Why your company needs an Affirmative Action Plan?
If you wish to open the door to be able to bid on government business and maintain it or for marketing reasons, to show that diversity is an important value in your organization then you will want an Affirmative Action Plan.
An Affirmative Action Plan uses statistical analyses to ensure that an employer has created or is creating a workforce that is an authentic reflection of the demographics of their relevant, qualified labor pool by providing specific protected classes; including minorities, veterans, women and people with disabilities; with equitable access to employment opportunities. Although an Affirmative Action Program is intended to eradicate the effects of past discrimination in employment, it is meant to be inclusive without regard to race, gender, disabilities, or veteran status.
While all employers should be mindful of EEOC (Equal Employment Opportunity Commission) laws, the only companies that are required to have a written, up-to-date AAP in place are 1) federal contractors or subcontractors who have fifty or more employees and have contracts of $50,000 or more or, 2) Federal or Federally assisted construction contraction or subcontract over $10,000. Local, City, and State government agencies generally have stricter guidelines with any contracts starting as low as $10,000 and may not have employee minimums.
Employers who meet the aforementioned criteria for a mandated AAP must not only have a written, up-to-date plan, but must adhere to an OFCCP-prescribed method of documenting recruiting and hiring, and tracking & analyzing employment data and compensation. Noncompliant companies may be subject to damages and loss of contracts. It is estimated by the government to take at least 200 hours to develop, maintain, and perform updates on their AAPs, but that number is estimated to be over 400 hours for larger companies with the average cost burden to be between $7,800 to $15,000 annually.
Audax HR can help your company stay compliant with your AAP by:
- Ensuring and maintaining a work environment free of harassment, intimidation and coercion in all work facilities
Establishing and maintaining a current list of minority and female recruitment sources
- Maintaining a current file of each minority and female off-the-street applicant or referral
- Developing on-the-job training opportunities
- Reviewing, at least annually, the company’s EEO policy and Affirmative Action obligation
- Validate all tests and other selection requirements
- Conducting annual inventory and evaluation of all minority and female personnel for promotional opportunities
- Ensuring that seniority practices, job classifications, work assignments and other personnel practices do not have a discriminatory effect
- Documenting and maintaining a record of all solicitations of offers for subcontracts from minority and female construction contractors and suppliers, including circulation of solicitations to minority and female contractor associations and other business associations.
- Conduct annual reviews of all supervisors’ adherence to and performance under the Contractor’s EEO policies and Affirmative Action obligations.
Affirmative Action Plan rates: $2,000 to $10,000 depending on the size, industry, number of employees, locations, etc.
Consulting rates: $175/hour (multi-service bundle discounts available)
Call or email for quotes or for more information on the complexity and hours projected for your specific project.