVRAA applies to federal contracts or subcontracts of $50,000 or more
entered into prior to December 1, 2003. It requires contractors and
subcontractors with 50 or more employees to develop an AAP for special
disabled veterans, Vietnam-era veterans, recently separated veterans, and
other protected veterans.
J VA applies to federal contracts or subcontracts of $ 100,000 or more
entered into or modified after December I, 2003. It requires contractors
and subcontractors with 50 or more employees to develop an AAP for
disabled veterans, recently separated veterans, armed forces service medal
veterans, and other protected veterans.
As a practical matter, most federal contracts are modified during the term of
the contract. Thus the requirements under VEVRAA regarding categories of
covered veterans will diminish over time while the requirements under J VA
will dominate.
The Executive Order 11246 AAP must be a separate plan; the Section 503 and
VEVRAA/J VA AAPs can (but don't have to) be combined. Contractors with
2011 SHRM
2-21
both pre- and post-December 1, 2003, contracts in the proper amounts and with
50 or more employees may develop one AAP to satisfy their obligations.
In regard to Executive Order 13496, beginning on J une 21, 2010, contractors
entering into contracts with the federal government must:
Post notices informing employees about their rights under federal labor
law.
Include provisions in their contracts that require their subcontractors to post
the same employee notice.
(Note that Executive Order 13201 (the Beck Notice) has been repealed, and so
have the Labor Department's regulations implementing that executive order.)
Contracts, subcontracts, and purchase orders must now also reference this new
regulation (29 CFR Part 471, Appendix A to Subpart A).
Nonunion employers must also comply with the regulations if they are a
federal contractor or subcontractor.
The notice informs employees of federal contractors and subcontractors of their
rights under the NLRA to organize and bargain collectively with their
employers and to engage in other protected concerted activity. Additionally,
the notice provides examples of illegal conduct by employers and unions, and
it provides contact information to the National Labor Relations Board
(www.nlrb.gov), the agency responsible for enforcing the NLRA.
Federal contractors and subcontractors are required to post the prescribed
employee notice conspicuously in plants and offices where employees covered
by the NLRA engage in contract-related activity, which includes indirect or
auxiliary work without which the contract could not be effectuated, such as
maintenance, repair, personnel, and payroll work. The notice must be posted in
all places where notices to employees are customarily posted both physically
and electronically.
Where a significant portion of a contractor's workforce is not proficient in
English, contractors and subcontractors must provide the employee notice in
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2011 SHRM
languages spoken by employees, and the department will provide translations
of the employee notice that can be used to comply with the physical and
electronic posting requirements.
Federal government contracting departments and agencies must include the
prescribed notice in eveiy government contract, except collective bargaining
agreements entered into by a federal agency, prime contracts under $100,000,
and subcontracts below $10,000. Government contractors must also include
provisions requiring posting of the prescribed notice in all subcontracts. Public
employers, such as state universities, are excluded fromthe rule's application.
Specifically, Section 471.4(a) excludes the U.S. and the states and their
political subdivisions.
Enforcement responsibilities for the notice requirements are shared by two
Department of Labor agencies. The Office of Federal Contract Compliance
Programs (OFCCP) is responsible for investigation of complaints, compliance
evaluations, and conciliation, and that agency will refer violations to the Office
of Labor-Management Standards (OLMS) for enforcement. The sanctions,
penalties, and remedies for noncompliance with the notice requirements
include the suspension or cancellation of the contract and the debarring of
federal contractors fromfuture federal contracts. Employees may file
complaints with the OFCCP or the OLMS about contractors and subcontractors
that do not comply with the Labor Department's posting requirements.
Employees may also file complaints if the required contract provisions are not
included in contracts and subcontracts.
Following is an example of the minimumlanguage that must be included as of
J une 21, 2010:
is an equal employment opportunity employer.
As such, 41 CFR 60-1.4(a), 41 CFR 60-250.5, 41 CFR 60-300.5, and
41 CFR 60-741.5 as well as 29 CFR Part 471, Appendix A to Subpart
A are herein incorporated by reference.
A copy of the notice may be downloaded fromwww.dol.gov/olms/regs/
compliance/EO 13496.htm.
2-23 . 2011 SHRM
Affirmative action plans are also covered in Section 2-3 in this module, "Equal
Employment Opportunity/Affirmative Action."
Vietnam Era Veterans Readjustment Assistance Act (1974) and J obs
for Veterans Act
The Vietnam Era Veterans Readjustment Assistance Act (VEVRAA)
applies to the federal government and those federal government contractors and
subcontractors who meet the requirements listed above. Along with its
implementing regulations, VEVRAA prohibits discrimination against:
Special disabled veterans (veterans who have a compensable disability rate
of 30% or more, who have been determined to have a "serious employment
handicap," or who were discharged fromactive duty due to a service-
connected disability, as determined by the Veterans Administration).
Vietnam-era veterans.
Recently separated veterans (within one year of discharge).
Other protected veterans (veterans who served on active duty during a war,
campaign, or expedition for which a campaign badge has been authorized).
The Jobs for Veterans Act (JVA), along with its implementing regulations,
issued in August 2007, amends VEVRAA in the following significant areas:
Requires contractors with post-December 1, 2003, contracts (or contracts
modified after December 1, 2003) to engage in affirmative action for:
All disabled veterans.
Veterans discharged or released fromactive duty in the last one to three
years.
Veterans who served on active duty in the U.S. military, ground, naval,
or air service during a war, campaign, or expedition for which a
campaign badge was authorized.
Armed forces service medal veterans (veterans who served on active
duty in the United States armed forces during a United States military
operation for which an armed forces service medal was awarded
according to Executive Order 12985).
I ncreases the contract monetary threshold that creates affirmative action
obligations, as discussed earlier.
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Modifies the mandatory j ob listing requirement for covered contractors.
VEVRAA regulations previously allowed covered contractors to satisfy
their j ob listing obligations by listing employment openings with the
appropriate local employment service office. The J VA requires each
covered contractor to list employment openings with the appropriate
"employment service delivery system" or the "appropriate state workforce
agencyj ob bank" (which is the agency j ob bank in the state where the j ob
opening occurs).
Both VEVRAA and J VA require contractors and subcontractors to file a
supplemental report by September 30 of each year describing the company's
hiring practices regarding covered veterans.
The VETS-100 report is required under VEVRAA. It requires the reporting
of hiring practices regarding special disabled veterans, Vietnam-era
veterans, recently separated veterans, and other protected veterans.
The VETS-100 (A) report is required under J VA. It requires the reporting
of hiring practices regarding disabled veterans, recently separated veterans,
armed forces service medal veterans, and other protected veterans.
Additional information on the obligations of federal government contractors
under VEVRAA and J VA can be found at the Office of Federal Contract
Compliance Programs Web site, www.dol.gov/ofccp, and the Veterans'
Employment and Training Service Web site, www.dol.gov/vets.
Rehabi l i t at i on Act (1973)
The Rehabilitation Act of 1973 prohibits discrimination based on physical or
mental disabilities. Section 501 applies only to the federal government as an
employer. Section 503 applies only to federal contractors and subcontractors
with contracts over $10,000 and requires themto take affirmative action to hire
qualified disabled people. The act also requires all covered employers to make
reasonable accommodation for the physical or mental disability unless the
employer can demonstrate undue hardship based upon business necessity and
financial cost (significant difficulty or expense). Employers are not required to
employ unqualified persons.
2-25 . 2011 SHRM
Under the Rehabilitation Act, the term"individual with a disability" has been
defined as any person who has a physical or mental impairment that
substantially limits one or more of his or her major life activities, has a record
of such impairment, and/or is perceived as having such an impairment.
The Rehabilitation Act guidelines for contractors require reasonable
accommodation to be considered for the disabled, which may include the following:
Job accessibility. Adding wheelchair ramps, Braille signs on elevators, air
conditioning for workers with respiratory problems, etc.
Job design. Eliminating tasks that a disabled person cannot performand that
are not really necessary in the job.
Qualifications. Eliminating unnecessary j ob specifications, such as a physical
exam, that might limit the entry of disabled applicants.
Nondiscriminatory treatment. Eliminating hiring decisions based on people's
fears or uneasiness about disabilities such as epilepsy or speech impairment.
This act took on added prominence because of a Supreme Court ruling that
suggested it could be used to prohibit discrimination against people with AI DS.
In School Board of Nassau v. Arline (1987), while the Court expressly declined
to address the AI DS issue, they ruled that persons with contagious diseases
could be covered by the act. In this case, a schoolteacher was dismissed because
she had tuberculosis, an infectious respiratory disease. The Court held that the
fact that a disease is contagious can place an employee under the protection of
the act since mere fear of the disease (rather than its actual likelihood of being
transmitted) might cause employers to discriminate against the ailing persons.
Immi gr at i on Ref or m and Cont r ol Act (1986)
On March 1, 2003, services formerly provided by the I mmigration and
Naturalization Service (I NS) transitioned into the Department of Homeland
Security (DHS) under U.S. Citizenship and I mmigration Services (USCI S). The
priorities of the USCI S are to promote national security, continue to eliminate
2-26 . 2011 SHRM
immigration case backlogs, and improve customer services. The USCI S oversees
citizenship, asylum, lawful permanent residency, employment authorization,
refugee status, intercountry adoptions, replacement immigration documents,
family and employment-related immigration, and foreign student authorization. It
also enforces the Immigration Reform and Control Act (IRCA), which
attempts to deal with problems arising fromthe flow of illegal aliens into the U.S.
Designed to accomplish two somewhat divergent purposes, I RCA prohibits
discrimination against j ob applicants on the basis of national origin or
citizenship and, at the same time, establishes penalties for hiring illegal aliens.
Employers who knowingly hire someone who is not entitled to work in this
country face both civil and criminal penalties. While Title VI I allows preference
for U.S. citizens, I RCA does not.
The burden of verifying that a new employee is eligible to work in the U.S.
falls on the employer. Generally, within three days of hiring, both the new
hire and the employer must fill out Form1-9, Eligibility Verification Form,
which is kept in the employer's files. This formverifies two facts about the
employee: identity and right to work in the U.S.
Effective April 3, 2009, employers were required to use a new version of the I-
9 form. The changes result froma USCI S ruling published in December 2008
revising the types of identity and employment authorization documents
employers can accept fromnew hires. Employees can no longer use expired
identification documents to verify their work eligibility.
Figure 2 lists the acceptable documents that establish identity and right to
work. The employee selects which document(s) he or she wishes to present as
part of the 1-9 verification process. The employer may not specify which
documents must be presented. All documents must be unexpired.
For additional information, check the USCI S Web site. Refer to www.uscis.gov/
i-9.
2011 SHRM
2-27
Li st ADoc ument s That Est abl i sh Bot h Ident i t y and Empl oyment Aut hor i zat i on
U.S. passport or U.S. passport card
Permanent Resident Card or Alien
Registration Receipt Card with photograph
(Form 1-551)
Foreign passport with temporary 1-551
stamp or temporary 1-551 printed notation on
machine-readable immigrant visa
Employment Authorization Document that
contains photograph (Form I-766)
Foreign passport with Form I-94 or Form I
94A, bearing the same name as the
passport and containing an endorsement
of the alien's nonimmigrant status, if that
status authorizes the alien to work for the
employer
Passport from the Federated States of
Micronesia (FSM) or the Republic of the
Marshall Islands (RMI), with Form I-94 or
Form I-94A indicating nonimmigrant
admission
Li st BDocument s That Est abl i sh Ident i t y
Driver's license or ID card issued by state or
outlying possession of the United States,
provided it contains a photograph or
information such as name, date of birth,
gender, height, eye color, and address
ID card issued by federal, state, or local
government agencies or entities, provided it
contains a photograph or information such
as name, date of birth, gender, height, eye
color, and address
School ID card with photograph
Voter's Registration Card
U.S. military card or draft record
Military dependent's ID card
U.S. Coast Guard Merchant Mariner Card
Native American tribal document*
Driver's license issued by Canadian
government authority
For persons under age 18 who are unable to
present a document listed above:
School record or report card
Clinic, doctor, or hospital record
Day care or nursery school record
Li st CDocument s That Est abl i sh Empl oyment Aut hor i zat i on
U.S. Social Security card issued by Social
Security Administration (other than card
stating that it is not valid for employment)
Certification of Birth Abroad issued by
Department of State (FS-545)
Certification of Report of Birth issued by
Department of State (Form DS-1350)
Original or certified copy of birth certificate
issued by state, county, municipal authority,
or territory of United States bearing official
seal
Native American tribal document*
U.S. citizen ID card (Form 1-197)*
ID card for use of resident citizen in United
States (Form 1-179)*
Employment authorization document
issued by DHS (other than those listed
under List A)
* Even though these documents are not in List A, they establish both identity and employment authorization on Form
I-9. If presented by an employee, no other documents are required in order to complete Section 2 of Form I-9.
Source: U.S. Citizenship and Immigration Services, www.uscis.gov
Figure 2. Acceptable Form 1-9 Documents
2-28 . 2011 SHRM
E-Verify
An executive order requiring that federal contractors use E-Verify to check the
employment eligibility of all newly hired employees, as well as all current
employees directly working on a contract, became effective on September 8,
2009. Originally slated to begin J anuary 15, 2009, the new federal rule was
postponed multiple times due to federal court proceedings challenging the legality
of the mandate. A three-year extension of E-Verify was signed into law by
President Obama on October 28, 2009, to last until the end of September 2012.
E-Verify is an I nternet-based verification systemoperated by the USCI S in
partnership with the Social Security Administration. The systemallows employers
to verify the employment eligibility of their employees, regardless of citizenship.
E-Verify electronically checks the information provided by the employee on his
or her Form1-9 against records contained in Department of Homeland Security
and Social Security Administration databases.
The final rule applies to solicitations issued and contracts awarded after the
effective date (September 8, 2009). Under the final rule, employers are required to
enroll in E-Verify if and when they are awarded a federal contract or subcontract
that requires participation in E-Verify as a termof the contract.
The requirement for federal contractors and subcontractors to use E-Verify
represents a significant change. Not only do employers with government contracts
or subcontracts have to verify employment eligibility for new hires; they also have
to re-verify a subset of existing employees who are classified as "employees
assigned to the contract." Primary contractors are also required to oversee
subcontractors' compliance with the E-Verify programand are subject to
vicarious liability for their subcontractors' failure to comply.
The final rule requires all federal government contracts and solicitations of at least
$ 100,000 on the effective date or thereafter to include a clause requiring the
contractor to use E-Verify in compliance with the final regulations. All subcontracts
for $3,000 or more must include a similar clause. In addition, contracting agencies
must amend on a bilateral basis existing indefinite-delivery/indefinite-quantity
contracts to include the clause requiring E-Verify for future orders if the remaining
period of performance extends at least six months after the effective date.
2011 SHRM
2-29
Covered contractors and subcontractors not already enrolled in E-Verify must:
Enroll in E-Verify within 30 calendar days of being awarded a covered
government contract or subcontract.
Initiate E-Verify queries for all employees working on a covered contract
within 90 calendar days of enrollment in E-Verify or within 30 calendar days
of the employee's assignment to the contract, whichever date is later.
(Alternatively, a contractor or subcontractor may elect to verify employment
eligibility of all existing employees hired after November 6, 1986, within 180
days of enrollment or notification to the E-Verify programthat it will be
electing this option.)
Implement use of E-Verify to verify employment eligibility of all new hires,
even those not assigned to a covered contract, within 90 calendar days of
enrollment. E-Verify queries for all new hires must be submitted within three
business days of the employee's hire date.
Contractors that do not comply with these requirements may be suspended or
debarred fromfurther government contracting.
Before the final rule became effective, participation in E-Verify was voluntary,
except for employers with operations in states that had already enacted laws
requiring the use of E-Verify.
The USCI S has published extensive information on its Web site, www.uscis.gov,
regarding application of the rule.
Vi sas
Fromthe U.S. perspective, the underlying theme of U.S. immigration law is to
ensure that:
Those individuals who enter the United States do so lawfully.
Those individuals who reside and work in the United States, whether
permanently or temporarily, do so with the approval and knowledge of the
United States government.
2-30 . 2011 SHRM
Two categories of visas are available under the immigration laws. They are
broadly grouped as immigrant visas and nonimmigrant visas. I mmigrant
visas are typically referred to as "green cards" and are permanent, while
nonimmigrant visas are temporary. Each type of visa has specific
employment conditions and requirements. The paperwork for bringing in
foreign workers is usually handled by human resources, with the assistance
of experienced immigration counsel.
The visa information presented here is not intended to be all-inclusive. This
is an overview and should not be used as a substitute for legal advice from
an experienced immigration attorney.
Immigrant visas. There are three key employment-based immigrant visa
categories, divided into preference groups based on their importance and
the number of immigrant visas allocated to each group annually.
First preferencePriority Workers: EB-1
Employers do not need to test the U.S. labor market (or file a labor
certification application) to determine that there are no minimally
qualified U.S. workers for these jobs.
Second preference: EB-2
In most cases for this category, employers must test the U.S. labor
market through a labor certification application to determine whether
there are minimally qualified U.S. workers for the position. Foreign
nationals in this category are required to have a j ob offer.
Third preference: EB-3
This category is reserved for people who do not have advanced degrees
or otherwise qualify under the EB-1 or EB-2 categories but who meet
other criteria regarding work experience and education. Typically
individuals with a bachelor's degree will fit in this category. Employers
are required to complete the labor certification process for people in the
EB-3 category.
Figure 3 provides an overview of these categories of immigrant visas.
2-31 . 2011 SHRM
Fi rst Pref erencePri ori t y Wor ker s: EB-1
Extraordinary ability Aliens with extraordinary ability in the arts, sciences,
education, business, or athletics may be granted permanent
residence status if they can show, among other things, that
they have received a major award in their field or that their
work has received major recognition. USCIS guidelines
determine what constitutes "extraordinary" for the purposes
of this category.
Outstanding professors
and researchers
Outstanding professors and researchers with at least three
years of experience and an offer of employment may fit in
this category. There must be evidence that the person is
outstanding in his or her academic field. USCIS guidelines
determine what constitutes "outstanding" for the purposes of
this category.
Certain multinational
managers and
executives
This category is reserved for executives and managers who
(1) have been working for the same or an affiliated company
outside the United States in an executive or managerial
capacity for at least one of the three years immediately
preceding the petition, or (2) in the case of a worker who is
already in the United States, if he or she worked in a
managerial or executive capacity for the foreign parent or
subsidiary for at least one of the three years.
Second Pref erencePri ori t y Wor ker s: EB-2
Professionals with
advanced degrees
This category is reserved for professionals holding
advanced degrees (any degree beyond a bachelor's degree)
or with a bachelor's degree plus five years of professional
experience.
Aliens with exceptional
ability
This category applies to aliens with exceptional ability in the
sciences, arts, or business. USCIS guidelines determine
what constitutes "exceptional" for the purposes of this
category.
Thi r d Pref erencePri ori t y Wor ker s: EB-3
Professionals An occupation is considered professional if a bachelor's
degree or the foreign degree equivalent is the minimum
entry requirement of the field.
Skilled workers This includes positions that require at least two years of
experience or training.
Other workers Other workers include unskilled labor, such as domestics
and nannies.
Figure 3. Primary Employment-Based Immigrant Visas
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2011 SHRM
Nonimmigrant visas. Nonimmigrant visas are available to aliens who want to
come to the U.S. for a temporary period of time. Some of the nonimmigrant visas
that are typically used by businesses are described in Figure 4.
Noni mmi gr ant Vi sa , , _
_ .
a
Key Provi si ons
ra t o nnn/
Business Visitor: B-1 Business visitors may be permitted to enter the United States for the
purpose of engaging in business activities (including but not limited to
attending meetings, seminars, or conferences or negotiating contracts) but
may not be gainfully employed by a U.S. company.
Specialty Occupation
Workers: H-1B
This visa is reserved for professionals (including but not limited to engineers,
computer scientists, biotechnologists, university professors, marketers, and
health-care professionals) who come to the U.S. for a limited amount of time.
The alien must have a baccalaureate degree (a foreign equivalent or
equivalent experience may also be acceptable), and the degree must be a
usual requirement for the position. H-1B workers must be paid at least the
same wage rates as are paid to U.S. workers who perform the same types of
work or the prevailing wages in the areas of intended employment. This
category is subject to yearly numerical limitations imposed by USCIS.
Intracompany
Transferee: L-1
Aliens who work for a foreign employer and are transferred to the U.S. to
work for a parent, subsidiary, or affiliate company qualify for L-1 visas if they
have held a specialized knowledge, management, or executive position
during one of the last three years before entering the U.S.
Treaty Investors and
Traders: E-1 and E-2
These visas are reserved for aliens in countries with which the U.S. has
commerce, navigation, and investment treaties. These aliens come into the
U.S. to work for companies based in their home country that are investing or
trading in the U.S.
Australian Free Trade/
Specialty Occupation
Workers: E-3
This category is specific to Australian citizens and applies generally to
positions very similar to those covered by the H-1B visa category.
Students: F-1 These visas are reserved for full-time university, college, high school, or
elementary students who study at a school approved by the USCIS.
Generally, students must not accept employment, except for on-campus
employment and employment directly related to their curriculum.
Exchange Visitors: J -1 J -1 visas apply to aliens in government-approved exchange visitor
programs. These visas are managed by the Department of State.
North American Free
Trade Agreement
(NAFTA): TN
TN visas are available only to citizens of Canada and Mexico whose
occupations appear on a NAFTA schedule and who have the necessary
education or experience.
0 visas 0 visas are temporary visas available for persons of extraordinary ability in
the arts, sciences, education, business, or athletics that has been
demonstrated by sustained national or international acclaim.
Q visas Q visas are used by cultural exchange visitors who come to the U.S. to work
temporarily.
Figure 4. Common Nonimmigrant Business Visas
2-33 . 2011 SHRM
PERM
PERM (Program Electronic Review Management) is the streamlined process
for obtaining labor certification, the first stage of the green card process for
foreign nationals seeking permanent residence through their employment. The
PERM programofficially went into effect on March 28, 2005.
The PERM programhelps meet workforce needs when there are no available
American workers to fill a job. The Department of Labor is able to process
requests to fill vacancies with foreign workers only after employers affirmthat
no American workers are available. The DOL has set a goal to process and
certify cases within 45 to 60 days. Once a permanent labor certification is issued
by the department, an employer must then petition the U.S. Department of
Homeland Security and the State Department to complete the visa approval
process.
The new systemrequires employers to conduct recruitment before filing their
applications. State workforce agencies (SWAs) will provide prevailing wage
determinations to employers but will no longer receive or process applications
as they do under the current system. Employers will be required to place a job
order with the SWA, but the job order will be processed the same as any other
job order. Employers will have the option of filing applications electronically,
using Web-based forms and instructions, or by mail.
For more information, see the discussion of permanent labor certification at
www.foreignlaborcert.doleta.gov/perm.cfm.
Wor ker Adj ust ment and Ret r ai ni ng Not i f i cat i on Act (1988)
The Worker Adjustment and Retraining Notification (WARN) Act requires
some employers to give a minimumof 60 days' notice if a plant is to close or if
mass layoffs will occur. This act allows displaced workers adequate time to
search for a new job; therefore, it potentially reduces the impact of any mass
layoff or plant closing. WARN affects employers who employ 100 or more:
Full-time employees, or
Full-time and part-time employees who, in the aggregate, work at least
4,000 hours (exclusive of overtime hours) per week at all employment sites.
2-34 . 2011 SHRM
The definition of "part-time" includes not only employees who regularly work
fewer than 20 hours per week but also employees who have been employed for
fewer than six of the preceding 12 months. A new employee who works a full-
time schedule but has been employed for only six months falls into this
category.
The 60 days' notice must be given to the following:
Affected workers or their representatives
State dislocated worker units
The chief elected official of the local government where the closing or
layoff is to occur
Specific provisions of the act are as follows.
Employment loss
WARN defines employment loss as the involuntary termination of
employment (other than for cause), layoff for more than six months, or at least
50% reduction in hours for each month of a six-month period. Part-time
employees are excluded by definition and are not considered in the definition.
Plant closings
WARN defines a plant closing as a shutdown, either temporary or
permanent, of an entire single site or one or more facilities or operating units
within a single employment site that results'in an "employment loss" during
any 30-day period for 50 or more full-time employees. Part-time employees
are excluded by definition and are not counted in the required number of 50.
Mass layoffs
WARN defines a mass layoff as a reduction in force, not a plant closing,
during any 30-day period that results in the employment loss at a single
employment site for either 50 or more full-time employees, if they compose
33% of the workforce at the employment site, or 500 or more full-time
employees. Part-time employees are excluded by definition and are not
counted in the required numbers of 50 or 500.
A number of states have "baby WARN" laws, which may apply even when
federal WARN does not. For example, some of these laws apply to smaller
2011 SHRM
2-35
employers and/or require a smaller number of employees to experience an
"employment loss" in order for there to be a covered plant closing and/or mass
layoff. Accordingly, state laws must be checked as well.
Congr essi onal Account abi l i t y Act (1995)
The Congressional Accountability Act, passed by Congress in 1995, requires
that federal employee relations legislation enacted by Congress apply to the
employees of Congress as well.
Congress must comply with the following:
Fair Labor Standards Act of 193 8
Title VII of the Civil Rights Act of 1964, as amended in 1991
Occupational Safety and Health Act of 1970
Americans with Disabilities Act of 1990
Family and Medical Leave Act of 1993
Civil Service ReformAct of 1978
Age Discrimination in Employment Act of 1967
Employee Polygraph Protection Act of 1988
Worker Adjustment and Retraining Notification Act of 1988
Rehabilitation Act of 1973
Veterans Reemployment Act of 1994
Uni f or med Ser vi ces Empl oyment and Reempl oyment Ri ght s Act (1994)
The Uniformed Services Empl oyment and Reempl oyment Rights Act
(USERRA) of 1994 was enacted to protect the employment, reemployment, and
retention rights of persons who voluntarily or involuntarily serve or have served
in the uniformed services.
USERRA is covered in more detail in Section 4-5, "I ntroduction to Benefit
Programs and Key Benefits Legislation" of Module 4: Total Rewards.
Additional information on USERRA can be found at the DOL Web site,
www.dol.gov.
Note that many state laws may provide protection for employees beyond what
USERRA provides. Employees are entitled to the maxi mumprotection afforded
under federal and/or state law.
2-36 . 2011 SHRM
Figure 5 summarizes important provisions of the employee rights legislation
discussed up to this point. Some of these laws have a broad civil rights
emphasis; others address specific equal employment opportunity concerns.
Major Employee
Rights Legislation
Anti di scri mi nati on Legislation
Key Provisions
Title VII of the Civil
Rights Act of 1964
Prohibits discrimination or segregation based on race,
color, national origin, religion, and gender in all terms
and conditions of employment
Civil Rights Act of 1991 Expands possible damage awards available to victims
of intentional discrimination to include compensatory
and punitive damages; gives plaintiffs in cases of
alleged intentional discrimination right to a jury trial
Age Discrimination in
Employment Act
Prohibits discrimination in employment for persons
age 40 and over except where age is a bona fide
occupational qualification
Pregnancy
Discrimination Act
Amends Title VII to prohibit discrimination on the
basis of pregnancy, childbirth, or related conditions;
requires employers to treat pregnancy the same as
any other temporary disability
Americans with
Disabilities Act and
ADA Amendments Act
Prohibits discrimination against a qualified individual
with a disability because of his or her disability;
protects qualified individuals with disabilities from
unlawful discrimination in the workplace, including
access to training and career development
Genetic Information
Nondiscrimination Act
(GINA)
Prohibits discrimination against individuals on the
basis of their genetic information in both employment
and health insurance
Lilly Ledbetter Fair Pay
Act
Creates a rolling time frame for filing wage
discrimination claims; retains the 180-/300-day time
frame outlined in the Title VII but allows the clock to
renew each time employees receive compensation
that is based on a discriminatory decision by the
employer
Uniform Guidelines on
Employee Selection
Procedures
Assists employers in complying with federal
regulations prohibiting discrimination
Figure 5. Major Employee Rights Legislation (continued next page)
2-37 . 2011 SHRM
Affi rmati ve Action and Anti di scri mi nati on Legislation
Executive Order 11246 Prohibits discrimination and requires federal contractors
and subcontractors to take positive, results-oriented
steps to eliminate employment barriers to women and
minorities
Vietnam Era Veterans
Readjustment Assistance
Act and J obs for Veterans
Act
Prohibit discrimination against certain veterans by the
U.S. government and federal contractors; require
affirmative action
Rehabilitation Act Prohibits discrimination based on physical or mental
disabilities; requires employers to make reasonable
accommodation for the physical or mental disability
unless there is undue hardship; applies only to the
federal government or federal contractors with contracts
over $10,000; requires affirmative action
Executive Order 13496
Other Key Legislation
Immigration Reform and
Control Act
Requires contractors entering into contracts with the
federal government to post notices informing employees
about their rights under federal labor law and include
provisions in their contracts that require their
subcontractors to post the same employee notice
Prohibits discrimination against job applicants on basis
of national origin or citizenship; establishes penalties for
hiring illegal aliens and requires employers to establish
each employee's identity and eligibility to work
Worker Adjustment and
Retraining Notification Act
Requires some employers to give a minimum of 60 days'
notice if a plant is to close or if mass layoffs will occur
Congressional
Accountability Act
Requires that federal employee relations legislation
enacted by Congress apply to the employees of
Congress
Uniformed Services
Employment and
Reemployment Rights Act
Protects the employment, reemployment, and retention
rights of persons who serve or have served in the
uniformed services.
Figure 5. Major Employee Rights Legislation (concluded)
Many states and some municipalities have also enacted antidiscrimination
legislation. In some jurisdictions, these laws are referred to as "fair employment
2-38 . 2011 SHRM
practices" or "human relations" legislation, but the intent is the same as with the
federal regulationsto protect against discrimination in the workplace. Be sure
you are current on any relevant state and local regulations for your area.
State laws and regulations may offer greater protection than federal laws and
regulations, but states cannot take away or lower the level of protection offered
by federal regulations.
The following are two examples:
According to California law (not federal law), it is illegal to discriminate on
the basis of sexual orientation in all employment decisions.
The federal Family and Medical Leave Act was passed after the District of
Columbia Family and Medical Leave Act, and the federal law was not as
generous as the D.C. law. Employees are entitled to the most generous
interpretation of the laws together (D.C.: 16 weeks of family leave and 16
weeks of medical leave in 24 months).
The federal Family and Medical Leave Act (FMLA) is discussed in Section 4-5
of Module 4: Total Rewards.
2-39 . 2011 SHRM
Progress Check
Directions: Choose the best answer to each question.
1. Which of the following statements about Title VI I of the Civil Rights Act of 1964 is true?
( ) a. It prohibits discrimination or segregation based on race, color, national origin,
religion, and gender.
( ) b. It removes the limits, or "caps," on damages awarded for intentional
discrimination on the basis of gender, religion, or disability.
( ) c. It prohibits employers fromgiving temporary preference to any underrepresented
protected class.
( ) d. It prohibits discrimination or segregation based on race, color, national origin,
religion, and age.
2. Which federal agency was established to investigate charges of discrimination under Title
VI I ?
( ) a. NLRB
( ) b. Workers' Compensation Board
( ) c. EEOC
( ) d. ADA Board
3. Which court ruling creates a safe harbor frompunitive damages for employers with good-
faith antidiscrimination practices?
( ) a. Faragher v. City of Boca Raton
( ) b. Kolstad v. American Dental Association
( ) c. Meritor Savings Bank v. Vinson
( ) d. General Dynamics Land Systems v. Cline
4. Whi ch legislation prohibits mandatory retirement based on age?
( ) a. Older Worker's Benefit Protection Act (1990)
( ) b. Age Discrimination in Employment Act (1967)
( ) c. Rehabilitation Act (1973)
( ) d. Title I of the Americans with Disabilities Act (1990)
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2011 SHRM
5. The Rehabilitation Act of 1973 prohibits discrimination on the basis of
( ) a. age.
( ) b. disability.
( ) c. gender.
( ) d. national origin.
6. Which of the following statements about the Rehabilitation Act is true?
( ) a. The consequences of discrimination under the act are limited to the withholding
of contracts or other administrative sanctions.
( ) b. It was replaced by the Americans with Disabilities Act of 1990.
( ) c. It applies to all businesses with 50 or more employees.
( ) d. It requires certain employers to make reasonable accommodations for physical or
mental disabilities unless the employer can demonstrate undue hardship.
7. Which of the following statements about the Americans with Disabilities Act is true?
( ) a. It deals exclusively with employment issues for the disabled.
( ) b. A reasonable accommodation could include hiring an interpreter for a j ob
interview with a deaf applicant.
( ) c. Employers can no longer claim"undue hardship" to escape making the workplace
accessible to disabled workers.
( ) d. Current drug users are considered disabled under the definition in the act.
8. The Pregnancy Discrimination Act of 1978 requires employers to treat pregnancy
( ) a. under the provisions for protected classes.
( ) b. the same as any other temporary disability.
( ) c. under existing provisions for a long-term disability.
( ) d. as a reasonable ADA accommodation.
9. Which of the following documents establishes a worker's identity and right to work for Form
1-9?
( ) a. U.S. passport
( ) b. Driver's license with photo ID
( ) c. U.S. birth certificate
( ) d. U.S. military card
2011 SHRM
2-41
10. Under the Immigration Reformand Control Act of 1986, which of the following verifies the
right to work?
( ) a. U.S. military card
( ) b. Government ID card
( ) c. U.S. Social Security card
( ) d. Driver's license with photo ID
11. Under the EEOC's selection guidelines, adverse impact occurs when the selection rate for a
protected class is less than what percentage of that for the group with the highest selection
rate?
( )
a. 20%
( )
b. 50%
( )
c. 67%
( )
d. 80%
12. Which legislation protects workers displaced in the merger of two corporations?
( ) a. Worker Adjustment and Retraining Notification Act
( ) b. UniformGuidelines on Employee Selection Procedures
( ) c. Executive Order 11246
( ) d. I mmigration Reformand Control Act
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2011 SHRM
Progress Check Answers
1. a (p. 2-5)
2. c(p. 2-6)
3. b (p. 2-8)
4. b(p. 2-8)
5. b (p. 2-25)
6. d (p. 2-25)
7. b (p. 2-13)
8. b (p. 2-10)
9. a (p. 2-28)
10. c (p. 2-28)
11. d (p. 2-18)
12. a (p. 2-35)
2011 SHRM
2-43
Workforce Planning
3nd Employment
2.2
Key Legislation Affecting
Privacy and Consumer
Protection
HR responsi bi l i ti es rel ated t o t hi s secti on i ncl ude:
. activities are compliant with applicable federal, state, and
Thi s sect i on is desi gned to i ncrease your knowl edge of:
employment.
i t
i l i Shn
Privacy Legislation
HR professionals should be familiar with the two primary pieces of legislation
affecting employee privacy: the Privacy Act and the Employee Polygraph
Protection Act.
Privacy Act of 1974
The Privacy Act protects the employment records of federal government
employees fromdisclosure without prior written authorization. Several attempts
have been made to give private-sector employees additional privacy protections;
these have been unsuccessful. Some state legislatures and private employers
have adopted guidelines regarding employee privacy and access to personnel
files.
Employee Polygraph Protection Act (1988)
The Employee Polygraph Protection Act of 1988 generally prevents
employers engaged in or affecting interstate commerce fromusing lie
detector tests either for preemployment screening or during the course of
employment, with certain exemptions.
Def i ni t i ons
Lie detectors include polygraphs, deceptographs, voice stress analyzers,
psychological stress evaluators, or similar devices (whether mechanical or
electrical) used to render a diagnostic opinion as to the honesty or dishonesty
of an individual.
A polygraph is an instrument that records continuously, visually,
permanently, and simultaneously changes in cardiovascular, respiratory, and
electrodermal patterns as minimuminstrumentation standards and is used to
render a diagnostic opinion as to the honesty or dishonesty of an individual.
Pr ohi bi t i ons
An employer shall not, directly or indirectly:
Require, request, suggest, or cause an employee or prospective employee
to take or submit to any lie detector test.
Use, accept, refer to, or inquire about the results of any lie detector test of
an employee or prospective employee.
2-46
2011 SHRM
Discharge, discipline, discriminate against, deny employment or
promotion, or threaten to take any such action against an employee or
prospective employee for refusal to take a test, on the basis of the results
of a test, for filing a complaint under the act, for testifying in any such
proceeding, or for exercising any rights afforded by the act.
Exempt i ons
Federal, state, and local governments are excluded.
In addition, lie detector tests administered by the federal government to
employees of federal contractors engaged in national security
intelligence or counterintelligence functions are exempt.
The act also includes limited exemptions where polygraph tests (but no
other lie detector tests) may be administered in the private sector,
subject to certain restrictions:
To employees who are reasonably suspected of involvement in a
workplace incident that results in economic loss to the employer
and who had access to the property that is the subject of an
investigation
To prospective employees of armored car, security alarm, and
security guard firms who protect facilities, materials, or operations
affecting health or safety, national security, or currency and other
like instruments
To prospective employees of pharmaceutical and other firms
authorized to manufacture, distribute, or dispense controlled
substances who would have direct access to such controlled
substances as well as current employees who had access to persons
or property that are the subject of an ongoing investigation of
criminal or other misconduct involving or potentially involving loss
or injury to the manufacturing distribution or dispensing of any
such controlled substance by such employer
2-47 . 2011 SHRM
Even in the above cases (other than with respect to lie detectors administered
by the federal government to employees of federal contractors engaged in
national security intelligence or counterintelligence functions), an employer
may not discriminate against prospective or current employees and may not -
discharge any current employee based solely upon refusal to take a polygraph
test or analysis of a test.
I f an employee voluntarily agrees to take the test, the employee may terminate
the test at any time.
An employer who violates the statute may be fined up to $10,000 and can be
sued by an employee or prospective employee to recover lost wages and
benefits, attorneys' fees, and court costs as well as possible equitable relief such
as reinstatement and promotion.
Some states impose restrictions that are greater than those set forth under
federal law. Accordingly, even if a polygraph test is lawful under federal law, it
may be prohibited under state law.
Consumer Protection Legislation
HR professionals must also be aware of the legislation dealing with
consumer protection. The Consumer Credit Protection Act, the Fair Credit
Reporting Act, and the Fair and Accurate Credit Transactions Act are
important statutes.
Consumer Cr edi t Prot ect i on Act (1968)
Garnishment of an employee's wages occurs when a creditor obtains a court
order requiring the employer to attach the employee's earnings in order to pay
back the debt. The federal government and all 50 states have laws regulating the
use of garnishment. Employees must make a minimumamount of base pay in
order for a company to garnish wages.
The Consumer Credit Protection Act limits the amount of wages that can be
garnished or withheld in any one week by an employer to satisfy creditors.
2-48 . 2011 SHRM
Generally, the limit is equal to 25% of disposable pay (although the formula is
actually more complicated than this). The act also prohibits employers from
terminating an employee for one single indebtedness, even if that single debt
results in repeated garnishments fromthe creditor.
Garnishment restrictions do not apply to certain bankruptcy court orders or to
debts due for federal or state taxes. Further specific restrictions apply to court
orders for child support or alimony. The law allows up to 50% of a worker's
disposable earnings to be garnished for these purposes if the worker is
supporting another spouse or child, or up to 60% if the worker is not.
For additional information, refer to the Department of Labor's fact sheet at
www.dol.gov/whd/regs/compliance/whdfs30.pdf.
Fai r Cr edi t Repor t i ng Act (1970) and Fai r and Accur at e Cr edi t
Tr ansact i ons Act (2003)
Enacted in 1970, the Fair Credit Reporting Act (FCRA) calls for full
disclosure of consumer reports (including credit reports, criminal background
checks, motor vehicle history, employment verifications, and reference checks)
by consumer reporting agencies (CRAs) so that individuals subject to themcan
dispute the wrongful use or interpretation of the information. The FCRA's
purpose is to protect the privacy of background information and to ensure that
the information supplied is accurate.
FCRA r equi r ement s
Where a consumer report (broadly defined) is obtained for employment
purposes, the following requirements generally apply (depending on, among
other factors, when in the process the report is requested).
Written notice and authorization
Before obtaining a consumer report about an individual for employment
purposes, an employer must clearly and conspicuously notify the individual
in writing, in a document consisting solely of that notice, that a report may
be used. The notice cannot be incorporated into an employment application.
The employer must also get the person's written authorization before asking
a CRA for a report.
2-49 . 2011 SHRM
Pre-adverse action
Before any adverse action is taken, the employee or applicant must be
provided with a copy of the report and given a reasonable period of time, as
defined by the FCRA, to present evidence challenging the information
contained in the report. The employee or applicant must also be provided
with a copy of "A Summary of Your Rights Under the Fair Credit
Reporting Act." The employer should receive a copy of this document from
the consumer reporting agency generating the consumer report, but it can
also be found at the Federal Trade Commission's Web site (www.ftc.gov).
Adverse action procedures
After the employer has taken adverse action based in whole or in part on the
consumer report (as well as any information that the applicant or employee
submitted in response to the pre-adverse action notice), the employer must
give the applicant or employee notice that such action has been taken. The
notice must be provided within three days of the adverse action and must
e Notice of the adverse action taken
Name, address, and toll-free telephone number of the CRA that
furnished the consumer report
Statement that the CRA did not make the decision to take the adverse
action and is unable to provide the consumer with the specific reasons
why the adverse action was taken
Notice of the consumer's right to obtain a free copy of the consumer
report fromthe CRA within 60 days
Notice of the consumer's right to dispute the accuracy or completeness
of any information in the consumer report furnished by the CRA
An employee or applicant may request complete disclosure by the employer
of the nature and scope of the investigation. A written response is required
in five days.
Certifications to credit bureaus
Credit bureaus will require employers to certify that they are in compliance
with the FCRA and that they will not misuse any information in the report in
violation of federal or state laws.
2-50
2011 SHRM
Penalties
Plaintiffs who prove willful noncompliance with the act can recover actual
damages between $100 and $1,000, punitive damages, and costsincluding
attorneys' fees. Negligent noncompliance subjects an employer to actual
damages, costs, and attorneys' fees.
Amendment t o FCRAFACT
Since April 1999, the Federal Trade Commission, which oversees
implementation of the FCRA, had taken the position that the FCRA consent and
disclosure requirements were triggered when a third party such as a law firmor
outside human resources consultant conducted a workplace sexual harassment
investigation on behalf of an employer. Under this interpretation, an employer
was required to obtain the consent of an employee under investigation for
alleged harassment prior to the investigation.
In 2003, the Fair and Accurate Credit Transactions Act (FACT Act) was
signed into law. The FACT Act amends the Fair Credit Reporting Act and
provides some relief to employers using third parties to conduct workplace
investigations.
Under the FACT Act, an employer who uses a third party to conduct a
workplace investigation no longer needs to follow the consent and disclosure
requirements of the Fair-Credit Reporting Act before commencing the
investigation if the investigation involves:
Suspected misconduct. " ,
A violation of law or regulations. ' ,,
- A violation of any preexisting written policies of the employer.
The amendment frees employers to hire outside consultants, investigators, or
law firms to investigate and report on a variety of workplace issues without
first notifying targets of the investigation or obtaining their consent. However,
the employer must subsequently disclose to the employee a "summary
construing the nature and substance of the communication upon which the
2011 SHRM

2-51
adverse action is based." The employer need not disclose its source of
information in the summary.
The FACT Act also requires employers requesting medical information about
an applicant or employee to obtain aspecific written consent describing in
"clear and conspicuous language" the use of the information.
Finally, the FACT Act has issued directives aimed at uncovering and preventing
incidents of identity theft. Users of consumer reports, including employers, must
adhere to regulations and implement procedures to deal with any notices of
address discrepancies that are received froma nationwide CRA, such as
Experian, Equifax, and TransUnion. These procedures must be designed to help
the user (employer) confirmthat the consumer report and the consumer match
refer to the same individual (e.g., the employee or applicant) and that the
individual is the one for whomthe user originally requested a consumer report.
Figure 6 summarizes key provisions of the privacy and consumer rights
legislation discussed here.
Legi sl at i on Key Pr ovi si ons
Privacy Act Protects the employment records of federal
government employees from disclosure without prior
authorization
Employee Polygraph
Protection Act
Makes it unlawful for employers to use polygraphs in
employment decisions except for a few narrowly
defined exceptions for "security-sensitive" positions
and during investigations of workplace incidents;
provides protection for current and prospective
employees
Consumer Credit
Protection Act
Limits the amount of wages that can be garnished or
withheld in any one week by an employer to satisfy
creditors; also prohibits employers from terminating an
employee for one single indebtedness, even if that
single debt results in repeated garnishments from the
creditor
Fair Credit Reporting
Act/Fair and Accurate
Credit Transactions Act
Protects the privacy of background information and
ensures that the information supplied is accurate;
imposes notice requirements on employers that rely on
consumer background reports
Figure 6. Major Privacy and Consumer Protection Legislation
2-52 . 2011 SHRM
Once again, keep in mind that states may vary in what they allow an
organization to investigate. As with other areas of legislation, you should
educate yourself about your state and local requirements.
2011 SHRM
2-53
Progress Check
1. An employer can require that a polygraph test be taken by
( ) a. an employee applying for a public relations position.
( ) b. a clerical employee who has entered treatment for substance abuse.
( ) c. an accountant whose department is under scrutiny for embezzlement.
( ) d. a recovering alcoholic who is seeking a post as a newspaper reporter.
2. Which statement best describes the provisions of the Consumer Credit Protection Act?
( ) a. Employers are prohibited fromterminating an employee for one single
indebtedness.
( ) b. Employees must provide a signed release authorizing payroll deductions.
( ) c. Employers have strict legal obligations regarding disclosure of an employee's
financial information.
( ) d. Employees can set the amount of wages that can be garnished or withheld by an
employer.
3. According to provisions of the Fair Credit Reporting Act, a company may obtain credit
information about an employee before offering a promotion if the individual
( ) a. is a rehabilitated drug offender.
( ) b. is provided written notice and gives authorization.
( ) c. refuses to take a polygraph test.
( ) d. volunteers information about being in arrears for child support.
2-54
2011 SHRM
1. c (p. 2-47)
2. a (p. 2-49)
3. b (p. 2-49)
2011 SHRM
2-55
Vorkforce Planning
ind Employment
!.3
Equal Employment
Opportunity/Affirmative
Action
gfg
S5
illlilSSSlll
m t H
Develop, implement, and evaluate an AAP, as required.
Thi s secti on is desi gned to i ncrease your knowl edge of:
Quantitative analyses required to assess past and future
staffing effectiveness.
Recruitment sources for targeting passive, semi-active,
and active candidates.
Recruitment strategies.
Diversity concepts and applications.
employment.
.Organizational documentation requirements to meet
federal and state requirements. . >
WORKFORCE PLANNING AND EMPLOYMENT Section 2 3
The basic premise of federal antidiscrimination legislation over the past four
decades is that employers should not make employment decisions on the basis
of an applicant's or employee's race, gender, ethnicity, religion, age, color,
military/veteran status, or disability status. Rather, employment decisions
including hiring, work assignments, compensation, promotions, and
terminationsmust be job- and business-related.
Specific information on federal antidiscrimination legislation referenced in this
section can be found in Section 2-1 in this module, "Key Legislation Affecting
Employee Rights."
Pr ot ect ed Cl asses
Within the context of equal employment opportunity (EEO), the term protected
class describes people who are covered under a particular federal or state
antidiscrimination law. Groups protected by EEO designations and federal
antidiscrimination laws include but are not limited to women, Blacks/African-
Americans, Hispanics/Latins, American I ndians/Alaska Natives, Asians, Native
Hawaiians/other Pacific Islanders, other groups related to national origin, people
age 40 or older, the disabled, veterans, and religious groups.
Caucasian males over age 40 are also protected fromdiscrimination. However,
antidiscrimination legislation was passed primarily to correct a history of
unfavorable treatment of women and minority group members.
On May 23, 2007, the EEOC issued "Enforcement Guidance: Unlawful
Disparate Treatment of Workers with Caregiving Responsibilities." Its stated
purpose is to assist investigators, employees, and employers in assessing
whether a particular employment decision affecting a caregiver might
unlawfully discriminate on the basis of prohibited characteristics under Title VI I
of the Civil Rights Act of 1964 or the Americans with Disabilities Act of 1990.
Although the federal EEO laws do not prohibit discrimination against caregivers
per se, nor does this guidance expand Title VI I protections, the EEOC believes
that there are circumstances in which discrimination against caregivers might
constitute unlawful disparate treatment under these laws.
2011 SHRM 2-58
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This enforcement guidance is the EEOC's interpretation. It differs fromfinal
rules or regulations, which have the binding force and effect of the law.
Further information about this enforcement guidance can be found at
www.eeoc.gov/policy/docs/caregiving.html.
Recognizing Discrimination
Determining whether a manager's decision about an employee is discriminatory
or job-related is not always easy. There are two primary types of discrimination:
disparate treatment and disparate impact. Discrimination may also occur when
employers perpetuate certain types of past policies.
Di spar at e t r eat ment
Disparate treatment discrimination occurs when protected classes are
intentionally treated differently fromother employees or are evaluated by
different standards.
Ex ampl es :
A manager who automatically rejects Mexican-American
applicants on the grounds that they might be illegal aliens
Sexual harassment, where a manager refuses to promote an
employee who will not engage in a sexual relationship with him or
her
Having different entry requirements for women than for men
Inconsistent management practices and/or enforcement of
company policies based on race (if, for example, white employees
who violate company policy are not disciplined but black
employees who violate the same policy are disciplined)
Adver se or di spar at e i mpact
As mentioned in Section 2-1, adverse impact (or disparate impact) results
when rules applied to all employees have a different and more inhibiting effect
on a protected class than on the majority. An example would be nonessential
education requirements for certain jobs that impact minority groups looking for
work who have been limited in their access to educational opportunities.
Ex ampl e: An organization hires only high-school graduates for custodial
positions.
2011 SHRM 2-59
Disparate impact is usually unintentional. Employment screening requirements
(such as height and weight requirements or disqualification based on arrest
records) that appear neutral but have a discriminatory effect on a protected class
are considered to have adverse impact. HR professionals need to look carefully
at how job qualification criteria and tests are applied and used to make certain
that they don't intentionally or unintentionally have a disparate impact on
women, minorities, or other protected classes. Figure 7 compares disparate
treatment and disparate impact.
Di spar at e Tr eat ment Di spar at e Impact
Direct discrimination Indirect discrimination
Unequal treatment Unequal consequences or results
Intentional Usually unintentional
Prejudiced actions Neutral actions
Different standards Same standards but different consequences
Figure 7. Disparate Treatment and Impact Compared
Pr esent ef f ect s of past di scr i mi nat i on
A third way employers unlawfully discriminate is by perpetuating the effects of
past policies that were discriminatory. For example, giving preferential
treatment to applicants referred by current employees may appear neutral, but it
can maintain the current racial or ethnic mix of an organization, making it
harder for non-Caucasians or others to get hired.
Precedent-Setting Discrimination Cases
Some of the most important precedent-setting discrimination cases include the
following.
Griggs v. Duke Power (1971)
The Griggs v. Duke Power case arose when Willie Griggs applied for a coal-
handler position with the Duke Power Company. His request was denied, based
on the fact that he was not a high-school graduate and on the results of two
preemployment tests that were also requirements of the job. Griggs claimed that
these job requirements were discriminatory because they did not relate to job
success and had a negative impact on protected classes.
2011 SHRM 2-60
Griggs's position prevailed, and the following two critical points were
established.
Employment discrimination need not be overt or intentional to be
illegal.
Statistical evidence of adverse impact may be used by employees to support
a claimof discrimination. However, under theRicci v. DeStefano Supreme
Court decision (which is covered later in this section), an employer's fear of
triggering a discrimination complaint where the employer's administered
test(s) show adverse impact is, alone, not sufficient reason for an employer
to ignore the results of a test that accurately meets job-related requirements.
I gnoring pre-stated testing requirements and obtaining accurate candidate
test results but then not using those test results could create illegal disparate
treatment (intentional discrimination) against another group based on their
race.
Employment practices can be illegal even when applied to all
employees.
For example, in the Griggs case one requirement for transfer or promotion
applied to all employees was fulfilling the requirements for a high school
education. But black students were given an inferior education in many
segregated schools, and the requirementwhile seemingly neutralhad a
more significant adverse impact on black employees. Consequently, the
employer was required to prove that the requirement was directly j ob-
relatedi.e., bore "a demonstrable relationship to successful performance of
the jobs for which it was used."
McDonnell Douglas Corp. v. Green (1973)
While the Griggs case established criteria for disparate impact, the McDonnell
Douglas Corp. v. Green case established criteria for disparate treatment. Green
was employed as a mechanic at McDonnell Douglas, working at a plant that
employed 30,000 people. In 1964, he was laid off during a general workforce
reduction. While unemployed, he was involved in protest activities at the
company that did not please the company. He participated in a lock-in, placing a
chain and padlock on a factory door so no one could enter or leave. He and a
group of employees also parked their cars across the gates of the plant so no one
2011 SHRM
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could enter or leave. When the company advertised for mechanics, Green
reapplied. When the company rejected him, Green sued, and he prevailed by
arguing that the company rejected himbecause of his race and his involvement
in the civil rights movement.
In the Green case, the Supreme Court ruled that individuals can show a prima
facie case of disparate treatment in a hiring situation if they can demonstrate
that they:
Belong to a racial minority or other protected group under Title VI I .
Applied for a j ob for which the employer was seeking applicants.
Were rejected despite being qualified.
Were rejected and yet the employer kept looking for people with their
qualifications.
The term prima facie translates fromLatin as "on first view" or "at first
appearance." In an EEO case (such as the Green case), when a plaintiff presents
evidence of aprima facie case, the employer must articulate a legitimate,
nondiscriminatory reason for its decision. Once an employer does that, the
employee must prove that the reason is a pretext for discrimination. Statistics of
underutilization have established a pretext, as have jokes and slurs and evidence
of inconsistent treatment.
Albemarle Paper v. Moody (1975)
The Albemarle Paper Company required j ob applicants to pass different
employment tests, some of which were believed to be poor predictors of j ob
success. In 1975, the U.S. Supreme Court ruled in favor of the plaintiff, stating
that items used to validate employment requirements must themselves be j ob-
related. Any test used for promotion or selection of employees (including
performance appraisals) must be a valid predictor for a particular job. This
ruling strengthened the principles in Griggs and placed great importance on the
Uni formGuidelines on Employee Selection Procedures.
Washington v. Davis (1976)
I n this case, applicants for the Washington, D.C., police department were
required to pass an examination designed to test verbal ability, vocabulary,
reading, and comprehension. A group of African-American recruits filed suit
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2011 SHRM
alleging that the test bore no relationship to job performance and excluded a
disproportionately high number of African-American applicants. The Supreme
Court found that the disproportionate impact of the test, which was neutral on
its face, did not warrant the conclusion that the test was a purposely
discriminatory device, and the Court concluded that the police department's
efforts to recruit African-American officers as well as the test's valid
relationship to the training program negated any inference of racial
discrimination.
St. Mary's Honor Center v. Hicks (1993)
In St. Mary's Honor Center v. Hicks (1993), a correctional officer formerly
employed at a halfway house brought a Title VII action alleging that his
demotion and discharge were because of his race. In deciding Hicks, the
Supreme Court clarified the role of the burden-shifting analysis used in
employment discrimination cases.
As noted above in the discussion of McDonnell Douglas Corp. v. Green, if the
plaintiff creates aprima facie case of discrimination and the employer is able to
articulate a legitimate, nondiscriminatory reason for the actions it has taken, the
plaintiff can still prevail if he or she can establish that the employer has offered
a false reason as a pretext for unlawful discrimination. In Hicks, the Court ruled
in favor of the employer, suggesting that it is not enough for the plaintiff to
prove that the employer lied. The plaintiff still has the burden of proof and must
show that the lie was to cover up illegal discrimination. However, as a practical
matter, where an employer lies, a jury is likely to conclude that the lie was to
cover up illegal discrimination.
McKennon v. Nashville Banner Publishing Co. (1995)
In McKennon v. Nashville Banner Publishing Co., the Supreme Court
considered the validity of a defense referred to as the "after-acquired evidence
defense." BeforeMcKennon, this defense enabled an employer to escape
liability if it could show that, after terminating an employee (even for unlawful
reasons), it learned that the employee had previously engaged in conduct that, if
discovered, would have led to termination.
The Court held that evidence of misconduct acquired after the decision to
terminate cannot free an employer fromliability, even if the misconduct would
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have justified terminating the employee. Accordingly, after-acquired evidence
will not be a complete defense to a claimbrought under any of the federal
antidiscrimination laws. This does not mean, however, that after-acquired
evidence is useless. The Court went on to state that in some cases, such
evidence still may be used to cut off certain damages, including damages
suffered after the prior misconduct was discovered. Such evidence may also be
considered when awarding back pay.
Cl ass-act i on raci al di scr i mi nat i on l awsui t agai nst Coca-Col a (2000)
In 1999, four past and current African-American employees of the Coca-Cola
Company filed a class-action lawsuit in federal court charging the world's
largest soft-drink maker with discrimination. The claimants, representing more
than 2,000 former and current African-American employees who had held
salaried positions since 1985, accused the company of paying African-
Americans less, offering themfewer promotions, and giving them lower
performance evaluation scores than Caucasians.
In May of 2001, the U.S. District Court in Atlanta approved a $192.5 million
agreement to settle the class-action racial discrimination lawsuit. The
settlement, arrived at with the help of a court-ordered mediator, provided an
estimated average of $38,000 each to the claimants.
The agreement also established several policies and procedures to improve
Coca-Cola's diversity efforts. An independent task force was given
responsibility for monitoring the company's progress and making
recommendations that are enforceable by the court. Coca-Cola's board of
directors has specific responsibility for ensuring that the company stays on track
in terms of the settlement and meeting its diversity goals.
EEO Reporting Requirements
Ideally, EEO laws and affirmative action programs combine to achieve equal
employment opportunitiesto give individuals an equal chance to enjoy the
benefits of employment. However, complying with EEO laws and regulations
requires employers to maintain detailed records on their workforce (including
the number of applicants each year by race and gender).
2011 SHRM 2-64

Annual Reporting Form
Employers with 100 or more employees and federal contractors with at
least 50 employees and a federal contract of $50,000 during a 12-month
period are required to file an annual report. The report is due by September
30 of each year. Accurate record keeping is important, because it allows
employers to prove compliance and makes it easier to conduct internal
investigations.
The annual reporting formincludes a breakdown of the workforce by race,
ethnicity, and gender for nine job categories:
1. Officials and managers
I A. Executive/senior-level officials and managers
I B. First-/mid-level officials and managers
2. Professionals
3. Technicians
4. Sales workers
5. Office and clerical
6. Craft workers (skilled)
7. Operatives (semiskilled)
8. Laborers (unskilled)
9. Service workers
The annual reporting formvaries by industry. The different industry forms
EEO-1 Private business
EEO-2J oint apprenticeship programs
EEO-2,AUnilateral apprenticeship programs
EEO-4State and local governments
EEO-5Public elementary and secondary schools
I PEDSI ntegrated Post-Secondary Education Data System (e.g.,
colleges and universities; formerly the EEO-6 report form)
Posters and officially approved notices stating that the organization is an
equal opportunity employer and does not discriminate must be put in
prominent locations where they can be seen by employees.
2011 SHRM 2-65
In J anuary 2006, the Li HOC issued a rule revising the Employer I nformation
i Report (EEO-1). In addition to dividing officials and managers into (a)
executive/senior-level officials and managers and (b) first-/mid-level officials
and managers, the changes include
Adding a two-part question whereby employees are first asked to report
their Hispanic or Latino (ethnic) status and second to report the race or
races they consider themselves to be (only if they have not been identified
as Hispanic or Latino). Hispanic is an ethnicity rather than a racial
category. It is the only ethnicity currently considered a protected status for
reporting purposes.
Adding a new category for those identifying two or more races.
Creating two separate categories of the current Asian/Pacific I slander
group (a) Asian and (b) Native Hawaiian or Other Pacific, I slander.
More detailed information about the Employer I nformation Report (EEO-1) and
the forms are available at www.eeoc.gov/employers/reporting.cfm.
Legal requirements for the retention of employee files and other employment-
related records are discussed in Section 2-11 in this module, "Employee
Records Management." Stages of an EEOC complaint investigation are covered
in Section 5-1 of Module 5: Employee and Labor Relations.
Appl i cant Fl ow Dat a
No data on protected classes is permitted on application forms or other
preemployment records. Yet, under EEO regulations, employers may be
required to show that they do not discriminate against minorities or other
protected classes in their hiring practices. Furthermore, employers cannot use
lack of data as an excuse for noncompliance with EEO regulations.
EEO regulations generally definejob applicant to include anyone who
expresses an interest in employment, regardless of whether that person meets
the employer's minimumqualifications for the job.
2011 SHRM 2-66
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In March of 2004, the EEOC addressed the issue of I nternet and electronic j ob
applicants, suggesting that three conditions had to be met for an individual to
be considered an applicant when using the Internet or electronic means to
express interest in a job:
The employer must have taken steps to fill a particular job.
The individual must have followed the employer's standard application
procedure.
The individual must have expressed interest in a particular position.
After the issuance of these proposed regulations, the EEOC committed to a
further study of I nternet applicants, with the anticipation that additional and/or
revised permanent regulations would be issued. However, on March 17, 2008,
the EEOC voted to not finalize the proposed requirements and to discontinue
any effort to further define the term"job applicant" for I nternet and related
electronic technologies.
In October of 2005, the Department of Labor's Office of Federal Contract
Compliance Programs (OFCCP) issued a final regulation and defined an
Internet applicant, identifying four basic criteria:
The j ob seeker has submitted an expression of interest in employment
through the I nternet (or related electronic data technology).
The employer considers the-job seeker for employment in a particular
position., ,
' The individual's expression of interest indicates that the individual
- . possesses the basic qualifications for the position. '
- The individual at no point in the contractor's or subcontractor's selection
~process prior .to receiving an offer of employment fromthe contractor or
subcontractor removes himself or herself fromfurther consideration or'
otherwise indicates that he or she is no longer interested in the position.
The Department of Labor's regulations apply only to federal government
contractors and subcontractors. However, the EEOC recommends that
employers seeking guidance on who is an I nternet applicant for purposes of
Title VI I look to the OFCCP rule, even if the employers are not federal
contractors or subcontractors covered by Executive Order 11246.
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Additional information about Internet applicant regulations can be found at
www.dol.gov/ofccp.
Federal government contractors and subcontractors must be able to identify,
where possible, the gender, race, and ethnicity of each individual who satisfies
the definition of applicant. Where tests and other selection procedures are used
as the basis for employment decisions such that the UniformGuidelines on
Employee Selection Procedures apply, covered employers are expected to have
similar gender, race, and ethnicity information available for affected individuals
so that they can assess statistically whether such selection procedures have an
adverse impact.
Data about an applicant's race, ethnicity, and gender can be obtained in one of
two ways:
A request that applicants complete a voluntary self-identification form
(either a paper or electronic form) that provides gender, race, and ethnic data
A visual survey of applicants
It should be noted that the self-identification request should be done first; a
visual survey is a second, but less preferable, alternative.
Requests of the applicants may include providing a tear-off formas part of the
employment application for individuals who complete the application as their
expression of interest. For individuals who submit their resumes, employers
should make a reasonable effort to obtain demographic information by sending
out a voluntary self-identification formfor the individual to complete and return
to the employer or by having an electronic process to obtain the information. In
either case, compliance must be voluntaiy.
The information must be maintained separately fromthe application form
and/or resume and must not be shared with managers or supervisors who are
involved in making the selection decision.
In planning for future staffing needs, HR professionals must understand the
ever-changing workforce demographics in their external environment. Flexible
and creative ways will be necessary to attract, select, and retain employees from
a diverse workforce to best support organizational strategic goals.
2011 SHRM 2-68

Affirmative Action Plans
As noted earlier, affirmative action (AA) is a practice in which employers
identify conspicuous imbalances in their workforce and take positive steps to
correct underrepresentation of protected classes. Affirmative action plans (AAPs)
are written plans that focus on the hiring, training, compensating, promoting, and
terminating of underrepresented groups.
AAPs have a narrative component and a statistical component. The statistical
component captures certain statistical analyses of the company's workforce. The
narrative component describes a company's programs, policies, and procedures
designed to ensure that all individuals have equal opportunities in all employment
decisions and practices; it also describes the components of the company's
affirmative action programand good-faith efforts and action-oriented programs
designed to address any identified problemareas.
Federal contractors/subcontractors with certain contract values and workforce sizes
are required to develop, implement, and maintain AAPs while providing goods and
services to the federal government. Many states also require state government
contractors to prepare AAPs.
Key Sect i ons of an AAP
The following information provides an overview of the key sections of AAPs
according to the OFCCP's revised 60-2 regulations. Final regulations are found in
41 CFR Part 60-2 and Title 29, Part 471: "Obligations of Federal Contractors and
Subcontractors; Notification of Employee Rights Under Federal Labor Laws."
First we'll look at the sections of the statistical component of the AAP: the
organizational profile, the j ob group analysis, and the availability analysis.
Or gani zat i onal prof i l e
The organizational profile depicts the staffing pattern of the establishment to
determine if barriers to equal employment opportunity exist within any
organizational unit. (An organizational unit is any discrete component of an
organization in which there is a level of supervision responsible and accountable
for the selection, compensation, etc., of employees within the unit.) The
organizational profile provides a "vertical slice" of an organization's structure.
2011 SHRM
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WORK FORCE PL A NNI NG A ND EMPL OYMENT Section 2 3
Contractors can prepare either an organizational display or the traditional
workforce analysis as their organizational profile.
An organizational display provides a graphical presentation of the
organizational units, including their interrelationships. According to 41 CFR 60-
2.11, the organizational display should provide detail on:
The name of the unit.
The j ob title, gender, race, and ethnicity of the supervisor (if there is one).
The total number of female (F) and male (M) incumbents.
The total number of male and female incumbents in each of the following
groups: African-Americans (AA), Hispanics (H), Asians (A)/Pacific
Islanders (PI), and American Indians (AI)/Alaskan Natives (AN).
Figure 8 shows a sample organizational display. Supervisors are included in the
gender and race/ethnic count.
Organi zat i onal Uni t Name ' Females
super vi sor s Kace/
Sex and Job Ti tl e
Employees Minorities.
To t al w AA H A/PI
Al/
AN
To t al w AA H A/PI
Al/
AN
Execut i ve Of f i ce
AM. Chief Executive Officer
3 2 1 1 0 0 0 0 2 0 0 0 2
Engi neer i ng Depar t ment
WM, Director of Engineering
22 5 16 12 2 1 1 0 6 5 1 0 0 0
Mar ket i ng Depar t ment
WF, Director of Marketing
43 5 19 17 1 1 0 0 24 21 1 1 1 0
Faci l i t y Tot al s 68 12 36 30 3 2 1 0 32 26 2 1 1 2
Source: Provided by Cornelia Gamlem, GEMS Group Ltd.
Figure 8. Sample Organizational Display
The workforce analysis is a list of j ob titles ranked fromlowest- to highest-
paid within an organizational unit. The regulations require the name of the unit
and, for each j ob title in the unit (including all managerial jobs):
Wage rate or salary range.
Total number of male and female incumbents.
Total number of male and female incumbents in each of the following
groups: African-Americans, Hispanics, Asians/Pacific Islanders, and
American Indians/Alaskan Natives.
Figure 9 shows a sample workforce analysis.-
2011 SHRM 2-70
Wor kf or ce Anal ysi sFi nance and Admi ni st r at i on Depar t ment (as of 12-31-20xx)
Job Ti t l e
EEO-1
Cat egor y
Sal ar y
Gr ade
Tot al
Empl oyees
Tot al
Mi nor i t i es
Total W
Males

H A/PI
Ml
AN
Total

W
Femal es
s u m s
M i
A/PI
H i
Ml
AN
Receptionist 5 S1 2 1 1 1 0 0 0 0 1 0 0 1 0 0
Acct Rec
Clk
5 S2 6 1 2 2 0 0 0 0 4 3 1 0 0 0
Payroll
Clerk
5 S2 1 0 1 1 0 0 0 0 0 0 0 0 0 0
Acct Pay
Clk
5 S2 5 1 0 0 0 0 0 0 5 4 0 0 1 0
Fin Analyst 2 P3 5 1 0 0 0 0 0 0 5 4 0 0 1 0
Buyer 2 P2 1 1 0 0 0 0 0 0 1 0 0 1 0 0
Accountant 2 P2 9 1 0 0 0 0 0 0 9 8 1 0 0 0
Acct Mgr 1 M1 1 0 0 0 0 0 0 0 1 1 0 0 0 0
Controller 1 M2 1 0 1 1 0 0 0 0 0 0 0 0 0 0
Depar t ment Tot al 31 6 5 5 0 0 0 0 26 20 2 2 2 0
Per cent age of Tot al 100% 19.4% 16.1% 16.1% 0 0 0 0 83.9% 64.5% 6.5% 6.5% 6.5% 0
Figure 9. Sample Workforce Analysis
The EEOC's changes in reporting ethnic and racial categories were noted earlier
in this section, in the discussion of the EEO-1 annual report. The OFCCP has
issued guidance on the use of race and ethnic categories in affirmative action
programs, stating that it will allow contractors whose systems have been
updated to conformwith the EEOC's new racial and ethnic categories to use
this data in their affirmative action programs. Contractors also are permitted to
prepare their AAP using the racial and ethnic categories provided under
OFCCP's current regulations.
J ob group analysis
Thejob group analysis lists all job titles that comprise each j ob group. J obs are
grouped according to whether they have similar content and responsibilities,
wage rates, and opportunities for advancement.
Where the organizational profile shows a vertical slice of jobs within a
department, a job group analysis shows a horizontal slice of the organizational
structure. A job group analysis shows jobs by functional alignment, regardless
of departmental affiliation.
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Figure 10 provides a sample job group analysis.
Job Gr oup Anal ysi s (Job Group: 2AEngi neer i ng Prof essi onal s)
, Tot al Tot al Tot al
1 e
Empl oyees Femal es Mi nor i t y
Sr. Electrical Engineer 1 1 0
Electrical Engineer 9 9 1
Sr. Network Engineer 1 1 1
Network Engineer 8 2 3
Sr. Software Engineer 1 0 0
Software Engineer 6 4 1
Mechanical Engineer 5 4 1
Job Gr oup Tot al 31 21 7
% of Tot al 100% 67.74% 22.58%
Figure 10. Sample Job Group Analysis
An organization must separately state the percentage of minorities and the
percentage of women it employs in each j ob group. If a contractor has a total
workforce of fewer than 150 employees, the contractor may prepare a group
analysis that utilizes EEO-1 categories as job groups.
Availability analysis
41 CFR 60-2.14 requires that an organization consider at least two factors,
internal availability and external availability, in determining the theoretical
availability of minorities and women for the established job groups.
Specifically, an organization must examine the percentage of minorities and
women:
Who have the requisite skills in the reasonable recruitment area for each
j ob groupthose actually employed in occupations matching an
organization's j ob group functions in a larger recruiting area.
Who are promotable, transferable, and trainable within the facilitythose
internal employees who could (with the appropriate training) be promoted
or transferred during the affirmative action programyear.
2011 SHRM 2-72
The organization must compare the percentages of minorities and women in
each j ob group with the availability that was determined for the j ob group.
When the difference is less than would reasonably be expected (traditionally
referred to as underutilization), the contractor must establish placement
goals.
The OFCCP allows contractors to calculate this comparison using a variety
of statistical methods, including:
The "any difference rule."
The "80% rule" (the "four-fifths rule").
The "two standard deviations analysis" (currently the recommended test
method) or other test of statistical significance.
Note that a detailed explanation of how to performthese analyses is beyond
the scope of this module. Such information may be found in many statistical
texts.
The computations in this section of the AAP provide a way to establish a
benchmark of qualified, available candidates for each j ob group.
Organizations can then measure their own j ob group make-up against this
benchmark.
The narrative component of the AAP includes descriptions of placement
goals and action-oriented programs, a designation of responsibility,
identification of problemareas, and a description of the internal audit and
reporting system.
Placement goals
Placement goals must be set when the percentage of minorities or women in a
j ob group is less than reasonably expected given their availability percentage
in that j ob group. Placement goals equal the availability percentage and serve
as objectives or targets that organizations can meet through good-faith efforts
and action-oriented programs. However, organizations are not to set quotas.
Figure 11 shows a sample formthat compares incumbency to availability and
sets goals.
2011 SHRM 2-73
Job Gr oup
Femal e
Incumbency
%
Femal e
Avai l abi l i t y
%
Est abl i sh
Goal ?
Pl acement
Rat e Goal
Mi nori t y
Incumbency
%
Mi nori t y
Avai l abi l i t y
%
Est abl i sh
Goal ?
Pl acement
Rat e Goal
1A Executives 16.67% 21.22% Yes; 21.22% 10.56% 21.00% Yes; 21.00%
1B Managers 30.77% 19.29% No 15.38% 21.37% Yes; 21.37%
1C Supervisors 33.33% 24.75% No 0% 12.36% Yes; 12.36%
2A IT
Professionals
25.00% 31.06%
*
27.19% 22.65% No
2B Engineering
Professionals
61.36% 58.42% No 34.09% 34.54%
*
5A
Administrative
Support
93.75% 57.01% No 68.75% 37.33% No
* The 80% rule was followed.
Source: Adapted from Cornelia Gamlem and Thomas H. Nail. Roadmap to Success: Briefing Managers About
Affirmative Action Results. Herndon, Virginia: GEMS Publications, 2004.
Figure 11. Sample Form for Comparing Incumbency to Availability and
Setting Placement Rate Goals
Action-oriented programs
Plans must be set forth to correct any problems found in achieving placement
rate goals and correcting identified problemareas. For example, an action plan
might list the percentage of women in a job group, projections for internal
turnover, plans for internal posting processes, and any plans for recruitment of
external candidates to obtain a slate of candidates that includes qualified
women. The action plan should also specify who would be responsible for
implementing and monitoring the specific action steps.
Designation of responsibility
In this section, an organization must establish who will be responsible for the
overall AAP. The assumption is that the person in charge will have the
authority, resources, and organizational support necessary to implement the
AAP. HR often assumes this responsibility.
Identification of problem areas
Periodically, the organization is expected to performin-depth analyses of its
employment processes by organizational areas and job groups to identify any
impediments to equal employment opportunity.
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2011 SHRM
This includes evaluation of:
The workforce by organizational unit and job group to determine whether there
are problems of minority or female utilization.
Personnel activities (including applicant flow, hires, terminations, and
promotions) to determine whether there are selection disparities.
Compensation systems to determine whether there are gender-, race-, or
ethnicity-based disparities.
Selection and other personnel procedures to determine whether they result in
disparities in the employment or advancement of minorities or women.
Any other areas that might impact the success of the affirmative action program.
Internal audit and reporting system
The AAP must describe the internal audit and reporting systems the organization
has in place to measure the plan's effectiveness. Such systems should include:
A process for monitoring personnel activity.
Scheduled internal reporting.
Scheduled management review of report results.
A procedure and/or practice for advising management of programeffectiveness
and making recommendations for program improvement.
Figure 12 provides a checklist of steps for an internal audit and reporting system.
Checkl i st of Int er nal Audi t and Repor t i ng Syst em Pr ocedur es
0 Provide managers periodic updates with
respect to progress toward affirmative action
goals.
0 Monitor record retention practices.
0 Maintain and monitor applicant flow by job
group, identifying applicants for employment
and, when possible, by gender and race.
0 Maintain and monitor records of new hires,
identifying each person by name, hire date,
job classification, department, gender, and
race.
0 Maintain and monitor records of
compensation practices and systems.
Source: Adapted from Cornelia Gamlem and Thomas H. Nail. Roadmap to Success: Five Steps to
Putting Action into Your Affirmative Action Plan. Hemdon, Virginia: GEMS Publications, 2004.
Figure 12. Elements of an AAP Internal Audit and Reporting System
0 Maintain/monitor records of transfers and
promotions, identifying each individual by
name, transfer/promotion date, job
classification (old and new), department
number (old and new), gender, and race.
0 Maintain/monitor records of terminations,
identifying each person by name,
termination date, job classification,
department, gender, race, and reason for
termination.
0 Maintain reports of education and training
activities in which each employee has
participated.
2011 SHRM 2-75

Addi t i onal AAP Consi der at i ons
Organizations are encouraged to formally publicize their EEO policy. Internally,
the policy may be published in an employee handbook and posted on company
bulletin boards. Externally, an organization can include the policy in employment
advertisements (stated as "An Equal Opportunity Employer"), purchase orders, etc.
The OFCCP encourages (but does not require) organizations to actively support
community action programs designed to improve employment opportunities for
minorities and women, such as programs that assist underprivileged minority
youth (e.g., establishing a scholarship fund) or supporting organizations
committed to developing skills for minorities and women.
Requi r ed Compl i ance wi t h AA
The OFCCP is charged with enforcing federal laws and regulations on EEO
and affirmative action. As such, the OFCCP conducts compliance evaluations
(or audits) to ensure that all affirmative action regulatory requirements are
being met.
Who may be audited
Of course, the OFCCP does not audit every federal contractor every year. An
organization may be selected for a compliance evaluation for any one of the
following reasons:
As a randomselection froma database (akin to the IRS randomly selecting
income tax returns for audits)
In response to a sudden surge of discrimination complaints
In response to pressure fromcommunity constituency groups (e.g.,
community groups representing minorities or women)
As a member of the construction industry (an industry targeted by the
OFCCP for compliance evaluations due to a history of past affirmative
action violations)
As a first-time federal contractor who must undergo a pre-award review
A large-dollar contract (usually over $ 1 million) that requires a pre-award
review
In response to the discretionary selection of the local district or regional
OFCCP directors
In response to an EEO-1 report that is judged to be out of limits
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All federal contractors shoul d be prepared to be audi ted at any ti me.
How an audit is conducted
I f an organi zati on is audi ted by the OFCCP, it must be prepared to provi de detai l s
and documentati on of its af f i rmati ve acti on program and its empl oyment pol i ci es
and practi ces, such as hi ri ng, termi nati ons, promoti ons, and compensati on.
Part of a compl i ance eval uati on is a yes/no check for compl eti on. However, other
components of the audi t are subj ecti vej udgments of good-f ai th ef f orts and
nondi scri mi nati on in all empl oyment practi ces.
A compl i ance eval uati on may i ncl ude any one of three di f f erent audi ts, si ngl y or in
combi nati on. A bri ef overvi ew of the types of audi ts is shown in Fi gure 13.
Type of Audit Description
Compliance
review
Consists of a comprehensive analysis and evaluation of
the hiring and employment practices of a contractor, the
written AAP, and the results of AA efforts. This is the
most comprehensive of the various audits.
Starts with a desk audit. A desk audit takes its name
from the fact that this review and analysis is typically
done at the desk of the EEO compliance officer (CO)
assigned to conduct the audit.
May proceed to an on-site review to further analyze
areas (e.g., unresolved problem areas, supporting
documentation) followed by an off-site analysis of the
information gathered.
Off-site review Consists of analysis and evaluation of the AAP (or any
part thereof) and supporting documentation. This is
typically done at the office of the CO with documents
provided by the contractor.
Includes review of personnel policies, AAP action plans,
and achievements.
Focused review
Consists of an on-site review focused on or restricted to
one or more components of an AAP or its
implementation.
As warranted, includes review of portions of employment
practices or policy implementation.
Figure 13. Types of Compliance Evaluation Audits
2011 SHRM 2-77
The OFCCP has developed the Standard Compliance Review Report (SCRR),
which provides instructions on how an audit is conducted. Intended to bring a
degree of standardization to the process of compliance evaluations, the SCRR
provides a checklist of subjects normally covered, such as:
1-9 forms.
Payroll records.
J ob descriptions.
Interview and hiring records.
Personnel files.
AAP support files (e.g., documentation of good-faith efforts).
Purchase order and vendor notification letters (e.g., for inclusion of potential
AAP responsibilities, the required EEO clause, and clauses regarding
employee rights under federal labor laws).
Disability and accommodation request files.
What happens when the audit is completed
The OFCCP sends an organization written correspondence detailing the results
of the compliance investigation. If the audit involved an on-site visit, the CO
will have already conducted an exit conference previewing key findings.
In the revisions to the 41 CFR Part 60-2 regulations, "Letters of Compliance"
and "Letters of Commitment" were replaced with a closure letter called the
"Compliance Evaluation Letter for Minor or No Violations." This written
correspondence covers whether or not any violations were found and/or a
discussion of minor violations.
If more serious violations are discovered, the Department of Labor will issue a
conciliation agreement. Conciliation agreements are contracts to remedy the
more-serious out-of-compliance conditions. Examples of serious violations may
be incidents of discrimination, lack of reasonable effort or good-faith
demonstrations, improper documentation, and failure to comply with past
agreements with the OFCCP.
Violations necessitate follow-up by the compliance officer at specified
frequencies (e.g., possibly every six months for up to two years). Legal
enforcement proceedings (e.g., fines or debarring fromfederal contracts for up
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2011 SHRM
to five years) may be brought against an organization that refuses to come into
compliance for any cited violations. An organization considered in compliance
may not be audited by the OFCCP for another two years.
Additional information about affirmative action plan requirements and the Office of
Federal Contract Compliance Programs can be found at www.dol.gov/ofccp.
Glass Ceiling Reviews/Corporate Management Reviews
The termglass ceiling generally describes the phenomenon of minorities and
women being blocked by an invisible barrier fromattaining senior executive
positions.
Affirmative action has worked well to introduce minorities and women, the
disabled, and veterans to middle levels in contractor organizations. Yet, the
glass ceiling generally represents discriminationunintentional or intentional
against minorities and women fromreaching those truly senior organizational
levels. To correct this situation, the OFCCP is charged with the review of
contractors' programs at executive levels.
Glass ceiling reviews (also referred to as glass ceiling audits) are officially
called corporate management reviews. They have many significant differences
fromcompliance evaluations. For example, a glass ceiling review is typically
conducted only at an organization's corporate headquarters. (In some instances,
it may be extended if it is determined that problems exist outside of the
corporate headquarters.)
Also, glass ceiling reviews focus primarily on the decision making of CEOs and
senior executives rather than on job group analysis. As such, they are normally
very sensitive, private investigations.
Glass ceiling reviews are done concurrently with an ordinary compliance
evaluation. However, for credibility purposes, a teamof OFCCP management
personnel, separate fromthe compliance officer conducting the normal
compliance review, completes the corporate management review. (COs rarely
have any senior-level experience.)
2011 SHRM 2-79

Some of the subject areas addressed during corporate management reviews
include:
How management positions are filled (e.g., employee referrals, executive
search firms).
Succession planning for internal candidates.
Promotion and transfer processes at senior levels.
Movement within headquarters.
Executive performance appraisals.
Developmental assignments for executives.
Training offered to executive candidates.
Mentoring and networking programs.
Executive compensation packages.
Executive recognition programs.
Termination policies and procedures for executives.
Vol unt ar y Compl i ance wi t h AA
What about organizations that are not mandated to complete a formal AAP?
In the eyes of the Supreme Court, voluntary AAPs are viewed as legal.
However, to be acceptable, any voluntary AAP should be based on the
following guidelines:
The purpose of the plan should be to remedy specific and identifiable
effects of past discrimination.
There should be definite underutilization of women and/or minorities in
the organization that the plan seeks to rectify.
The plan should not unnecessarily interfere with the j ob interests and
rights of male and nonminority employees; result in their discharge,
layoff, or replacement; or create an absolute bar to their promotions.
Once an AA goal has been achieved, the plan should be amended to
eliminate that goal.
All candidates chosen for positions should be qualified.
The plan should include organizational enforcement mechanisms as well
as a grievance procedure.
For a more detailed discussion with regard to the restrictions that apply to
voluntary affirmative action/diversity programs, see the analysis of the
Weber and Johnson cases below.
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2011 SHRM
Fairness Issues
While EEO laws do not prohibit unfairness per se, the purpose of EEO and
affirmative action plans is to make the workplace more fair to all people. The
question naturally arises, What about people not specifically covered by EEO
laws? Is it fair to discriminate in reverse in order to favor groups who may or
may not be as qualified for a certain job? Under what circumstances can an
employer hire a 30-year-old Caucasian male, for example, instead of a Hispanic
female or a 50-year-old male with HI V? What is fair?
Recent court decisions have taken a conservative stance on the general legality
of government affirmative action programs. The Supreme Court has held that
federal set-aside programs allocating benefits on the basis of race have to be
justified by the strictest of constitutional standards, generally understood to
require proof of past discrimination. The Court has consistently ruled that
employers can give temporary preference to protected classes.
Rever se Di scr i mi nat i on
Several key cases have dealt with the issue of reverse discrimination.
Regents of the University of California v. Bakke (1978)
In response to a challenge to a medical school admissions plan that guaranteed a
certain number of seats to minority applicants, the Supreme Court ruled that
colleges and universities could legitimately consider race as a factor in the
admissions process.
United Steelworkers v. Weber (1979)
In the private sector, plaintiff Brian Weber charged reverse discrimination when he
was denied admission to a training programalthough he had more seniority than
some African-American workers who were admitted to the program. Weber lost.
In upholding the affirmative action plan in Weber, the Supreme Court emphasized
that:
The purposes of the plan mirrored those of Title VI I to break down racial
segregation and hierarchy.
The plan did not attempt to achieve a racial balance but only to break down the
manifest racial imbalance.
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The plan was not indefinite in duration but rather only a temporary measure to
break down the manifest racial imbalance.
The plan did not unnecessarily limit the interests of white employees by either
requiring their discharge to be replaced by black employees or precluding them
fromconsideration for future hiring decisions.
J ohnson v. Santa Clara County Transportation Agency (1987)
Johnson v. Santa Clara County Transportation Agency involved a male who
scored higher on a selection test than the woman who got the job. The Court
endorsed using gender as one factor in the decision if underrepresentation is
shown and if the affirmative action plan is not a quota system.
The Court held for the employer, arguing that an employer can take voluntary
affirmative action to remedy its own prior discriminatory practices or where
there is a manifest imbalance in traditionally segregated j ob categories, even if
there is no arguable violation on its part. In upholding the affirmative action
plan inJohnson, the Court emphasized the same factors that it pointed to in
Weber when upholding that affirmative action plan.
Both Weber and Johnson involve private rather than public employers. Taken
together, Weber and Johnson generally permit limited voluntary affirmative
action by a private employer either to remedy its own past discrimination or
where there is a current manifest imbalance.
However, the restrictions for public employers are stricter than for private
employers. Generally speaking, a public employer can engage in voluntary
affirmative action only to remedy its own past discrimination and not simply to
remedy a current manifest imbalance.
Taxman v. Board of Education ofPiscataway (1993)
In Piscataway, the school board chose to lay off a Caucasian high-school
teacher and retain her equally qualified African-American colleague, solely on
the basis of race. The school board admitted that it was not remedying any past
racial discrimination, since African-Americans were well-represented
throughout its workforce.
Rejecting the school board's claimthat it was trying to serve the "educational
objective" of maintaining a "culturally diverse" workforce, the full 13-member
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2011 SHRM
U.S. Court of Appeals for the Third Circuit, by an 8-4 vote, ruled in favor of
Taxman, claiming that "a nonremedial affirmative action plan cannot formthe
basis for deviating fromthe antidiscrimination mandate of Title VI I ." The
school board appealed to the U.S. Supreme Court; however, settlement of the
case occurred prior to the Supreme Court hearing.
Grutter v. Bollinger and Gratz v. Bollinger (2003)
Grutter and Gratz involved challenges by nonminority applicants to the
University of Michigan's law school and undergraduate admission programs
concerning the university's practice of considering race as a factor in admission
decisions to achieve a diverse student body. The Supreme Court ruled that
diversity of a student body is a compelling state interest that can justify the use
of race in university admissions as long as the admission policy is "narrowly
tailored" to achieve this goal. In separate decisions, the Supreme Court held that
the University of Michigan did not make this showing for its undergraduate
admission program(the Gratz case) but that the law school admission program
(the Grutter case) satisfied this standard.
Note that these cases deal with students, not employees, and therefore may not
be directly on point when considering employment issues.
General Dynamics Land Systems, Inc., v. Cline (2004)
In the General Dynamics case, the Supreme Court held that the federal age
discrimination law (the ADEA) does not protect younger workerseven if they
are over 40fromworkplace decisions that favor older workers. The Court's
ruling reverses a 2002 decision of the 6th U.S. Circuit Court of Appeals that
would have allowed a group of 200 employees over 40 to proceed with an age
discrimination suit. The employees complained that the company violated the
ADEA by cutting off their right to retiree medical benefits while maintaining
that benefit for employees who were over 50 years old on the qualifying date.
J ustice Souter wrote that the statute's legislative history demonstrated beyond a
reasonable doubt that the ADEA's purpose was "to protect a relatively old
worker fromdiscrimination that works to the advantage of the relatively
young."
2011 SHRM

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Employers should keep in mind that a few states have interpreted their fair
employment practices laws to preclude an employer fromconsidering age,
even if to the benefit of older employees.
Ricci v. DeStefano (2009)
In Ricci v. DeStefano, the Supreme Court held that employers may violate Title
VII when they engage in race-conscious decision making to address adverse
impactunless they can demonstrate a "strong basis in evidence" that, had they
not taken the action, they would have been liable under a disparate impact
theory. In this case, the Supreme Court held that the employer did not meet that
threshold standard.
Ricci dealt with the fire department of the city of New Haven, Connecticut (the
"City"), which used a written test to help decide which firefighters would be
eligible for certain promotions. The City had hired a consultant to develop a test
to qualify candidates for promotion to lieutenant and captain. The test had been
"content-validated" under the EEOC's UniformGuidelines on Employee
Selection Procedures, but the results showed that the test had a statistically
significant adverse impact on African-American firefighters because they
scored significantly lower than white firefighters.
The City rejected the test results and began the promotion process anew. The
test results were not certified, and those with the highest test results lost their
opportunity to be immediately promoted. As a result, 17 white firefighters and
one Hispanic firefighter brought suit against the City alleging intentional
discrimination (disparate treatment) based on their race. The Supreme Court
agreed with the white and Hispanic firefighters.
The Court's decision notes that if an employer announces a test as a selection
device and administers the test to individuals who have relied upon the
announcement of the selection device, then the employer cannot rely upon the
statistical disparity alone to justify ignoring the test resultseven if the test
would cause adverse impact. If a validation study was conducted and the test is
content-valid, job-related, and supported by business necessity, the employer
must use the results, unless the employer can demonstrate that there are equally
effective selection devices available having less adverse impact.
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2011 SHRM
In its opinion, the Court wrote:
Whatever the City's ultimate aimhowever well-intentioned or
benevolent it might have seemedthe City made its employment
decision because of race. The City rejected the test results solely
because the higher-scoring candidates were white. The question is not
whether that conduct was discriminatory but whether the City had a
lawful justification for its race-based action.
Applying a "strong-basis-in-evidenee" standard, the Court concluded that the
City did not have a lawful justification.
Allowing employers to violate the disparate-treatment prohibition based
on a mere good-faith fear of disparate impact liability would encourage
race-based action at the slightest hint of disparate impact. . .
Restricting an employer's ability to discard test results (and thereby
discriminate against qualified candidates on the basis of their race) also
is in keeping with Title Vll's express protection of bona fide promotional
examinations.
The Supreme Court attempted to harmonize the disparate impact and disparate
treatment standards inRicci. However, the Court did not provide guidelines for
employers as to what constitutes a "strong basis in evidence." The Ricci
decision does make clear that compensating for apparent disparate impact
discrimination by changing employment decisions to favor minorities may
expose employers to disparate treatment liability to nonminorities. Cases
challenging employer tests are usually filed as disparate impact claims. Ricci
potentially makes it harder for employers to defend taking action to correct a
disparate impact and increases the likelihood of both disparate impact and
disparate treatment claims arising out of selection procedures, including tests.
As permitted by the UniformGuidelines on Employee Selection Procedures,
many employers use tests that have not been formally validated specifically for
the position for which they are hiring. Employers then track the test results so
they can determine whether or not the test creates adverse impact. When a test is
found to create adverse impact, the employer's choices are to modify the test (so
it no longer creates adverse impact), validate it, or eliminate it. In effect, the
Ricci case negates the choice of eliminating the test if the intended use of the
test has been announced, this use has been relied upon by the test takers, and the
2011 SHRM 2-85
test has been implementedunless the test is not valid or there is another
equally valid and less discriminatory testing alternative. Adverse impact alone
(including the 80% or four-fifths rule) is not sufficient justification.
While the Ricci case has several takeaways, one of the most significant is that
employers should reexamine their employment testing procedures. It is unwise
for an employer to announce and use any test that has not been properly
validated. While employers should still assess adverse impact, with respect to
unvalidated tests, they should do so very cautiously, under the supervision of an
employment attorney, and any changes contemplated as a result of the adverse
impact should be addressed in conjunction with legal counsel.
Quot a vs. Meri t Hi ri ng
Quota systems are a specific source of controversy. A quota involves hiring and
promoting a fixed number of individuals based on race, gender, or other
protected-class standards that must be met at all costs.
In the Weber and Johnson cases described earlier, the Supreme Court indicated
that strict quota systems would not be allowed, even in situations where there
were significant disparities in statistics.
Another case involving a quota systemwas City of Richmond i>. J. A. Croson
Company. In this 1989 decision, the Supreme Court ruled that the rigid
numerical quota systemof Richmond, Virginia, was unconstitutional. The
majority opinion concluded that the city had not laid the proper groundwork and
had not adequately identified or documented discrimination.
Occupat i onal Qual i f i cat i on (BFOQ)
As noted in Section 2-1, Title VI I of the Civil Rights Act of 1964 states that if
gender, religion, or ethnicity is a bona fide occupational qualification
"reasonably necessary to the normal operations of the business or enterprise,"
these factors may be used in making employment decisions.
For example, religious educational institutions have greater but not absolute
leeway in utilizing a religious hiring preference if the religious educational
Bona Fi de
2011 SHRM 2-86
institution is, in whole or in substantial part, owned, supported, controlled, or
managed by a particular religious corporation, association, or society or if the
curriculumis directed toward the propagation of a particular religion. Or, an
entertainment company can legitimately cast American I ndians for roles in a
documentary about Native American tribes.
It should be noted, however, that the BFOQ provision is a very narrow exception
to the general prohibition against discrimination. BFOQ claims are scrutinized
very carefully by the courts and thus should be used sparingly by the employer.
The Age Discrimination in Employment Act has a similar provision regarding
age.
Employment Practices Liability I nsurance
Because of the rising number of lawsuits, many employers purchase
employment practices liability insurance (EPLI), which covers businesses
against claims by workers that their legal rights as employees of the company
have been violated.
EPLI provides protection against many kinds of employee lawsuits, including
claims of:
Sexual harassment.
Discrimination.
Wrongful termination.
Breach of employment contract.
Negligent evaluation.
Failure to employ or promote.
Wrongful discipline.
Deprivation of career opportunity.
Wrongful infliction of emotional distress.
Mismanagement of employee benefit plans.
Such policies cover legal costs whether the company wins or loses the suit; they
generally do not pay for punitive damages or civil and criminal penalties.
Liabilities covered by other insurance policies such as workers' compensation
are excluded fromEPLI policies.
2011 SHRM

2-87
Keep in mind that under some EPLI policies the employer has a duty to noti fy
the carrier upon receipt of a letter froma lawyer, even if no claimhas been
filed. If so, failure to report the letter could result in the waiver of coverage.
Accordingly, read the policy carefully to determine what is a "cl ai m" in terms
of the duty to notify the carrier and to determine restrictions that may apply.
EPLI is also covered in Module 6: Risk Management as a way of minimizing an
organization's risk.

2011 SHRM
Progress Check
1. A manager always hires young, attractive women as receptionists. This is an example of
) a. disparate treatment.
) b. adverse impact.
) c. reverse discrimination.
) d. sexual harassment.
psychological examthat tends to eliminate African-American applicants is an example of
) a. disparate treatment.
) b. adverse impact.
) c. present effects of past discrimination.
) d. outmoded selection practices.
n Washington v. Davis, the Supreme Court ruled that
) a. a test that has an adverse impact against a protected class is legal if it is job-related.
) b. a test used for promotion or selection of employees must be a valid j ob predictor.
) c. an employer must demonstrate a lack of discriminatory intent.
) d. the burden of proof lies with the employee to show that any employment
requirement is directly job-related.
4. An African-American is asked to fill out an EEO applicant flow formdeclaring race and
ethnicity. Whi ch of the following statements about this situation is true?
( ) a. The request violates EEO regulations.
( ) b. Compliance is mandatory.
( ) c. The person making the hiring decision cannot be given the form.
( ) d. The formmay be incorporated in the empl oyee's file if the applicant is hired.
5. Whi ch of the following provides data on the proportion of current employees in protected
classes by j ob title within a department or organizational unit?
( ) a. Adverse impact analysis
( ) b. Affirmative action plan
( ) c. Availability analysis
( ) d. Workforce analysis
2011 SHRM 2-89
6. In which section of an AAP would a contractor report that it has 14% women and 28%
minorities represented in its management team?
( ) a. Organizational profile
( ) b. J ob group analysis
( ) c. Placement goals
( ) d. I dentification of problem areas
7. Which of the following assesses the number of potential employees fromprotected
classes?
( ) a. Adverse impact analysis
( ) b. Affirmative action plan
8. Which of the following OFCCP activities examines the promotion of minorities and women
to senior-level positions?
( ) a. Focused review
( ) b. Glass ceiling audit
9. Affirmative action plans (AAPs) are illegal when they
( ) a. define underutilization of women and/or minorities.
( ) b. achieve placement goals within a particular affirmative action plan year.
( ) c. result in the discharge of qualified nonminority employees.
( ) d. remedy a specific effect of past discrimination.
10. Which of the following Supreme Court decisions dealt with reverse discrimination?
( ) a. Griggs v. Duke Power
( ) b. Albemarle Paper v. Moody
( ) c. Washington v. Davis
( ) d. General Dynamics Land Systems, Inc., v. Cline
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2011 SHRM
1. a (p. 2-59)
2. b (p. 2-59)
3. a (p. 2-62)
4. c (p. 2-68)
5. d (p. 2-70)
6. b (p. 2-71)
7. c (p. 2-72)
8. b (p. 2-79)
9. c (p. 2-80)
10. d (p. 2-83)
2011 SHRM
2-91
'orkforce Planning
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Gender Discrimination and
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Title VI I of the Civil Rights Act of 1964 prohibits discrimination on the basis of
gender. Additional laws and regulations prohibit discrimination in other specific
areas. But what about situations where one employee tells a j oke that is offensive
to a colleague in a protected class or a person uses a derogatory phrase to refer to
an entire protected class? While harassment cases historically have been focused
on sexual claims, recent court decisions encompass other types of harassment.
The EEOC has also adopted the position that employers are accountable for all
forms of unlawful discrimination and harassmentnot just those of a sexual
nature.
Additional information about the EEOC's laws and regulations and policy
guidance can be found at www.eeoc.gov/policy/index.html.
The Background of Sexual Harassment Legislation
The federal courts have repeatedly ruled that sexual harassment is a formof
gender discrimination, just as racial harassment is a formof race discrimination.
Courts and employers generally have used the definition of sexual harassment
contained in EEOC guidelines, which were first issued in 1978. These
guidelines hold the employer responsible for the actions of its employees.
The guidelines state that". .. unwelcome sexual advances, requests for sexual
favors, and other verbal or physical conduct of a sexual nature constitute sexual
harassment when:
Submission to such conduct is made either explicitly or implicitly a termor
condition of an individual's employment.
Submission to or rejection of such conduct by an individual is used as the
basis for employment decisions affecting such individuals.
Such conduct has the purpose or effect of unreasonably interfering with an
individual's work performance or creating an intimidating, hostile, or
offensive working environment."
Types of Sexual Har assment
Sexual harassment claims fall into two categories.
2011 SHRM 2-94
Quid pro quo
Quid pro quo means "this for that" or "something for something." Quid
pro quo harassment occurs when an employee is forced to choose
between giving in to a superior's sexual demands or forfeiting an
economic benefit such as a pay increase, a promotion, or continued '
employment.
Hostile environment
Hostile environment harassment occurs when sexual or other
discriminatory conduct is so severe and pervasive that it interferes with, an
individual's performance; creates an intimidating, threatening, or
humiliating work environment; or perpetuates a situation that affects the
employee's psychological well-being. The courts have ruled that hostile
environment sexual harassment can be created by supervisors,' coworkers, "
or nonemployees such as customers.
Pr ecedent -Set t i ng Har assment Cases
The following court cases have been significant in the harassment arena.
Meritor Savings Bank v. Vinson (1986)
In Meritor Savings Bank v. Vinson, the Supreme Court first held that sexual
harassment violates Title VII of the Civil Rights Act of 1964 regardless of
whether it is quid pro quo or hostile environment harassment. The Court also
ruled that common-law principles should be applied to guide lower courts in
determining whether the employer is liable.
But the Supreme Court did not elaborate on how the common-law principles
should be applied. This resulted in considerable disagreement in the lower
courts until two subsequent landmark cases: Faragher v. City of Boca Raton and
Ellerth v. Burlington Northern Industries, which are discussed below.
Common law in this context is derived fromdecisions made in court cases
and is discussed in Module 5: Employee and Labor Relations.
2011 SHRM 2-95
Harris v. Forklift Systems, Inc. (1993)
In Harris v. Forklift Systems, Inc., the Supreme Court ruled for the plaintiff,
holding that in a sexual harassment case the plaintiff does not have to prove
concrete psychological harmto establish a Title VII violation.
Petitioner Harris sued her former employer, claiming that the conduct of
Forklift's president toward her constituted "abusive work environment"
harassment because of her gender in violation of Title VII. The applicable
standard, reaffirmed by the Supreme Court, had been stated in the earlier
Meritor Savings Bank case: Title VII is violated when the workplace is
permeated with discriminatory behavior that is sufficiently severe or
pervasive to create a discriminatorily hostile or abusive working
environment.
The standard in theHarris case requires an objectively hostile or abusive
environmentone that a "reasonable person" would find hostile or
abusiveas well as the victim's subjective perception that the environment
is abusive. The effect on the employee's psychological well-being is relevant,
though, in determining whether the plaintiff actually found the environment
abusive.
Oncale v. Sundowner Offshore Service, Inc. (1998)
The plaintiff in Oncale was a heterosexual male employed on an offshore
oil rig run by Sundowner Offshore Service, Inc. Oncale claimed that a
supervisor and two coworkers harassed himand threatened to rape him. He
resigned fromthe company and successfully sued Sundowner, the
supervisor, and the coworkers, claiming both quid pro quo and hostile
environment harassment.
The Supreme Court ruled that same-sex harassment is covered under Title
VI I 's prohibitions against sex discrimination. However, the ruling did not
include discrimination on the basis of sexual orientation but rather specified
that the harassment must be "because of sex" to be actionable.
2-96
2011 SHRM
Faragher v. City of Boca Raton and Eiierth v. Burlington Northern
Industries (1998)
Faragher v. City of Boca Raton involved a female lifeguard who worked for
the city of Boca Raton, Florida, from1985 to 1995. Throughout her tenure in
this position, Faragher alleged that she and other female lifeguards were
sexually harassed by two of Faragher's immediate supervisors. The city had a
policy on sexual harassment but did not effectively communicate it to beach
employees. Both of the offending supervisors were unaware of the policy.
Eventually, a former lifeguard reported the harassment to a city official.
Following an investigation, the two supervisors were reprimanded and
disciplined. Faragher then resigned and successfully filed suit against the city
for a hostile work environment violation of Title VII.
The Ellerth case involved a mid-level Burlington Northern manager who
allegedly sexually harassed Ellerth, a female employee. The manager threatened
to take adverse employment action against Ellerth if she did not submit to his
sexual advances. In actuality, the manager never followed through, and Ellerth
received promotions during her 14 months of employment. Burlington Northern
had a sexual harassment policy, but Ellerth never complained to anyone at the
company. Ultimately she resigned because of the harassment and filed suit
alleging that she had been subjected to unlawful sexual harassment and
constructively discharged. (Constructive discharge, which is covered in Section
2-10 in this module, occurs when the employer makes working conditions so
intolerable that the employee has no choice but to resign.)
In the Faragher and Ellerth cases, the Supreme Court distinguished between
supervisor harassment that results in tangible employment action (such as
discharge, failure to promote, or demotion) and supervisor harassment that does
not. When harassment results in a tangible adverse employment action, the
employer is always liable. However, as held in the Ellerth case, if no tangible
adverse employment action was taken against the employee, an employer may
establish an affirmative defense to liability and damages. In order to do so, the
employer must demonstrate that it exercised reasonable care to prevent and
promptly correct the harassing behavior and that the plaintiff who suffered the
harassment unreasonably failed to take advantage of preventive and corrective
opportunities.
2011 SHRM
2-97
This legal responsibility of the employer is a formof vicarious liability.
Vicarious liability is a legal doctrine under which a party can be held liable for
the wrongful actions of another party. Because of this doctrine, employers are
legally responsible for the discriminatory acts of their employees.
The Faragher and Ellerth decisions established that an employer's vicarious
liability for supervisor harassment that does not result in a tangible employment
action is based on two principles:
Employers have the responsibility to promptly and irrevocably end
harassment (sexual or otherwise) through appropriate intervention,
including, if necessary, discipline.
Employees should be encouraged to take advantage of preventive and
corrective opportunities.
Pennsylvania State Police v. Suders (2004)
Pennsylvania State Police v. Suders involved a female police communications
officer, Suders, who alleged that she was subjected to sexually harassing
conduct of such severity that she was forced to resign. When Suders sued the
Pennsylvania State Police for sexual harassment and constructive discharge in
violation of Title VII, the question became whether constructive discharge was
a tangible employment action that ruled out the employer's affirmative defense
established by theFaragher and Ellerth decisions.
In J une of 2004, the Supreme Court held that in the absence of a tangible
employment action theEllerth/Faragher affirmative defense is available in a
constructive discharge claimto an employer whose supervisors are charged with
harassment. However, if a supervisor's "official act" is what "precipitates" the
constructive discharge, then the affirmative defense does not apply.
In determining the availability of the affirmative defense, the Court has
commanded lower courts to determine whether the "last straw" was an "official
act of the enterprise." I f the employee's resignation was not prompted by his or
her demotion, denial of a promotion, reassignment with significantly different
responsibilities, a significant reduction in benefits, or other significant change in
employment status, the employer can defend on the grounds that the employee
did not give it the opportunity to solve the problembefore the employee quit.
2-98
2011 SHRM
The Suders decision increases the importance and value of employer
prevention and correction. If adequate, such prevention and correction may
help the employer prevail on summary judgment in a constructive discharge
claim, where the damages may include not only back pay but also front pay in
addition to compensatory and punitive damages.
In 1999, the EEOC published guidelines to help clarify how employers can
avoid harassment lawsuits. Figure 14 summarizes these measures.
Recommendations for an Effective
Harassment Pol i cy/Preventi on Program
The program should:
Be in writing.
Define what constitutes harassment and declare that it will not be tolerated.
Establish a complaint procedure that encourages employees to come
forward.
Involve training and education programs to sensitize management and
employees to harassment issues.
Include a prompt and thorough investigation of every complaint.
Provide for an investigation that results in corrective action, including
disciplinary action if it is determined that unlawful harassment occurred.
Use as many methods as possible to communicate the policy to
management and employees.
Figure 14. Effective Harassment Policy/Prevention
A written harassment policy should include concrete examples of inappropriate
behaviors. A few such examples might be:
Derogatory remarks about a person's membership in a protected class.
Visual messages (e.g., posting of cartoons) that are demeaning to a protected
class.
J okes that stereotype or make fun of a protected class.
Nicknames for protected classes.
Verbal or nonverbal (e.g., mimicking or imitating) innuendoes that have a
negative connotation for a protected class.
2011 SHRM
2-99
Further, it should be stated that the harassment policy applies not only to the
workplace during normal business hours but also to business travel and all
work-related social functions, even if such activities are held off-site.
While the Supreme Court does not require an organization to have a complaint
procedure, theFaragher and Ellerth decisions make it clear that if a credible
complaint procedure exists and the plaintiff fails to make use of it, that failure
works to the legal advantage of the employer.
Harassment, like any formof discrimination, must be dealt with appropriately.
Employers who have a sexual harassment policy statement should modify the
policy to ensure that their definition of harassment includes other factorssuch
as race, color, age, religion, disability, and national originin addition to
gender. Preventive and corrective actions should be thought of as positive
strategic tools that reflect organizational values and shape organizational
behavior, not just as a means to prevent legal liability.
More detailed information about harassment policies and prevention is available
at www.eeoc.gov.
A number of states, such as Connecticut and California, require supervisory
training on harassment by statute. Other states, such as New J ersey, have
reached the same conclusion but by case law.
Sexual Orientation Guidelines
At present, no federal statute bars employment discrimination on the basis of
sexual orientation. Bills to ban sexual orientation discrimination in employment
have been introduced in the U.S. Congress, but none have been passed. Thus, the
term"sex" remains as a reference to the condition of being male or female, not to
sexual orientation. The Supreme Court upheld this definition in the Oncale case.
However, at least one federal court has concluded that a claimunder Title VI I for
sex discrimination could be based upon a theory of gender stereotyping. Further,
some state and local laws do prohibit sexual orientation discrimination.
I n addition, a number of states and local jurisdictions have extended their civil
rights law to include "gender identity," which may protect transsexuals and
2011 SHRM 2-100

other transgendered persons. However, even in those states or local jurisdictions
in which there is no protection based on gender identity, there may be some
protection under Title VII case law involving gender stereotyping.
In the absence of federal laws or other regulations addressing sexual orientation
discrimination, there are voluntary steps an organization can take to provide a
fair workplace and ensure nondiscrimination based on sexual orientation.
Recommended measures are presented in Figure 15. However, before doing so,
consult with legal counsel regarding the risk of liability associated with policies
that may create obligations beyond the scope of applicable laws.
Fair Workplace Recommendations for Employers
Include sexual orientation in nondiscrimination policies.
Provide training.
Prohibit and prevent harassment of gay and lesbian employees.
Recognize organizations representing the interests of gay and lesbian
employees.
Refer to "sexual orientation" rather than "sexual preference."
Consider extending employment benefits to domestic partners.
Figure 15. Measures Employers Can Take to Help Ensure a Fair Workplace
When organizations include sexual orientation in their policies and practices,
either as a matter of legal compliance or inclusion beyond legal mandate,
employers also need to be sensitive to the religious beliefs of some who may
oppose the protection. An employer can regulate workplace conduct (prohibit
discrimination, harassment, etc., inconsistent with its policies) but needs to be
careful not to try to dictate beliefs on this sensitive issue.
Awareness and diversity training are also discussed in Module 3: Human
Resource Development.
2011 SHRM
2-101
Progress Check
1. A Caucasian manager who continually uses an ethnic slur for a person of color is an example
of
( ) a. quid pro quo.
( ) b. adverse impact.
( ) c. reverse discrimination.
( ) d. harassment.
2. Which of the following forms of sexual harassment occurs when an employee must give in to
a supervisor's sexual demands or forfeit a pay increase?
( ) a. Hostile environment
( ) b. Quid pro quo
( ) c. Whistleblowing
( ) d. Reasonable person
3. Which landmark harassment case established that employers are responsible for the
discriminatory acts of their employees?
( ) a. Meritor Savings Bank v. Vinson
( ) b. Faragher v. City of Boca Raton
( ) c. Harris v. Forklift Systems, Inc.
( ) d. Oncale v. Sundowner Offshore Service, Inc.
2-102
2011 SHRM
1. d (p. 2-94)
2. b (p. 2-95)
3. b (p. 2-98)
2011 SHRM

2-103
Organizational Staffing
Requirements
Workforce Planning
and Employment
2.5
Identify workforce requirements to achieve the
organization's short- and long-term goals and objectives.
Analyze labor market for trends that impact the ability to
meet workforce requirements. SPHR ONLY
Internal workforce assessment techniques (for example,
skills testing, skills inventory, workforce demographic
analysis) and employment policies, practices, and
procedures (for example, orientation and retention).
Quantitative analyses required to assess past and future
staffing effectiveness.
' Needs assessment and analysis.
Planning techniques.
Qualitative and quantitative methods and tools for
analysis, interpretation, and decision-making purposes.
The interrelationships among HR activities and programs
across functional areas.
International HR and implications of global workforce for
workforce planning and employment. SPHR ONLY
rce: HR Certification Institute
*
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to? r
* V I- <
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11
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r-fj
Staffing describes the HR function that identifies organizational human capital
needs and then attempts to provide an adequate supply of qualified individuals
for jobs in the organization. Staffing activities encompass internal
redeployments and external recruiting.
Through staffing, the organization's current and future needs for knowledge,
skills, and abilities must be met. As such, staffing plans must support an
organization's strategic plans.
HR may be directly involved in the organization's strategic planning process, or
the HR function may be responsible only for forecasting an HR planning
strategy. Some organizations develop separate strategic and HR plans; others
combine theminto one document. The key is that both processes need to be
aligned.
HR planning must consider the corporate strategy in order to anticipate
employee skill and labor needs. This requires that the HR professional look at
where the organization is now as well as where the organization intends to be.
Workforce planning is the process an organization uses to analyze its
workforce and determine steps it must take to prepare for future needs. The
process involves forecasting the future composition of the workforce,
conducting a gap analysis between the current staff and the future staff, deciding
how to close any gaps, and determining how to best meet the needs through
redeployment, training, recruiting, or outsourcing.
Forecasting involves identifying expected future conditions based on
information about the past and the present. It is a good planning method to use
in determining HR supply and demand.
To meet the challenges of today's business environment, HR must increasingly
monitor and control the cost of engaging human capital. Naturally, forecasts are
subject to error. Myriad conditions on which the forecasts are based may
change. But with careful planning, HR professionals can generally forecast with
enough accuracy to help sustain organizational objectives and strategies.
2011 SHRM 2-106
The Needs Analysis Process
HR practitioners conduct needs analyses for a variety of reasonsto identify
compensation strategies, to determine employee training needs, etc. In the
workforce planning and employment area, a needs analysis can help to provide
answers to questions that shape an organization's staffing strategy.
Ideally, staffing needs analysis provides a systematic approach to anticipate
human capital needs and data HR professionals can use to ensure that the
appropriate workforce mix will be available when needed to accomplish
organizational goals and objectives.
Doing a needs analysis for staffing may be described as a four-step process that
involves:
Supply analysis.
Demand analysis.
Budget analysis.
Strategic analysis.
The diagramin Figure 16 on the next page shows the needs analysis
process as well as some of the key staffing questions that each phase
addresses.
Supply Analysis Techniques
Supply analysis considers the skill mix in the organization as it exists now and
projects the future needs based on anticipated business growth or retention.
Attrition data is taken into account in considering future supply.
Accurate supply forecasts account for movement into and inside the
organization (new hires, promotions, and transfers) and out of the organization
(resignations, layoffs, retirements, and discharges).
Forecast approaches include a variety of quantitative and qualitative analyses.
Specific analysis tools may range froma manager's "best guess" to rigorous
mathematical applications.
2011 SHRM 2-107
Suppl y Analysis: Where are we now? What do we have?
Do we have the right personnel mix to enable the organization to achi eve its short-term
and l ong-term busi ness goals?
Where are the gaps?
Shoul d we look to external sources to add to our j ob pool?
Can the gaps be filled by workers in the local area, or will we have to seek appl i cants
el sewhere?
Can we address the gaps through increased training to achieve short-term and l ong-term
busi ness goal s?

Demand Analysis: Where do we want to be? What do we need?
Are we retrenchi ng or growi ng? How fast? In what areas?
I f the organi zati on is movi ng in a new direction, does the current staff have the needed
knowl edge, skills, and abilities to be successful ?
Does the organi zati on need to redefi nej ob descriptions to achi eve its l ong-term goal s?
How many empl oyees are needed in each j ob area?

Budget Analysis: How can we achi eve cost-effecti ve staffi ng?
What are the correspondi ng labor costs?
How will we devel op policies to manage costs?

Strategi c Anal ysi s: How will we get what we need?
Wi l l we look internally or externally to fill vacanci es?
What sources shoul d we use?
Shoul d we have a conti nuous recrui tment program or wait until vacanci es appear before
engagi ng in an intensive effort?
What level of appl i cants are we seeki ng to fill vacanci es? I s it best to hire peopl e at a full
performance level, or should we seek entry-level candi dates and trai n/devel op them?
What are the costs versus the benefi ts of the recrui tment strategy?
Figure 16. The Staffing Needs Analysis Process
2011 SHRM 2-108
As an HR professional, a logical place to start is by consulting with line
managers to examine skills and time utilization to determine ways the
organization can use its existing human resource capabilities more fully. This
way, you will be able to project the available supply of talent by analyzing
whether:
Employees are using their time appropriately.
Work should be reallocated to provide more effective use of skills.
J obs need to be redesigned.
Productivity rates are changing.
Current staff has the ability to achieve the desired outputs.
Staff growth is exceeding the expansion of outputs.
The staff has the right kinds of skills.
Skills are not being applied or are missing.
Once this information is collected, time and skills that are not being
appropriately applied may be identified.
Having assessed current staff competencies, projections of internal supply
seemto be a simple calculation. Consider the number of people in each job,
along with the number of people who will transfer or who will leave the
organization.
After these simple calculations, the number of people who will be left will
provide an estimate of your internal supply.
Reality, however, is not this simple. Too many variables are involved in
forecasting:
Will the jobs remain the same?
Will some j obs be eliminated while others are added or combined?
Can you count on historical data to hold true in the future?
Will new employees compare to former employees in terms of productivity,
punctuality, sick days, attitudes, and leadership abilities?
For these reasons, HR professionals use tools such as trend and ratio analyses,
turnover analysis, and flow analysis.
2011 SHRM 2-109
Trend and Ratio Analysis Projections
Trend and ratio analyses use statistics to determine whether relationships
exist between two variables. A manager forecasting HR needs must look for
variables related to HR that appear to change predictably over time. The
manager is looking at past performance as a predictor of the future.
Tr end anal ysi s exampl e: Using the six years of performance data in Figure
17, the HR manager for ABC Books wants to project the demand for
employees for years seven and eight.
Year
1
Business Factor
(sales in millions)
$3,613
Labor Productivity
(annual sales per
employee)
$11,120
HR Demand
(number of
empl oyees)
325
2 $3,748 $11,120 337
3 $3,880 $12,520 310
4 $4,095 $12,520 327
5 $4,283 $12,520 342
6 $4,446 $12,520 355
Figure 17. Performance at ABC Books
To accomplish this, a simple trend analysis can be used that plots the number
of employees each year for the last six years and then simply projects this
trend out for two more years to predict the number of employees needed.
Number of
Employees
1 2 3 4 5 6 7 8
Years
Figure 18. Trend Analysis Example
2011 SHRM 2-110
A statistical formula can be used to calculate the slope of this trend line.
Whatever means is used, the trend line is continued out for the next two
years to predict the number of employees needed.
Rat i o anal ysi s ex ampl e: The HR manager for ABC Books could also use
the Figure 17 data to project the demand for employees by using ratio
analysis.
The labor productivity (Sales Number of employees) has remained at
$12,520 for the past four years.
If management assumes that labor productivity will stay at $12,520 and
sales are predicted to increase to $5 million in year seven, the calculation is
as follows:
$5,000,000 * $12,520 =399 employees
Based on this ratio analysis, the HR manager will need to hire 44 new
employees (399 - 355) to achieve the increase in sales.
However, let's say that management believes that because of new
efficiencies created by better training and equipment, labor productivity will
increase to $13,000 for year seven.
If that assumption is used, then the following ratio applies:
$5,000,000 * $13,000 =384 employees
In this case, the HR manager will need to hire 29 new employees (384 - 355).
Note that the exampl es assume that there is no turnover. Turnover shoul d al so
be factored in when deci di ng on a fi nal esti mate. A di scussi on of turnover
fol l ows.
The abi l i ty to predi ct vari abl es such as l evel of sal es, producti on, or servi ce
wi thi n workabl e l i mi ts or ranges most of ten becomes the f oundati on for
maki ng the HR forecast. Theref ore, in trend and rati o anal yses, when fi gures
are proj ected i nto the future, the key determi nant is whether rel ati onshi ps
wi l l conti nue to hol d. I n thi s case, the cl ear i denti fi cati on of assumpti ons
underl yi ng the forecast is cri ti cal to i nterpretati on and acceptance of the
i nf ormati on.
2011 SHRM 2-111
Tur nover Anal ysi s
Projecting turnover is another essential technique to use in estimating HR
requirements. Employees may leave an organization for a variety of reasons,
including:
Retirement.
Resignation.
Dismissal.
Layoff.
Disability.
Leave of absence.
Death.
Turnover is a metric and is normally expressed using an annualized formula
that tracks the number of separations and the total number of workforce
employees per month.
Ex ampl e: Here is ABC Books' workplace data.
(separations) (total workforce)
J anuary 15 250
February 5 245
March 5 240
April 2 238
May 3 235
J une 10 225
J uly 5 220
August 0 220
September 4 216
October 1 215
November 15 200
December 0 200
Total 65 2,704
Figure 19. Separations at ABC Books
2011 SHRM 2-112
To calculate the annualized employee turnover percentage:
Divide the total number of employees for the year (2,704) by 12 months.
This yields an average monthly workforce of 225 employees.
Divide the number of separations for the year by the average number of
employees per month.
=28.9%
225
You may also calculate turnover for shorter time periods (for instance, the first
three months of a year) but then annualize the results to project what the annual
turnover would be for 12 months.
Two of the most common methods to project turnover are:
Examining previous turnover rates and adjusting themto reflect knowledge
of changing conditions such as pay rates and the economy.
Analyzing trends in turnover rates for particular geographic locations or
occupational categories.
Flow Analysis
To examine employee flows in, up, down, across, and out of an organization
and to project future movement, HR planners must separate employees by
levels, occupational groupings, or organizational units.
The following methods can assist HR planners in projecting internal
turnover:
Analyze the career development plans for employees on an aggregate
basis by j ob function, division, or other organizational classification.
Using the target positions for employees and their rating of readiness for
the position (e.g., immediately, one year, two years), managers can
project the availability of talent for positions.
Obtain estimates fromeach division of transfers and promotions into, out
of, and within the divisions. These estimates may be aggregate and may
reflect subjective probability of movement based on historical data.
2011 SHRM
2-113
Project future movement through statistical analysis. Models of
employee flows project the numbers of employees who will remain in an
organizational classification based on past transition rates or
probabilities. (A word of caution: Past transition rates and probabilities
may have limited value in predicting future trends. Like everything else,
these too are affected by change.)
Ex ampl e: Figure 20 shows movement in the shipping department at
ABC Books for the first quarter of this year.
^ ^ ^ ^ ^ ^ / n v w ^ ^ ^ ^ t
Transfers
Promotions
New hires
Recalls
Total
D
4
15
]0
34
Promotions
Resignations
Demotions
Retirements
Terminations
Layoffs
Total
Figure 20. Flow Analysis
D
13
o
4
3
J_5
40
Using this simple flow analysis allows the HR manager to visualize the change
in the department and predict future staffing needs.
Thefollowing content ontheabilitytomeet workforce requirements has been
identified bytheHR Certification Instituteinthebodyof knowledgeas pertaining to
SPHR certification only. Questions relatedtothis content will appear ontheSPHR
examonly.
Demand Analysis Techniques
Demand analysis considers the model organization of the future and its
human capital needs. Once the supply model is developed, data can be
compared to the demand analysis projections and gaps can be identified,
including numbers of employees and gaps in skills. Demand analysis
2011 SHRM 2-114
should not just project the most probable future. Other future scenarios
should be considered, as the potential impact on gaps may be considerably
different.
Various techniques may be used in demand analysis. But the basic issue is
projecting the number of employees and the skills required to meet future
organizational goals.
Module 1: Strategic Business Management includes a related discussion on
environmental scanning.
Judgment al Forecast s
Judgmental forecasts use information fromthe past and present to
predict expected future conditions. These forecasts utilize information
provided by individuals associated with the industry to project future
industry needs.
Overall, for judgmental forecasting to be effective, HR needs estimates of:
New positions or skill sets needed.
Positions to be changed, eliminated, or left unfilled.
J ob sharing.
J ob design needs or organizational structure changes.
Costs of changes.
Adjustments in overhead, contracted labor, and supervision.
J udgmental forecasting can be broken into three types:
Managerial estimates
Delphi technique
Nominal group technique
Manager i al est i mat es
Managerial estimates, as the name implies, consist of projections made by
managers. This can work two ways: It can happen fromthe top down or
the bottomup. The success of this method is entirely dependent upon the
quality of information provided to managers to use in making estimates.
2-115 2011 SHRM
Del phi t echni que
The Delphi technique progressively collects information froma group on a
preselected issue. This process is usually done by mail, but more recently fax
and e-mail responses have eased the process and greatly shortened the time
necessary for completion.
After the issue is identified by the coordinator, each participant lists his/her
ideas about the issue in question in a brief, concise manner and returns the list
anonymously to the coordinator. No attempt should be made to evaluate or
justify the ideas at this stage. Then the coordinator prepares and sends a second
questionnaire to participants that contains all of the ideas sent in response to the
first questionnaire and provides space for participants to refine each idea, to
comment on each idea's strengths and weaknesses for addressing the issue, and
to identify new ideas. The coordinator repeats the process until it becomes clear
that no new ideas are emerging and that all strengths, weaknesses, and opinions
have been identified.
The approach is designed to facilitate group involvement, problemsolving, and
individual thinking but avoid "group think."
The diagramin Figure 21 on the next page illustrates the Delphi technique process.
Nomi nal gr oup t echni que
The nominal group technique uses a variety of individuals to forecast ideas
and assumptions and prioritize issues. Unlike the Delphi technique, the
individuals are brought together for a face-to-face discussion. The structured
session is led by a moderator.
The nominal group technique process occurs as follows:
Participants independently write down their ideas.
Each participant presents one idea to the group, without discussion, in a
round-robin fashion.
Ideas are summarized on a flip chart or blackboard.
The group discusses and clarifies ideas.
Ideas are ranked independently by participants.
Rankings are pooled, and the ideas with the highest ranking are identified as
the major problems or issues that need addressing.
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2011 SHRM
Coordinator identifies judgment issue and
develops questionnaire.
, _ _
Prospective participants are identified and
asked to cooperate.
I
Coordinator sends questionnaires to willing
participants, vvlio record their judgments and
recommendations and return the questionnaires.
+
Coordinator anonymously compiles summaries
and reproduces participants' responses.
.
Coordinator sends the compiled list of
judgments to all participants.
Participants comment on ideas and
propose a final judgment.
Coordinator looks
for consensus.
Coordinator accepts consensus judgment
as group's choice.
I
Figure 21. The Delphi Technique
St at i st i cal Forecast s
Statistical forecasts generally fall into two categories: regression analysis and
simulations.
Regr essi on anal ysi s
Regression analysis can be further subdivided into two types:
Simple linear regression is a projection of future demand based on a past
relationship between employment level and a single variable related to
employment.
2011 SHRM

2-117
Ex ampl e: A statistical relationship between gross sales and number
of employees, such as the trend analysis for ABC Books, might be
useful in forecasting the number of employees needed in the future
if sales increase by 25%.
Multiple linear regression operates the same as simple linear regression,
except that several variables are utilized to project future demand.
Ex ampl e: ABC Books might add hours of operation to gross sales
to determine the number of employees needed.
Si mul at i ons
Simulations are representations of real situations in abstract formand are often
referred to as "what i f ' scenarios. They give organizations the opportunity to
speculate as to what would happen if certain courses of action were pursued.
Ex ampl e: ABC Books might consider the ramifications of changing a
compensation system, doing business online, or changing the store
location.
Statistics are also discussed in Module 1: Strategic Business Management.
Additional information on workforce planning is available through SHRM's
"Workforce Planning Toolkit," at www.shrm.org/TemplatesTools/Toolkits/
Pages/default.aspx. (This resource is available to SHRM members only.)
This concludes theSPHR-level content ontheabilitytomeet workforce requirements.
Thefollowing content oninternational workforceplanning andemployment has been
identified bytheHR Certification Instituteinthebodyof knowledgeas pertaining to
SPHR certification only. Questions relatedtothis content will appear ontheSPHR
examonly.
International Workforce Planning
Global talent acquisition broadly describes the actions an organization takes to
meet current and future skill needs for operations worldwide. It is much more
than simultaneously staffing multiple organizations in multiple countries. It is
the managing of talent and skills as a single resource across the entire globe,
with the objective of moving the strategic goals of the global organization
forward over the long term. Global staffing is the HR function that identifies
2-118
2011 SHRM
staffing needs throughout a global enterprise and then recruits, selects, and
deploys worldwide talent resources to meet those requirements.
HR professionals must collaborate with organizational strategic planners to
identify global human capital requirements. Similar to internal workforce
planning, a gap analysis must compare global requirements to present skill and
competency levels and identify the need for additional or new staffing resources.
With this information, HR can then design, develop, and implement strategies to
support the corporate strategy and vision of where the organization wants to be in
the global business environment.
Several factors influence global staffing. A couple of the key considerations are:
What is the organizational approach to international business?
What types of international workers should be used?
Or gani zat i onal Appr oach t o Int ernat i onal Busi ness
Four terms are commonly used to describe how a firmmanages its international
operations. Figure 22 provides an overview of each approach and describes its
general impact on staffing.
Global
Approach
Description Impact on Staffi ng
Ethnocentric Headquarters maintains tight
control over the international
operations.
Subsidiaries have little
autonomy.
Key positions at home and
abroad are held by personnel
from the headquarters country.
Talent and skills transfer
essentially one way.
Headquarters-country HR
policies and practices are
exported abroad.
Polycentric Each international operation is
treated as a distinct national
entity.
Local nationals are hired to
manage functions, but they are
rarely promoted to
headquarters assignments.
Headquarters-country
personnel have little impact.
Talent acquisition policies are
unique to each country.
Limited cross-border
movement of talent and skills.
Figure 22. Relationship of Global Business Approaches
and Staffing (continued next page)
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Global
Approach
Description Impact on Staffing
Regiocentric Operations are managed Employees circulate within
regionally. regions, with focus on
Communications and regional business results.
coordination within a Talent acquisition policies
region are high but less are developed and
so between regions. coordinated within regions.
Talent and skills are
developed within regions,
with minimal interregion
transfer.
Geocentric Organization is viewed Employees circulate
as a single international throughout the global
enterprise rather than a organization.
collection of individual Talent acquisition policies
headquarters-country maximize long-term strength
and international of the global organization.
operations. Talent and skills are
Strategic plan is global in deployed globally to best
orientation. achieve global goals while
Talent comes from any meeting local requirements.
location.
Source: Adapted from SHRM Global Learning System: Global Talent Acquisition and Mobility. Alexandria, Virginia:
Society for Human Resource Management, 2009.
Figure 22. Relationship of Global Business Approaches
and Staffing (concluded)
Ethnocentric? Polycentric? Regiocentric? Or geocentric? Which approach is
best for staffing international assignments?
There is no definitive answer, since several internal and external factors
impact the situation. Organizational factors such as strategy, structure,
size, and the resource pool of people who can be sent abroad in
conjunction with the conditions existing in the country (e.g., type of
government, economy, and national and local employment practices)
need to be considered. In some situations, an organization operating in
several regions of the world may use a combination of strategies based
on the country specifics.
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Types of Int ernat i onal Wor ker s
International assignments can be filled froma variety of sources. Historically,
international talent was described using the following broad terms:
Parent-country nationals (PCNs)Citizens of the organization's
headquarters country who reside and work abroad with the intent of returning
to the home country. The United States employee of a New Y ork-based firm
who accepts a three-year assignment in Germany is considered a parent-
country national.
Third-country nationals (TCNs)Employees who are citizens of countries
other than where they work or where the organization's headquarters resides.
A J apanese computer specialist who accepts a position in Germany with a
multinational firmwith headquarters in the United States is a third-country
national.
Host-country nationals (HCNs) or local nationalsEmployees working in
their own country. A Chinese national who is hired by a British firm to work
in Shanghai at a British subsidiary is a local national.
ExpatriatesCollective termfor employees sent abroad to work in a country
other than where they live.
InpatriatesEmployees brought in fromanother country to work in the
headquarters country for a specified period.
RepatriatesEmployees who have returned home froman international
assignment.
Some of these terms prevail. Typically, international assignee is now the all-
encompassing termused to describe anyone on an international assignment.
Organizations traditionally used expatriates as the main talent source for
staffing international operations when initiating, expanding, and seeking to
control operations. But concerns about the cost of these assignments, their
overall effectiveness, and other issues such as work/life balance and family
challenges combined with talent shortages have led organizations to tap other
types of international workers.
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Sel ecti ng i nternati onal workers is of great i mportance and requi res strategi c
HRM pl anni ng. Fi gure 23 lists several types of i nternati onal workers that
organi zati ons commonl y use to staff thei r gl obal operati ons. Note that some of
these terms refl ect the type of assi gnment whi l e others speci fi cal l y refer to the
i ndi vi dual .
Ty p es of I nt er nat i onal
As s i g n men t s and Empl oy ees
Gener al Descr i pt i on
Short-term assignees Employees who go abroad for a specified period of
time (usually between three months and a year);
family may/may not accompany the employee
Long-term assignees Refers to the traditional expatriate assignment;
usually lasts longer than one year and involves
relocating the employee and family to the host
country
Sequential/rotational employees Employees who commute from the parent
company to a workplace in another country for a
specified short duration and then return home for a
break
Commuting employees
(international commuters)
Employees who live in one country and work in
another country by regularly commuting across
borders (usually weekly or biweekly) to perform
different aspects of the job while their families
remain at home
Frequent flyers/extended
business travelers
Employees who make frequent international trips
but do not relocate
Stealth expats/stealth
pats/stealth assignees
Employees who work in another country (for more
than 30 days or through a series of trips) outside
their employer's global mobility programs and often
without HR's knowledge
Local hires (local nationals) Employees hired locally
Localized employees Employees sent to work in a country (usually with
some allowances to get there) but hired as local
employees
Permanent assignees
(permanent locals)
Individuals who essentially spend their entire
career moving from international assignment to
Figure 23. Types of International Workers
(continued next page)
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Types of International
Assignments and Employees
General Description
Interns/trainees (temporary,
nonimmigrants)
Workers brought into an organization's home
country to work for a short duration (usually
between six months and a year) as interns or
trainees
Returnees Emigrants who are hired by an organization to
return to their home country and work there for the
firm; may already be employed by the organization
and selected to return home for work
Virtual employees Employees who do not relocate but have a
responsibility to manage international staff or work
with others from their home base, typically via
electronic communication; may meet face to face
occasionally
Retirees Retired employees hired back (usually for short-
term assignments)
Part-time employees Workers who are contracted to work less than full-
time hours
Temporary (contingent) employees Labor brought in for time-based or project-based
work, possible though a third party
Temp-to-hire (temp-to-permanent)
employees
Workers hired on a temporary ("temp") basis
(usually through an agency) with the understanding
that they may be hired for regular employment if
they perform competently for a specified period of
time
Outsourced employees Workers outside an organization paid for their
services by an independent company that assumes
full operational responsibility for them through a
contract with the organization
Source: SHRM Global Learning System: Global Talent Acquisition and Mobility. Alexandria, Virginia: Society for
Human Resource Management, 2009.
Figure 23. Types of International Workers (concluded)
This concludes theSPHR-level content oninternational workforce planning and
employment.
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Progress Check
1. A turnover analysis is a technique that
( ) a. tracks the rate of employee separations.
( ) b. utilizes information provided by individuals associated with an industiy to project
future industry needs.
( ) c. predicts future employment trends based on marketplace data.
( ) d. determines if a relationship exists between two variables through the use of
regression analysis and simulations.
2. Several HR managers are brought together to generate ideas about the impact of technology
on HR management and staffing. This best describes which forecasting method?
( ) a. Delphi technique
( ) b. Managerial estimates
( ) c. Multiple regression analysis
( ) d. Nominal group technique
3. Which forecasting method would be used to make a statistical comparison between gross
sales and the number of employees in a retail chain?
( ) a. Delphi technique
( ) b. Staffing ratio
( ) c. Turnover analysis
( ) d. Regression analysis
4. In which organizational approach to international human resource management is it common
to have all key executive positions held by personnel fromthe headquarters country?
( ) a. Ethnocentric
( ) b. Polycentric
( ) c. Regiocentric
( ) d. Geocentric
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Pr ogr ess Check Answer s
1. a (p. 2-112)
2. d (p. 2-116)
3. d (p. 2-117)
4. a (p. 2-119)
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Vorkforce Planning
nd Employment
.6
HR responsi bi l i ti es rel ated to thi s secti on i ncl ude:
Conduct job analyses to create job descriptions and
identify job competencies.
Identify and document essential job functions for
positions.
Establish hiring criteria based on job descriptions and
required competencies.
J ob analysis and job description methods.
The interrelationships among HR activities and programs
across functional areas.
Job Analysis and Job Description Methods
The success of any organization depends on the performance of its employees.
All the jobs in an organization must interrelate to accomplish the organization's
mission, goals, and objectives.
In this module, the terms "job," "job analysis," "job description," "job
specifications," and "job competencies" will be covered.
A job is a collection of activities (tasks) and responsibilities that an employee is
responsible to conduct.
Today, an increasing number of organizations are using alternatives to the
traditional hierarchical structure (e.g., teams and project staffs). Thus, a "job" is
often referred to as an "employee role" (which could include teammember, for
example). However, the principles remain similar.
Figure 24 provides a graphic overview of how these job components fit
together.
Figure 24. Elements of Job Analysis and Employee Jobs
Job Analysis
Job analysis is a systematic study of jobs to determine what activities (tasks)
and responsibilities they include, their relative importance and relationship with
other jobs, the personal qualifications necessary for performance of the jobs,
and the conditions under which the work is performed.
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An important concept in j ob analysis is that an analysis is conducted of the job,
not the person doing the job (even though some j ob analysis data may be
collected fromincumbents).
Three key elements included in a j ob analysis are commonly abbreviated as
KSAs:
Knowledgebody of information necessary for task performance
Skillslevel of proficiency needed for task performance
Abilitiescapabilities necessary to performthe j ob
Minimum selection criteria should not include KSAs that can be taught in a
relatively short time frame (for example, a day).
J ob analysis information is typically collected by the HR department,
supervisors, and job incumbents. Some organizations may hire an external
consultant to conduct a j ob analysis.
Fact or s t o Consi der Duri ng Job Anal ysi s
A j ob analysis generally gathers information about the following:
J ob contextthe purpose of the job, its work environment, its place in the
organizational structure
J ob contentthe duties and responsibilities of people who hold the j ob
J ob specifications/qualificationsknowledge, skills, and ability required for
a person to have a reasonable chance of being able to successfully perform
the j ob
Performance criteriadesired behaviors/results that will constitute
performance in the j ob
Job Anal ysi s Met hods
J ob analysis is a time-consuming, demanding task. In addition, it can be difficult
to show statistically the extent to which a j ob analysis is valid and reliable,
particularly as jobs get more complex.
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It is not easy to determine what employees actually do on the job. Even direct
observation is influenced by the perceptions of the observer.
However, taking the following actions can help to obtain the best results:
Obtain information directly fromthe job incumbent when feasible, although
additional input may come frommanagers, subordinates, and other sources.
Collect data frommultiple job holders and supervisors.
Select a technique that allows information to be obtained, summarized, and
processed with minimal effort. For example, codable, concise data is easier
to process than narrative, descriptive information.
Select a technique that is easy to update without having to repeat the entire
process fromthe beginning.
Figure 25 compares common job analysis methods: observation, interview,
questionnaire, and work diary/log.
Method Description
Obs er v at i on Direct observation of employees
performing the tasks of a job,
recording observations, and later
translating them into the
necessary knowledge, skills, and
abilities.
Benefits
Provides a realistic view of the
daily tasks and activities
performed in a job. Works
best for short-cycle jobs in
production.
Interview Face-to-face interview in which
the interviewer obtains the
necessary information from the
employee about knowledge,
skills, and abilities needed to
perform the job.
Interviewer uses
predetermined questions, with
new ones added based on the
response of the employee
being interviewed. Good for
professional jobs.
Open-ended
questi onnai re
Questionnaires to job incumbents
and sometimes to their managers
asking about the knowledge,
skills, and abilities necessary to
perform the job. The answers are
then combined, and a composite
statement of job requirements is
published.
Produces reasonable job
requirements because input is
solicited from both employees
and managers. Good when a
large number of jobs must be
analyzed and there are
insufficient resources to do it.
Figure 25. Job Analysis Methods (continued next page)
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Method Description Benefits
Highly structured
questi onnai re
Questionnaires structured in a
manner that allows only
specific responses, aimed at
determining the frequency
with which specific tasks are
performed, their relative
importance, and the skills
required.
Defines job with a relatively
objective approach, which
also enables analysis to be
performed using computer
models.
Work diary or log Diary or anecdotal record
maintained by the employee.
J ob information, including the
frequency and timing of tasks,
is recorded in the diary. Logs
are usually kept over an
extended period of time. They
are then analyzed and
patterns identified and
translated into duties and
responsibilities.
Provides an enormous
amount of data. Method can
be applicable to most jobs.
Caution: Too much data may
be difficult to interpret,
irrelevant to the job, and/or
difficult to keep up-to-date.
Figure 25. Job Analysis Methods (concluded)
J ob Analysis Outcomes
Figure 26 shows two of the primary outcomes froma job analysis: a job
description and job specifications. These outcomes will be discussed in more
detail later in this section.
Job Analysis: The Process of Documenting a Job
Job description Job specifications
Written description of a job and its Written statements of the necessary
requirements: qualifications for the job incumbent:
J ob title and location Education
Organizational relationships Experience
Duties and responsibilities Training
Essential job functions Mental abilities
Nonessential job functions Physical efforts and skills
Working conditions J udgment
Level of financial accountability Decision making
Figure 26. Job Analysis, Job Description, and Job Specifications
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Job Anal ysi s Uses
J ob analysis serves a wide variety of uses, as shown in Figure 27.
Figure 27. Job Analysis Uses
Module 3: Human Resource Development and Module 4: Total Rewards
examine some of these job analysis applications in more detail.
Essential Job Functions
As noted earlier, under the Americans with Disabilities Act (ADA), a
person is qualified for a job if lie or she can perform the essential functions
of that job with or without reasonable accommodation. Essential job
functions are those fundamental job-related duties that are necessary to the
position.
Essential functions are distinguished fromother nonessential or marginal
functions that are part of the j ob but are incidental or ancillary to the purpose
and nature of the job.
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The ADA does not mandate that employers eliminate or lower valid job standards.
All job applicants, disabled or not, should satisfy the requirements for requisite
skills, experience, and education. Nor does the law suggest that employers ignore
mental abilities, physical effort, psychomotor skills, and any other job-related
criteria required to performthe essential j ob functions. Instead, the law requires that
employers look beyond the traditional means and manner of performance.
Any statements regarding the essential functions of a job are necessary to defend
employment decisions. They are subject to scrutiny by federal compliance agencies.
In the event that charges are filed under the ADA, a threshold question will be the
definition of and justification for the essential functions of the job in question. It
therefore behooves an employer to carefully identify essential job functions. In
Figure 28, a sample worksheet is shown that an employer might use to determine
essential job functions.
Essent i al Funct i on Charact eri st i cs Det ermi nat i on
Does the job exist to do this function? Yes No
Time per week spent on this function
Minimum qualifications
Are these qualifications enforced? Yes No Explain:
Critical skills, experience, training,
education, license, etc.
Equipment used
Can other incumbents do this function if
necessary?
Yes No Explain:
Would eliminating this function
significantly alter the job?
Yes No Explain:
Would there be significant consequences
if this were not performed?
Yes No Explain:
Based on the answers above, is the job
function essential (as opposed to
nonessential)?
Yes No Explain:
Figure 28. Essential Job Functions Worksheet
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In their interpretive guidance on the ADA, the Equal Employment Opportunity
Commission notes that a job function may be considered essential for several
reasons. Figure 29 provides a list of the types of evidence the EEOC evaluates in
determining if a function is essential.
Recommendat i ons f or Det er mi ni ng Essent i al Funct i ons
The employer's judgment as to which
functions are essential (including the
supervisor and others who are likely to
have knowledge of the job)
A written job analysis prepared for
recruitment advertising and/or interviewing
job applicants
The amount of time spent on the job
performing the function
The consequences of not requiring the
incumbent to perform the function
The terms of a collective bargaining
agreement
The work experience of past incumbents in
the job
The current work experience of incumbents
in similar jobs
Figure 29. Determining Essential Job Functions
In evaluating the validity of essential job functions, the EEOC notes that case-by-
case determinations are made. While percentages of time may be helpful as a starting
point for HR to assess whether a function is essential, it is ordinarily recommended
that the percentages not be included in the job description itself. In discussing time
spent performing the particular function, the EEOC uses the following example: "[I f]
an employee spends the vast majority of his or her time working at a cash register,
this would be evidence that operating a cash register is an essential function."
However, the EEOC does not reference a specific percentage.
In discussing the consequences of not requiring the incumbent to performthe
function, the EEOC cites this example: "Although a firefighter may not regularly
carry an unconscious adult out of a burning building, the consequences of failing
to require the firefighter to be able to performthis function would be serious." In
this case, the percentage of time the individual performs the function is not the
critical element, but the consequence of nonperformance is.
Additional information on the ADA, essential job functions, and reasonable
accommodation is found in Section 2-1 of this module, "Key Legislation Affecting
Employee Rights," and Section 2-9, "Selection and Retention." To review EEOC
regulations on these ADA topics, visit the EEOC Web site, www.eeoc.gov.
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As previously mentioned, the outcome of a j ob analysis is some formof
documentation (e.g., a j ob description and j ob specifications).
A job description summarizes the most important features of a job, including
a description of the work that details the required tasks, knowledge, skills,
abilities, responsibilities, and reporting structure/The physical requirements of
the j ob must also be included for ADA considerations. To the extent the
employer is treating the position as exempt, it is beneficial to include in the j ob
description those duties that support the exempt status.
Benef i t s of Job Descri pt i ons
Like j ob analysis, j ob descriptions are important tools for organizations. A j ob
description serves a variety of functions, including j ob evaluation, selection,
recruitment, HR planning, training, safety, compensation, and performance
appraisal. Realistically defined j ob specifications in a j ob description can even
allow prospective employees to screen themselves.
The benefits of j ob descriptions include (but are not limited to) the following:
They define the jobs for performance planning, transfer, promotion, staff
planning, career, and disability accommodation purposes.
They use standard formats that allow for consistent application.
They give employees written definitions of their jobs.
They provide reliable sources for comparing j ob salary surveys.
They help organizations move swiftly to increase or replace staff due to
increased business or turnover.
They help those responsible for work flow to performsystematic analyses of
organizations' work processes fromstart to finish.
For mat of Job Descr i pt i ons
The format of j ob descriptions varies greatly fromorganization to organization.
Figures 30 and 31 on the following pages provide two examples, one for an
exempt employee and the other for a nonexempt employee.
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Job ti tl e: Vi ce Presi dent of Engi neeri ng
Depart ment : Engi neeri ng
FLSA status: Exempt executi ve
Reports to: CEO
Posi t i on summar y: Manages and directs corporate engineering for Company XYZ
Gener al pur pose: Strategic planning; product design; quality assurance; problem resolution
Rol e qual i f i cat i ons:
Must execute product design to meet company objectives
Must partner with management team to ensure effective product development
Must develop systems and controls to ensure compliance with quality standards
Posi t i on r esponsi bi l i t i es:
Develops and directs procedures and methods to ensure that quality standards are met and maintained
Provides engineering expertise in the areas of tooling, prints, specifications, product maintenance, raw
materials, and vended products throughout the organization
Manages engineering budget
Manages and builds current bill of materials
Manages product design from design to execution
Recommends methods, materials, and layouts for improvement based on manufacturing needs/capabilities
Builds, develops, and manages engineering team capable of carrying out needed engineering initiatives
Performs other related duties as assigned
Essent i al ski l l s and exper i ence:
Bachelor's degree in engineering, business administration, or related field
Leadership: demonstrated ability to lead people and get results through others
Planning: ability to think ahead and plan over a one- to two-year time span
Management: ability to organize and manage multiple priorities
Problem analysis and problem resolution at both a strategic and a functional level
Technical skills in engineering management, quality assurance, and costing
Strong customer orientation
Excellent interpersonal and communication skills
High performance teams and a strong team player
Commitment to company values
Val ued but not requi red ski l l s and exper i ence:
MBA
Experience in value engineering and lean manufacturing environments
Advanced computer proficiency
Repor t i ng t o t hi s posi t i on: The engineering manager; ultimately position is responsible for a ten-person team.
Physi cal demands and wor k envi r onment : The physical demands and work environment characteristics
described here are representative of those that must be met by an employee to successfully perform the essential
functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform
the essential functions.
Physical demands: While performing duties of job, employee is occasionally required to stand; walk; sit; use
hands to finger, handle, or feel objects, tools, or controls; reach with hands and arms; talk and hear. Employee
must occasionally lift and/or move up to 25 pounds. Specific vision abilities required by the job include close
vision, distance vision, color vision, peripheral vision, depth perception, and the ability to adjust focus.
Work environment: The noise level in the work environment is usually moderate.
Gener al si gn-of f : The employee is expected to adhere to all company policies and to act as a role model in the
adherence to policies.
I have read and understand this explanation and job description.
Signature: Date:
Figure 30. Sample DescriptionExempt Job
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Job ti tl e: Cust omer Servi ce Representati ve
Department: Cust omer Servi ce
FLSA status: Nonexempt
Reports to: Di rector of Cust omer Servi ce
Posi t i on summar y: Primarily responsible for providing effective customer service for all internal and external
Company XYZ customers by utilizing excellent, in-depth knowledge of company products and programs
Gener al pur pose: Customer relations; problem resolution; time management
Rol e qual i f i cat i ons:
Must partner with the sales team to provide customers with service as outlined in the department's policies
and procedures
Must address customer issues and ensure effective and long-term problem resolution
Posi t i on r esponsi bi l i t i es:
Provide timely and accurate information to incoming customer order status and product knowledge requests
Process customer orders/changes according to established department policies and procedures
Process customer returns according to established department policies and procedures
Work closely with the credit department to resolve disputed credit items
Provide timely feedback to the company regarding service failures or customer concerns
Partner with sales reps to meet and exceed customers' service expectations
Perform other related duties as assigned
Essent i al ski l l s and exper i ence:
Time management: the ability to organize and manage multiple priorities
Customer service system experience
Strong customer orientation
Excellent interpersonal and communication skills
Strong team player
Commitment to company values
Basic computer proficiency
Nonessent i al ski l l s and exper i ence:
Customer service experience in a manufacturing environment
Customer service experience with an independent sales rep force
Inside sales experience
Microsoft Word and Excel
Repor t i ng t o t hi s posi t i on: No direct reports
Physi cal demands and wor k envi r onment : The physical demands and work environment characteristics
described here are representative of those that must be met by an employee to successfully perform the essential
functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform
the essential functions.
Physical demands: While performing the duties of this job, the employee is occasionally required to walk; sit;
use hands to finger, handle, or feel objects, tools, or controls; reach with hands and arms; balance; stoop; talk
or hear. The employee must occasionally lift and/or move up to 15 pounds. Specific vision abilities required by
the job include close vision, distance vision, color vision, peripheral vision, depth perception, and the ability to
adjust focus.
Work environment: While performing the duties of this job, the employee is exposed to weather conditions
prevalent at the time. The noise level in the work environment is usually minimal.
Gener al si gn-of f : The employee is expected to adhere to all company policies.
I have read and understand this explanation and job description.
Signature: Date:
Repl aces: Cl i ent Suppor t Techni ci an (11/1/xx)
Figure 31. Sample DescriptionNonexempt Job
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Note that the specific statements shown in each section of these descriptions are
not intended to be all-inclusive. These examples are illustrative of typical
elements and criteria necessary to successfully performthe jobs.
Various resources are available for HR professionals to help develop j ob
descriptions, including SHRM Online and 0*NET, the Occupational
I nformation Network. 0*NET, online.onetcenter.org, is the replacement for the
Dictionary of Occupational Titles (DOT). 0*NET moves occupational
information into the technological age. It provides a comprehensive database
containing information on hundreds of standardized and occupation-specific
descriptors, including worker attributes and j ob characteristics applicable in
both the public and private sectors and a common language for defining and
describing occupations. 0*NET's flexible design also captures rapidly
changing j ob requirements.
The goal of 0*NET is to improve the quality of dialogue among people who
communicate about j obs in the economy, generate employment statistics, and
develop education and training programs. Employer hiring requirements will
have the same meaning for HR practitioners, workers, education and training
developers, programplanners, and students.
El ement s of Job Descri pt i ons
J ob descriptions can include the following elements:
Summarya four- or five-sentence overview that summarizes the purpose
and objectives of the j ob. This section also covers the primary
responsibilities of the job, the results the worker is expected to accomplish,
and the degree of freedomto act (for example, independently or under direct
supervision).
Essential functi onsthe tasks, duties, and responsibilities of the j ob. The
list often includes statements explaining why the function is required. This
is useful for evaluating ADA compliance.
Nonessential functionsdesirable, but not necessary, aspects of the j ob.
Knowledge, skills, and abilities requiredthe specific competencies
required for j ob performance.
Supervisory responsibilitiesthe scope of the person's authority, including
a list of j obs that report to the incumbent.
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Working conditionsthe environment in which the j ob is performed,
especially any unpleasant (or dangerous) conditions.
Minimumqualificationsminimum knowledge, skills, and abilities
required to enter the job.
Success factorspersonal characteristics that contribute to an individual's
ability to performwell in the job.
J ob descriptions typically are written by HR, although line management is
increasingly assuming this responsibilityat least in part.
J ob Specifications
A job specification spells out the qualifications necessary for an incumbent to
be able to performthe j ob. J ob .specifications must be carefully worded to
ensure legal defensibility. ' -
Some of the basic characteristics of j ob specifications have already been
discussed in this section. A job specification is a logical outgrowth of a j ob
analysis.
Additionally, j ob specifications often include the following:
Experience, training, education, licenses, and certification required
Physical and mental demands
Level of organizational responsibility
The j ob specification can be a separate section of the j ob description or a
separate document.
A j ob specification should reflect what is necessary for satisfactory
performance, not what the ideal candidate should have. The specification for a
manager's j ob should not list six-plus years of experience and a master's degree
in finance when three years of experience and a bachelor's degree in business
would suffice.
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Guidelines for Writing J ob Descriptions and Specifications
J ob descriptions and specifications must be based on the specific duties and
responsibilities actually performed within an organization. A number of
standard job description packages (both paper and computer) are available.
These packages can help the HR generalist establish consistency in a smaller
firmwithout starting froma blank page. Some basic things to pay attention to
when writing job descriptions and specifications are listed in Figure 32.
Ti ps f or Wr i t i ng Job Descr i pt i ons and Speci f i cat i ons
Do give jobs realistic, descriptive titles.
Do identify the FLSA exempt or nonexempt status.
Do keep the summary brief (no more than four or five sentences).
Do list only principal duties, tasks, or responsibilities.
Do identify the essential job functions. (Note: Nonessential functions can be
included as long as the employer indicates which functions are essential and which
are not.)
Do review the knowledge, skills, and abilities to be sure they are job-related.
Do secure approvals and dates.
Do include appropriate disclaimers such as "other duties as assigned" or the "job
description may be changed at any time."
Don' t include any demeaning titles (e.g., "junior," "clerk").
Don' t include gender-specific titles (e.g., use "sales" or "salesperson," not
"salesman").
Don' t include percentages.
Figure 32. Tips for Writing Job Descriptions and Specifications
J ob Competencies
Job competencies axe the knowledge, skills, and abilities (KSAs) and other
personal characteristics that work together to produce outstanding performance
in a given area of responsibility. They are the critical success factors needed to
perform in a particular job or specific functional area." In turn, a competency
model is a set of competencies that together make up a profile for success for a
particularjob.
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Competencies are more than basic job knowledge, skills, and abilities. J ob
competencies are usually developed over time and represent the compilation of
multiple abilities and traits and knowledge required for success. Competencies
are personal to the employee and are something the employee can take from
project to project, fromone position to another, and even fromemployer to
employer.
Specific competencies vary fromorganization to organization. But many
organizations are expressing interest in focusing on the competencies that
individuals or teams need to performjobs rather than on specific tasks,
duties, knowledge, skills, and responsibilities. In fact, a growing number of
organizations use some facets of a competency approach to j ob analysis. A
critical feature of this approach is aligning competencies with key business
objectives and/or values that can contribute to organizational success. The
characteristics that are valued by an organization and are tied to its vision,
mission, and method of operating are often referred to as core
competencies.
Several methods may be used to identify competencies. Behavioral interviews
are common. Generic lists of competencies may exist for an organizational role.
Professional organizations sometime publish generic lists.
Ex ampl e: Examples of managerial competencies for a restaurant chain
might be:
Managing staff.
Providing customer care.
Promoting open and honest communication, mutual respect, and
strong teamwork.
Maintaining quality and standards to deliver 100% guest delight.
Achieving and sustaining profitability.
Ex ampl e: A core competency for a professional services firm is quality.
Quality is demonstrated differently across various jobs within the firm.
Executive assistant: Collects and summarizes data and produces
accurate monthly reports.
Analyst: Applies cost-benefit principles while developing and
improving key work processes.
Manager: Resolves issues that affect a project's capacity to achieve
superior results.
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Behavioral interviews are discussed in more detail in Section 2-9 of this module,
"Selection and Retention." Module 4: Total Rewards examines competency-
based pay systems.
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Progress Check
1. Which of the following is the BEST example of an essential j ob function for a senior
shipping specialist in an operations department?
( ) a. Supervise shipping staff to ensure that procedures are followed.
( ) b. Oversee the use of the company van when needed.
( ) c. Accompany HR personnel at local recruiting fairs.
( ) d. Encourage shipping staff to participate in company-sponsored retirement
planning.
Refer to the following information to answer Questions 2, 3, and 4.
A j ob analysis has identified several knowledge, skill, and ability requirements for salespeople
responsible for selling a product line to national accounts and government agencies.
2. Which of the following is an example of a knowledge requirement?
( ) a. Managing time effectively
( ) b. Overcoming customer resistance
( ) c. Maintaining good relations with customers
( ) d. I dentifying product features and benefits
3. Which of the following is an example of a skill requirement?
( ) a. Understanding product advantages
( ) b. Demonstrating product features
( ) c. Knowing government procurement procedures
( ) d. Listing major competitors
4. Which of the following is an example of an ability requirement?
( ) a. Questioning for prospect need
( ) b. Maintaining friendly relations with suppliers
( ) c. Presenting proposals to decision makers
( ) d. Analyzing territory for market potential
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5. A company has decided to add a small group of direct salespeople to its current inside sales
force and has asked an external consultant to conduct a job analysis to ensure that the direct
sales position contributes to the organizational objective of increasing market share. Which
of the following j ob analysis factors would help to establish the necessary knowledge, skills,
and abilities of the direct sales function?
( ) a. J ob context
( ) b. J ob specifications/qualifications
( ) c. Performance criteria
( ) d. New employee orientation
6. The PRI MARY purpose of a work log is to
( ) a. compute the average time needed for key tasks.
( ) b. identify patterns that translate into j ob responsibilities.
( ) c. determine the attitude of incumbents toward the job.
( ) d. help supervisors rank employees' efficiency.
7. Which of the following is NOT included in a j ob description?
( ) a. Primary duties and responsibilities
( ) b. Activities performed
( ) c. Rate of pay
( ) d. Working conditions
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1. a (p. 2-132)
2. d (p. 2-129)
3. b (p. 2-129)
4. b (p. 2-129)
5. b (p. 2-129)
6. b (p. 2-131)
7. c(p. 2-138)
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A/orkforce Planning
ind Employment
1.7
. 1
Recruitment
. ...... , ....... .. ..................
HR responsi bi l i ti es related to thi s secti on i ncl ude:
Assess skill sets of internal workforce and external labor market to
determine the availability of qualified candidates, utilizing third-
party vendors or agencies as appropriate.
Identify internal and external recruitment sources (for example,
employee referrals, online job boards, resume banks) and
implement selected recruitment methods.
Evaluate recruitment methods and sources for effectiveness.
Develop strategies to brand/market the organization to potential
qualified applicants.
Recruitment sources (for example, Internet, agencies, employee
referral) for targeting passive, semi-active,-and active candidates.
Recruitment strategies.
Qualitative and quantitative methods and tools for analysis,
interpretation, and decision-making purposes.
Organizational documentation requirements to meet federal and
state requirements.
Employee records management.
Employer marketing and branding techniques.
Impact of total rewards on recruitment and retention.
The interrelationships among HR activities and programs across
functional greas.
International HR and implications of global workforce for workforce
planning and employment. .SPHR ONL Y
Recruitment Objectives and Selection Criteria
Recruiting is the process of identifying potential employees and encouraging
themto apply for job openings. The goal is to attract a pool of qualified
candidates, some of whommay later be given j ob offers.
Attracting the appropriate quantity of applicants is necessary but not sufficient.
The quality of applicants is the critical factor in meeting recruitment goals.
The starting place for determining who is qualified should be a carefully
prepared j ob analysis, j ob description, and j ob specifications. The j ob analysis
process is particularly important, as it provides the basis for validating the
methods used in making employment decisions. Ultimately, the j ob analysis,
description, and specifications can make it easier to establish selection criteria,
evaluate applicants, and screen out those who obviously lack the minimum
KSAs needed for the job.
Recruitment Methods and Sources
Once an organization understands whomthey are trying to recruit, the next step is
to select appropriate sources to identify prospective candidates. The organization
can choose either to look internally within the organization or to seek candidates
externally fromthe general labor pool.
General considerations in selecting a recruitment strategy include factors such as:
Location.
Labor market conditions.
Level of the position to be filled.
Pay and benefits.
Company promotion policies.
Time and budget constraints.
Affirmative action goals.
Choosi ng Recr ui t ment Sources: Int ernal or Ext er nal ?
Ultimately, the appropriateness of the approach (internal or external) depends on
the organization's needs, culture, and philosophy. As seen in Figure 33, both
sources have their advantages. Many experts advocate a balance between the two.
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Recruiting Internally Recruiting Externally
Advantages Advantages
Rewards good work of current Brings new ideas/talent into the
employees organization
Is cost-effective Helps organization get needed
Improves morale competencies
Can assess known past
Provides cross-industry insights
performance May reduce training costs
Can result in succession of (experienced hires)
promotions Helps organization meet equal
employment opportunity/affirmative
action goals
Disadvantages Disadvantages
Can produce organizational
May result in misplacements

inbreeding; candidates may have a Increases recruitment costs
limited perspective May cause morale problems for
Places heavy burden on training and internal candidates
development Requires longer orientation or
May cause political infighting for adjustment time
promotions
Figure 33. Advantages and Disadvantages of internal vs. External Recruiting Sources
Int er nal Recr ui t ment Sour ces
Organizations strive to fill j ob vacancies through internal promotions and
transfers. This way, an organization can capitalize on the investment it has
made in recruiting, selecting, and developing its current employees.
Effective sources for internal recruitment fromcurrent employees include
j ob posting, j ob bidding, skill banks and skill tracking systems, and
employee referrals.
Job post i ng
- Job posting gives current employees the chance to respond to
announcements of positions. A posting "should provide a brief description of
the job, including significant job duties and minimumqualifications,
education, and experience.
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J ob posting has several advantages.
Job posting is beneficial to individual career development. It allows all
qualified employees to compete for positions. Further, an internal j ob posting
can alert candidates to advancement opportunities.
Job posting is a communications device. By reviewing the postings,
employees can easily see the opportunity for growth and expansion in their
department or elsewhere in the company. Some believe that the success of j ob
posting is that it allows employees to consider other opportunities within the
company for which they are qualified as well as providing employees who may
be dissatisfied with their job, work environment, or supervisor the opportunity
to make a change to a more satisfactory situation. Employees have an
opportunity to talk with supervisors and learn more about the company.
Job posting allows a company to reduce recruitment costs. A good j ob
posting systemcan reduce costs associated with external recruitment and
turnover.
Job posting can improve morale. A good j ob posting systemcan reduce
complaints as employees see career paths and opportunities for professional
growth. Even if not selected, employees have the opportunity to talk with
supervisors and express an interest in career development opportunities.
Job posting allows a company to fill open positions from within. A good j ob
posting systemcan reduce costs associated with external recruitment and
turnover and reduce complaints that internal candidates were not considered.
Job posting can accommodate seniority. A good j ob posting establishes
qualifications and other position requirements and can specify the weighting of
length of service.
Job posting can facilitate affirmative action goals. J ob posting can help an
organization meet placement rate goals. It may provide equal opportunity
advancement for all employees and increase employee awareness of salary
grades, job descriptions, and general promotion and transfer procedures.
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J ob posting may be accomplished by posting notices on a bulletin board or
communicating position announcements through newsletters, memos, electronic
bulletins, tape audio systems (telephone), or the company intranet.
When truly competitive, job postings can boost employee morale because they
allow individuals to maximize opportunities within an organization. However, if
the posting is primarily for show and the job is given to a preselected candidate,
it can have the opposite effect.
Job bi ddi ng
Job bidding allows employees to indicate an interest in a position that they
feel qualified for before one becomes available. An HR professional reviews
the employee's employment history, training, and other work-related
experience to determine if the individual is indeed qualified for the position. I f
so, the request is placed into an inventory systemand the employee is
automatically considered when a position becomes vacant. "
Typically found in union environments, job bidding encourages employees to be
proactive in improving their knowledge, skills, and abilities. It functions most
effectively when it is part of a comprehensive career development systemin
which employees are made aware of available opportunities.
Ski l l banks and ski l l t r acki ng syst ems
The human resource information system(HRIS) can be used as a source for
internal recruitment. Through HRIS skill banks and skill tracking systems,
computerized talent or skill inventories can furnish a list of people who have the
needed knowledge, skills,,and abilities. I nformation systems that include a
complete record of the qualifications of each employee enable organizations to
scan records quickly and locate qualified candidates for vacant positions.
However, it should be noted that skill inventories are only as good as the data
they contain. They can be time-consuming and costly to maintain, so it is wise
to consider carefully the type of data that is collected and used in a skill tracking
system. Many organizations periodically have their employees update their
employee records (e.g., as a part of the performance appraisal process).
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Empl oyee ref erral s
Current employees can be valuable resources for filling job openings; they may
know of good prospects among their families and friends. If they are acquainted
with the job specifications, they will usually prequalify referrals and help
identify people who fit well into the corporate culture.
Employee referrals, especially in large organizations, can supply potential
applicants at reduced cost. In addition to being cost-effective when compared to
external recruiting methods, employee referrals for most occupations generally
result in the highest one-year survival rates.
A word of caution: If the organization has not made sufficient progress in
meeting its affirmative action goals, relying too heavily on employee referrals
may give rise to the argument that the organization is perpetuating existing
patterns of discrimination. One way to negate such an argument is to solicit
word-of-mouth referrals fromminority employees. Generally, employee referral
programs are most effective when used in conjunction with other recruitment
methods. This helps to ensure that job opportunities are circulated widely and
that the organization does not lean toward discriminatory hiring practices.
A summary of the commonly used internal recruitment methods is shown in
Figure 34.
Met hod Descr i pt i on
J ob posting Provides a brief description of the job; allows current
employees the chance to respond to announcements
of positions
J ob bidding Allows employees to indicate an interest in a position
before one becomes available; places qualified
individuals into an inventory system
Skill banks and skill
tracking systems
Computerized talent or skill inventories that can furnish
a list of qualified people
Employee referrals Current employees supply prospects from among their
families and friends for filling job openings
Figure 34. Internal Recruitment Methods
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Ext er nal Recr ui t ment Sour ces
The use of external recruitment sources varies with the type of job and the state
of the economy. Entry-level and hourly positions are often recruited locally.
Professional and technical candidates are usually recruited froma larger labor
market. Candidates for management and executive-level positions are
predominantly recruited nationally and internationally. In periods of high
unemployment, an adequate supply of qualified applicants may be obtained
fromthe organization's employment office applicants. If unemployment is low,
organizations may need to advertise heavily and seek assistance fromsources
such as employment agencies and search firms.
Most organizations use a variety of external sources. A discussion of several
commonly used external recruiting methods follows.
For mer empl oyees
Former employees who would be likely to fill positions within an organization
include:
Retirees who might be interested in part-time or full-time positions.
Employees who left to complete their education or for other reasons such as
to care for young children.
People who left to assume positions at other organizations.
People who have been affected by previous downsizing.
One of the advantages of hiring former employees is that their job performance
is known. A disadvantage is the potential for morale problems. This is
especially a concern when someone is rehired at a higher level with more pay
than those who remained with the firm.
Pr evi ous appl i cant s
People who previously applied but were not selected for positions may also be a
source of candidates. They represent a pool of applicants that an employer can
quickly and easily identify and contact about new openings.
Human resource information systems can make it easier and more efficient to
search resume archives for appropriately qualified candidates.
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Labor uni ons
Labor unions, particularly those in the building trades, construction, and
printing, have typically supplied workers to employers. Workers often meet at a
hiring hall and are sent to employers as needed.
Tr ade and pr of essi onal associ at i ons
Many trade and professional associations and organizations (including minority
trade and professional groups) offer placement services or job clearing-houses to
members.
Career specialties such as banking, finance, oil and gas, engineering,
information technology, human resources, and training and development have
associations that publish and distribute newsletters (in print and/or
electronically) to their members that contain advertisements for jobs.
Advertisements in membership-sponsored public job referral systems such as
those that exist on the Internet can be almost immediate and low-cost.
Employers attending association meetings can talk to potential applicants who
may be working for competitors. Either through informal networking or formal
interviews, such contacts often result in finding valuable employees who require
less training because they are already working in the field.
Wal k-i ns
Most organizations accept applications fromindividuals who walk into the
organization to apply. This is an informal and relatively inexpensive way to
generate applicants.
The Int ernet
Fromthe employer's perspective, the Internet offers several avenues for
recruiting, ranging fromentry-level and hourly employees to professional and
managerial positions. HR staff are integral to directing and managing online
recruitment tools and the hiring and selection processes. HR professionals
promote job openings through, for example:
The company's Web site.
Generic j ob boards.
Career-specific or professional association boards (e.g., SHRM).
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HR staff typically direct the initial screening of electronic applications by
identifying keywords for the systemto search, and they review submitted
applications or resumes to determine which candidates meet the qualifications
for the position and should be referred to the hiring manager for further
consideration.
The following are some guidelines for using the Internet for recruiting.
Attracting job applicants
HR can capitalize on the company's reputation or product image to draw in
large numbers of potential job seekers. Using the corporate Web site, HR can
provide information about jobs, working conditions, and even the corporate
human resource philosophy.
Creating an employment brand and portraying that brand through the Internet
can enhance your recruitment success. Employment branding is discussed later
in this section.
Sorting applicants
While a distinct benefit of the Internet is making it easy for people to submit
applications, companies can soon get inundated with large volumes of resumes,
many fromunqualified candidates. A crucial step here is having software that
can screen out obvious mismatches.
Some organizations have developed sophisticated screening programs allowing
a candidate to fill out and self-score an online application against a model
profile. This is not only valuable for the organization but also lets candidates
know immediately whether or not their score meets a minimum threshold.
Making quick contact
While software can help with the screening function, it's imperative to make
contact with desirable applicants as soon as possible.
Establishing rapport and closing the deal
Even with I nternet recruiting, hiring a qualified candidate still requires
personal contact. J ob applicants often need to be sold on why they should
come to work at the company.
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Online j ob boards offer electronic resume and job-listing banks. Key words (e.g.,
administrative assistant, chemical engineer, advertising executive) are electronically
searchable. Electronic links then allow interested parties to view opportunities, look at
j ob descriptions and related details, and potentially submit letters and resumes online.
The advantages of Internet recruiting can be dramatic. Some estimates suggest
that hiring through the Internet costs about one-twentieth as much as hiring
through print want ads and other traditional methods. Internet recruiting also
saves time by posting jobs online, taking online applications, and processing
applicants electronically. Some companies report cutting 15 to 20 days from
hiring cycles that traditionally took closer to 45 days.
There is, however, a downside. Companies should consider whether they are
reaching an appropriately broad cross section of applicants in recruiting via the
I nternet. The potential for violating antidiscrimination laws looms large. Electronic
screening criteria may reject disproportionate numbers of women, minorities,
people with disabilities, and/or workers over 40. In addition, employers may be
required to retain application information fromInternet candidates as "employment
records" for a period of time under federal or state laws.
The Office of Federal Contract Compliance Programs' regulations that define
%
*
a
an Internet applicant include specific requirements for record retention. These
rules apply to federal government contractors and subcontractors only.
Contractors and subcontractors must keep any and all expressions of interest
- v , ' <" received through the Internet or related technologies for those individuals
. \ - ^ considered for a particulanposition. Federal government contractors and '
subcontractors must also retain records of all individuals contacted regarding
.their interest in a particular position/
1
' -
For internal resume databases, contractors and subcontractors must maintain a
record of each resume added to the database, including the date each resume
was added. When searching the database, contractors and subcontractors must
' maintain a record of the position for which each search was made, the
substantive search criteria used, and the date of the search.
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For external resume database searches, contractors and subcontractors must
retain all expressions of interest considered for a particular position and a
record of the position for which each search of the database was made.
Corresponding to each search, records of the substantive search criteria used,
the date of the search, and the resumes of j ob seekers who met the basic .:'.
qualifications for the particular position who are considered by the
contractorregardless of whether the individual qualifies as an Internet
applicant under the regulationsmust be retained.
Use of the Internet in employment branding is covered later in this section.
Thi r d-par t y sour ces
A variety of third-party sources help employers contact and identify qualified
applicants. Provide third-party sources with your EEO policy statement, and
request a diverse slate of candidates. Third-party sources should also be
expected to adhere to your procedures to assure consistent, nondiscriminatory
practices.
Temporary agencies
An alternative to regular employees is temporary employees, also called
contingent or contract employees. Since the "employee" is on the payroll of
the temporary agency, employers may avoid some liabilities such as
workers' compensation, unemployment compensation, and benefits. Perhaps
more important, the use of temporary employees allows employers
considerably more flexibility in responding to changing needs than does the
use of regular full-time workers.
State (public) employment agencies
More commonly known as the local state j ob service or employment service
center, state (public) employment agencies provide employee screening,
testing, and referral at no cost to the employer. Such agencies are good
places to find applicants who are available, looking for work, and may fulfill
the employer's affirmative action goals.
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Private employment agencies
Private employment agencies are able to tailor their services to the specific
needs of employers. Most employment agencies work on a contingency fee
basis; the fee is paid by the employer when the client is placed. Care must be
taken in selecting an agency because of significant variation in cost and service.
Executive search firms
Executive search firms seek out candidates (even those who are not
actively seeking alternate employment) with the required qualifications. As
the name implies, these firms are usually used to fill only executive,
managerial, or professional positions.
Such search firms fall into two groups: contingency firms, which charge a
fee only after the position is filled, and retainer firms, which charge a set fee
whether or not they are successful. Despite often relatively high fees, many
large corporations advocate the use of search firms to locate qualified
candidates who might not otherwise respond to newspaper advertisements or
employment agency solicitations.
Outplacement firms
Outplacement firms provide support and assistance to displaced employees
typically those employees who are removed involuntarily because of the
elimination of jobs or performance problems. Services provided generally
include career counseling, resume preparation, interviewing workshops, and job
referral assistance. Some outplacement firms may provide retraining for different
jobs. As such, outplacement firms can provide a good source of j ob candidates.
Outplacement firms are also discussed in Section 2-10 in this module,
"Organizational Exit."
Medi a adver t i si ng
One of the most common methods for contacting applicants is through the
media: newspapers, trade journals and magazines, or radio and television spots.
Media advertising has the potential of reaching a large audience of applicants.
The accuracy and completeness of information provided through media
advertising are positively related to recruitment success.
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Effective job advertisements focus on both the position and the image of the
employer.
The position
A summary description of the position, the qualifications desired, the
conditions of employment, and a statement that the organization is an equal
opportunity employer are essential components. The inclusion of salary
information will depend on the position, what type of organization is
advertising the position, and, to some extent, local practice.
The corporate image
Recruitment is always a two-way street. Candidates are scrutinizing the
employer as much as the employer is scrutinizing the candidates. Therefore,
media advertising frequently sells the employer to prospective candidates,
with recruitment campaigns designed by advertising agencies.
Educat i onal r ecr ui t i ng
Educational institutions are a source of applicants with formal education but
usually minimal full-time work experience. Educational recruiting is done at
both the secondary and college level and career and college fairs.
Secondary schools
High schools are a source of potential employees for clerical, blue-collar,
service, and other entry-level types of jobs.
Colleges/universities/vocational schools
Guidelines for conducting an effective school recruitment program include:
Maintain a recruitment effort on a long-termbasis. Establish relationships
with the placement office, faculty members, and alumni.
Prepare recruiters to discuss career opportunities and the requirements of
specific vacancies within your organization.
Provide institutions with your EEO policy statement and seek
nondiscriminatory referrals.
Target recruiting efforts on a few institutions in your area. Recruiting at
predominantly minority institutions, for instance, has become quite popular
in recent years.
Offer candidates an opportunity to tour your organization's facilities and
speak with current employees in similar positions.
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Follow up on individual prospects in a timely manner.
Avoid interviewing merely to retain presence. If you know you have no
opportunities, do not interview and promote unrealistic hiring expectations.
Most universities have a minority liaison who should be contacted.
Career and college fairs
The job fair, or career conference, enables large numbers of candidates to
talk to a variety of potential employers. College fairs take place on college
campuses. Another variation, the open house, enables a company seeking
new employees in a specific field to hold a recruiting event on its premises
where candidates can talk to managers and possible colleagues and learn
about openings without making a formal application.
School -t o-wor k pr ogr ams
Through school-to-work programs, organizations have the opportunity to
contribute to their communities and to help develop the skilled workforce they
will need for the future.
Statistics show that many job applicants applying at U.S. corporations lack
sufficient basic skills to do the job they seek. (Basic skills are defined as
"functional workplace literacy"the ability to read instructions, write reports,
and do math at a level adequate to performcommon workplace tasks.) Such basic
skill shortages mean that companies must interview and/or test a greater number
of applicants to find qualified workers and must offer remedial training programs.
Business partnerships with students, teachers, and schools can improve the quality
of education for children and better prepare themfor the workforce.
Mi nor i t y r ecr ui t i ng
Employers may focus on recruiting more minority candidates by:
Recruiting at minority colleges.
Contacting minority trade/professional associations and civic organizations.
Advertising in the minority press.
Seeking referrals fromminority employees.
Becoming involved with campus minority organizations (e.g., the Society of
Black Engineers).
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No n t r ad i t i o n al l ab o r p o o l s
Many other external recrui ti ng sources are avai l abl e and may be general l y cl assed
as nontradi ti onal . Some of the more common nontradi ti onal sources i ncl ude:
Churches.
Former/reti red mi l i tary personnel .
General networki ng among professi onal s.
"Pi nk-sl i p party" attendees.
Pri son i nmates.
Seni or ci ti zens.
Wel f are-to-work programs.
Fi gure 35 summari zes the external recrui tment methods.
Met hod Des c r i pt i on
Former
employees
Former employees who would be likely to fill positions within
organization (e.g., retirees, employees who left voluntarily for education
or other positions, people who were let go through downsizing)
Previous
applicants
People who previously applied but were not selected for positions
Labor unions Labor unions (e.g., building trades, construction, and printing) that
supply workers to employers
Trade and
professional
associations
Placement services or job clearing-houses offered to membership
Walk-ins Individuals who walk into the organization to apply
The Internet Uses online technology for recruiting to wide audience; includes
electronic resume and job-listing banks
Third-party
sources
Temporary agencies: Provide an alternative to regular employees
with temporary employees
State (public) employment agencies: Provide employee screening,
testing, and referral at no cost to employer
Private employment agencies: Focus on filling nonmanagement
professional positions and first-level supervisor jobs
Executive search firms: Seek out candidates (even those not
actively seeking alternate employment) with required qualifications
Outplacement firms: Provide variety of support and assistance to
displaced employees, including career counseling, resume
preparation, job referral assistance, and retraining
Figure 35. External Recruitment Methods (continued next page)
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Met hod Descr i pt i on
Media advertising Newspapers, trade journals and magazines, or radio and television
spots that focus both on the position and the image of the employer
Educational
recruiting
Recruiting done at both the secondary and college level; includes fair
events where large numbers of candidates can talk to a variety of
potential employers
School-to-work
programs
Programs allowing organizations to partner with their communities and
schools to help develop the skilled workforce they will need for the
future
Minority recruiting A variety of recruiting methods and vehicles targeted to reach minorities
Nontraditional labor
pools
A wide variety of sources that provide viable pools of job candidates
(e.g., churches, former/retired military personnel, networking among
professionals, "pink-slip party" attendees, prison inmates, senior
citizens, welfare-to-work programs)
Figure 35. External Recruitment Methods (concluded)
Employment Branding
Employment branding is the process of positioning an organization as an
"employer of choice" in the labor market. An employment brand creates an image
that makes people want to work for and stay working for the organization.
An employment branding strategy should:
Create a positive, compelling image of the organization (e.g., social
responsibility, industry reputation).
Provide a clear and consistent message about what it is like to work at the
organization (e.g., the commitment to innovation, teamwork, work/life
balance, total rewards).
Encourage the best potential candidates to apply for jobs.
Reduce your rate of offer rejection.
Decrease your time-to-fill and cost-per-hire ratios.
Lower turnover.
Generate a greater number of employee referrals.
Generate higher levels of employee engagement.
Link the employment brand with the company's product brands.
Give employees a sense of pride in their company.
Reinforce the public's image of the organization.
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An organization's value proposition is the foundation of employment
branding. Generally speaking, an organization's value proposition is the value
that an organization can deliver to customers and other constituent groups
(such as employees) within and outside of the organization, where Value =
Benefits - Cost. Using this formula, the value to employees is the benefits they
receive fromworking at the organization minus the costs (tangible and
intangible).
The value proposition must be aligned with the organizational strategic plan,
,' vision, mission, and values and-create an image that attracts and retains
people. Further, it must provide an accurate picture of employment for
employees and candidates. Any inconsistencies in the work environment can
erode the credibility of a branding strategy.
Branding is becoming important as the demand for skilled workers increases and
the talent marketplace undergoes significant transformation. Technology is
changing the job-search and recruiting processes, making the need for
employment branding even more important.
Branding for talent is closely tied to supply and demand analyses, which were
discussed in Section 2-5 of this module, "Organizational Staffing Requirements."
Bui l di ng a brand
Employment branding uses the same marketing, communications, and
performance technology used to market products and services to create an
image of what it is like to work at the company. Firms typically use the,
following techniques, collectively or in a selective manner:
The corporate Web site
Media ads (e.g., print, television, radio)
Collateral materials (e.g., brochures)
Marketing campaigns
Representation of the company at job fairs, campuses, etc.
Community events, sponsorships, etc.
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Use of the corporate Web site is becoming an increasingly popular vehicle for
employment branding. Making a Web site easy to navigate and information-rich
are prime factors that help to lure job seekers. Other important Web-site
characteristics that contribute favorably to an employment brand include:
A world-class design.
Interactive self-assessment tools.
Easy access to career opportunitiesnot layers of screens; job postings that
are well organized.
Regular updating.
Integrated return e-mails.
Opportunity to receive updates via e-mail or "refer a friend."
Froman organizational perspective, a corporate Web site should increase
traffic, track results, and build referrals for recruiting efforts.
Recruitment Effectiveness
Evaluating the success of an organization's recruitment efforts is crucial.
Without the use of metrics and careful assessment, organizations tend to recruit
the way they always have, possibly without regard to important issues. Figure
36 lists several short- and long-termconsiderations that can be studied for
overall recruiting or on a per-source basis for more accurate feedback.
Shor t -Ter m Consi der at i ons Long-Ter m Consi der at i ons

Average time required to recruit Performance of hires
applicants Turnover

Selection and acceptance rates of Absenteeism per hire
applicants
Training costs

Cost per applicant hired
Quantity of applicants

Quality of applicants

EEO implications
Figure 36. Considerations for Recruiting Effectiveness
It is important to note that the most effective recruitment sources are not necessarily
the most expensive ones. For example, employee referrals are fairly inexpensive,
and they have a positive impact on satisfaction, performance, and retention.
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Organi zati ons shoul d eval uate recrui tment strategi es agai nst obj ecti ve cri teri a.
Wi th the use of appropri ate metri cs, the al i gnment of HR recrui ti ng ef f orts wi th
busi ness needs can be demonstrated.
Fi gure 37 outl i nes some of the yi el d rati os that can hel p quanti f y recrui tment
efforts.
Eval uat i ng Recrui t ers Eval uat i ng Recr ui t ment Sour ces.
Number of applications processed
Hires produced
Applicant reactions
Eventual success on the job by those
recommended for hire by a recruiter
For mul a Exampl e
Total cost
Cost per hire
Number of applicants generated
Yield ratios (see below)
Eventual job tenure
Performance of hire on the job
Time-lapse data
Formul a Exampl e
Qualified applicants 100
33% yield ratio
Offers extended 5
= 33% yield ratio
Total applicants 300
33% yield ratio
Qualified applicants 15
= 33% yield ratio
Minority applicants
Total applicants
80 _
300 ~
27% yield ratio
Offers extended
Final interviews
5
10
= 50% yield ratio
Female applicants
Total applicants
185 _
300 ~
62% yield ratio
Offers accepted
Offers extended
3 _
5 ~
60% yield ratio
Figure 37. Measuring Recruitment Activities
Yi el d ratios can be cal cul ated at vari ous stages i n the recrui tment process as
we l l as at the end. Thes e ratios can determi ne whi c h recrui tment source or
met hod or type o f recruiter produces the greatest yi el d and i dent i f y areas that
may ne e d improvement. -
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Analyzing the Cost of Recruiting
Recruitment costs must be weighed against both short- and long-term
consequences. For instance, froma short-termperspective, continuous efforts
(as on college campuses) may be more expensive than intensive, last-minute
efforts. However, continuous strategies may pay off over the long haul by
providing a ready pool of qualified applicants. A lack of applicants can be
costly in terms of not filling the position (with a qualified applicant) or in terms
of what it takes to increase the applicant pool (e.g., raising salaries).
When calculating costs, take into account both direct and indirect expenses as
compared to the benefits. Direct expenses include advertising, recruiters'
salaries, recruitment materials, training costs, agency fees, etc. Indirect expenses
include involvement of managers, impact on coworkers of unfilled vacancies,
etc. The benefits of each recruitment method are related to the length of time
needed to fill a post through various methods, the number of qualified
applicants generated, the effect on staff time, the ability to meet the
organization's EEO/affirmative action goals, etc.
Figure 38 shows possible yield ratios and cost-per-hire data for several different
recruitment sources.
Col l ege/ Empl oyee Newspaper Execut i ve
Uni ver si t y Ref er r al s Ad Sear ch Fi r m
Resumes generated 200 50 500 20
Interview offers
accepted/yield ratio
175/88% 45/90% 400/80% 20/100%
J udged acceptable/
yield ratio
100/57% 40/89% 50/13% 19/95%
Accepted offers/
yield ratio
90/90% 35/88% 25/50% 15/79%
Cumulative yield
ratio*
90/200 or
45%
35/50 or
70%
25/500 or
5%
15/20 or 75%
Cost per source $30,000 $15,000 $20,000 $90,000
Cost per hire $333 $428 $800 $6,000
*Note: The cumulative yield ratio refers to the number hired as compared to the total number of resumes generated.
Figure 38. Yield Ratios and Recruitment Sources
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By looking at recruiting data in an organized way, you can analyze the cost and
effectiveness of your recruiting sources. For example, in Figure 38 you may
conclude that while newspaper ads generate many responses, relatively few
applicants are qualified.
EEO Impl i cat i ons
Consistency of recruiting procedures is a primary defense against EEO
discrimination claims. Thus, once an employer sets up a recruiting systemor
practice, it should adhere to it. If, for example, an employer has a practice of
internally posting all jobs in salary grades 1 through 10 before considering external
candidates and any exceptions require the approval of a designated member of
senior management, the practice should be followed in all circumstances.
Thefollowing content oninternational recruiting has beenidentified bytheHR
Certification Institute inthebodyof knowledgeas pertaining toSPHR certification
only. Questions relatedtothis content will appear ontheSPHR examonly.
International Recruiting
Organizations recruit employees for international assignments through a variety
of channels. Similar to recruiting efforts for domestic positions, an organization
may use both internal and external sources to fill international openings.
Int er nal Recr ui t i ng
A common source of international recruiting is within the firmitself. Internal
recruits may be fromwithin domestic or global operations.
Internal j ob postings and the use of succession planning data are common sources
of internal candidates, along with data froman organization's recruitment and
management software, human resource information system(HRI S), or human
capital management system(HCMS). Employees also seek out open positions,
motivated by building new skills and leadership development.
Ext er nal Recr ui t i ng
I nternational candidates fromoutside an organization may be found through a
wide variety of sources. Figure 39 lists a number of common external recruiting
methods and channels.
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External Recruiting
Sources
General Description
Advertising (print and
nonprint media)
Print publications (e.g., worldwide editions of the Wall Street
Journal, the Economist, and the Financial Times, airline
magazines, and local and regional press), kiosks, billboards,
radio ads, and television ads
Agencies Vendors who provide prescreened candidates quickly; both in-
country and global firms
Career sites (on an
organization's Web site)
Interactive use of the organization's Web site for branding,
communication, and relationship building (e.g., posting current
employee profiles and providing opportunities for individuals to
create a profile)
Community awareness Approaches that increase awareness of the organization's
brand and identify it as a premier place to work (e.g.,
participation in community volunteer programs, humanitarian
events, local job fairs, local school events)
Contract agencies Offer a pool of workers (usually highly skilled engineers,
specialists, etc.) supplied for long-term projects; under contract
between the organization and technical services firms
Educational institutions Postings on college, university, and trade school Web-site job
boards, on-site job fairs, and on-site interviews
Global internships (1) Partnering with global exchange programs to get access to
interns, or (2) recruiting entry-level talent to enter structured
competitions to gain access to fast-track employment
programs and career paths
Government agencies Online and on-site conduits between employers and job
seekers
International job boards
(bulletin boards)
J ob boards available on the Internet
Intraregion recruiting Sourcing for specific skills (e.g., language and cultural skills) in
a specific country for positions that cannot be filled by local
hires (e.g., recruiting in eastern European countries for
positions in Romania and in Singapore for positions in China)
Online social networks
and blogs
Online sites such as Facebook, H3, Linkedln, MySpa.ee, and
Zoomlnfo used to expand an organization's talent database,
extend the employment brand, and acquire top talent
Outplacement services Services that maintain job sites or job boards for individuals
displaced due to layoffs
Personal networking Contacting and developing relationships with people in various
locales who can share information, names, and other data that
can help identify prospective candidates
Figure 39. Common External Recruiting Sources for
International Candidates (continued next page)
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External Recruiting
Sources
General Description
Referrals Candidate referrals from recent hires, current high performers,
retirees, high performers who have left the organization, and
association colleagues; may include cash or nonmonetary
incentives for referral hires; many organizations have overseas
referral programs
Temporary agencies A contract relationship with an external staffing firm to supply
talent through different service arrangements (either finite
employment or temp-to-hire programs)
Trade and professional
associations
Various placement services of specific trade and professional
associations (e.g., online boards, publications) where
employers can post/advertise positions
HR associations Online boards and publications of HR associations where
employers can post/advertise positions, such as the Society
for Human Resource Management (SHRM) in the U.S. and the
Canadian Council of Human Resources Associations
(CCHRA)
Source: SHRM Global Learning System: Global Talent Acquisition and Mobility. Alexandria, Virginia: Society for
Figure 39. Common External Recruiting Sources for International Candidates (concluded)
Not all techniques are effective or culturally appropriate in all countries. An
example is Internet recruiting, or e-recruitment. It can pose significant issues
related to data privacy, and it may be less effective in cultures that value face-
to-face communications over technology. In some cultures, it is inappropriate to
post a resume on a Web site.
U.S. organizations are well advised to supplement their general recruiting with some
targeted recruiting focusing on women and/or minorities. For example, consider
posting notices of j ob opportunities with organizations made up of and/or geared
toward women or certain minority groups, for example, the National Association of
African Americans in Human Resources and the National Society of Hispanic MB As.
Targeted recruiting should supplement, not supplant, more general recruiting.
Otherwise the targeted recruiting may be seen as evidence of bias.
This concludes theSPHR-level content oninternational recruiting.
2011 SHRM

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Progress Check
1. A benefit of j ob posting is that it
( ) a. provides a cost-effective way to reach the largest number of applicants at one
time.
( ) b. provides an easy way to create a personnel database for j ob vacancies.
( ) c. allows individuals to maximize career opportunities within an organization.
( ) d. allows employees to indicate interest in a position that is currently filled.
2. A large employer generally has seven or more applicants per job. Recently, the firmwas
surprised by a lack of response to newspaper advertisements, resulting in several positions
remaining unfilled for weeks. To expand their recruiting efforts, the firmshould utilize all of
the following steps EXCEPT
( ) a. college and career fairs.
( ) b. the state employment service.
( ) c. employee referrals.
( ) d. j ob bidding.
3. Which of the following recruitment methods allows candidates to talk to employers about an
opening without making a formal j ob application?
( ) a. Executive search firms
( ) b. Public employment agencies
( ) c. Employee referrals
( ) d. Career fairs
4. All of the following are good examples of employment branding on a corporate Web page
EXCEPT
( ) a. an offer to receive periodic updates about career development.
( ) b. a link to information about balancing work and family life.
( ) c. information about a pro bono engagement to help the Special Olympics.
( ) d. a chance to win free flying lessons for submitting a qualified resume.
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5. Which of the following is a long-termconsideration when evaluating the effectiveness of a
recruitment program?
( ) a. EEO implications
( ) b. Recruitment costs
( ) c. Relative performance on the j ob
( ) d. Quantity or quality of applicants
Refer to the following information to answer Questions 6, 7, and 8.
A company begins with 600 j ob applicants, narrows the field to 30 qualified applicants, and
schedules 30 final interviews. They offer employment to ten applicants and hire six.
6. What is the yield ratio of qualified applicants to total applicants?
( ) a. 5%
( ) b. 18%
( ) c. 20%
( ) d. 30%
7. What is the yield ratio of offers to final interviews?
( ) a. 10%
( ) b. 30%
( ) c. 33%
( ) d. 50%
8. What is the yield ratio of hires to offers?
( ) a. 10%
( ) b. 60%
( ) c. 70%
( ) d. 73%
Refer to the following information to answer Questions 9 and 10.
A company receives 250 responses to its j ob advertisement. They interview 95 qualified
applicants, 20 of whomare African-American. J obs are offered to two African-Americans from
this group, but only one accepts the position.
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9. What is the yield ratio of offers extended to African-Americans to qualified African-
American applicants?
( ) a. 5%
( ) b. 10%
( ) c. 15%
( ) d. 20%
10. What is the yield ratio of African-American new hires to qualified African-American
applicants?
( ) a. 5%
( ) b. 10%
( ) c. 15%
( ) d. 20%
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1. c (p. 2-150)
2. d (p. 2-151)
3. d (p. 2-160)
4. d (p. 2-163)
5. c (p. 2-164)
6. a (p. 2-165)
7. c (p. 2-165)
8. b (p. 2-165)
9. b (p. 2-165)
10. a (p. 2-165)
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Vorkforce Planning
nd Employment
.8
Flexible Staffing
I f i l l
i i
HR responsi bi l i ti es rel ated t o thi s secti on i ncl ude:

Assess skill sets of internal workforce and external labor
market to determine the availability of qualified
candidates, utilizing third-party vendors or agencies as
appropriate.
Identify internal and external recruitment sources.
Recruitment sources.
. Recruitment strategies.
Staffing alternatives.
urce: HR Certification Institute

Flexible Staffing Alternatives
No workforce planning and employment strategy is complete without
consideration of flexible staffing alternatives. Also referred to as alternative
staffing, flexible staffing uses alternative recruiting sources and workers who
are not regular employees. Many staffing approaches are possible other than
conventional full-time arrangements where the organization directly hires,
supervises, and provides compensation and benefits to regular employees.
Today's labor market presents many situations where flexible staffing
alternatives are appropriate. To name but a few scenarios:
Shortages of available workers for open positions
Seasonal peak demand businesses
Operational upturns and downturns that make permanent head count
impractical
Special projects that demand specific requisite skills
As organizations look for cost-effective and creative ways to recruit just-in-time
talent and ensure the organization's success and growth, flexible staffing offers
employers several desirable alternatives.
Types of Fl exi bl e or Al t er nat i ve St af f
No one-size-fits-all solution to flexible staffing exists. Many organizations benefit
fromemploying a variety of flexible staff simultaneously. Figure 40 on the next
page summarizes key characteristics for some of the more prevalent types of
flexible staff, organized according to whether the employees are on an
organization's payroll or administration functions are outsourced to staffing firms.
Independent contractors provide another type of flexible staff alternative.
They are self-employed individuals hired on a contract basis for specialized
services. I ndependent contractors generally have a high degree of independence,
j udgment, skill, and discretion. They are compensated on a contract or fee basis
and issued a Form 1099.
The discussion of the Fair Labor Standards Act (FLSA) in Section 4-1 of
Module 4: Total Rewards examines employee status versus independent
contractor status in more detail.
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St af f Opt i on Descr i pt i on
Fl exi bl e St af f i ng Admi ni st r at i on by t he Or gani zat i on
Temporary
assignments
Employees hired to work on a specified job to supplement the regular
workforce on a short-term basis or for a specific period of time.
Temporary
employees
floaters
Employees hired to work directly on the company's payroll on a short-term
basis or for a specific period of time to rotate among several positions or
departments as needed.
On-call workers Employees who report to work only when needed.
Part-time
employees
Employees scheduled to work less than a regular workweek on an ongoing
basis; benefit eligibility depends on various factors (e.g., number of hours
worked).
Seasonal
workers
Fl exi bl e St af f i ng >
Finite temporary
help
Part-time or "casual" workers hired to perform seasonal work in a variety of
industries (e.g., agriculture, construction, tourism, and recreation); may or
may not be eligible for benefits (e.g., workers' compensation and
unemployment).
Vdmi ni st r at i on Out sour ced
Workers who are recruited, screened, and employed by a temporary help
firm; the temporary firm assigns individuals to work at client sites for a finite
duration (e.g., to cover an employee's medical/maternity leave).
Temp-to-hire
programs
Workers hired on a temporary basis (usually through a temp firm) with the
understanding that they may be offered regular employment if they perform
competently for a specified time.
Contract workers Highly skilled workers (e.g., engineers, data processing specialists) supplied
for long-term projects; under contract between the company and a technical
services firm.
Figure 40. Types of Flexible Staff
Types of Fl exi bl e or Al t er nat i ve St af f i ng Ar r angement s
Empl oyers can def i ne thei r rel ati onshi p wi th staf f i ng f i rms through di f f erent
servi ce arrangements. The choi ce of a parti cul ar fl exi bl e arrangement depends
on a vari ety of operati onal , fi nanci al , and l egal factors, i ncl udi ng:
The f uncti on to be perf ormed.
The l evel of supervi si on requi red.
Ti me constrai nts (e.g., f or recrui ti ng, to get the j ob done).
Fi nanci al constrai nts.
Concerns about l egal ri sks and l i abi l i ty.
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I nf ormati on on speci fi c operati onal , fi nanci al , and l egal consi derati ons is
covered l ater in thi s secti on.
The more preval ent fl exi bl e staf f i ng servi ce arrangements are summari zed in
Fi gure 41.
Ser vi ce
Ar r angement
Descr i pt i on
Payrolling A company needing help identifies specific people and refers them to
a staffing firm, which employs them and assigns them to work at the
company; arrangement is usually at a lower cost than traditional (finite)
temp help.
Employee leasing
or professional
employer
organization (PEO)
In an explicit joint venture, a company transfers all or substantially all
employees at a discrete site or facility to the payroll of an employee
leasing firm; the PEO leases employees back to the company while
handling most of the HR administrative functions (e.g., payroll,
benefits, personnel records management).
Temp-to-lease
programs
A company contracts with two (usually affiliated) staffing firms
generally a temp service and a PEO; the temp firm assigns long-term
temporaries to a client company and, after a period of time, the
employee is promoted to lease status and becomes eligible for
benefits from the PEO.
Outsourcing or
managed services
An independent company with expertise in operating a specific
function contracts with a company to assume full operational
responsibility for the function (as opposed to just supplying personnel);
functions may be peripheral to the core business (e.g., security,
landscaping, food services) or closer to operations (such as managing
all flexible staffing programs or the IT function).
Figure 41. Types of Flexible Staffing Arrangements
Recentl y, the term "f ree agency" has been used to col l ecti vel y descri be a
number of workers empl oyed under fl exi bl e staf f i ng arrangements. Of f i ci al l y,
the Bureau of L abor Stati sti cs has no "f ree agency" cl assi fi cati on. I nstead, the
agency l umps together on-cal l workers, i ndependent contractors, and "workers
provi ded through contract f i rms" i nto a category cal l ed "nontradi ti onal
workers." Other defi ni ti ons vary sl i ghtl y. Some conf usi on exi sts as to the
del i neati on between free agents, fl exi bl e staff, contractors, temporary workers,
and conti ngent workers. The commonal i ty characteri zi ng all of these workers
is that they are not company empl oyees.
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HITs Role in Flexible Staffing
Once an organization decides on a flexible staffing arrangement, the terms of
the contract must be put into writing. Certainly, the substance of any flexible
staffing agreement is straightforward: to produce skilled and qualified people to
performspecific tasks. But reaching consensus on the specific mechanics of the
arrangement requires much attention to detail.
It has been said that agreements do not create an understanding; they record it.
Thus, the best agreement is one that accurately and precisely reflects the
underlying transaction. Depending on the staffing alternative, HR may need to
work with legal counsel experienced in writing staffing contracts when
orchestrating the terms for flexible staffing.
The terms of a flexible agreement will naturally vary depending on the
circumstances. But there are a few general guidelines that can be helpful.
Be cautious of preprinted or standard forms. You must understand and
agree with everything in the agreement; anything you don't understand
should be explained to satisfaction or it should be eliminated.
Ensure clarity. An agreement should be simple and straightforward.
Respective rights and obligations of both sides must be defined. Ambiguous
provisions subject to later interpretation are dangerous.
Negotiate competitive pricing. Ask for volume discounts, rebates based on
usage, and free value-added services.
Consider including an alternative dispute resolution (ADR) provision.
I t's wise to be prepared should disputes arise.
Include a simple opt-out procedure. Be wary of fixed-term agreements.
The company should be able to opt out of an agreement if dissatisfied for
any reason.
Negotiate clear and precise provisions for what happens when the
agreement expires or the relationship ends. Spelling out terms of the
closing can help to prevent unnecessary litigation.
2011 SHRM 2-179

Co-Employment Issues
The termco-employment, or joint employment, generally describes a situation
in which an organization shares joint responsibility and liability for their
alternative workers with the alternative staffing supplier. A co-employment
agreement summarizes the legal relationship, rights, and obligations for some
flexible staffing arrangements.
Potential liability can vary dramatically depending upon the nature of the
staffing agreement. In traditional temporary staffing models, the staffing firm
and the client company are most likely viewed as co-employers or joint
employers under most employment law regulations.
The less control one entity has over the terms and conditions of employment,
the more difficult it becomes to prove that a co-employment relationship
exists.
Legal Consi der at i ons
The risk of assuming that an individual will not be regarded as your
employee is significant. Organizations that misclassify workers can, for
example, be required to pay back taxes and also to provide workers with
retroactive benefits available to regular employees.
Both temporary staffing firms and their clients may be considered
employers.
The EEOC provides detailed enforcement guidance as a supplement to the
agency's compliance manual. The additional guidance focuses primarily
on:
Liability of staffing firms and their clients for violations of all federal
antidiscrimination laws.
Allocation of responsibilities between employers and staffing firms.
Clarification of unique ADA issues such as the types of disability
interview questions that are permissible after an offer has been made.
Requirements and responsibilities for reasonable accommodation.
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Employers should visit the EEOC's Web site, www.eeoc.gov, and review the
following publications:
"Enforcement Guidance: Application of EEO Laws to Contingent Workers
Placed by Temporary Employment Agencies and Other Staffing Firms,"
www.eeoc.gov/policy/docs/conting.html
"EEOC Enforcement Guidance on the Application of the ADA to
Contingent Workers Placed by Temporary Agencies and Other Staffing
Firms," www.eeoc.gov/policy/docs/guidance-contingent.html
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Progress Check
1. "Floaters" are BEST described as
( ) a. employees scheduled to work less than a regular workweek on an ongoing basis.
( ) b. self-employed individuals hired on a contract basis for specialized services.
( ) c. people employed directly on a company's payroll on a short-termbasis or for a
specific period of time to rotate among several positions or departments.
( ) d. long-termtemporaries assigned to a client company.
2. Under which flexible staffing option would a professional employer organization (PEO) be
most likely to provide temporary workers with benefits?
( ) a. Payrolling
( ) b. Master vendor arrangement
( ) c. Outsourced or managed services
( ) d. Temp-to-lease programs
3. A potential advantage of a small firmoutsourcing its payroll function is
( ) a. increased continuity rather than having various staff members performthe
function.
( ) b. the outsourcing company's employees will be paid only for time worked.
( ) c. less supervisory time on the part of the HR generalist.
( ) d. the outsourcing company's knowledge of payroll processing and administration.
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1. c (p. 2-177)
2. d (p. 2-178)
3. d (p. 2-178)
2011 SHRM
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)rkforce Planning
d Employment
Selection and Retention
Develop and implement selection procedures, including
applicant tracking, interviewing, testing, reference and
background checking, and drug screening.
Develop and extend employment offers and conduct
negotiations as necessary.
Administer post-offer employment activities (for example,
execute employment agreements, complete 1-9
verification forms, coordinate relocations, schedule
physical exams).
Develop/ implement, and evaluate retention strategies
and practices.
Thi s sect i on is desi gned t o i ncrease your knowl edge of :
Interviewing techniques (for example, behavioral,
situational, panel).
. Use and interpretation of selection tests (for example, .
psychological/personality, cognitive, motor/physical
- assessments, performance, assessment center).
Internal workforce assessment techniques and
employment policies, practices, and procedures.
Reliability and validity of selection tests/tools/methods.
Negotiation skills and techniques.
Relocation practices.
The Selection Process
Once human resources and line managers have identified a pool of qualified
applicants, they need to gather the balance of information necessary to make a
selection decision. Selection is the process of hiring the most suitable candidate
for a vacant position.
As shown in Figure 42, the selection process involves a series of filters designed
to narrow the field of applicants down to a select few. At each stage of the
process, more information is gathered about prospective candidates so that
employers can match prospective employees' qualifications to the requirements
of the organization.
Selection
Step 1: Analyzing application forms
Step 2: I nterviewing
Step 3: Testing and background investigation.
Figure 42. The Selection Process
Not all organizations conduct all of the steps in the order indicated in Figure 42
for each job. However, this is an example of the selection process used by
many companies. A discussion of each of these steps follows.
2011 SHRM _ 2-186

After recruitment has occurred, the first filter under selection involves analyzing
the candidates' application forms and/or resumes and identifying applicants who
fit the minimumselection criteria. Another use of the application formor resume
is to provide a source of questions for the interviewer as well as a source for
reference checks. Efficient prescreening by HR management at this stage means
that line management's time can be spent interviewing only qualified candidates.
Types of Application Forms
Many employers use only one application form, but this practice may not serve
the full range of needs. A variety of application forms may be better.
In some instances, an organization operating in more than one state may find it
necessary to have different application forms because of differences in state
laws on fair employment practices.
Types of application forms include the following:
Short forms
A short formmay be used for preliminary screening or prescreening
interviews. It would include only minimal background information about
candidates. (With the increased use of the Internet as a recruiting source,
many companies have included candidate profiles or "electronic applications"
on their Web sites as a prescreening device. These should be considered as
short formapplications subject to the same legal considerations.)
Long forms
,A long formmay be used for in-depth interviews. It would include detailed
information about a candidate's qualifications.
Targeted application forms
These forms are designed to gather job-related information for a specific
position or profession.
Weighted application forms
These forms are developed with j ob analysis data. After determining the
knowledge, skills, and abilities needed to performa job, numerical values
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are assigned to the responses on the form. An applicant's responses are then
scored and tallied. Such forms require considerable time and effort to create
and update. Furthermore, they may inadvertently violate EEO guidelines
and should be used cautiously.
Resumes
Resumes are often prepared by candidates (or by a professional hired by the
candidate) to highlight their strengths and experience. Even though the
candidate may supply information regarding age or other characteristics that
would be illegal for the employer to request, employers may not use these
facts when making a selection. Candidates who supply resumes should also
be asked to complete an application form. If the applicant has exaggerated
on the resume, these problems may be identified on the application form.
More importantly, the application formitself will frequently have a
statement that asks the applicant to sign and verify that the information is
correct. The formalso identifies consequences (such as termination) if the
information is found to be false.
Application Form Elements
The application formshould include:
Basic personal data (name, address, phone number, contact information).
Confirmation that the applicant is a U.S. citizen or is otherwise authorized to
work in the U.S.
Previous application or work experience with the employer.
Criminal convictions (subject to specific limits based on federal and state law).
Education or training.
Special skills.
Work history (including dates of employment).
References.
Authorization to check references.
Employment-at-will and other waivers.
The organization's EEO statement.
Signature of applicant.
Authorization to verify all information provided.
Confirmation by applicant regarding truthfulness and completeness of
information provided.
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Some of the key issues to watch for that may require further explanation are:
I nsufficient education or experience to fulfill the minimumj ob requirements.
Significant unexplained gaps in employment history.
Frequent j ob changes.
-A downward spiral of jobs with less and less responsibility and authority.
Blanks.
A well-designed application formserves as a prescreening device. But both the
EEOC and the courts have found that some questions asked on application
forms may have a disparate impact on certain groups of applicants, for example,
inquiries regarding height and weight, arrest records, marital status, or child-
care provisions. Care should be taken to ensure that inquiries are job-related and
that an individual's privacy or other rights as prescribed by federal or state laws
are not violated. Application forms should be analyzed by the fi rm's legal
department or outside counsel for their EEO impact.
Applicant qualifications should always be compared to the j ob requirements
identified in the j ob description. The most important factor is that applications
request information that is critical to j ob success.
Although not illegal to request the information, caution should be exercised with
the request for Social Security numbers on an application form. Application forms
may be viewed by individuals who do not have a need to know this information yet
are unintentionally given access during the selection process. Due to the increase
in identity theft and privacy violation claims, as well as the enactment of state laws
protecting the use and disclosure of Social Security numbers, employers should
strictly limit access to both applicant (and employee) Social Security numbers and
other personally identifiable information.
Pr escr eeni ng Phone Cal l
A telephone call to clarify a few points on the application formcan be a time-
effective way to prescreen candidates. In a few minutes, interviewers can
ascertain the candidate's background, experience, and continued availability.
The call also gives the interviewer a chance to describe the j ob in greater detail
and answer questions. At that point, if both parties are still interested, the
candidate may be asked to come in for a prescreening interview.
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Applicant Notification
The timing and the steps that provide a transition between the recruitment and
selection processes are very important. Whenever possible, the organization should
keep applicants informed of their status and should avoid any significant time
lapses. For example, with Internet recruiting, delays in making contact with a
prescreened qualified j ob seeker may lead to the most desirable candidates being
hired by another firm.
Research has also shown that both the recruiter and the administrative process can
have an impact on applicant reactions and the subsequent positive or negative
attitudes of the applicants toward the organization. Organizations are not legally
bound to notify applicants of their status, but as a matter of professionalismand
concern for corporate image, this should be considered a priority.
Step 2: I nterviewing
Selection interviews are designed to probe areas of interest to the interviewer in
order to determine how well the candidate meets the needs of the organization.
Organizations tend to rely on interviews for qualifying candidates more than any
other procedure in the selection process. Therefore, it is important that
interviewers are properly trained in interviewing techniques and skills. Attention
to this area could undoubtedly improve the validity of the selection process. The
courts and the EEOC consider the interview a selection device.
Types of Int er vi ews
Some organizations conduct a series of interviews ranging fromshort
prescreening interviews (20 minutes or less) to long in-depth interviews (one hour
or more). Interviewing styles depend upon the preference of the interviewer and
the situation, but consistency of interviewing practices must be maintained.
Pr escr eeni ng i nt ervi ews
Prescreening interviews are useful when an organization has a high volume of
applicants for a job and face-to-face interviews are needed to judge
prequalification factors. These interviews are usually conducted by HR.
In-dept h i nt ervi ews
In-depth interviews are generally conducted by line management. Some organizations
require several in-depth interviews by both line managers and potential colleagues.
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Styles of in-depth interviews vary. HR may also conduct in-depth interviews,
depending on the level of the open position.
Structured interview
In a structured interview, the interviewer asks every applicant the same
questions; follow-up probes, however, may be different. This type is also
called a repetitive interview. In general, structured interviews are
preferable to unstructured ones. While structured interviews may reduce
spontaneity, they ensure that similar information will be gathered fromall
candidates. This makes it possible to compare qualifications and reduce
equity concerns.
Patterned interview
During patterned interviews, the interviewer asks each applicant questions
that are fromthe same knowledge, skill, or ability area; the questions,
however, are not necessarily the same. For example, the questions asked of a
college graduate might differ fromthose asked of a candidate having
relevant j ob experience. This type is also called atargeted interview.
Stress interview
In a stress interview, the interviewer assumes an aggressive posture to see
how the candidate responds to stressful situations. This style is used
extensively in law enforcement, air traffic control, and similar high-stress
industries.
Directive interview
In directive interviews, the interviewer poses specific questions to the
candidate and keeps control. This type of interview is highly structured.
Nondirective interview
In nondirective interviews, the interviewer asks open questions and
provides general direction but allows the applicant to guide the process. A
response to one question indicates the next question the interviewer asks.
This open interview style is often used in counseling situations. It may be
less appropriate in selection interviews because it is difficult to maintain the
job-relatedness of questions and ensure that similar questions are asked of
each applicant.
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Behavioral interview
In a behavorial interview, the interviewer focuses on how the applicant
previously handled situations (real experiences, not hypothetical ones). The
employer asks very pointed questions to determine if the individual
possesses the skills necessary for the job. The interviewee gives an example
that illustrates past performance, while the interviewer looks for three key
thingsa description of the situation or task, the action taken, and the result
or outcome. For example, an interviewer might ask a candidate for a
management position to describe a situation in which she or he coached a
difficult employee.
The premise is that past performance is the best predictor of future
performance. A behavioral interview provides a more objective set of facts
to use in making employment decisions than other interviewing methods.
The process of behavioral-based interviewing is much more probing than
traditional interview questions.
Situational interview
In a situational interview, the interviewer asks questions designed to elicit
stories and examples that demonstrate the applicant's skills and qualifications
for the position. The intent is similar to that of a behavioral interview in trying
to predict future behavior. But where behavioral interviews focus on real life
experiences, situational questions describe hypothetical situations and ask a
candidate to comment on how he or she would handle them.
Situational interview questions are helpful when applicants do not have the
necessary experience to describe relevant examples fromtheir past. Questions
probe for responses to simulated situations. For example, an interviewer might
describe a scenario where a teammember fails to do his or her share of the
work on a project and then ask the applicant, "What would you do?"
Group interviews
Two types of interviews are commonly categorized as group interviews.
One type is where there are multiple j ob candidates that are interviewed by
one or more interviewers at the same time. This type of group interview is
usually done only where the job duties are clearly defined and where
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numerous candidates can be informed and/or asked about j ob requirements,
for instance, an amusement park's requirements for attendance or dress
and/or grooming codes.
The more common type of group interviews is where there are multiple
people in an organization that serve as interviewers for a single j ob
candidate. Each interviewer serves a different purpose and screens the
candidate for specific qualities (e.g., technical ability, culture fit, leadership
skills, the ability to manage, or the ability to take direction). The number of
interviewers can vary but is usually no more than four or five. An HR
representative may participate in a group interview. For most group
interviews, candidates meet with all interviewers at the same time.
Group interviews can be further described as teaminterviews and panel
interviews.
A team interview is used in situations where the position relies heavily on
teamcooperation. It is akin to a 360-degree process. Supervisors,
subordinates, and peers are usually part of a teaminterview process.
In a panel interview, structured questions are spread across the group. The
individual who is most competent in the relevant area usually asks the
question (e.g., HR or a manager would ask behavioral questions to assess
the ability to take direction; a peer might ask about knowledge specific to a
project). In some panel interviews, interviewers may play off each other and
ask questions in a "tag-team" style.
Group interviews save time for employers and the candidates. But they can
be threatening situations for candidates. To reduce this threat and to help
candidates loosen up and communicate, consider the role of each participant
and the seating arrangements. The roles of the participants must be planned
to ensure adequate coverage of j ob requirements. Decide before the
interview what each interviewer will do and how the group will function.
Where the participant sits determines whether the candidate will feel
outnumbered or one of the group. Arranging chairs in a circle, in a curved
pattern, with interviewers' chairs in front of but not surrounding the
candidate's chair, or in living-roomstyle can keep the interview more
conversational and free-flowing.
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Organizations often provide interview training to participants involved in
group interviewing to ensure that they understand the j ob profile.
Participants should also be briefed on illegal interview questions and how to
avoid revealing proprietary organizational information.
Interviewing Skills and Techniques
Conducting successful selection interviews requires a range of skills and
abilities. The following guidelines are recommended.
Plan for the interview
Determine the j ob requirements by reviewing the position or j ob description
to ascertain the knowledge, skills, and abilities necessary for j ob success.
This also provides an opportunity to update j ob descriptions if necessary.
The applicant's resume or application should be reviewed and compared to
the j ob requirements. This provides an opportunity to plan interview
questions that will yield relevant job-based information.
Establish and maintain rapport.
Establish rapport early in the interview so that the candidates feel relaxed
and are more open to providing honest information.
Listen carefully.
One important listening technique is called reflective listening. The person
restates the feeling and/or content of what the speaker has communicated in
a way that demonstrates understanding and acceptance. For instance, the
interviewer might paraphrase or summarize what the speaker said.
Observe nonverbal behavior.
Interviewers should be aware of nonverbal behaviors such as facial
expressions, gestures, body positions, and other movements and should look
for inconsistencies between the candidates' verbal and nonverbal cues.
However, interpretations of nonverbal behavior are subjective and should be
considered with caution due to interviewer biases and cultural norms and
preferences. It should be noted that the candidate will also be assessing the
nonverbal behaviors of organization members.
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Ask questions.
Plan questions to ask. (See the information that follows on legality of
questions.) Focus on asking open, probing questions that encourage candidates
to tell you as much as possible about their qualifications. (Open questions
typically begin with what, where, why, when, or how. Other good open probes
include phrases like "Tell me about. . ." or "Describe for me a time when . . .")
Avoid closed questions unless you need a specific answer to a specific
question. (Closed questions can usually be answered with yes or no.)
Provide realistic information.
I nterviewers should be prepared to provide the candidate with specific
information about j ob requirements and the organization's philosophies and
practices. A candidate's questions should be answered fully and frankly,
without promises or predictions.
Note taking
Note taking is strongly recommended to document the qualifications of the
candidate. It is not necessary to ask permission. A separate piece of paper
should be used; the interviewer should never write directly on the resume or
application. Moreover, the interviewer should not make any notes that could
be construed as discriminatory.
Summarize.
Conclude the interview with a brief summary, telling the candidate what
will happen next.
Gui del i nes f or Int er vi ew Quest i ons
As noted earlier in regard to application forms, the interviewer must be careful
not to violate an individual's privacy or other rights. If a question is job-related,
it is probably appropriate to ask. If it is not job-related, don't ask it. Questions
that are not necessary to judge an applicant's qualifications, level of skills, and
overall competence to performthe specific j ob should be avoided in interviews.
Figure 43 outlines some of the things that may and may not be asked during a
selection interview. State civil rights agencies and the EEOC also publish lists
of acceptable and illegal questions.
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C a t e
9
o r
y
M a
y
A s k
Pot ent i al l y Di scr i mi nat or y
Gender and
family
issues
If applicant has relatives already
employed by the organization
Number of children/child-care
arrangements
Marital status
Spouse's occupation
Health-care coverage through spouse
Maiden name (of married woman)
Race No questions may be asked.
Applicant's race or color of skin
Photo to be affixed to application form
National
origin or
ancestry
Whether applicant has a legal
right to be employed in the U.S.
Ability to speak/write English
fluently (if job-related)
Other languages spoken (if job-
related)
Ethnic association of surname
Birthplace of applicant/applicant's parents
' Nationality, lineage, national origin
Nationality of applicant's spouse
Whether applicant is citizen of another
country
Applicant's native tongue
Religion Whether applicant is able to work on
the days/times required by the job
Religious affiliation
Religious holidays observed
Age
If applicant is over age 18
If applicant is over age 21 if job-
related (e.g., a bartender)
Date of birth
Date of high-school graduation
Age
Disability Whether applicant can perform
essential job-related functions
If applicant has a disability
Nature or severity of disability
Whether applicant has ever filed workers'
compensation claim
Recent or past surgeries and dates
Past medical problems
Other
Convictions*
Academic, vocational, or
professional schooling
Training received in U.S. military
Membership in trade or
professional association related to
the position
J ob references
Number and kinds of arrests
Height or weight except if a bona fide
occupational qualification
Veteran status, discharge status, branch
of service**
Contact in case of an emergency
(appropriate to ask at post-hire)
* Disclosure of a criminal record does not automatically disqualify an applicant from employment
consideration. Each case must be judged on its own merits, based on the job-relatedness, nature,
and severity of the conviction and how long ago it occurred.
** The Uniformed Services Employment and Reemployment Rights Act regulations include types of
discharges and separations that render an employee unprotected by the act. Employers can ask
applicants if they have a discharge that would render them ineligible for reemployment.
Figure 43. Interview Questions
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Interviewer Biases
Without training, interviewers may inadvertently create EEO problems or make
inappropriate selection choices by misinterpreting the information they receive
fromselection interviews. Interviewers must take precautions to ensure that their
preconceptions don't overly color their judgment. A discussion of some common
factors that may create problems in interviewing follows. These biases are similar
to those covered in the discussion of performance appraisal in Module 3: Human
Resource Development.
St er eot ypi ng
Stereotyping involves forming generalized opinions about how people of a
given gender, religion, or race appear, think, act, feel, or respond.
Ex ampl e: Presuming that a woman would prefer a desk job over
working outdoors is stereotyping.
Inconsi st ency i n quest i oni ng
This involves asking different questions of different candidates.
Ex ampl e: Inconsistency in questioning might involve asking only
Caucasian male candidates to describe their successes on previous jobs.
Fi r st -i mpr essi on er r or
With the first-impression error, the interviewer makes snap judgments and lets
his or her first impression (either positive or negative) cloud the entire interview.
Ex ampl e: Giving more credence to the fact that the candidate graduated
from the interviewer's alma mater than to the applicant's knowledge, skills,
or abilities is an example of the first-impression error.
Negat i ve emphasi s
This involves rejecting a candidate on the basis of a small amount of negative
information. Research indicates that interviewers give unfavorable information
roughly twice the weight of favorable information. Negative emphasis often
happens when subjective factors like dress or nonverbal communication taint the
interviewer's judgment.
Ex ampl e: An applicant is unable to maintain eye contact during a job
interview. The job under consideration involves telemarketing, and all
communications with the customer will be via phone. The interviewer rejects
the applicant due to the lack of eye contact.
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Hal o/hor n ef f ect
In this situation, the interviewer allows one strong point that he or she values
highly to overshadow all other information. When this works in the candidate's
favor, it is called the halo effect. When it works in the opposition direction,
with the interviewer judging the potential employee unfavorably in all areas on
the basis of one trait, it is called the horn effect.
Nonver bal bi as
In this situation, undue emphasis is placed on nonverbal cues that are unrelated
to j ob performance.
Ex ampl e: Hair length or distracting mannerisms are good examples of
nonverbal bias.
Cont r ast ef f ect
With the contrast effect, strong candidates who interview after weak ones may
appear even more qualified than they actually are because of the contrast.
Si mi l ar -t o-me error
This involves picking candidates based on personal characteristics that they
share with the interviewer rather than job-related criteria.
Cul t ur al noi se
Cultural noise is the failure to recognize responses of a candidate that are socially
acceptable rather than factual. Since the candidate wants the job, he or she will be
reluctant to tell the interviewer unacceptable facts about himself or herself. The
candidate may give responses that are "politically correct" but not very revealing.
Ex ampl e: An employer may comment, "I note that you are applying for a job
that has a lot less authority than the job you currently hold. How do you feel
about that?" The applicant might say that this is fine even though this is not
the case.
Step 3: Testing and Background Investigation
Some organizations test applicants before in-depth interviews, others afterward,
and many don't test at all. Because of EEO concerns, many employers
discontinued testing in the 1970s. Preemployment testing may involve the risk
of litigation on the grounds that the tests discriminate against minorities, the
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disabled, or other applicants if improperly conducted. Yet many HR
professionals think that, if properly conducted, nondiscriminatory formal tests
can be of great benefit in identifying superior candidates.
The general guideline for preemployment testing is like that for any other phase
of the selection processthe test must be a valid, reliable, job-related predictor.
(Validity and reliability are covered later in this section.) Within this guideline,
care must be taken to comply with the Civil Rights Acts of 1964 and 1991 as
well as the Americans with Disabilities Act and any state laws that restrict
preemployment tests. Privacy issues can also affect preemployment testing.
HR should constantly monitor all required preemployment testing and make
every effort to avoid tests that have adverse impact on minority applicants. In
addition, all testing should be monitored to ensure that it relates only to the
essential functions of a job and that reasonable accommodation, if called for, is
made for applicants who may be disabled.
Keep in mind that employers may use a test even if it has disparate impact
on protected classes as long as it conforms to the validation requirements in
the UniformGuidelines on Employee Selection Procedures.
On December 3, 2007, the EEOC published a new fact sheet on the
application of federal laws to employer tests and other selection procedures
used in screening j ob applicants for hire (and employees for promotion).
The fact sheet describes common types of employer-administered tests and
selection procedures used in the 21st-century workplace, including cognitive
tests, medical examinations, credit checks, and criminal background checks.
The document also focuses on best practices for employers to follow when
using employment tests and other screening devices.
The fact sheet can be found at www.eeoc.gov/policy/docs/factemployment_
procedures.html.
Section 2-1 of this module provides additional information on the Uniform
Guidelines on Employee Selection Procedures.
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Types of Pr eempl oyment Test s
Preemployment tests may be broadly categorized in the following manner.
Cognitive ability tests assess skills the candidate has already learned.
Cognitive ability is a generic termdescribing the process and results of
thinking or information processing (perception, conceptualization,
problemsolving, etc.). Cognitive ability tests measure individuals'
abilities related to verbal and mathematical skills, logic, reasoning, and
reading comprehension as well as capacity to utilize mental processes to
solve work-related problems.
There are several types of cognitive ability tests. Performance tests or
work sample tests that require candidates to complete an actual work task
in a controlled situation are one type of cognitive ability test. For
example, a candidate for a clerical position might be asked to identify the
order of completing a set of five different tasks based on minimal
information provided. Performance tests or work sample tests should be
carefully developed and reviewed by experts to ensure that they include
the major j ob functions and are content-valid.
Personality tests attempt to measure a person's social interaction skills and
patterns of behavior. They report what might be described as traits,
temperaments, or dispositions. Many personality inventories are available,
and they are being used more and more frequently. Some focus on
characterizing an individual as being within the normal ranges of adult
functioning. Others focus on identification of abnormal behavior. These
types of tests have been subjected to scrutiny under the ADA.
Aptitude tests measure the general ability or capacity to learn or acquire a
new skill. For example, a candidate for a factory assembly j ob may be asked
to take a manual dexterity test.
Psychomotor tests require a candidate to demonstrate a minimumdegree of
strength, physical dexterity, and coordination in a specialized skill area.
These types of preemployment tests should be carefully validated on the
basis of essential job functions. They are appropriate only if the essential
functions of the j ob require such abilities. While psychomotor tests tend to
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be good predictors of performance, they may also be disadvantageous to
disabled j ob applicants. In addition, some of these tests may be considered
medical tests and thus will have other ADA implications.
Assessment centers are not necessarily a place but rather a method of
evaluating candidates. They are content-valid work samples of a
managerial j ob and are typically used to select internal employees with
potential for promotion to managerial positions. Assessment centers can
range fromone day to one week in duration, but they generally have three
characteristics: multiple means of assessment, multiple assessees, and
multiple assessors. In one example of an assessment center, candidates go
through a battery of standardized tests conducted by trained assessors.
Exercises may include pencil-and-paper tests, comprehensive interviews,
individual and/or group simulation activities, in-basket exercises, and
work-related performance tests. The results are evaluated by a panel of
trained assessors.
Many state and local governments and large corporations use such centers
when selecting department or division heads. One advantage of their use is
that it reduces charges of political favoritism. Assessment centers may be
the most expensive selection method in common use. Research indicates,
however, that they predict both short- and long-termsuccess and they do not
produce an adverse impact on either gender or race.
Honesty/integrity tests measure an applicants' propensity toward
undesirable behaviors such as lying, stealing, taking drugs, or abusing
alcohol. Such tests have been criticized for their possible invasion of privacy
and self-incrimination. Another concern about honesty/integrity tests is the
potential for candidates to interpret the intent of some questions and to
provide "politically correct" answers. Yet, at a time of growing concern
about drug use and misconduct in the workplace, many employers still ask
applicants to complete them.
Ot her Types of Sel ect i on Test s
In addition to the aforementioned preemployment tests, two other types of tests
that HR professionals must know about are polygraph tests and substance abuse
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tests. Polygraph and substance abuse tests are fairly controversial due to their
potential for discriminatory problems.
Pol ygr aph t est s
A polygraph test provides a diagnostic opinion about a person's honesty. The
validity of polygraph tests has been called into question, and this has led to legal
restrictions on their use. The Employee Polygraph Protection Act of 1988
prohibits employers fromrequiring or requesting preemployment polygraph
exams under most circumstances.
A more complete description of this act is included in Section 2-2 in this
module, "Key Legislation Affecting Privacy and Consumer Protection."
Subst ance abuse t est s
Substance abuse tests are measures intended to ensure a drug-free workplace.
Concern about workplace safety issues and alcohol and/or chemical use in the
workplace has prompted many employers to require employees/applicants to
submit to drug tests.
There are various types of drug testing:
Preemployment testing of applicants
Randomtesting of employees
Periodic, scheduled testing, such as annually
Reasonable suspicion testing, based upon exhibited conduct or behavior
Post-accident, triggered by an injury or accident in the workplace
Post-treatment, fitness for duty following rehabilitation
Testing pursuant to a return-to-work agreement, as a condition of an
employee's return to work after violation of an employer's substance use
policy
Unless prohibited by state or local law or collective bargaining agreements,
employers have a right to require employees and potential employees to submit
to such tests. Since the results may, in some instances, result in the disclosure of
medical information, confidentiality must be maintained. Other key issues are
the ADA implications and the chain of custody of the sample.
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The Drug-Free Workplace Act requires federal contractors with contracts pf
$100,000 or more to certify that they are maintaining a drug-free workplace.
However, conducting drug tests is not one of the requirements under the act.
As a practical matter, the procedural requirements published in the
Department of Health and Human Services regulations should be followed to
lessen the risk that drug tests will be challenged on the basis of improper
handling, validity, or similar issues.
More information on the Drug-Free Workplace Act of 1988 is found in Section
6-2 of Module 6: Risk Management.
Types of Background Checks
Many organizations wait to verify information on application forms and check
references until it is decided that the applicant is a good candidate for the job.
Assuming that the best indicator of future performance is past performance, it is
important to check references carefully and, for executive-level positions, early,
to avoid burdening top management by interviewing less-than-fully qualified
candidates.
Background checks should be related to the position being staffed. The Fair
Credit Reporting Act (FCRA) defines how background investigations may be
conducted. Specifics about FCRA are found in Section 2-2 in this module, "Key
Legislation Affecting Privacy and Consumer Protection."
A background investigation can include work reference checks as well as
verification of academic credentials, credit history checks, motor vehicle record
checks, and criminal background checks. An employer should obtain a signed
release fromthe candidate indicating that it is understood that the employer may
seek confidential information fromformer employers or other sources.
Wor k r ef er ence checks
Most organizations include a statement on the application formasking the
candidate's permission to seek information fromformer employers. Because
firms have been sued by people who discovered that they were given poor
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recommendations, many organizations refuse to supply information without a
signed statement fromthe former employee. Even then, many are reluctant to
put an evaluation in writing or release much information over the phone. Most
HR departments will only verify that the individual was employed during a
specific time period at a particular salary or hourly rate.
To get in-depth information about the quality or quantity of the candidate's
work, try to contact former supervisors, clients, and colleagues in the industry,
but always with the permission of the candidate. The most informative
references will be those given by former or current supervisors, who are likely
to know the candidate's work and who have observed the candidate performing
a j ob that is similar to the one the candidate has applied for.
Ver i f i cat i on of academi c cr edent i al s
Some employers request copies of grade transcripts or verification that the
applicant attended the educational institutions listed on the resume or
application form.
Cr edi t hi st or y checks
Concerned about the integrity of potential employees, some employers have
requested credit checks. Such inquiries, unless a business necessity, may be
discriminatory toward women and minorities. Generally, credit checks should
be conducted only on candidates for positions of financial responsibility or for
positions that involve handling significant amounts of currency or other
valuables.
Mot or vehi cl e r ecor d checks
Motor vehicle records are maintained by departments of motor vehicles in all
50 states. The departments record the driving activities of the driver, such as
moving violations, motor vehicle accidents, driving with a revoked/
suspended license, and driving while impaired. Depending on the state,
violations are provided for the last three to five years. Motor vehicle record
checks should be conducted only on candidates for positions requiring the
use of company vehicles or personal vehicles during the course of
performing the job.
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Cr i mi nal backgr ound checks
Employers conduct criminal background checks to increase the quality of
applicant hiring, reduce the possibility of theft and embezzlement, and limit
exposure for negligent hiring. Criminal background checks can also identify
applicants with drug or alcohol problems and may help reduce workplace
violence. At the very least, criminal background checks may be used to verify
information provided in the resume or on the application form.
Rel i abi l i t y and Val i di t y of Sel ect i on Test s/Tool s/Met hods
Hiring the wrong person for the job is a costly mistake. Selection errors can
negatively affect the organization's human capital management plan as well
as corporate morale, management time, training budgets, and productivity
and profitability. Plus, there is the risk of litigation if selection decisions
prove to be discriminatory or violate state or federal regulations. Therefore, it
is imperative that HR professionals carefully evaluate the organization's
selection process to make certain that it is reliable, valid, equitable, and cost-
effective.
Est abl i shi ng rel i abi l i t y
As mentioned in Section 1-5 of Module 1: Strategic Business Management,
reliability is the ability of an instrument to measure consistently.
Ex ampl e: If an interviewer judges the capability of an applicant or group
of applicants differently from day to day, the result is considered
unreliable. If an applicant takes a motor skills test twice, the scores
should be similar (allowing for the effect of practice). If the scores differ
significantly, the test may not be reliable.
Perfect reliability is rarely achieved. A variety of errors can occur that may
create inconsistent results, including:
Failure to measure some portion or aspect of an important attribute.
Irrelevant questions in an interview or on a test.
Different time limits for people in an interview or on a test.
Rater bias in evaluating candidates.
Est abl i shi ng val i di t y
If a charge of discrimination is brought against an employer and adverse impact is
proven, the employer must demonstrate that the selection procedure is valid. As
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mentioned in Section 1-5 of Module 1: Strategic Business Management, validity
is the ability of an instrument to measure what it is intended to measure.
Validation answers two questions:
What does the instrument measure?
How well does the instrument measure it?
Validity measures the degree to which inferences made froman interview or a test
are correct and accurate. In other words, did the interview measure only j ob-
related issues that predict performance on the j ob?
Ex ampl e: A typing performance test might be considered a valid
prerequisite for applicants for the administrative processing center but not
for receptionists who do no typing.
The UniformGuidelines on Employee Selection Procedures recognize three
types of validity, as described below. I nvestigating these types of validity is
referred to as validation.
Content validity
Content validity is the degree to which an interview, test, or other selection
device measures the knowledge, skills, abilities, or other qualifications that
are actually part of the job. A test is content-valid if it reflects an actual
sample of the work to be done.
Ex ampl e: A typing test is content-valid for a secretarial position.
Content validity is better ensured when a thorough j ob analysis is done to
define what the j ob entails. This is the least sophisticated type of validity to
assess. Its use is primarily to evaluate j ob knowledge and skill tests. It is
generally not appropriate for evaluating tests that measure ability to learn
new skills.
Construct validity
Construct validity is the extent to which a selection device measures the
theoretical construct or trait. Typical constructs are intelligence or
mechanical comprehension; personality traits include characteristics like
anxiety. Organizations measuring construct validity are required to
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demonstrate that the trait is related to job performance and that the test
accurately measures the trait.
Ex ampl e: A test for teamwork would be construct-valid if it
measures the ability to interact with others and if that trait is
important for job performance.
Proving construct validity requires complex statistical analyses that are best
left to experts in testing and measurement.
Criterion-related validity
Criterion-related validity refers to the link between a selection device and
j ob performance.
Ex ampl e: If people who score higher on a test perform better on the
job than those with lower test scores, the test has criterion validity.
This requires a careful analysis of the job itself. For example, assume that the
ad for a receptionist position stated that a college degree was required. If
challenged, the employer would have to prove that receptionists with college
degrees do indeed performjob-related tasks better than those without degrees.
In determining criterion-related validity of tests, the test is the predictor and
the knowledge, skills, and abilities are the criterion variables. Examples of
both appear in Figure 44.
Predictors Criterion Vari abl e
Completed application form Performance evaluations
Resume data Productivity
Interview answers Absenteeism
Test scores
Figure 44. Predictors and Criterion Variables
The more overlap there is between the predictors and the variables, the better
the predictor. Recall the discussion of correlation fromSection 1-5 of Module 1:
Strategic Business Management. Complete correlation between two variables is
expressed by +1 or-1. Positive correlation occurs when one variable increases
as the other increases; negative correlation occurs when one decreases as the
other increases. Absence of correlation is represented by 0.
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There are two approaches to establishing criterion-related validity: concurrent
validity and predictive validity.
Concurrent validity
Concurrent means at the same time. Therefore, concurrent validity is
determined by relating the test scores of a group of test takers who take a
test (Test A) to some other criterion measure (Test B) that is administered at
the same time.
Ex ampl e: A test may be given to current employees (Test A) and
then, at the same time, their scores are correlated to their
performance ratings (Test B). If those who score well on the test also
perform well on the job, there is a positive correlation.
Figure 45 demonstrates this relationship.
Predictive validity
Predictive validity is the degree to which the predictions made by a test are
confirmed by the later behavior of the test takers. The usual method for
obtaining predictive validity is to give the test, wait until the behavior that
the test attempts to predict has or has not occurred, and then correlate the
occurrence of the behavior with the test takers' test scores. The procedure
requires a fairly large sample of people and time to collect and analyze the
data.
Ex ampl e: A test may be given to new hires and then, sometime
later, the test results are correlated with the job performance of those
tested.
Figure 45. Concurrent Validity
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Figure 46 illustrates the predictive validation process.
Figure 46. Predictive Validity
All three types of test validationcontent, construct, and criterion-related
involve complex research procedures that may require the services of a
consulting psychologist or professionals who specialize in test design and
evaluation. However, the validation process may actually reduce the costs
associated with recruiting and selecting employees. For example, the cost of
processing applications may decrease based on identification of a knockout
process.
Est abl i shi ng equi t y
The equity of selection processes and decisions can be measured in a variety of
ways. Some of the key considerations are:
Does the selection process have adverse impact on protected classes?
Is the organization meeting its affirmative action goals?
Has the organization been successful in identifying and selecting a diverse,
multifaceted workforce?
Do job applicants view the process and decisions as fair?
Est abl i shi ng cost -ef f ect i veness
It is not enough to have a process that is reliable, valid, and equitable. For an
organization to be profitable, it must be able to attract and retain good
employees. In the final analysis, a selection programmust be measured by the
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extent to which it fulfills the long-termneeds of the organization. Therefore, the
true measurement of selection lies in such factors as:
Percentage successfully completing employee training programs.
Performance on the job.
Reduction of employee turnover and retention of employees.
Realistic J ob Previews
A realistic j ob preview (RJP) is any part of the selection process that
provides an applicant with honest and complete information about a j ob and
the work environment - - a clear picture of what a j ob will be like if they are
hired. The purpose of an RJ P is twofold:
A candidate must be given as much information as possible so that he or
, she can make an informed decision about their suitability for the job.
The organization must objectively portray the jobboth favorable and
unfavorable aspects.
Types of real i st i c j ob previ ews
Many things may be included in an RJ P. The nature of the job and the
organizational culture are two important factors that shape the information that
is shared and how it is presented. For example, a high-tech company might have
a sophisticated simulation available on their Web site for Internet j ob seekers,
while a walk-in for a manufacturing job might be given a tour of the shop floor.
Figure 47 lists the general types of information organizations share in an RJ P.
Types of Realistic Job Preview Information
Description of a typical day on the job
The organization's vision, mission, and
values
A succinct description of the
organization's products and/or services
Aspects of the job that have been
difficult for other employees
Aspects of the job that have been
rewarding for other employees
Opportunities for professional
development and advancement
Compensation and benefit realities
Unique aspects of the job (e.g., dealing
with customer complaints, overtime)
Pending organizational layoffs,
reorganizations, mergers, acquisitions,
etc.
Steps in the selection process
Figure 47. Realistic Job Preview Information
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For mat of RJPs
Organizations can do realistic job previewing in a variety of ways. A few
examples include the following.
Tours of the workplace
A walk-through of the workplace provides a candidate with an accurate
picture of the everyday work environment. Candidates can determine their
comfort level with the physical format (e.g., cubicles or traditional offices,
break areas, cafeterias) as well as noise levels.
"Multiple j olts of reality"
When a firmoffers a j ob seeker "multiple jolts of reality," several activities
are combined, such as a collateral print piece describing life on the job,
private interviews with j ob incumbents, and an audiotape of typical
conversations with customers, including vignettes of rude customers.
Job simulations
An important aspect of the job is brought to life through a simulation. A
candidate is allowed to experience the event and has the opportunity to quit
before they accept the position. For example, an applicant for a clean-room
manufacturing position might have the opportunity to wear the clean-room
attire that is required several hours a week.
Video or CD-ROM presentations
In this type of RJ P, an applicant is allowed to view a video or CD-ROM
(again, prior to coming to work at the organization). The media may portray
the history of the company, the organizational culture, a discussion of
benefits, and the path of a typical day (including a view of work facilities,
break areas, cafeterias, etc.).
Automated job telephone information line
An interactive 1-888 number sells the company and tells about the job.
Unique job requirements that have historically led to j ob dissatisfaction
and/or turnover may also be mentioned (e.g., relocation required, the fact
that current hiring is only for night shift positions).
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Benef i t s of RJPs
A simple adage applies to realistic job previewing: It pays to tell the truth. An
effective RJ P:
Helps an organization to dispel unrealistic expectations and accurately
represent the organizational realities.
Promotes a healthy exchange between the applicant and the organization.
Encourages self-selection.
Helps to increase job satisfaction.
Helps prevent disappointments.
Reduces post-entry stress.
Reduces employee turnover.
Step 4: Contingent Job Offer
Employers may require a number of tests or other requirements before or after a
conditional offer of employment has been made. They include:
Tests to determine current illegal use of drugs.
Physical agility tests, which measure an employee's ability to performactual
or simulated job tasks.
Physical fitness tasks such as running and lifting, as long as they do not
include exams that could be considered medical, such as measuring blood
pressure or heart rate.
Tests that evaluate an employee's ability to read labels or distinguish objects
as part of a demonstration that the applicant has the ability to performj ob
functions.
Psychological tests that measure personality traits such as honesty,
preferences, and habits.
A conditional offer of employment may also depend on verification of
I mmigration Reformand Control Act (I RCA) documents.
In Leonel v. American Airlines, the Court of Appeals for the Ninth Circuit
focused on the ADA's conditional offer requirement. In this case, the offer of
employment was contingent not only on the medical examination but also on a
satisfactory background checkemployment history verification and possible
criminal history records checks. The Court of Appeals held that to issue a "real"
offer under the ADA, an employer must have completed all nonmedical
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components of the application process or be able to demonstrate that it could not
reasonably have done so before issuing the offer. Although the Court's decision
is binding only in the Ninth Circuit, the analysis could be adopted by other
courts.
Qual i f i ed Medi cal Exami nat i ons
Under the ADA, employers may require medical examinations only if the :.
exams arc job-related and consistent with business necessity and only after an
offer of employment has been made to the applicant. Results of the exam can
be used to determine whether the candidate can performessential j ob functions
and whether reasonable accommodation can be made for a particular
disability. The exammay be completed in the company's medical offi ce or by
a physician specified by the company. * * -
If an employee is already on the job, the employer's right to conduct a medical
examination is usually limited to so-called "fitness for duty" situations. Where
an employee has exhibited objective indications that he or she is physically or
mentally unfit to performthe essential functions of the j ob, an employer may
request that the empl oyee's fitness for the j ob be evaluated by a medical
examiner. Although the examiner is entitled to take a full history of the
employee and conduct any tests necessary to evaluate the empl oyee's fitness,
only the examiner's conclusions about j ob fitness may go to the employer.
Many states also impose strict limits on the information a doctor may disclose to
an employer or an insurance company.
Some states have interpreted their nondiscrimination laws with regard to
disabilities to cover conditions that would not be protected by federal law and/or
to impose restrictions that go beyond federal law. Again, employers need to
consider not only federal law but also state law.
Additional information on the ADA and hiring disabled workers appears in
Section 2-1 of this module, "Key Legislation Affecti ng Empl oyee Rights."
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I nformation on disability-related inquiries and medical examinations may be
found at www.eeoc.gov/policy/docs/guidance-inquiries.html.
Employment Offer
An employment offer should immediately follow the final decision to hire a
candidate. An employment offer makes the hiring decision official and is
formally communicated through an offer letter. Organizations need to handle
this phase of the hiring process just as carefully as the events leading up to it.
Mishandling this part of the process can result in losing the candidate to another
organization or can give the employment relationship a bumpy start even if the
candidate comes on board.
Employment offers must be worded carefully. They should never include
language that could imply an employment contract. They should clearly state
that employment is at will (see the discussion of employment-at-will that
follows) and confirmthat the employee is not relying on any information or
promises that are not reflected in the letter accepting employment.
Figure 48 provides a simple list of do's and don'ts for offer letters.
Of f er Let t er Do' s
Do use a standard letter or a
customized version that has been
cleared with legal counsel. .
Do clearly state the terms of the offer.
Do set a reasonable acceptance
deadline.
Do clarify any contingencies (e.g., *
reference checking, physical
examination, drug testing).
Do clarify acceptance details (e.g.,
requiring a signature returned on a
duplicate copy of the letter).
Do use the transition period to help
the new employee feel welcome (e.g.,
mail informational brochures).
Figure 48. Guidelines for Employment Offers
Of f er Let t er Don' t s
Don' t back down on any promises
made.
Don' t set an excessively short
acceptance time for situations
involving relocation or with higher-
level positions.
Don' t lose touch with a candidate
once the offer is accepted.
Don' t quote salary terms in an annual
format; use hourly or monthly figures.
(In the event of termination, an annual
figure could become binding.)
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Empl oyment Cont r act s
An employment contract (also referred to as an employment agreement) is an
agreement between an employer and an employee that explains the employment
relationship.
Froma legal perspective, a contract results when an individual, group, or some
other entity promises or offers something that is accepted by another party. An
important point is that acceptance may be by words or actions. Case law is full
of decisions attempting to distinguish between "a promise" and "an offer." For
the most part, contracts are usually classified as "express" or "implied" and
"oral" or "written." An express contract is based upon oral or written
statements; an implied contract results froma party's actions or conduct.
Wr i t t en cont r act s
To a certain extent, everyone who takes a j ob has an employment contract or
agreement. For example, someone accepting a j ob for $10 an hour agrees to a
$10 per hour contract with the employer. Under that contract, the employer
must pay the person $10 for every hour worked until the contract is changed.
However, virtually every state recognizes some formof employment-at-will,
which means that a company may terminate an employee with or without cause
at any time, with or without notice. Conversely, employees may leave with or
without notice. Most states operate under the presumption that a company is
operating under the employment-at-will doctrine unless a written employment
contract for a specified termis in place.
Employment-at-will is discussed in more detail in Section 5-1 of Module 5:
Employee and Labor Relations.
A written contract helps to clarify employment terms that can otherwise be
subject to misunderstanding and misinterpretation. While oral employment
agreements are generally just as enforceable as written ones, some terms can
become hard to prove if one side disagrees with specific terms or outright denies
having agreed to them.
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I deally, when contracts are put in writing, they should be designed to meet the
needs of both parties. A contract cannot include waivers of employee rights
under federal or state laws. Even with written contracts, laws prohibiting
discrimination and gender harassment, protecting the disabled, regulating
wages, imposing safety standards, providing medical and family leave time,
covering benefits for employees injured on the j ob, and dealing with
unempl oyment compensation apply.
Empl oy ment cont r act t er ms
There are many items to consider in drafting a written employment contract.
Naturally, specific contract terms will vary based on the organization, the j ob,
and applicable state laws. The following list briefly explains items typically
covered in an employment contract.
Terms and conditions of employment. The opening section of an
employment contract specifies the parties involved. This section often
includes the termor duration for the contract and provisions for extensions
or renewal. Contracts may be short-term(e.g., one year or less), or they may
be for a continuing relationship with provisions for automatic renewal.
General duties and job expectations of the employee. This section of the
agreement sets forth the j ob duties expected of the employee. It may include
extensive detail, or a j ob description may be attached as an addendum.
Confidentiality and nondisclosure terms. The contract language in this
section sets forth the understanding and agreement between the employer
and the employee about information that is considered confidential or secret
and may not be disclosed to competitors, future employers, and others.
Invention or nonpiracy covenants. These cover who owns the right to a
product (company or employee) if the relationship is terminated. Under the
legal doctrine of "work made for hire," the products employees create
directly related to their positions are generally considered the property of the
company they work for. But this question of ownership can become quite
complex. More information about work made for hire is covered in the
discussion of copyright in Section 3-1 of Module 3: Human Resource
Development.
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Compensation and benefits. These provisions may be as simple as stating
the wage rate and that the employee is eligible for all benefits provided to
employees in similar situations. Or the section can include specific details
about base pay and incentives and an itemization of benefits.
Noncompete covenants. This section is included if an employer chooses to
restrict former employees' activities regarding whomthey work for after the
employment relationship is terminated. Generally, a noncompete agreement
limits an employee's ability to work in the same or a similar line of work
within a geographic area for a set period of time. Noncompete terms can
become controversial. In cases of litigation, the courts attempt to balance the
rights of individuals to seek work against the employer's need to protect its
business.
Change of control. Terms describing what happens in the event of a merger
or acquisition should be specified.
Terms for resignation/termination. Similar to the provision setting forth
the termof the agreement, termination provisions should be clearly spelled
out. In some contracts, provisions for terminating the agreement may be
included in the discussion of the terms and conditions of employment.
Relocation. The primary goal of corporate relocation is to ensure that
employees being transferred receive the best service at the most reasonable
cost to the company. There are many details to handle in relocation. Some of
the potential considerations are listed in Figure 49.
Relocation Considerations
Finding a home Car rental and lodging
Temporary living Per diems or caps on expenses
Final move coverage (e.g., Inclusion of child-care costs
agreement terms for what is and . inclusion of pet-boarding costs
what is not moved at the
company's expense)
Fly and drive requirements
Class of airfare for any air travel
involved
Tax issues
Figure 49. Relocation Considerations
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Se ve r anc e provi s i ons . Any severance provi si ons for i nvol untary
resi gnati on, l ayoffs, etc. (si tuati ons other than gross mi sconduct) shoul d
be outl i ned.
Appr opr i at e s i gnat ures and dat e. It is cri ti cal that the empl oyer and the
empl oyee si gn the document bef ore the empl oyee starts work.
Ty p e s o f e mp l o y me n t c o n t r ac t s
There are many reasons why empl oyers use empl oyment contracts. Wri tten
empl oyment contracts are general l y used when the empl oyer- empl oyee
rel ati onshi p is somethi ng other than "tradi ti onal ," such as the hi ri ng of a
consul tant, an i ndependent contractor, a temporary worker, etc.
I n Fi gure 50, some of the other types of empl oyees typi cal l y covered by
wri tten contracts are shown. The terms usual l y covered in the contract are
al so l i sted.
Empl oy ee Ty pe Cont r act Ter ms
Executives Term of employment; compensation and
benefits; perks and incentives; duties;
requirements for community involvement;
limitations on conflicts of interest; noncompete
agreements
Sales and marketing
representatives
Commission pay structure; sales territory;
customer confidentiality provisions; attempts to
limit post-employment competition to the
greatest extent allowed by law
Professionals (e.g., accountants,
doctors, attorneys, advertising
representatives)
Restrictions to perform services exclusively for
the employer; requirements related to client
development and community involvement;
attempts to limit post-employment competition
to the greatest extent allowed by law
Employees with special skills (e.g.,
high tech or research)
Protections for trade secrets and confidential
information; rights to patents and copyrights
derived during employment; incentive pay for
research and inventions; attempts to limit post-
employment competition to the greatest extent
allowed by law
Figure 50. Types of Employee Contracts (continued on next page)
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Employee Type Contract TermS
Academics Tenure guidelines; publishing requirements;
compensation, including any government
research grants and endowed programs
Telecommuters Work hours; accessibility to customers,
coworkers, and supervisors; contact
information; equipment ownership and
maintenance; office expenses; maintaining a
safe work environment; maintaining
confidentiality and security of company
information
Source: Louis K. Obdyke. "Written Employment ContractsWhen? Why? How?" SHRM White Paper. Alexandria,
Virginia: Society for Human Resource Management, 1999.
Figure 51. Types of Employee Contracts (concluded)
Employment contracts do not necessarily protect an employee frombeing fired or
disciplined. They may, however, limit what action the employer can take and when.
A written contract can also stipulate how disputes are to be resolved. Some contracts
may require both parties to submit to arbitration rather than litigation in the courts.
When a collective bargaining agreement is in place, employers cannot enter into
a separate agreement with employees covered by the terms of the bargaining
agreement.
Legal counsel with employment law expertise should be involved in the
development of any employment contract. Further, employment contracts
should be regularly reviewed and updated to reflect any changes in an
employee's position.
Successful human capital management requires an efficient selection process. It
also requires effective retention strategies and practices. Organizations spend
time and effort identifying and recruiting high-caliber applicants. But without
the ability to develop and inspire employees, an organization runs the risk of
losing talented individuals.
Retention
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Retention is the ability to keep talented employees in the organization.
Specific retention strategies vary across organizations, but the following
principles are typically addressed.
Clear and consistent job expectations. Employees need to know exactly
what is expected of them. Unclear or changing j ob expectations can lead to
stress and confusion. Employees may feel inadequate or unsuccessful.
Clear and fair supervision. Employees often leave an organization because
of dissatisfaction with the management and supervision they received. Clear
and direct communication about performance expectations, the potential for
rewards, and performance feedback are all critical in retaining employees.
Adequate training. Employees need to have the training necessary to do
their j obs well. New hires need to hit the ground running.
Adequate resources. In addition to training, employees need the
resourcesboth time and toolsto performtheir jobs.
Growth and promotional opportunities. Career-oriented individuals seek
opportunities to grow professionally. Without the chance to learn and try
new things, talented employees tend to feel stagnant or stuck in their current
position. Ultimately, high-performing employees want to leverage their j ob
experience through career progression.
Recognition. Whether it's a monetary reward, an informal thank-you for a
j ob well done, formal recognition for accomplishments and achievement, or
a celebration for a success, employees need to feel appreciated.
Respect. Employees should feel comfortable speaking openly and offeri ng
their ideas without fear of ridicule or retaliation.
Perceived equity. Employees should feel that their contributions and talents
are being rewarded fairly. Any sense of internal inequity in compensation,
benefits, and other treatment can create morale and motivation problems.
Total rewards must be externally competitive as well.
Empl oyee turnover is costly. In addition to the monetary investment it takes to
fill an open position, there are several other costs. Lost training time, lost
knowl edge and skills, and the potential for poor morale and productivity of
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other employees are all considerations. Without effective empl oyee retention,
the long-termhealth and success of an organization can suffer.
Section 3-6 in Module 3: Human Resource Development provides additional
content related to employee retention. Module 4: Total Rewards discusses the
impact of total rewards on recruitment and retention.
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Progress Check
1. Which of the following is a good reason applicant notification should take place in a
timely fashion?
( ) a. Organizations are legally required to notify applicants of their status in a
timely manner.
( ) b. The recruitment process may have an impact on applicant reactions and
subsequent attitudes toward the organization.
( ) c. It lets the applicant know the interview went well.
( ) d. It keeps the recruitment process straight.
2. Which of the following statements characterizes a nondirective interview?
( ) a. The interviewer asks all applicants the same questions.
( ) b. The interviewer deliberately creates a high level of anxiety.
( ) c. Each applicant is asked different questions about the same skill and ability
areas.
( ) d. The interviewer's next question is determined by the applicant's response to an
open question.
3. A store is planning for expansion to a new geographic region, and applications for
management-level transfers are being accepted frominternal applicants. If internal
recruiting efforts do not yield enough qualified candidates, a newspaper ad in the new
geographic region will be run. In this situation, a structured interview process is better
than an unstructured process because it
( ) a. is possible to gather dissimilar information and compare qualifications of all
candidates while reducing compliance concerns.
( ) b. fulfills EEO requirements about protected class biases and allows the
interviewer to legally document subjective impressions of the candidates'
nonverbal behavior.
( ) c. is possible to gather similar information fromall candidates and ensure that the
interview process is job-related and measures what it purports to measure.
( ) d. enables interviewers to measure the sample of behavior with a high degree of
consistency by scoring/tallying numerical values assigned to given behaviors.
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4. Which of the following selection practices is illegal under federal law?
( ) a. Obtaining information fromreferences without an applicant's permission
( ) b. Requiring a job-related test that has adverse impact on minority groups
( ) c. Determining if an applicant has ever filed a workers'compensati on claim
( ) d. Requiring applicants to submit to a preemployment drug test
5. Which interview question is legal under federal law?
( ) a. Is English your native language?
( ) b. What religious holidays do you observe?
( ) c. Kalinowski? Is that Polish?
( ) d. Do you have the legal right to work in the U.S.?
6. Which interview question has the potential to be discriminatory under federal law?
( ) a. I notice you use a white cane. Are you legally blind?
( ) b. Do you have any relatives who work for this company?
( ) c. The j ob requires you to lift a 20-pound weight and place it on an overhead shelf.
Can you do that several times an hour, all day long?
( ) d. Are you over age 18?
7. Which of the following preemployment tests has the best potential for measuring an
applicant's integrity?
( ) a. Ability test
( ) b. Personality test
( ) c. Honesty test
( ) d. Polygraph test
8. Which of the following selection practices is legal under federal law?
( ) a. Taking age into consideration if an applicant volunteers the information
( ) b. Requesting applicants to take a polygraph test
( ) c. Rejecting an applicant on the basis of their credit record without telling themthe
name of the party that prepared the report
( ) d. Requesting proof of an applicant's education
9. Which of the following statements about a reliable employment test is true?
( ) a. It determines how the applicant handled previous work situations.
( ) b. It avoids linking the responses of successive questions.
( ) c. It must be job-related and measure what it purports to measure.
( ) d. It measures the sample of behavior with a high degree of consistency.
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10. Validation studies, such as predictive and concurrent validation, use which of the following?
( )
a. Correlations
( )
b. Multiple means of assessment
( )
c. Multiple assessors
( )
d. Multiple regression
I nterviews with future coworkers is an example of a
( )
a. stress interview technique.
( )
b. realistic job preview.
( )
c. specialized preemployment test.
( )
d. method to establish equity.
12. Which
( )
( )
( )
( )
13. An
(
(
(
(
I
14. A contract writer produces a brochure to promote a product for a company. Which !
employment contract provision deals with whether or not the writer can use the brochure I
design for other purposes outside the company? j
i
( ) a. Employment guarantees
( ) b. Work-made-for-hire covenant
( ) c. Implied terms of work j
( ) d. Good-faith promises !
of following statements about medical examinations is TRUE?
a. Temporary workers can be required to submit to a medical exambefore
assignment.
b. Preemployment health checklists can be requested before an employment offer is
made.
c. Exams must be job-related and may be required only after an employment offer is
made.
d. The exammust be completed by the company's medical staff or a referral.
offer letter should be sent to a candidate immediately after
) a. the hiring decision is made.
) b. all contingencies are addressed.
) c. both parties review the employment contract.
) d. both parties verbally agree to any relocation agreement.
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1. b (p. 2-190)
2. d (p. 2-191)
3. c (p. 2-191)
4. c (p. 2-196)
5. d (p. 2-196)
6. a (p. 2-196)
7. c (p. 2-201)
8. d (p. 2-204)
9. d (p. 2-205)
10. a (p. 2-207)
11. b (p. 2-211)
12. c (p. 2-213)
13. a (p. 2-214)
14. b (p. 2-216)
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>rkforce Planning
d Employment
0
Organizational Exit
i f
'j
HR responsi bi l i ti es rel ated to thi s secti on i ncl ude:
Develop and implement the organizational exit process
for both voluntary and involuntary terminations, including
planning for reductions in force (RIF).
Thi s sect i on is desi gned t o i ncrease your knowl edge of:
Voluntary and involuntary terminations, downsizing,
restructuring, and outplacement strategies and practices.
Downsizing
Recruiting and hiring the best employees is a large part of workforce planning
and employment. However, how your organization deals with employees who
are leaving the organizationeither voluntarily or through planned
reductionsis also a critical part of workforce planning and employment.
Organizational exit is the termused to describe the process of managing the
way people leave an organization. Managing organizational exit is important
because it:
Allows management to act proactively, influencing who leaves and when.
Eases the negative or disruptive effects of any reductions in force due to
restructuring or business contraction.
I nfluences voluntary turnover.
Over the past decade, industry has been affected by technology, mergers,
acquisitions, and deregulation. This can result in changes such as:
Layoffs/reductions in force.
Terminations (involuntary and voluntary).
Layof f s/Reduct i ons in Force (RIFs)
Almost all employers experience the need to reduce or adjust their workforce
size at one time or another. The most common reasons include the following:
Mergers and acquisitions
Downturn in business
Reorganization or restructuring
Financial difficulties
1
Plant obsolescence or relocation
Technological developments
When determining which employees should be laid off, employers usually
consider skills, work record, and seniority. A straight seniority approach is most
objective but may not meet the employer's long-termneeds if senior employees
do not have the skills the organization needs or if affirmative action or diversity
goals are considered. In white-collar workforce reductions, less consideration is
customarily given to seniority and more is given to the performance and skills
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2011 SHRM
of the individual as matched against the requirements of the post-layoff
organization.
Possible alternatives to labor reductions include asking employees to sustain
pay cuts, offering voluntary termination and/or retirement with additional
benefits, or asking employees to accept a reduced work schedule.
Any analysis must consider disparate impact, EEO, and other legal implications.
In order to avoid problems, the rationale for a layoff needs to be:
Based on business necessity.
Clear.
Convincing.
Explained with a measure of compassion.
Management should document the criteria used to make all layoff decisions.
If a layoff is seen as a chance to remove poor employees, then it is necessary to
decide which employees are the least productive. For example, an employer
could use performance appraisal data to assign a numerical ranking to each
employee based on quantifiable or objective criteria such as qualifications,
ability, or productivity. Seniority can serve as a tiebreaker.
A layoff implies a chance that an employee might be called back to work.
Therefore, laid-off employees should be told to consider themselves terminated
if they are not recalled within a certain length of time.
When there is no expectation of recalling the employee, the separation should
be considered a termination. If the employee wants to be rehired, the employee
must go through the application process as would any applicant. The employer
must be careful not to imply that the employee will be rehired.
Sever ance packages
Severance packages are generally not required by law, but many companies
choose to offer them in layoffs. Some states have laws regarding severance.
2-229 2011 SHRM
A well-defined severance package details which employees qualify, how much
they qualify for, and under what circumstances they receive severance. This
varies a great deal fromcompany to company:
A majority of companies use length of time with the company, salary, or
grade level to determine the severance package.
Some companies provide packages for any kind of involuntary termination;
others assist only those who were separated due to downsizing.
Some companies do not provide severance for termination because of
misconduct.
Severance packages need to address employee needs for:
Outplacement.
Health benefitscontinuation guaranteed by the Consolidated Omnibus
Budget Reconciliation Act (COBRA), etc.
Other benefitsrights provided by the Older Worker's Benefit Protection
Act (OWBPA), ERISA, etc.
Adequate severance pay.
A layoff may reduce overhead, but it also affects other costs such as
unemployment compensation. This usually results in an increase in the
employer's unemployment tax contributions.
Section 4-5 of Module 4: Total Rewards covers the specific terms of
COBRA, OWBPA, and other regulatory provisions for severance
packages.
Empl oyees In a downsi zed envi r onment
HR professionals must not only help separated employees in a downsizing;
they must also help the retained employees confront challenges such as:
Diminished j ob security.
Increased workload.
Different work assignments.
Changed organizational priorities.
The departure of leaders and managers who once defined the
organization's character.
2-230 2011 SHRM
The departure of long-termemployees who were knowledgeable about
operations.
The loss of colleagues (possibly friends).
The situation for those employees left behind can become quite stressful. It is
human nature that the retained employees will wonder what other changes are
looming, if they are safe, will they have to prove themselves again, and should
they start looking for a new job. Some individuals may even resort to defensive
behavior and adopt the "themvs. us" posture in coping with the change.
It is challenging to convert such feelings of distress and behavioral resistance
back to commitment and productivity. But there are steps HR can take to help
employees through the transition. Employees left behind need reassurance that
they have a future in staying on with the organization. Security, loyalty, and
productivity are best restored when employees know that corrective actions are
being taken. To that end, the following measures can help.
Communication. The rationale for the new goals and structures must be
clearly communicated. The communications should be as forthcoming as
possible. Some rumors may need to be addressed.
Behavior. Good and bad behaviors during downsizing become infectious.
Employees should be given specific examples of actions that are appreciated
as well as what will not be tolerated. Vulnerable employees may need
additional support; problememployees may need structural limits.
Timing. The transition period must be speedy. The longer things get
dragged out, the more likely employees are to view the situation as
leadership failure.
Leadership. Retained employees will quickly dismiss hype. Organizational
leadership and managers should look for ways to lead by example and help
employees see how new challenges can be met.
Job definitions and responsibilities. Lack of clarity about j ob definitions
and responsibilities contribute to insecurity; they can make employees feel
threatened or superfluous. Sensitivity should be exercised in educating
2011 SHRM
2-231
employees about any changes and making themfeel they are still valuable
contributors.
Rewards. Rewards must be realigned to support organizational goals.
HR can play an important role in implementing these solutions. This often
requires overcoming some personal fears of getting involved and the distaste for
potentially messy interactions. But the dividends can be helping retained
workers fromgetting derailed.
Ter mi nat i ons
Terminations generally fall into three categories: wrongful terminations,
involuntary terminations, and voluntary terminations.
Wr ongf ul t er mi nat i ons
Certain types of termination may be considered wrongful by the courts. These
include constructive and retaliatory discharge and involuntary or coerced
retirement.
Constructive discharge. As described earlier in Section 2-4 in this module,
constructive discharge occurs when an employer makes working conditions
so intolerable that the employee has no choice but to resign (e.g., the
employer ignores the employee's complaints or badgers the employee into
quitting). On occasion, an employer may entice the employee into quitting by
implying that they will call the matter a voluntary resignation (rather than a
termination).
Some courts hold that the standard for determining whether an employee has
been constructively discharged is whether a reasonable person in the
employee's place would have felt forced to resign. In other courts, a specific
intent to force the person to leave must be proven. Constructive discharge, by
itself, does not create liability for an employer. However, a constructive
discharge will be deemed a termination, and, if the termination was unlawful,
the employer would be liable.
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2011 SHRM
Retaliatory discharge. Retaliatory discharge is the result of an employer
punishing an employee for engaging in activities protected by the law. Such
activities may include:
Filing a discrimination charge.
Opposing unlawful employer practices (e.g., whistleblowing).
Testifying, assisting, or participating in an investigation, proceeding, or
litigation against the employer under any of the labor relations,
occupational safety and health, workers' compensation, or unemployment
compensation acts.
Participating in a protected leave of absence (e.g., military leave, jury
duty, FMLA).
For a charge of retaliatory discharge to be valid, employees must prove that
they were engaged in a protected activity' and/or were subsequently discharged
and that a causal connection exists between their activity and the discharge. In
reviewing claims for discharges, courts look closely at the employer's reasons
for discharge and attempt to determine whether these reasons have
traditionally been causes for termination.
Coercion. I f employees have involuntarily taken retirement because they were
offered a choice of early retirement, demotion, or dismissal, they may sue the
employer, claiming coercion.' For a chafge to be valid, employees have to
prove that they were coerced into early retirement because of unlawful age . ,
considerations. - , _
Employers may be protected fromsuch charges if they follow the guidelines in
Figure 51 and can prove that the retirement was voluntary. In order to prove that
the retirement was voluntary, employers must show that they:
Provided accurate information about the plan and benefits.
Provided honest information to the employee about future j ob prospects.
Allowed sufficient time for the employee to make a considered decision.
Assured the employee that the offer could be freely declined.
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2-233
Invol unt ar y t er mi nat i ons
For varying reasons, employers may decide to discharge particular employees
for cause through an involuntary termination. These reasons may include poor
performance, inability to manage subordinates, inability to work with
management, and violations of employer policy.
If the proper disciplinary procedure is followed and the termination is legally
justified, the employer's exposure to liability will be substantially reduced.
Note that when employment is at will, there does not need to be cause to
terminate an employee. The lack of a good reason for discharge may, however,
expose the employer to potential liability even in the employment-at-will
context.
Employment-at-will is discussed further in Section 5-1 of Module 5: Employee
and Labor Relations.
If terminations cannot be avoided, the employer should ensure that the
terminations do not have an adverse impact on older workers or any other
protected class.
The employer should also consider providing a complaint mechanism for
employees who want to question the decision within the organization. The
employer should be able to articulate the legitimate, nondiscriminatory business
reasons behind each termination decision. If the employee thinks that the
discharge is wrongful, he or she may be tempted to sue the organization.
How to terminate an employee. I nvoluntary employee terminations are
initiated by the employer. The human resource department must ensure that
these acts are done in a lawful manner, which includes the following:
Reviewing and documenting the situation to see that the company abides
by federal, state, and local legislation and regulations
As appropriate, providing an opportunity for the employee to continue in
the company-provided health insurance plan at his or her cost for up to 18
months, according to the Consolidated Omnibus Budget Reconciliation
Act
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2011 SHRM
As appropri ate, provi di ng the opportuni ty to parti ci pate in other benef i t
conti nuati on programs
Adheri ng to state wage payment l aws
Provi di ng empl oyee ref erences
I n addi ti on, there are some common- sense rul es to f ol l ow. Fi gure 51 shows the
do's and don'ts for conducti ng i nvol untary termi nati ons.
Ter mi nat i on Do' s
Do give as much warning as possible (or
as mandated by law) for mass layoffs.
Do sit down one on one with the individual
in a private office. (Consider having a
witness in most situations.)
Do complete a termination as quickly as
possible.
Do provide a written explanation of
severance benefits.
Do be sure that the employee hears about
the termination from a manager, not a
colleague.
Do express appreciation for employee
contributions, if appropriate.
Do control your emotions.
Do inform other employees, customers,
and suppliers of the decision by giving a
simple and nonblaming statement.
Ter mi nat i on Don' t s
Don' t leave room for confusion; tell
individuals in the first sentence that they
are terminated. Verify that they
understand.
Don' t allow time for debate.
Don' t make personal comments; keep the
conversation professional.
Don' t rush an employee off site unless
security is really an issue.
Don' t fire people on significant dates (like
the 25th anniversary of their employment).
Don' t fire employees when they are on
vacation or have just returned.
Don' t make discriminatory statements.
Don' t discuss reasons for termination of
employees with remaining employees.
Figure 51. Guidelines for Conducting Involuntary Terminations
Vo l u n t ar y t er mi n at i o n s
Vol untary termi nati ons may be general l y categori zed as resi gnati ons and
reti rements. Vol untary resi gnati on is when an empl oyee deci des to qui t or l eave.
Vol untary reti rement (someti mes ref erred to as earl y reti rement) is f requentl y
of f ered wi th addi ti onal benef i ts to encourage the choi ce and is of ten proposed
when an organi zati on anti ci pates l ayof f s and wants to reduce the number of
empl oyees who have to be termi nated. I t is a sel f-sel ecti on process.
2011 SHRM
2-235
Senior management must communicate to employees that the plan is truly
voluntary and that no one should feel forced to retire.
When a voluntary retirement plan is offered to employees, the employer must
take care to identify what units of the company will be eligible to participate .
(if the programis not company-wide). Eligibility is occasionally limited to the
areas of the organization where necessary reductions in staff are required (such
as plant versus office, engineering versus sales).
Companies have received complaints fromemployees in nonpartieipating
units, but the courts have generally upheld this practice.
Under the Age Discrimination in Employment Act (ADEA), companies often
face charges in which a recipient of an early retirement incentive alleges that he
or she was discharged because of age and coerced to accept early retirement.
The Older Worker's Benefit Protection Act requires that voluntary waivers of
rights or claims under the ADEA are valid only when such waivers are
"knowingly and voluntarily" made.
The act also provides, among other provisions, that such waivers must be in
writing and that employees considering signing a waiver must:
Receive severance payments or some other thing of value to which they
would not otherwise be entitled.
Be advised in writing to consult an attorney before signing the waiver.
Be given at least 21 days to consider the agreement (45 days if more than
one employee is exiting at the same time or as part of the same decision-
making process even if implemented at different times) and be able to
revoke the agreement for up to seven days after it is signed.
Be given, where more than one employee is exiting, certain disclosure
information designed to allow the employee (or his or her attorney) to
determine if the terminations have had an adverse impact on older
workers.
Employers should not base a denial of severance pay on pension eligibility. This
has been ruled unlawful because the distinction is based on retirement status,
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2011 SHRM
which is age-related. A company may require an employee to defer pension
benefits as a condition of eligibility to receive severance benefits.
Exit I nterviews
An exit interview is an interview conducted when an employee is terminating
with a company. Upon departure, or soon after, employees are asked to share
their views on selected issues. Exit interviews with departing employees provide
an opportunity to gain candid information on conditions in the organization as
well as specific issues that may have contributed to the employee's decision to
leave. Most often they are conducted with voluntary terminations. Specific
circumstances generally dictate whether exit interviews are done in involuntary
terminations. (For example, it's not likely that a company would do an exit
interview with an employee terminated for an unlawful act.)
Exit interviews can have value not only in terms of assessing and improving
corporate culture but also in minimizing an employer's exposure in litigation.
Assume that an employee claims constructive discharge. If he or she did not raise
the legal basis for the claimduring the exit interview, this is a fact that may be
helpful to the employer in litigation. Conversely, if the employee does raise legal
concerns in the exit interview, the employer has an opportunity to address them
and a responsibility to investigate any allegations.
How t o Conduct t he Int ervi ew
Some organizations use an exit formto collect the information. While it takes more
time and effort, there is much value in conducting exit interviews face-to-face.
Many times forms are not completed and/or returned. Face-to-face interviews not
only ensure a higher response rate; they allow the interviewer to observe nonverbal
cues and provide the opportunity to probe any key perspectives in more detail.
Who Shoul d Do t he Int er vi ewi ng
If the exit interview is done in person, a neutral party should conduct the
discussion in order to gain the confidence of the departing employee and
facilitate candid responses. Oftentimes, HR assumes this responsibility. But
whoever does the interview needs to maintain a nonbiased demeanor and listen
without judging the responses.
2011 SHRM
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The interview is typically confidential. The employee is customarily assured by
the interviewer that his or her name will not be directly associated with any
comments he or she makes in the interview.
Sometimes the assurance is given that remarks will not be shared directly with
the supervisor but instead will be shared with the supervisor's management.
This ensures departing employees that their comments will not be ignored;
rather, they will be considered along with exit interview comments made by
other departing employees in formulating any necessary corrective action.
Whether an organization collects information fromthe exiting employee in person
or by using a form, the importance of the feedback collected should be clearly
conveyed. In doing so, employees will be more thoughtful about their responses.
What t o Ask in an Exi t Int ervi ew
Employees may leave a company for a variety of reasons, many of which may
not be within the control of the company. Spouses may need to relocate. The
employee may have had a shift in lifestyle and want to make a career change.
In addition to asking why the employee is leaving, the exit interview should focus
on factors that are aligned to the organization's business needs. Open-ended
questions should be used to probe areas such as:
Initial selection practices.
The orientation process.
The degree to which the j ob met the individual's expectations.
Training and development provided.
Opportunities for advancement.
Organizational culture.
Organizational communication.
Compensation and benefits.
Direct supervision.
Ideas for improving the department in which she or he worked.
What was enjoyable.
What was frustrating.
Ideas for improving the individual's position.
Whether the individual would recommend employment with the organization
to others.
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2011 SHRM
Many organizations ask employees when they started to think about leaving and
if they ever thought about transfers.
It should be noted that exit interviews are not the appropriate forumfor
convincing employees to change their minds about leaving the organization.
Further, an exit interview is not the place to discuss whether or not the
organization will provide an employment reference.
Outplacement is a systematic process by which a laid-off or terminated
employee is counseled in the techniques of career self-appraisal and in securing a
new j ob that is appropriate to his or her talents and needs. It is frequently offered
as part of a severance package; benefit packages may vary in length between three
months to one year or, in some instances, until a suitable j ob is accepted.
It can be helpful for a company to have an ongoing arrangement with an
outplacement firmso that the services are in place and immediately available
when and if they are needed. Typical outplacement services will include
career assessment tools, resume and cover letter writing, interviewing skill
building, group or one-one-one coaching, and access to job-seeking portals.
Outplacement assistance includes:
Helping dismissed workers deal with the psychological aspects of losing a job.
Retraining workers to develop skills that are in demand.
Conducting personal assessments or vocational tests to determine workers'
abilities and j ob preferences.
Helping workers with j ob searches and assisting with:
Creating a resume.
Developing interviewing skills.
Learning marketing techniques and strategies.
Contacting search firms and employment agencies.
Answering want ads.
Negotiating salary and benefits.
Evaluating j ob offers.
Effective Outplacement Strategies
2011 SHRM 2-239

Benef i t s of Out pl acement Ser vi ces
Offering outplacement assistance:
Ensures that future reductions will be less stressful and traumatic.
Enhances the morale of those who remain.
Enables employees to find jobs faster than might otherwise be possible.
Reduces the threat of litigation.
Underscores the organization's moral and ethical responsibility toward its
employees.
Outplacement firms are also discussed in Section 2-7 in this module,
"Recruitment."
Employer Defenses Against Litigation
There are a number of actions an employer can take to minimize litigation
related to terminations. An employer should:
Have an internal complaint resolution process in place.
Review its personnel manual, internal memoranda, employee handbook, and
any other relevant agreements to see if any of these limit its options to create
enforceable contracts.
Document disciplinary actions.
Analyze which protected workers may be affected in the event of a
reduction.
Determine what the company will do to ease the employees' transition.
Obtain legally valid waivers and releases.
Follow disciplinary and termination procedures.
Conduct exit interviews and sign and date notes fromthe interviews. It is
important to preserve the dignity of the employee. How the employee is
treated at the time of termination may determine whether litigation results.
Engage in workforce planning activities that avoid the need for involuntary
terminations.
2011 SHRM _ 2-240

Progress Check
1. A corporation must significantly reduce its workforce because of increased costs resulting
fromchanges in the regulatory environment. What should HR do to help the retained
employees cope?
( ) a. Survey retained employees.
( ) b. Disclose outplacement and severance terms.
( ) c. Discount any rumors.
( ) d. Explain the regulatory changes.
2. Two days after an African-American employee filed a claimof racial discrimination, the
employee was fired for violation of a long-standing safety rule. This may be an example of
( ) a. cause.
( ) b. retaliation.
( ) c. reverse discrimination.
( ) d. constructive discharge.
Refer to the following information to answer Questions 3 and 4.
An employee worked in accounts payable for a major bottling company for ten years. The
employee was well liked by the manager and coworkers. Recently, the empl oyee's manager
retired. A new company manager gave the employee additional work that was beyond the scope
of the j ob and became irate if mistakes were made. The employee was given more work than
other accounts payable employees and was expected to work late, without any advance notice, to
complete it. The manager corrected the employee in front of other employees and made sarcastic
comments about the employee's ability. After discussing the situation with the manager and
seeing no change, the employee resigned. The manager then replaced the employee with a friend
fromanother company.
3. In this situation, the former employee could claimthat the
( ) a. company cannot change the scope of the work simply because of a new manager.
( ) b. manager was not aware of how the work should be done.
( ) c. manager knew working conditions were unacceptable but did not remedy them.
( ) d. manager obviously wanted to replace the employee with a friend.
2-241 2011 SHRM
4. If the employee files suit, the employee can allege
( ) a. retaliatory discharge.
( ) b. constructive discharge.
( ) c. coerced retirement.
( ) d. involuntary waiver.
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2011 SHRM
1. d (p. 2-231)
2. b (p. 2-233)
3. c (p. 2-232)
4. b (p. 2-232)
2011 SHRM
2-243
/orkforce Planning
id Employment
11
Thi s sect i on is desi gned to i ncrease your knowl edge of :
regulations related to workforce planning and .
. employment.
Employee records management (for example,
electronic/paper, retention, disposal).
Technology to support HR activities.
lurce: HR Certification Institute
Confusion frequently occurs concerning the legal requirements for employer
record keeping and the retention of employee files and other employment-
related records. Often this confusion is the result of the complexity and variety
of record-keeping requirements:
Employer record-keeping obligations arise under many federal and state
laws.
Some requirements apply to most employers; others apply to government
contractors and subcontractors.
Some requirements depend on the number of employees or the purposes of
record keeping.
Some requirements depend on the industry, the location, and/or the
customers.
The same or similar records are often required by more than one law, but the
periods of retention may vary.
For HR practitioners, the task of records management can be daunting. It requires
perseverance. But a methodical approach can help. Figure 52 on the following
pages provides a chart intended as a reference for HR practitioners regarding:
What records must be kept under each federal law.
The retention period for those records.
The applicability for each federal law.
In addition to the information presented in the chart, HR practitioners should
consider the following general recommendations and guidelines.
Investigate federal requirements.
Investigate applicable individual state requirements.
When the same or similar records are required by more than one law but the
period of retention varies, retain the information for the longer period of time.
Be aware that many states have laws regulating employees' access to their
personnel files.
Establish a systemfor auditing the company's record keeping (including
personnel files) as well as a consistent programfor record destruction.
Keep in mind that in the event of a discrimination charge or lawsuit, all
relevant records must be kept until the final disposition.
2-246 2011 SHRM
Law Records/Reports Retention Requi rements
Ag e Di s c r i mi nat i on i n
Emp l o y men t Ac t
( ADEA)
Applies to employers
with at least 20
employees
Payroll or other records (including those for temporary positions)
showing employees' names, addresses, dates of birth, occupations,
rates of pay, and weekly compensation.
Applications (including those for temporary employment); personnel
records relating to promotion, demotion, transfer, selection for
training, layoff, recall, or discharge; job advertisements and
postings; copies of employee benefit plans, seniority system, and
merit systems.
Three years for payroll or other
records showing basic
employee information; one year
for applications and other
personnel records.
Where a charge or lawsuit is
filed, all relevant records must
be kept until final disposition of
the charge or lawsuit.
Amer i c an s wi t h
Di sabi l i t i es Ac t (ADA)
with at least 15
employees
Applications and other personnel records (e.g., promotions, transfers,
demotions, layoffs, terminations); requests for reasonable
accommodation.
One year from making the
record or taking the personnel
action.
be kept until final disposition.
Ci vi l Ri ght s Ac t of
1964, Ti t l e VI I
with at least 15
employees
Applications and other personnel records (e.g., promotions, transfers,
demotions, layoffs, terminations), including records for temporary or
seasonal positions.
Requires the filing of an annual EEO-1 report (for federal contractors
with 50 or more employees and contracts worth more than $50,000 and
nongovernment contractors with 100 or more employees).
One year from making the
record or taking the personnel
action.
be kept until final disposition.
A copy of the current EEO-1
report must be retained.
Cons ol i dat ed
Omn i b u s Budget
Rec onc i l i at i on Ac t
( COBRA)
Provide written notice to employees and their dependents of their option
to continue group health-plan coverage following certain qualifying
events, such as the employee's termination, layoff, or reduction in
working hours, entitlement to Medicare, and the death or divorce of the
employee (which would cause dependents to lose coverage under the
employer's plan).
Figure 52. Federal Record Retention Requirements for Employers (continued next page)
2011 SHRM 2-247
^ ^ Printed on 30% post-consumer waste recycled paper.
L aw Rec or ds / Repor t s Ret ent i on Req u i r emen t s
Dav i s - Bac o n Ac t
Ser v i c e Cont r ac t
Ac t
Wal s h - Heal ey
Publ i c Cont r ac t s
Ac t
Apply to federal
contractors
Records containing the following information for each employee:
Basic employee data, to include name, address, Social Security
number, gender, date of birth, occupation, and job classification.
Walsh-Healey requires retention of current work permits for minors.
Compensation records, to include:
Amounts and dates of actual payment.
Period of service covered.
Daily and weekly hours,
e Straight time and overtime hours/pay.
o Fringe benefits paid.
Deductions and additions.
Walsh-Healey requires retention of data on job-related injuries and
illnesses (logs with dates and summaries and details of accidents).
Three years from the end of the
contract.
Emp l o y ee Pol y gr aph
Pr ot ec t i on Ac t
Polygraph test results and the reasons for administering. Three years.
Emp l o y ee Ret i r ement
I n c o me Sec ur i t y Ac t
(ERI SA)
Maintain, disclose to participants and beneficiaries, and report to the
Department of Labor, the IRS, and the Pension Benefit Guaranty
Corporation (PBGC) certain reports, documents, information, and
materials. Except for specific exemptions, ERISA's reporting and
disclosure requirements apply to all pension and welfare plans, including:
Summary plan descriptions (updated with changes and
modifications).
Annual reports.
Notice of reportable events (such as plan amendments that may
decrease benefits, a substantial decrease in the number of plan
participants, etc.).
Plan terminations.
Employers must maintain
ERISA-related records used to
develop all required plan
descriptions or reports, as well
as other materials needed to
certify information, for a
minimum of six years.
Records used to determine
benefits that are/will become
due for each employee in plan
must be retained as long as
they are relevant.
Equal Pay Ac t Payroll records, including timecards, wage rates, additions to/deductions
from wages paid, records explaining gender-based wage differentials.
Three years.
2-248
2011 SHRM
nui t r vr uK^ c f LAnni Nb an u bmrLUTmcN I section z-1 I
Law Records/Reports Retenti on Requi rements
Execut i ve
Or der 11246
Applies to
federal
contractors and
subcontractors
Requires the preparation of AAP for minorities and women.
Applications and other personnel records that support
employment decisions (e.g., hires, promotions, terminations)
are considered "support data" and must be retained along
with AAP; this includes applicant flow data. In accordance
with Internet applicant regulations, federal contractors and
subcontractors must retain:
Records related to external resume database searches.
Records related to resumes added to internal databases
as well as to searches done on those databases.
Records related to job seekers contacted regarding their
interest in a particular position.
Expressions of interest of all job seekers considered for a
particular position.
All voluntary self-identification information submitted by
job seekers, regardless of whether the job seeker
satisfies the definition of Internet applicant.
AAPs must be updated annually; AAPs,
supporting documentation, and documentation of
good-faith efforts must be retained for the current
year and prior year.
Personnel/employment records must be retained
for two years. If there are fewer than 150
employees or contract is less than $150,000,
retention period is one year. However, all
employment records that support an AAP must be
retained as described above.
Fai r and
Accur at e Cr edi t
Tr ansact i ons
(FACT) Ac t
Consumer credit reports. As of J une 1, 2005, every employer that employs
one or more employees must shred documents that
contain information derived from a credit report.
The penalties for failure to observe shredding rules
include (1) civil liability for damages sustained by
consumer for willful noncompliance up to $1,000;
(2) punitive damages for willful noncompliance; (3)
actual damages caused to consumer for negligent
noncompliance; (4) attorney's fees in case of any
successful action to enforce liability; and (5) federal
fines of up to $2,500 per violation for knowing
violations that constitute pattern or practice of
violations. Class action liability is not directly
mentioned but could be a possibility.
2011 SHRM
2-249
Fai r Labor St andar ds
Ac t ( FLSA)
Payroll or other records containing the following information for each
employee:
Employee's name, home address, date of birth (if under 19 years of
age), gender, and occupation.
Time of day/day of week for beginning of workweek.
Regular hourly rate of pay or other basis of payment (hourly, daily,
weekly, piece rate, commission on sales, etc.).
Daily hours worked and total hours for each workweek.
Total daily or weekly straight-time earnings (exclusive of overtime
premiums).
Total additions to and deductions from wages for each pay period.
Total wages per pay period.
Date of each payment of wages and the period covered by the
payment.
For executive, administrative, and professional employees or those
employed in outside sales, employers must maintain records that reflect
the basis on which wages are paid in sufficient detail to permit
calculations of the employee's total remuneration and perquisites,
including fringe benefits.
For at least three years.
Fami l y and Medi c al
Leav e Ac t ( FMLA)
with at least 50
employees in a 75-mile
radius
Records containing the following information:
Basic employee data, to include name, address, occupation, rate of
pay, terms of compensation, daily and weekly hours worked per pay
period, additions to/deductions from wages, and total compensation.
Dates of leave taken by eligible employees. (Leave must be
designated as FMLA leave.)
For intermittent leave taken, the hours of leave.
Copies of employee notices and documents describing employee
benefits or policies and practices regarding paid and unpaid leave.
Records of premium payments of employee benefits.
Records of any dispute regarding designation of leave.
Three years.
2-250
2011 SHRM
WORKFORCE PLANNI NG AND EMPL OYMENT Section 2-11
Feder al I ns ur anc e
Cont r i but i on Ac t
Feder al
Un emp l o y men t Tax
Ac t
Feder al i n c o me t ax
wi t hhol di ng
Records containing the following information:
Basic employee data, to include name, address, Social
Security number, gender, date of birth, occupation, and
job classification.
Compensation records, to include:
Amounts and dates of actual payment.
Period of service covered.
Daily and weekly hours.
Straight time and overtime hours/pay.
Annuity and pension payments.
Fringe benefits paid.
Tips.
Deductions and additions.
Tax records, to include:
Amounts of wages subject to withholding.
Agreements with employee to withhold additional tax.
Actual taxes withheld and dates withheld.
Reason for any difference between total tax payments
and actual tax payments.
Withholding forms (W-4, W4-E).
Four years from the date tax is due or
tax is paid.
Oc c upat i onal Saf et y
and Heal t h Ac t ( OSHA)
with at least ten
employees
Log of occupational injuries and illnesses.
Supplementary record of injuries and illnesses.
Completed annual summary of injuries and illnesses. Must be
posted annually.
Five years. Oc c upat i onal Saf et y
and Heal t h Ac t ( OSHA)
with at least ten
employees
Medical records/records of toxic substance exposure for each
employee.
Employee's job tenure plus 30 years.
I mmi gr at i on Ref o r m
and Cont r ol Ac t (I RCA)
INS Form I-9 (Employee Eligibility Verification) signed by each
newly hired employee and the employer.
Three years after date of hire or one
year after date of termination, whichever
is later.
2011 SHRM
2-251
Rehabi l i t at i on
Ac t of 1973
Applies to
federal
contractors
Personnel/employment records (e.g., requests for accommodation, results
of physical exams, job advertisements/postings, applications, resumes,
tests/test results, interview notes, records regarding hiring, assignment,
promotion, demotion, transfer, layoff, termination, terms of compensation
and selection for training/ apprenticeship).
Two years. (If contractor has fewer
than 150 employees or contract of
less than $150,000, retention period
is one year.)
Ac t of 1973
Applies to
federal
contractors
Data on complaints of disability discrimination and actions taken. Where a charge or lawsuit is filed, all
relevant records must be kept until
final disposition.
Ac t of 1973
Applies to
federal
contractors
AAP for individuals with disabilities. AAP s must be updated annually; no
requirement to retain expired plans.
Uni f or m
Gui del i nes on
Emp l o y ee
Sel ec t i on
Pr oc edur es
For employers with 100 or more employees, records showing impact of
selection process for each job, maintained by gender for each racial or
ethnic group that constitutes at least 2% of the labor force in the relevant
labor area or 2% of the applicable workforce.
For employers with fewer than 100 employees, records for each year of
number of persons hired, promoted, and terminated, applicants hired for
each job by gender, and where appropriate by race and national origin.
Records include applications, tests, and other types of selection
procedures used as a basis for employment decisions, such as hiring,
promotion, transfer, demotion, training, and termination.
Adverse impact analysis of selection process must be conducted annually.
Where adverse impact is found in
selection process, records must be
maintained for two years after the
adverse impact is eliminated.
For federal contractors, during
compliance review from OFCCP , data
from prior year's analysis must be
available and for current year if
contractor is six months into AAP plan
year. (See Executive Order 11246.)
Vi et n am Er a
Vet er ans
Read j u s t men t
As s i s t anc e Ac t
Applies to
federal
contractors
Personnel/employment records. (See Rehabilitation Act of 1973.)
AAP for covered veterans.
Filing of the annual VETS-100 report.
J ob openings for positions must be listed with the state employment
service.
Two years (if contractor has fewer
than 150 employees or contract of
less than $150,000, one year).
AAP s must be updated annually; no
requirement to retain expired plans.
A copy of the current VETS-100
report must be retained.
Source: Wallace C. Bonapart and Cornelia Gamlem. "Federal Record Retention Requirements for Employers." SHRM White Paper. Alexandria, Virginia:
Society for Human Resource Management, 2006.
Figure 52. Federal Record Retention Requirements for Employers (concluded)
2-252
2011 SHRM
Employers face several layers of laws requiring themto maintain employment
records for extended periods of time. Requirements are spread throughout
numerous federal and state statutes and regulations. Further, not all
requirements apply to all employers.
Employers should consider not only the mandatory record retention
requirements but also the statutes of limitations under state law with regard to
claims that potentially may apply to employers. For example, contract, tort, and
fraud claims increasingly are being brought against employers. In some cases,
the statutes of limitations for these common-law claims are longer than the
statutory record retention requirements. Although not required by law,
employers are well advised to consider the statutes of limitations in establishing
their record retention schedules.
HR also needs to ensure that, in the event a claimis asserted or filed or a
government investigation is initiated or threatened, documents even arguably
related to the claimor investigation are retained for the duration of the claim
or investigation until final disposition (including appeals), even if longer than
the retention guidelines ordinarily applied.
In terms of the scope of documents (including e-mail) that must be retained, a
number of courts have imposed extremely rigorous obligations on employers
and their counsel. Don't try to determine the scope of this obligation on your
own. When a claimor investigation is initiated or threatened, immediately ask
your counsel to help you determine the scope of your obligation with regard to
preserving documents.
A conscientious HR practitioner must undertake considerable due diligence to
help ensure organizational compliance with record-keeping requirements.
2-253 2011 SHRM
1. All of the following statements accurately describe employee records management EXCEPT
( ) a. Requirements can vary based on the number of employees.
( ) b. State requirements are always the same as federal requirements.
( ) c. Employers are required to keep all relevant records until final disposition in a
lawsuit.
( ) d. Similar records may be required by more than one law.
2. What should an employer do if the requirements for the same record differ between three
laws?
( ) a. Keep duplicates of each record in multiple files according to the different
requirements.
( ) b. Make a judgment about maximum retention based on the most important law.
( ) c. Retain the information for the longest period of time required.
( ) d. Keep the records for the shortest time required unless it involves a federal
contractor.
2-254
2011 SHRM
1. b(p. 2-246)
2. c (p. 2-246)
You have completed Module 2: Workforce Planning and Employment of
the SHRM Learning System. Next, check your understanding by
completing the Web-based module-specific tests to help you identify any
concepts that need additional study.
2011 SHRM
2-255
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Glossary
A
ADA Amendments ActAmendments to
Americans with Disabilities Act covering
mitigating measures and definition of
individuals regarded as having a disability.
Adverse impactOccurs when the
selection rate for a protected class is less
than 80% of the rate for the class with the
highest selection rate; also known as
disparate impact.
Affirmative action (AA)Practice in
which employers identify conspicuous
imbalances in their workforce and take
positive steps to correct underrepresentation
of protected classes.
Affirmative action plans (AAPs)Plans
that focus on the hiring, training, promoting,
compensating, and terminating of protected
classes.
Age Discrimination in Employment Act
(ADEA)Act that prohibits discrimination
in employment for persons age 40 and over
except where age is a bona fide occupational
qualification.
Albemarle Paper v. Moody1975 court
ruling that items used to validate
employment requirements must be job-
related.
Alternative staffingUse of alternative
recruiting sources and workers who are not
regular employees; also known as flexible
staffing.
Americans with Disabilities Act (ADA)
Act that prohibits discrimination against a
qualified individual with a disability because
of his/her disability.
Aptitude testsTests that measure the
general ability or capacity to learn or acquire
a new skill.
Assessment centersMethod of
evaluating candidates using content-valid
work samples of a job; typically for
managerial positions.
Availability analysisAnalysis in which
organization considers internal and external
availability in determining theoretical
availability of minorities and women for
established j ob groups.
B
Behavioral interviewType of interview
that focuses on how applicant previously
handled real work situations.
Bona fide occupational qualification
(BFOQ)Situation in which gender,
religion, or national origin is reasonably
necessary to carrying out a particular j ob
function in the normal operations of a
business or enterprise.
c
City of Richmond v. J. A. Croson
Company1989 Court ruling that the
numerical quota systemof Richmond,
Virginia, was unconstitutional because the
city had not laid the proper groundwork and
had not adequately identified or documented
discrimination.
Civil Rights Act of 1964First
comprehensive U.S. law making it illegal to
discriminate on the basis of race, color,
religion, sex, or national origin.
2011 SHRM _ 2-261

WORKFORCE PLANNING AND EMPLOYMENT Secti on 2 10
Civil Rights Act of 1991Act that expands
the possible damage awards available to
victims of intentional discrimination to
include compensatory and punitive
damages; gives plaintiffs in cases of alleged
intentional discrimination the right to a jury
trial.
Closed questionsQuestions that can
usually be answered with yes or no.
Co-employmentSituation in which an
organization shares joint responsibility and
liability for their alternative workers with an
alternative staffing supplier; also known as
joint employment.
Cognitive ability testsTests that assess
skills the candidate has already learned.
Competency modelSet of job
competencies that together make up a profile
for success for a particular job.
Compliance evaluationEvaluation that
requires an organization to provide details
on and documentation of its affirmative
action plan.
Concurrent validityType of criterion-
related validity determined by relating the
test scores of a group of test takers who take
a test (Test A) to some other criterion
measure (Test B) that is administered at the
same time.
Congressional Accountability ActAct
that requires that federal employee relations
legislation enacted by Congress apply to
employees of Congress.
Construct validityExtent to which a
selection device measures the theoretical
construct or trait (e.g., intelligence or
mechanical comprehension).
Constructive dischargeOccurs when an
employer makes working conditions so
intolerable that an employee has no choice
but to resign.
Consumer Credit Protection ActAct
that limits the amount of wages that can be
garnished or withheld in any one week by an
employer to satisfy creditors.
Content validityDegree to which an
interview, test, or other selection device
measures the knowledge, skills, abilities, or
other qualifications that are part of the job.
Contrast effectType of interviewer bias;
when strong candidates who interview after
weak ones may appear even more qualified
than they actually are because of the
contrast.
Core competenciesCharacteristics that
are valued by an organization and are tied to
its vision, mission, and method of operating.
Criterion-related validityRefers to the
link between a selection device and job
performance.
Cultural noiseFailure to recognize
responses of a candidate that are socially
acceptable rather than factual.
D
Delphi techniqueForecasting technique
that progressively collects information from
a group without physically assembling the
contributors.
Directive interviewType of interview in
which interviewer poses specific questions
to a candidate and keeps control.
DisabilityPhysical or mental impairment
that substantially limits major life activities.
Disparate impactOccurs when the
selection rate for a protected class is less
than 80% of the rate for the class with the
highest selection rate; also known as adverse
impact.
2-262
2011 SHRM
Disparate treatmentOccurs when
protected classes are intentionally treated
differently fromother employees or are
evaluated by different standards.
Ellerth v. Burlington Northern
IndustriesCourt ruling that distinguished
between supervisor harassment that results
in tangible employment action and
supervisor harassment that does not.
Employee Polygraph Protection ActAct
that makes it unlawful for employers to use
polygraphs in employment decisions except
for a few narrowly defined exceptions for
"security-sensitive" positions.
Employment-at-willCommon-law
principle stating that employers have the
right to hire, fire, demote, and promote
whomever they choose for any reason unless
there is a law or contract to the contrary and
employees have the right to quit a job at any
time.
Employment brandingProcess of
positioning an organization as an "employer
of choice" in the labor market.
Employment contractAgreement
between an employer and an employee that
explains the employment relationship.
Employment offerMakes the hiring
decision official; should immediately follow
the final decision to hire a candidate;
formally communicated through an offer
letter.
Employment practices liability insurance
(EPLI)Protects an employer against
claims by workers that their legal rights as
employees of the company have been
violated.
Essential functionPrimary j ob duties that
a qualified individual must be able to
perform, either with or without
accommodation; a function may be
considered essential because it is required in
a j ob or because it is highly specialized.
Executive search firmsExternal
recruiting method; firms seek out
candidates, usually for executive,
managerial, or professional positions.
Exit interviewI nterview conducted when
an employee is terminating with a company
in which employee is asked to share views
on selected issues.
ExpatriatesCollective termfor
employees sent abroad to work in a country
other than where they live.
F
Fair and Accurate Credit Transactions
Act (FACT)Act that provides some relief
to employers using third parties to conduct
workplace investigations.
Fair Credit Reporting Act (FCRA)Act
that protects privacy of background
information and ensures that information
supplied is accurate.
Faragher v. City of Boca RatonCourt
ruling that distinguished between supervisor
harassment that results in tangible
employment action and supervisor
harassment that does not.
First-impression errorType of
interviewer bias in which interviewer makes
snap judgments and lets first impression
(either positive or negative) cloud the
interview.
Flexible staffingUse of alternative
recruiting sources and workers who are not
regular employees; also known as
alternative staffing.
2011 SHRM
2-263
WORKFORCE PLANNING AND EMPLOYMENT Secti
G
GarnishmentOccurs when a creditor
obtains a court order requiring an employer
to attach an employee's earnings in order to
pay back a debt.
General Dynamics Land Systems, Inc., v.
ClineCase in which Supreme Court held
that the Age Discrimination in Employment
Act does not protect younger workers, even
if they are over age 40, fromworkplace
decisions that favor older workers.
Genetic Information Nondiscrimination
Act (GINA)Act that prohibits
discrimination against individuals on the
basis of their genetic information in both
employment and health care.
Glass ceilingI nvisible barrier that blocks
minorities and women fromattaining senior
executive positions.
Gratz v. BollingerCase in which Supreme
Court held that University of Michigan's
undergraduate admission programwas not
sufficiently "narrowly tailored" to consider
race as a factor in admission decisions in
order to achieve goal of a diverse student
body.
Griggs v. Duke Power1971 case that
recognized adverse impact discrimination.
Group interviewType of interview where
multiple j ob candidates are interviewed by
one or more interviewers at the same time or
where multiple people in an organization
interview a single j ob candidate.
Grutter v. BollingerCase in which
Supreme Court held that University of
Michigan's law school admission program
was sufficiently "narrowly tailored" to
consider race as a factor in admission
decisions in order to achieve goal of a
diverse student body.
on 2 10
H
Halo effectType of interviewer bias in
which interviewer allows one strong point in
candidate's favor to overshadow all other
information.
Harris v. Forklift Systems, Inc.Court
ruling that established "reasonable person"
standard in a sexual harassment case.
Honesty/integrity testsMeasures of
applicants' propensity toward undesirable
behaviors such as lying, stealing, taking
drugs, or abusing alcohol.
Horn effectType of interviewer bias in
which the interviewer allows one strong
point that works against candidate to
overshadow all other information.
Host-country nationals (HCNs)
Employees hired for jobs in their own
countries; also known as local nationals.
Hostile environment harassmentOccurs
when sexual or other discriminatory conduct
is so severe and pervasive that it interferes
with an individual's performance; creates an
intimidating, threatening, or humiliating
work environment; or perpetuates a situation
that affects the employee's psychological
well-being.
I
Immigration Reform and Control Act
(IRCA)Act that prohibits discrimination
against j ob applicants on the basis of
national origin or citizenship; establishes
penalties for hiring illegal aliens and
requires employers to establish each
employee's identity and eligibility to work.
Independent contractorsSelf-employed
individuals hired on a contract basis for
specialized services.
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2011 SHRM
InpatriatesTraditional termused to
describe employees brought in fromanother
country to work in the headquarters country
for a specified period.
International assigneeAll-encompassing
termused to describe anyone on an
international assignment.
Involuntary terminationWhen
employers decide to discharge particular
employees for cause (e.g., poor
performance, violations of employer
policy).
J
JobCollection of activities (tasks) and
responsibilities that an employee is
responsible to conduct.
Job analysisSystematic study of jobs to
determine what activities (tasks) and
responsibilities they include, relative
importance and relationship with other jobs,
personal qualifications necessary for
performance, and conditions under which
work is performed.
Job applicantAccording to EEO
regulations, anyone who expresses an
interest in employment, regardless of
whether that person meets the employer's
minimumqualifications for the job.
Job biddingI nternal recruiting method
that allows employees to indicate an interest
in a position before one becomes available.
Job competenciesKnowledge, skills, and
abilities (KSAs) and other personal
characteristics that work together to produce
outstanding performance in a given area of
responsibility.
Job descriptionSummarizes most
important features of a job, including
required tasks, knowledge, skills, abilities,
responsibilities, and reporting structure.
Job group analysisPart of affirmative
action plan that lists all j ob titles that
comprise each j ob group having similar
content and responsibilities, wage rates, and
opportunities for advancement.
Job postingI nternal recruiting method
that allows current employees the chance to
respond to announcements of positions.
Job specificationSpells out qualifications
necessary for an incumbent to be able to
performa job.
Jobs for Veterans Act (JVA)
Amendment to VietnamEra Veterans
Readjustment Assistance Act; deals with
discrimination against certain veterans by
the U.S. government and federal
contractors.
Johnson v. Santa Clara County
Transportation AgencyCourt ruling that
endorsed using gender as one factor in an
employment decision if underrepresentation
is shown and if the affirmative action plan is
not a quota system.
Joint employmentSituation in which an
organization shares joint responsibility and
liability for their alternative workers with an
alternative staffing supplier; also known as
co-employment.
Judgmental forecastsUse of information
frompast and present to predict future
conditions.
K, L
Kolstad v. American Dental Association
Case in which Supreme Court held that the
availability of punitive damages depends on
the motive of the discriminator rather than
the nature of the conduct.
Lilly Ledbetter Fair Pay ActAct that
creates a rolling time frame for filing wage
discrimination claims and expands plaintiff
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2-265
WORKFORCE PLANNING AND EMPLOYMENT Section2-10
field beyond employee who was
discriminated against.
Local nationalsEmployees hired for j obs
in their own countries; also known as host-
country nationals (HCNs).
M
McDonnell Douglas Corp. v. GreenCase
that established criteria for disparate
treatment.
McKennon v. Nashville Banner
Publishing Co.Casein which Supreme
Court held that evidence of misconduct
acquired after the decision to terminate
cannot free an employer fromliability,
even if the misconduct would have
justified terminating the employee.
Meritor Savings Bank v. VinsonCourt
ruling that first held that sexual
harassment violates Title VII of the Civil
Rights Act of 1964 regardless of whether
it is quid pro quo or hostile environment
harassment.
Multiple linear regressionStatistical
method that can be used to project future
demand; several variables are utilized.
N
Negative emphasi sType of interviewer
bias that involves rejecting a candidate on
the basis of a small amount of negative
information.
Nominal group techniqueGroup of
individuals who meet face-to-face to
forecast ideas and assumptions and prioritize
issues.
Nondirective interviewType of interview
in which interviewer asks open questions
and provides general direction but allows
applicant to guide process.
0
Offer letterDocument that formally
communicates the employment offer,
making the hiring decision official.
Oncale v. Sundowner Offshore Service,
Inc.Court ruling that same-gender
harassment is actionable under Title VI I .
On-call workersEmpl oyees who report to
work only when needed.
Open questionType of question that
typically begins with what, where, why,
when, or how.
Organizational displayPart of an
affirmative action plan that provides a
graphical presentation of the organizational
units, including their interrelationships.
Organizational exitProcess of managing
the way people leave an organization.
Organizational profileDepicts the
staffing pattern of a facility to determine if
barriers to equal employment opportunity
exist within any organizational unit.
Organizational uni tAny discrete
component of an organization in which there
is a level of supervision responsible and
accountable for the selection, compensation,
etc., of employees within the unit.
OutplacementSystematic process by
which a laid-off or terminated employee
is counseled in the techniques of career
self-appraisal and in securing a new j ob
that is appropriate to his or her talents
and needs.
OutsourcingFlexible staffing option in
which an independent company with
expertise in operating a specific function
contracts with a company to assume full
operational responsibility for the
function.
2-266 2011 SHRM
P
Panel i ntervi ewType of interview in which
staictured questions are spread across a
group; individual who is most competent in
the relevant area usually asks the question.
Parent-country nationals (PCNs)
Citizens of an organization's headquarters
country who reside and work abroad with
the intent of returning to the home country.
Patterned interviewType of interview in
which interviewer asks each applicant
questions that are fromthe same knowledge,
skill, or ability area; also called targeted
interview.
Payrol l i ngWhen a company needing help
identifies specific people and refers themto
a staffing firm, which employs themand
assigns themto work at the company.
Pennsylvania State Police v. SudersCase
in which Supreme Court ruled on the use of
the affirmative defense in a constructive
discharge claimfor an employer whose
supervisors are charged with harassment.
PERM (Program Electronic Review
Management)Streaml i ned process for
obtaining labor certification for foreign
nationals seeking permanent residence
through their employment.
Personality testsTests that measure
person's social interaction skills and patterns
of behavior.
Placement goalsObjectives or targets in
an affirmative action plan that are set when
the percentage of minorities or women in a
j ob group is less than reasonably expected
given their availability.
Polygraph testTest that measures
respiration, blood pressure, and perspiration
while person is asked a series of questions;
outcome is a diagnostic opinion about honesty.
Predictive validityType of criterion-
related validity; degree to whi ch predictions
made by a test are confirmed by the later
behavior of test takers.
Pregnancy Discrimination ActAct that
prohibits discrimination on the basis of
pregnancy, childbirth, or related conditions.
Prescreening interviewType of interview
that is useful when an organization has a
high volume of applicants for a j ob and face-
to-face interviews are needed to j udge
prequalification factors.
Prima facieLatin termfor "on first vi ew"
or "at first appearance"; in an EEO case,
when a plaintiff presents evidence of a
prima facie case, the employer must
articulate a legitimate, nondiscriminatory
reason for its decision.
Privacy ActAct that protects the
employment records of federal government
employees fromdisclosure without prior
authorization.
Protected classPeople who are covered
under a federal or state antidiscrimination law.
Psychomotor testsTests that require a
candidate to demonstrate a mi ni mum degree
of strength, physical dexterity, and
coordination in a specialized skill area.
Q
Quid pro quoharassmentType of sexual
harassment that occurs when an employee is
forced to choose between giving in to a
superior's sexual demands and forfeiting an
economic benefit such as a pay increase, a
promotion, or continued employment.
QuotaI nvolves hiring and promoting a
fixed number of individuals based on race,
gender, or other protected-class standards
that must be met.
2011 SHRM
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WORKFORCE PLANNING AND EMPLOYMENT Secti on2-10
R
Realistic job preview (RJP)Part of the
selection process that provides an applicant
with honest and complete information about
a j ob and the work environment.
Reasonable accommodationModifying
j ob application process, work environment,
or circumstances under which job is
performed to enable a qualified individual
with a disability to be considered for the job
and performits essential functions.
Regents of the University of California v.
BakkeCourt ruling that colleges and
universities could legitimately consider race
as a factor in the admissions process.
Rehabilitation ActAct that prohibits
discrimination based on physical or mental
disabilities.
ReliabilityAbility of an instrument to
measure consistently.
RepatriatesTraditional termreferring to
employees who have returned home froman
international assignment.
Repetitive interviewType of interview in
which interviewer asks every applicant the
same questions; also called a structured
interview.
ResumeDocument prepared by j ob
candidate (or professional hired by
candidate) to highlight candidate's strengths
and experience.
Retaliatory dischargeResult of an
employer punishing an employee for
engaging in activities protected by the law
(e.g., filing a discrimination charge,
opposing unlawful employer practices).
RetentionAbility to keep talented
employees in an organization.
s
School Board of Nassau v. Arline
Supreme Court ruling that persons with
contagious diseases could be covered by the
Rehabilitation Act of 1973.
School-to-work programsAllow
organizations to partner with communities
and schools to help develop the skilled
workforce they will need for the future.
SelectionProcess of hiring the most
suitable candidate for a vacant position.
Selection interviewI nterview designed to
probe areas of interest to interviewer in
order to determine how well a j ob candidate
meets the needs of the organization.
Sexual harassmentUnwelcome sexual
advances, requests for sexual favors, and
other verbal or physical conduct of a sexual
nature.
Simple linear regressionProjection of
future demand based on a past relationship;
involves a single variable.
SimulationsRepresentations of real
situations; give organizations the
opportunity to speculate as to what would
happen if certain courses of action were
pursued.
Situational interviewType of interview
in which interviewer asks hypothetical
questions designed to elicit stories and
examples that demonstrate the applicant's
skills and qualifications.
Skill banksComputerized talent or skill
inventories that can furnish a list of qualified
people.
Skill tracking systemsComputerized
talent or skill inventories that can furnish a
list of qualified people.
2-268 2011 SHRM
Smith v. Jackson, MississippiCase in
which Supreme Court held that Age
Discrimination in Employment Act
authorizes recovery on a disparate impact
theory but with narrower scope than that
provided under Title VI I .
St. Mary's Honor Center v. HicksCourt
ruling that Title VI I plaintiff must show that
discrimination was the real reason for an
employer's actions.
Staffi ngHR function that identifies
organizational human capital needs and
attempts to provide an adequate supply of
qualified individuals for jobs in an
organization.
State (public) employment agencies
Agencies that provide employee screening,
testing, and referral at no cost to the
employer.
StereotypingType of interviewer bias that
involves forming generalized opinions about
how people of a given gender, religion, or
race appear, think, act, feel, or respond.
Stress interviewType of interview in
which interviewer assumes an aggressive
posture to see how a candidate responds to
stressful situations.
Structured interviewType of interview
in which interviewer asks every applicant
the same questions; also called a repetitive
interview.
Substance abuse testsMeasures intended
to ensure a drug-free workplace.
T
Targeted interviewType of interview in
which interviewer asks each applicant
questions that are fromthe same knowledge,
skill, or ability area; also called patterned
interview.
Taxman v. Board of Education of
PiscatawayCourt ruling that nonremedial
affirmative action plan cannot formthe basis
for deviating fromthe antidiscrimination
mandate of Title VII.
Team interviewType of interview used in
situations where the position relies heavily
on teamcooperation; supervisors,
subordinates, and peers are usually part of
the process.
Third-country nationals (TCNs)
Traditional termused to describe employees
who are citizens of countries other than
where they work or where the organization's
headquarters resides.
Trend and ratio analysesUse of statistics
to determine whether relationships exist
between two variables.
TurnoverAnnualized formula that tracks
number of separations and total number of
workforce employees for each month.
u
Uniform Guidelines on Employee
Selection ProceduresProcedural
document designed to assist employers in
complying with federal regulations
prohibiting discrimination.
Uniformed Services Employment and
Reemployment Rights Act (USERRA)
Act that protects the employment,
reemployment, and retention rights of
persons who serve or have served in the
uniformed services.
United Steehvorkers v. WeberCourt
ruling dealing with reverse discrimination
charges; upheld that Title VI I allows for
voluntary, private, race-conscious programs
aimed at eliminating racial imbalance in
traditionally segregated j ob categories.
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WORKFORCE PLANNING AND EMPLOYMENT Secti
V
ValidityAbility of an instrument to
measure what it is intended to measure.
Vicarious liabilityLegal doctrine under
which a party can be held liable for the
wrongful actions of another party.
Vietnam Era Veterans Readjustment
Assistance Act (VEVRAA)Act that
prohibits discrimination against certain
veterans by the U.S. government and federal
contractors.
w
Washington v. DavisCourt ruling that
dealt with j ob testing and discrimination.
on 2 10
Worker Adjustment and Retraining
Notification (WARN) ActAct that
requires some employers to give a minimum
of 60 days' notice if a plant is to close or if
mass layoffs will occur.
Workforce analysisList of j ob titles
ranked fromlowest- to highest-paid within
an organizational unit.
Workforce planningProcess an
organization uses to analyze its current base
of employees and determine steps it must
take to prepare for future skill and labor
needs.
Y
Yield ratiosRatios that can help quantify
recruitment efforts.
2-270
2011 SHRM
Index
Note: The page numbers used in this index include the module number, for example, page 2-48
refers to page 48 of Module 2.
A
AA. See affi rmati ve acti on
AAPs. See affi rmati ve action plans
academi c credenti al s, veri fi cati on of, 2-204
acti on-ori ented programs in affi rmati ve action
pl ans, 2-74
ADA. See Ameri cans wi th Disabilities Act
ADA Amendments Act, 2-11-2-12, 2-37
AD AAA (ADA Amendments Act), 2-11-2-12,
2-37
ADEA. See Age Di scri mi nati on in Empl oyment
Act
adverse acti on, and consumer reports, 2-50
adverse i mpact. See di sparate i mpact
affi rmati ve acti on, 2-20-2-24, 2-69
affi rmati ve acti on pl ans, 2-20-2-24, 2-69, 2-76,
2-249, 2-252
acti on-ori ented programs, 2-74
audi ts, 2-75, 2-76-2-79
avai l abi l i ty anal ysi s, 2-72-2-73
compl i ance wi th, 2-76-2-79, 2-80
desi gnati on of responsi bi l i ty, 2-74
i denti fi cati on of probl em areas, 2-74-2-75
j ob group anal ysi s, 2-71-2-72
organi zati onal di spl ay, 2-70
organi zati onal profi l e, 2-69-2-71
pl acement goal s, 2-73-2-74
secti ons of, 2-69-2-75
vol untary compl i ance wi th, 2-80
workforce anal ysi s, 2-70-2-71
Age Di scri mi nati on in Empl oyment Act, 2-8-2-
10, 2-37, 2-83-2-84, 2-236, 2-247
Albemarle Paper v. Moody, 2-62
al ternati ve staffi ng, 2-176-2-181
American Airlines, Leonel v., 2-212-2-213
American Dental Association, Kolstad v., 2-7-2-
8
Ameri cans wi th Di sabi l i ti es Act, 2-11-2-15, 2-
37, 2-212-2-213, 2-247
anal yzi ng appl i cati on forms, 2-187-2-189
annual reporti ng form, Equal Empl oyment
Opportuni ty Act, 2-65-2-66
appl i cant fl ow data, 2-66-2-68
appl i cant noti fi cati on, 2-190
appl i cant, I nternet, 2-67-2-68, 2-156-2-157
applicant, j ob, 2-66-2-68
appl i cants, previ ous, as recrui tment source, 2-
153,2-161
appl i cati on forms, 2-187-2-189
apti tude tests, 2-200
Arline, School Board of Nassau v., 2-26
assessment centers, 2-201
audits of affi rmati ve action, 2-75, 2-76-2-79
Austral i an Free Trade/Speci al ty Occupati on
Worker visas, 2-33
availability anal ysi s, 2-72-2-73
B
B-l visas, 2-33
background i nvesti gati on, 2-203-2-205
Bakke, Regents of the University of California
v., 2-81
behavi oral i ntervi ew, 2-192
BFOQ. See bona fi de occupati onal qual i fi cati on
biases, i ntervi ewer, 2-197-2-198
bi ddi ng, j ob, 2-151,2-152
bl ogs, and i nternati onal recrui tment, 2-168
Board of Education of Piscataway, Taxman v.,
2-82-2-83
Bollinger, Gratz v., 2-83
Bollinger, Grutter v., 2-83
bona fide occupati onal qual i fi cati on, 2-6-2-7, 2-
8-2-9, 2-86-2-87
"bottom-l i ne concept," 2-18
brandi ng, empl oyment, 2-162-2-164
budget anal ysi s, 2-108
Burlington Northern Industries, Ellerth v., 2-97-
2-98
Busi ness Vi si tor vi sas, 2-33
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WORKFORCE PLANNING AND EMPLOYMENT Sectio n 2 10
c
candi date profi l es, 2-187
career fairs, 2-160
career sites, 2-168
City of Boca Raton, Faragher v., 2-97-2-98
City of Richmond v. J. A. Croson Company, 2-86
Civil Ri ghts Act of 1964, Title VI I , 2-5-2-7, 2-
1.0, 2-37, 2-96, 2-247
Civil Ri ghts Act of 1991, 2-7-2-8, 2-37
cl ass-acti on racial discrimination lawsuit against
Coca-Col a, 2-64
Cline, General Dynamics Land Systems, Inc., v.,
2-83-2-84
closed questi ons, 2-195
COBRA (Consol i dated Omni bus Budget
Reconci l i ati on Act), 2-234, 2-247
Coca-Col a, l awsui t agai nst, 2-64
co-empl oyment, 2-180
coerci on, 2-233
cogni ti ve ability tests, 2-200
col l ege career fairs, 2-160
communi ty awareness, and international
recrui tment, 2-168
commuti ng empl oyees, 2-122
compensatory damages, 2-7-2-8
competenci es, j ob, 2-128, 2-140-2-142
competency model , 2-140
compl i ance eval uati on, 2-76-2-79
compl i ance revi ew, 2-77
compl i ance wi th affi rmati ve action, 2-76-2-79,
2-80
concurrent val i di ty, 2-208
confi denti al i ty in empl oyment contracts, 2-216
Congressi onal Accountabi l i ty Act, 2-36, 2-38
Consol i dated Omni bus Budget Reconci l i ati on
Act, 2-234, 2-247
construct val i di ty, 2-206-2-207
constructi ve di scharge, 2-97, 2-98-2-99, 2-232
Consumer Credi t Protecti on Act, 2-48-2-49, 2-52
consumer protecti on legislation, 2-48-2-52
content val i di ty, 2-206
conti ngent j ob offers, 2-212-2-214
contract agenci es, and international recrui tment,
2-168
contract, empl oyment, 2-215-2-219
contract workers, 2-177
contrast effect, 2-198
corporate management revi ews, 2-79-2-80
correlation, 2-207
cost of recruiting, 2-166-2-167
cost-effecti veness of selection process, 2-209-2-
210
credit history checks, 2-204. See also Fai r and
Accurate Credit Transacti ons Act; Fair Credi t
Reporti ng Act
criminal background checks, 2-205
criterion-related validity, 2-207-2-209
cultural noise, 2-198
D
damages, compensatory/puni ti ve, 2-7-2-8
Davis, Washington v., 2-62-2-63
Davi s-Bacon Act, 2-248
defenses against litigation, 2-240
Del phi techni que, 2-116,2-117
demand analysis, 2-108, 2-114-2-118
description, j ob, 2-128, 2-131, 2-135-2-139, 2-
140, 2-148
designation of responsi bi l i ty, in affi rmati ve
action plans, 2-74
desk audit, 2-77
DeStefano, Ricci v., 2-84-2-86
directive interview, 2-191
disability, 2-11-2-15, 2-25-2-26, 2-196
di scharge
constructive, 2-97, 2-98-2-99, 2-232
retaliatory, 2-233
di scri mi nati on
age, 2-8-2-10, 2-83-2-84
cases, 2-60-2-64
effects of past, 2-60
enforcement gui dance, 2-58-2-59
exceptions to defi ni ti on, 2-6-2-7
gender, 2-94-2-101
and genetic i nformati on, 2-15-2-16
recognizing, 2-59-2-60
reverse, 2-81-2-86
types, 2-59-2-60
wage, 2-16-2-17
disparate impact, 2-10, 2-18-2-20, 2-59-2-61, 2-
84-2-86
disparate treatment, 2-58, 2-59, 2-60, 2-61-2-62,
2-85
downsi zi ng, 2-228-2-237
Drug-Free Workpl ace Act, 2-203
Duke Power, Griggs v., 2-60-2-61
2-272 2011 SHRM

E-l vi sas, 2-33
E-2 vi sas, 2-33
E-3 vi sas, 2-33
early reti rement, 2-233, 2-235-2-237
EB-1 vi sas, 2-31,2-32
EB-2 visas, 2-31,2-32
EB-3 vi sas, 2-31,2-32
educati onal institutions, and i nternati onal
recrui tment, 2-168
educati onal recrui ti ng, 2-159-2-160, 2-162
EEO. See equal empl oyment opportuni ty
EEO-1 (Empl oyer I nformati on Report), 2-66, 2-
247
EEOC. See Equal Empl oyment Opportuni ty
Commi ssi on
80% rule, 2-18-2-20
el ectroni c appl i cati on forms, 2-187
Ellerth v. Burlington Northern Industries, 2-97-
2-98
empl oyee l easi ng, 2-178
Empl oyee Pol ygraph Protecti on Act, 2-46-2-48,
2-52, 2-202, 2-248
empl oyee records management, 2-246-2-253
empl oyee referral s, 2-152, 2-169
Empl oyee Reti rement I ncome Securi ty Act, 2-9,
2-248
empl oyee rights legislation, 2-4-2-39
empl oyees, former, as recrui tment source, 2-153,
2-161
empl oyer defenses agai nst litigation, 2-240
Empl oyer I nformati on Report, 2-66, 2-247
empl oyer liability, 2-87-2-88
empl oyer responses to harassment, 2-99-2-101
empl oyment agenci es, 2-168
empl oyment agreement, 2-215-2-219
empl oyment brandi ng, 2-162-2-164
empl oyment contract, 2-215-2-219
empl oyment offer, 2-214-2-219
empl oyment practi ces liability i nsurance, 2- 87-
2-88
empl oyment-at-wi l l , 2-215, 2-234
"Enforcement Gui danceUnl awful Di sparate
Treatment of Workers wi th Caregi vi ng
Responsi bi l i ti es," 2-58-2-59
EPL I (empl oyment practi ces liability i nsurance),
2-87-2-88
equal empl oyment opportunity, 2-58-2-60, 2-
167,2-189
Equal Empl oyment Opportuni ty Act
annual reporting form, 2-65-2-66
reporti ng requi rements, 2-64-2-68
Equal Empl oyment Opportuni ty Commi ssi on, 2-
6, 2-58-2-59, 2-94, 2-99, 2-134, 2-180-2-181
Equal Pay Act, 2-248
equi ty in selection, 2-209
ERI SA (Empl oyee Reti rement I ncome Securi ty
Act), 2-9, 2-248
essential j ob functi ons, 2-13, 2-132-2-134, 2-
213
ethnocentri c approach to international busi ness,
2-119
E-Veri fy, 2-29-2-30
Exchange Visitor visas, 2-33
executi ve excepti on to mandatory reti rement, 2-
9
Executi ve Order 11246, 2-20, 2-21-2-22, 2-38,
2-249
Executi ve Order 13496, 2-20, 2-22-2-23, 2-38
executi ve search firms, 2-158, 2-161
exit i ntervi ews, 2-237-2-239
exit, organi zati onal , 2-228
expatriates, 2-121
extended busi ness travelers, 2-122
external recruiting sources, 2-148-2-149, 2- 153-
2-162, 2-167-2-169
F
F-l vi sas, 2-33
FACT Act. See Fair and Accurate Credi t
Transacti ons Act
Fai r and Accurate Credi t Transacti ons Act, 2-
51-2-52,2-249
Fair Credi t Reporti ng Act, 2-49-2-52, 2-52, 2-203
Fai r Labor Standards Act, 2-250
fai rness issues, 2-81-2-87
Fami l y and Medi cal Leave Act, 2-250
Faragher v. City of Boca Raton, 2-97-2-98
FCRA. See Fai r Credit Reporti ng Act
federal i ncome tax wi thhol di ng, 2-251
Federal I nsurance Contri buti on Act, 2-251
Federal Unempl oyment Tax Act, 2-251
fi rst-i mpressi on error, 2-197
fi tness for duty, 2-213
fl exi bl e staffi ng, 2-176-2-181
2-273 2011 SHRM
floaters, 2-177
flow anal ysi s, 2-113-2-114
FL SA (Fair Labor Standards Act), 2-250
FML A (Fami l y and Medi cal Leave Act), 2-250
focused revi ew, 2-77
forecasts, 2-106, 2-107
j udgmental , 2-115-2-117
statistical, 2-117-2-118
Forklift Systems, Inc., Harris v., 2-96
Form 1-9, 2-27-2-28, 2-251
former empl oyees, as recrui tment source, 2-153,
2-161
forms, appl i cati on, 2-187-2-189
four-fi fths rule, 2-18-2-20
free agency, 2-178
frequent fl yers, 2-122
G
garni shment, 2-48
gender di scri mi nati on, 2-94-2-101
gender identity, 2-100-2-101
General Dynamics Land Systems, Inc., v. Cline,
2-83-2-84
geneti c i nformati on, di scri mi nati on on basis of,
2-15-2-16
Geneti c I nformati on Nondi scri mi nati on Act, 2-
15-2-16,2-37
geocentri c approach to international busi ness, 2-
120
GI NA (Geneti c I nformati on Nondi scri mi nati on
Act), 2-15-2-16, 2-37
gl ass cei l i ng revi ews, 2-79-2-80
gl obal i nternshi ps, 2-168
Goodyear Tire & Rubber Co., Ledbetter v., 2-
16-2-17
government agenci es, and international
recrui tment, 2-168
Gratz v. Bollinger, 2-83
green cards. See i mmi grant visas
Green, McDonnell Douglas Corp. v., 2-61-2-62
Griggs v. Duke Power, 2-60-2-61
group i ntervi ews, 2-192-2-194
Grutter v. Bollinger, 2-83
H
H- I B vi sas, 2-33
hal o effect, 2-198
harassment, 2-5-2-6, 2-94
cases, 2-95-2-99
empl oyer responses, 2-99-2-100
types, 2-94-2-95
Harris v. Forklift Systems, Inc., 2-96
HCNs (host-country nationals), 2-121
Hicks, St. Mary's Honor Center v., 2-63
honesty tests, 2-201
horn effect, 2-198
host-country nationals, 2-121
hostile envi ronment harassment, 2-95
HR associ ati ons, and international recrui tment,
2-169
HR's role in flexible staffi ng, 2-179-2-181
f
1-9 Form, 2-27-2-28,2-251
i denti fi cati on of probl emareas in affi rmati ve
action pl ans, 2-74-2-75
i mmi grant visas, 2-31-2-32
I mmi grati on Reformand Control Act, 2-26-2-
30, 2-38, 2-251
i nconsi stency in questioning, 2-197
i ndependent contractors, 2-176
in-depth interviews, 2-190-2-194
inpatriates, 2-121
integrity tests, 2-201
internal recruiting, 2-148-2-149, 2-167
internal workforce pl anni ng, 2-106-2-107
international assignees, 2-121
international business, 2-119-2-120
international commuters, 2-122
international j ob boards, 2-168
international recruiting, 2-167-2-169
international workers, types of, 2-121-2-123
international workforce pl anni ng, 2-118-2-123
I nternet applicant, 2-67-2-68, 2-156-2-157
I nternet recrui ti ng, 2-154-2-157, 2-161, 2-168
interns, 2-123
i ntervi ewer biases, 2-197-2-198
i ntervi ews
bi ases of interviewer, 2-197-2-198
exit, 2-237-2-239
in j ob analysis, 2-130
questi ons, gui del i nes for, 2-195-2-196
selection, 2-190-2-198
ski l l s/techni ques, 2-194-2-195
types of, 2-190-2-194
2-274 2011 SHRM
WORKFORCE PLANNI NG AND EMPL OYMENT Section 2-10
I ntracompany Transferee vi sas, 2-33
i ntraregi on recrui ti ng, 2-168
i nventi on covenants in empl oyment contracts, 2-
216
i nvol untary termi nati ons, 2- 234- 2- 235
I RCA. See I mmi grati on Ref orm and Control Act
J -l vi sas, 2-33
J. A. Croson Company, City of Richmond v., 2-86
Jackson, Mississippi, Smith v., 2-10
j ob, 128
j ob anal ysi s, 2- 128- 2- 132, 2-148
j ob appl i cant, 2- 66- 2- 68
j ob appl i cati on, el ectroni c, 2-187
j ob bi ddi ng, 2- 151,2- 152
j ob competenci es, 2-128, 2- 140- 2- 142
j ob descri pti on, 2-128, 2-131, 2-135-2-139, 2-
140,2- 148
j ob functi ons, essenti al , 2-13, 2- 132- 2- 134
j ob group anal ysi s, 2- 71- 2- 72
j ob offer, conti ngent, 2- 212- 2- 214
j ob posti ng, 2- 149- 2- 151,2- 152
j ob speci fi cati ons, 2-128, 2-131, 2- 139- 2- 140,
2-148
J obs for Veterans Act, 2-20, 2-21-2-22, 2- 24- 2-
25, 2- 38
Johnson v. Santa Clara County Transportation
Agency, 2-82
j oi nt empl oyment, 2-180
j udgmental forecasts, 2- 115- 2- 117
J VA. See J obs for Veterans Act
Kolstad v. American Dental Association, 2- 7- 2-
8
K SAs (knowl edge, ski l l s, abi l i ti es), 2-129
L
L - l vi sas, 2-33
l abor uni ons, as recrui tment source, 2-154, 2-
161
l ayoffs, 2- 34- 2- 36, 2-228-2-232. See also
i nvol untary termi nati ons
Ledbetter v. Goodyear Tire & Rubber Co., 2-
16-2-17
l egal i ssues
and empl oyee records, 2-253
wi th fl exi bl e staffi ng, 2- 180- 2- 181
l egi sl ati on
consumer protecti on, 2- 48- 2- 52
empl oyee ri ghts, 2- 4- 2- 39
l ocal , 2-38-2-39, 2-53
pri vacy, 2-46-2-48, 2-52
state, 2-38-2-39, 2-53
Leonel v. American Airlines, 2- 212- 2- 213
l i abi l i ty
empl oyer, 2-87-2-88
vi cari ous, 2-98
lie detector tests. See pol ygraph tests
Li l l y Ledbetter Fai r Pay Act, 2- 16- 2- 17, 2-37
l i ti gati on, empl oyer defenses agai nst, 2-240
local hi res, 2-122
l ocal l egi sl ati on, 2-38-2-39, 2-53
local nati onal s, 2-121, 2-122
l ocal i zed empl oyees, 2-122
log, in j ob anal ysi s, 2-131
l ong-term assi gnees, 2-122
M
managed servi ces, 2-178
manageri al esti mates, 2-115
mandatory reti rement, executi ve excepti on to, 2-
9
McDonnell Douglas Corp. v. Green, 2- 61- 2- 62
McKennon v. Nashville Banner Publishing Co.,
2- 63- 2- 64
medi a adverti si ng for recrui ti ng, 2- 158- 2- 159,
2-162,2-168
medi cal exami nati ons, 2- 213- 2- 214
meri t hi ri ng vs. quota hi ri ng, 2-86
Meritor Savings Bank v. Vinson, 2-95
mi nori ty recrui ti ng, 2-160, 2-162
Moody, Albemarle Paper v., 2-62
motor vehi cl e record checks, 2-204
mul ti pl e l i near regressi on, 2-118
N
Nashville Banner Publishing Co., McKennon v.,
2- 63- 2- 64
needs anal ysi s, 2-107, 2-108
negati ve emphasi s, 2-197
nomi nal group techni que, 2-116
noncompete covenants in empl oyment contracts,
2-217
nondi recti ve i ntervi ew, 2-191
2-275 2011 SHRM
WORKFORCE PLANNING AND EMPLOYMENT Sectio n 2-10
nondi scl osure terms in empl oyment contracts, 2-
216
noni mmi grant visas, 2-31, 2-33
nonpi racy covenants in empl oyment contracts,
2-216
nontradi ti onal l abor pool s, 2-161, 2-162, 2-178
nonverbal behavi or, 2-194
nonverbal bias, 2-198
North Ameri can Free Trade Agreement
(NAFTA) visas, 2-33
noti fi cati on of appl i cant, 2-190
o
O visas, 2-33
observati on, in j ob analysis, 2-130
Occupati onal Safety and Health Act, 2-251
OFCCP. See Offi ce of Federal Contract
Compl i ance Programs
offer letter, 2-214
Offi ce of Federal Contract Compl i ance
Programs, 2-21, 2-23, 2-67, 2-71, 2-76, 2-77,
2-79,2-156
Offi ce of L abor-Management Standards, 2-23
off-si te revi ew, 2-77
Ol der Worker's Benefi t Protection Act, 2-236
OL MS (Offi ce of Labor-Management
Standards), 2-23
Oncale v. Sundowner Offshore Service, Inc., 2-
96
on-cal l workers, 2-177
0* NET, 2-138
onl i nej ob boards, 2-156
onl i ne soci al networks, and international
recrui tment, 2-168
open questi ons, 2-195
organi zati on unit, 2-69
organi zati onal di spl ay, 2-70
organi zati onal exit, 2-228
organi zati onal profi l e, 2-69-2-71
OSHA (Occupati onal Safety and Heal th Act), 2-
251
outpl acement, 2-158, 2-161, 2-168, 2-239-2-
240
outsourced empl oyees, 2-123
outsourci ng, 2-178
OWBPA (Ol der Worker's Benefi t Protecti on
Act), 2-236
P
panel interview, 2-193
parent-country nati onal s, 2-121
part-time empl oyees, 2-35, 2-123, 2-177
patterned interview, 2-191
payrolling, 2-178
PCNs (parent-country nati onal s), 2-121
Pennsylvania State Police v. Suders, 2-98-2-99
PEO (professional empl oyer organi zati on), 2-
178
PERM (Program El ectroni c Revi ew
Management), 2-34
permanent assignees, 2-122
permanent labor certi fi cati on, 2-34
personal networki ng, and i nternati onal
recruitment, 2-168
personality tests, 2-200
pl acement goals in affi rmati ve action plan, 2-
73-2-74
polycentric approach to i nternati onal busi ness,
2-119
polygraph tests, 2-46-2-48, 2-202, 2-248
posting, j ob, 2-149-2-151, 2-152
pre-adverse action and consumer reports, 2-50
predictive validity, 2-208-2-209
preempl oyment tests, 2-198-2-201
Pregnancy Di scri mi nati on Act, 2-5, 2-10-2-11,
2-37
prescreeni ng
interview, 2-190
phone call, 2-189
present effects of past di scri mi nati on, 2-60
previ ous applicants, as recrui tment source, 2-
153,2-161
prima facie, 2-62
Privacy Act, 2-46, 2-52
pri vacy legislation, 2-46-2-48, 2-52
private empl oyment agenci es, 2-158, 2-161
professi onal associ ati ons, as recrui tment source,
2-154, 2-161,2-169
professi onal empl oyer organi zati on, 2-178
Program Electronic Revi ew Management, 2-
34
protected classes, 2-58-2-59
psychomotor tests, 2-200-2-201
public empl oyment agenci es, 2-157, 2-161
punitive damages, 2-7-2-8
2-276 2011 SHRM
Q visas, 2-33
qual i fi ed medi cal exami nati ons, 2-213-2-214
questi onnai re, in j ob analysis, 2-130-2-131
questi ons, gui del i nes for, 2-195-2-196
quid pro quo harassment, 2-95
quota hi ri ng vs. meri t hiring, 2-86
ratio anal ysi s, 2-110, 2-111
realistic j ob previ ews, 2-210-2-212
reasonabl e accommodati on, 2-13-2-15, 2-25, 2-
26
"reasonabl e person" standard, 2-96
records management, 2-246-2-253
recrui tment, 2-148
cost, 2-166-2-167
effecti veness, 2-164-2-167
external , 2-148-2-149, 2-153-2-162, 2- 167-
2-169
internal, 2-148-2-149,2-167
i nternati onal , 2-167-2-169
i ntraregi on, 2-168
obj ecti ves, 2-148
reducti ons in force, 2-228-2-232
reference checks, 2-203-2-204
referral s, 2-152, 2-169
refl ecti ve listening, 2-194
Regents of the University of California v. Bakke,
2-81
regi ocentri c approach to international busi ness,
2-120
regressi on anal ysi s, 2-117-2-118
Rehabi l i tati on Act, 2-20, 2-21-2-22, 2-25-2-26,
2-38, 2-252
reliability, 2-205
rel ocati on consi derati ons, 2-217
repatri ates, 2-121
repeti ti ve i ntervi ew, 2-191
reporti ng requi rements, EEO, 2-64-2-68
resi gnati ons, 2-235
resumes, 2-188
retal i atory di scharge, 2-233
retenti on, 2-219-2-221
retirees, 2-123
reti rement, 2-233, 2-235-2-237
returnees, 2-123
reverse di scri mi nati on, 2-81-2-86
Ricci v. DeStefano, 2-84-2-86
RI Fs (reducti ons in force), 2-228-2-232
RJ Ps (realistic j ob previ ews), 2-210-2-212
rotational empl oyees, 2-122
s
Santa Clara County Transportation Agency,
Johnson v., 2-82
School Board of Nassau v. Arline, 2-26
school -to-work programs, 2-160, 2-162
SCRR (Standard Compl i ance Revi ew Report),
2-78
seasonal workers, 2-177
selection, 2-186
application forms, anal yzi ng, 2-187-2-189
background checks, 2-203-2-205
empl oyment offers, 2-214-2-219
interviews, 2-190-2-198
j ob offers, conti ngent, 2-212-2-214
tests, 2-198-2-203, 2-205-2-210
seniority systems, 2-7, 2-9, 2-11, 2-228-2-229
sequential empl oyees, 2-122
Servi ce Contract Act, 2-248
severance packages, 2-218, 2-229-2-230, 2-236
sexual harassment. See harassment
sexual orientation, 2-100-2-101
short-term assi gnees, 2-122
si mi l ar-to-me error, 2-198
si mpl e linear regressi on, 2-117-2-118
simulations, 2-118
situational i ntervi ew, 2-192
skill banks/tracki ng systems, 2-151, 2-152
Smith v. Jackson, Mississippi, 2-10
Specialty Occupati on Worker visas, 2-33
speci fi cati ons, j ob, 2-128, 2-131, 2-139-2-140,
2-148
St. Mary's Honor Center v. Hicks, 2-63
staffi ng, 2-106, 2-176-2-181
Standard Compl i ance Revi ew Report, 2-78
state
empl oyment agenci es, 2-157, 2-161
legislation, 2-38-2-39, 2-53
statistical forecasts, 2-117-2-118
stealth expats/assi gnees, 2-122
stereotypi ng, 2-197
strategic analysis, 2-108
stress interview, 2-191
structured i ntervi ew, 2-191
Student visas, 2-33
substance abuse tests, 2-202-2-203
2011 SHRM _ 2-277

WORKFORCE PLANNING AND EMPLOYMENT Sectio n 2-10
Suders, Pennsylvania State Police v., 2-98-2-99
Sundowner Offshore Service, Inc., v. Oncale, 2-
96
suppl y analysis, 2-107, 2-108, 2-109-2-114
T
targeted application forms, 2-187
targeted interview, 2-191
Taxman v. Board of Education of Piscataway, 2-
82-2-83
TCNs (thi rd-country nationals), 2-121
team interview, 2-193
temporary agenci es, 2-157, 2-161, 2-169
temporary assi gnments, 2-177
temporary empl oyees, 2-123, 2-157, 2-161, 2-
169, 2-177
temporary help, finite, 2-177
temp-to-hi re empl oyees, 2-123
temp-to-hi re programs, 2-177
temp-to-l ease programs, 2-178
termi nati on, 2-217, 2-232-2-237
tests
preempl oyment, 2-198-2-201
sel ecti on, 2-198-2-203, 2-205-2-210
thi rd-country nationals, 2-121
thi rd-party sources for recruiting, 2-157-2-158,
2-161
Ti tl e VI I . See Civil Ri ghts Act of 1964, Title VI I
TN visas, 2-33
trade associ ati ons, as recrui tment source, 2-154,
2-161,2-169
trai nees, 2-123
Treaty I nvestor and Trader vi sas, 2-33
trend anal ysi s, 2-110-2-111
turnover, 2-112, 2-220-2-221
turnover analysis, 2-112-2-113
U, v
undue hardshi p, 2-14, 2-25
Uni formGui del i nes on Empl oyee Sel ecti on
Procedures, 2-17-2-20, 2-37, 2-68, 2-199, 2-
252
Uni formed Services Empl oyment and
Reempl oyment Ri ghts Act, 2-36, 2-38, 2-196
uni ons, as recrui tment source, 2-154, 2-161
United Steelworkers v. Weber, 2-81-2-82
USCI S (U.S. Ci ti zenshi p and I mmi grati on
Services), 2-26-2-27
U.S. Ci ti zenshi p and I mmi grati on Services, 2-
26-2-27
USERRA. See Uni formed Services Empl oyment
and Reempl oyment Ri ghts Act
validity, 2-205-2-209
VEVRAA. See Vi etnam Era Veterans
Readj ustment Assi stance Act
vi cari ous liability, 2-98
Vi etnam Era Veterans Readj ustment Assi stance
Act, 2-20, 2-21-2-22, 2-24-2-25, 2-38, 2-252
Vinson, Meritor Savings Bank v., 2-95
virtual empl oyees, 2-123
visas, 2-30-2-34
vol untary compl i ance wi th affi rmati ve action, 2-
80
vol untary resignation, 2-235
vol untary retirement, 2-233, 2-235-2-237
vol untary termi nati ons, 2-235-2-237
W, X, Y, Z
wage di scri mi nati on, 2-16-2-17
wal k-i ns, as recrui tment source, 2-154, 2-161
Wal sh-Heal ey Act, 2-248
WARN. See Worker Adj ustment and Retrai ni ng
Noti fi cati on Act
Washington v. Davis, 2-62-2-63
Web sites, corporate, 2-164
Weber, United Steelworkers v., 2-81-2-82
wei ghted appl i cati on forms, 2-187-2-188
work diary/log, in j ob anal ysi s, 2-131
work made for hire, 2-216
work reference checks, 2-203-2-204
Worker Adj ustment and Retrai ni ng Noti fi cati on
Act, 2-34-2-36, 2-38
workers, international, types of, 2-121-2-123
workforce analysis, 2-70-2-71
workforce pl anni ng
internal, 2-106-2-107
international, 2-118-2-123
work-rel ated requi rements, 2-6
wrongful termi nati ons, 2-232-2-233
yi el d ratios, 2-165,2-166-2-167
2-278 2011 SHRM
Module 2 Checklist
Section
2-1: Key Legislation Affecting
Employee Rights
Start
Date
Completion
Date
2-2: Key Legislation Affecting Privacy
and Consumer Protection
2-3: Equal Employment
Opportunity/Affirmative Action
2-4: Gender Discrimination and
2-5: Organizational Staffing
Requirements
2-6 J ob Analysis and Documentation
2-7 Recruitment
2-8 Flexible Staffing
2-9 Selection and Retention
2-10: Organizational Exit
2-11: Employee Records Management
Score for Module Review Test One*
Score for Module Review Test Two*
* Look f or t hese t est s on the Web at www.l ear nhr m.com.
Society for Human
Resource Management
1 800 Duke Street
Alexandria, VA 22314- 3499
USA
www.shrm.org
This material in its entirety or any portion thereof may not be copied,
sold, licensed, or otherwise redistributed but may be used only for
2011 SHRM noncommercial personal use as permitted by the license terms herein.

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