NEW EEOC REQUIREMENT FOR GOVERNMENT CONTRACTORS INCREASES ADVANTAGES OF APPLICANT TRACKING SYSTEMS

A useful technological tool that has been gaining popularity in recent years is the Applicant Tracking System (ATS). Most heavily utilized by medium- and large-sized companies, an ATS can simplify the recruiting/hiring process by cataloging, analyzing, and maintaining a large volume of applications and resumes. This tool is crucial to organizations and recruiting managers who process a significant volume of job candidates.

An ATS is a flexible tool that is commonly used to monitor applicants throughout the hiring process. Many advanced ATS products, including Redmatch Recruiter™, include pre-screening functionality to scan resumes, cover letters, and/or applications for specified key words and phrases to determine the skills and abilities claimed by the individual. This screening process is not in the same sense as a Consumer Reporting Agency (CRA) such as BIS screens candidates. Candidates that are found to qualify for the position can be rated as to the relevance of their qualifications. The ATS may also be programmed to determine if a candidate is overqualified for a position or to return other open positions for which they may be a more appropriate fit. Hundreds or thousands of resumes for a particular position may be narrowed down to a manageable number. Human Resources or hiring managers can then determine who to bring in to interview and on whom to conduct more traditional background screening. CRAs are then used to validate the credentials and backgrounds of the most qualified candidates.

An ATS will now provide even more value if your organization contracts with the federal government. In February 2006 the Office of Federal Contract Compliance Programs (OFCCP) rule (41 CFR part 60-1) on applicant record keeping requirements goes into effect.

The new rule defines who is an applicant and requires most federal contractors and sub contractors to collect and retain information about each applicant's gender, race and ethnicity. It addresses the issues of "Internet applicants" and modifies existing practices regarding data collection, record keeping, storage practices and the reporting of Equal Employment Opportunities data on applicants.

Companies who use Applicant Tracking Systems (ATS) will be in a better position to meet the requirements of this new rule. However, the new rule could create hidden costs that they may not be aware of.

Specifically, the new OFCCP definition of an "Internet Applicant" requires that all four of the following criteria are met:

1. The individual submits an expression of interest in employment through the Internet or related electronic data technologies.
2. The employer considers the individual for employment in a particular open position.
3. The individual's expression of interest indicates he/she meets the basic qualifications for the position.
4. The individual does not indicate that he/she is no longer interested in the position for which the employer has considered the individual.

If all of the above criteria are met, the company is required to collect EEOC data from the candidate.

Employers considering an ATS and who are subject to comply with OFCCP rules and regulations should include the following system criteria as essential components of an ATS:

• EEOC Liability Protection - the ATS should provide protection from liabilities related to EEOC issues. EEOC data should not be factored into the matching algorithms. Searching or sorting of candidates by EEOC data should not be part of the system functionality. The screening process should remain completely independent, keeping EEOC information available for reporting purposes only.
• Enhanced Data Storage Functionality - the ATS should enable the employer to store the candidate data, including his or her EEOC data. Many systems store only the candidate resume. The ATS should have the ability to store all candidate-submitted data including EEOC, and enable the employer to generate a variety of reports relating to EEOC.
• EEOC Information Storage and Reporting Capability - In order to comply with the new rule, the employer has to know whether the applicant has been presented with EEOC related questions. The ATS should allow the ability to present such questions to every applicant. The ATS should be able to store and report on this information.
• Online Application Form - submission of EEOC data by candidates is optional. However, the employer must demonstrate that all applicants have been presented with a request to submit this data. ATS's that are based on submitting applications via e-mail only will not be in compliance with the new rule. ATS capabilities should include an online application form that presents the applicants questions relating to EEOC.
• Employer-Defined EEOC Parameters - companies trying to comply with EEOC regulations have to make sure that qualifying questions presented to applicants comply with such regulations. Employers should be able to define job requisitions and qualifying questions and then archive them in the system for future use. Recruiters should be instructed to use only job templates from this archive. This ensures uniformity and compliance.
• EEOC Compliance Approval - EEOC compliance experts need to review job descriptions, skill requirements and qualifying questions before they are presented to applicants. The ATS should have the capability to present this information to the relevant people within the organization who can ensure that the job requisition is fully compliant with EEOC regulations.