Understanding Proposed Vet Ratios - Key Terms

One of the factors in establishing the required hiring benchmarks in the proposed veteran regulations is "The referral ratio, hiring ratio and applicant ratio for the previous year". While the statement is simple, the process is a little more daunting, beginning with the key terms of the first computation requirement of the proposed data collection detail necessary for establishing the ratios:

"The number of priority referrals of veterans protected by this part that the contractor received from applicable employment service delivery system(s)".

These key terms are included in a process that is part of the revised Equal Employment Opportunity Clause which is required by the proposed regulations to be included in all government contracts and subcontracts;

Contractors shall "advise each employment service delivery system in each state where it has establishments that: (a) It is a Federal contractor, so that the employment service delivery systems are able to identify them as such; and (b) it desires priority referrals from the state of protected veterans for job openings at all locations within the state. The contractor shall also provide to the employment service delivery system the name and location of each hiring location within the state and the contact information for the contractor official responsible for hiring at each location. In the event that the contractor uses any external job search organizations to assist in its hiring, the contractor shall also provide to the employment service delivery system the contact information for the job search organization. The disclosures required by this paragraph shall be updated on an annual basis. . . ."

The term priority referral is fairly self explanatory. The term employment delivery system requires further explanation:

"Employment Service Delivery System is a service delivery system at which or through which labor exchange services, including employment, training, and placement services, are offered in accordance with the Wagner-Peyser Act."

In essence, employment delivery systems are used for outreach and recruitment. For "External dissemination of policy, outreach and positive recruitment", (§60-250.44/300.44 (f)) the proposed regulations require:

"a linkage agreement with the Local Veterans' Employment Representative (LEVR)"

AND at least one other source from the following:

• The Department of Veterans Affairs Regional Office;
• The veterans' counselors and coordinators (Vet-Reps) on college campuses;
• The service officers of the national veterans' groups;
• Local veterans' groups and veterans' service centers; and
• The Department of Defense Transition Assistance Program (TAP).

AND

• One or more of the veterans' service organizations listed on the National Resource Directory

And so, what is a linkage agreement?

"An agreement describing the connection between contractors and appropriate recruitment and/or training sources. A linkage agreement is to be used by contractors as a source of potential applicants for the covered groups the contractor is interested in, as required by [External dissemination of policy, outreach and positive recruitment.]. The contractor's representative that signs the linkage agreement should be the company official responsible for the contractor's affirmative action program and/or has hiring authority."

So, in more expanded terms, the first component of developing the ratios required for the required hiring benchmarks is:

• Select three appropriate employment delivery systems from the options offered in the regulations.
• Sign a linkage agreement with each that describes the intent of the agreement as it relates to federal contracts and referrals and includes information on other recruiting sources used.
• Set up a system of referral of all job openings
• Set up a system for retaining all referrals* received from the employment delivery systems.

* "all referrals" are necessary in order to complete the referral ratio computation.

View the proposed rule here.

THOMAS HOUSTON associates, inc. can assist you in meeting the challenges that will arise as a result of the upcoming OFCCP's regulatory efforts. We offer pro-active and proven compliance tools and methods.

For more information on the affirmative action compliance services offered by THOMAS HOUSTON associates, inc. visit www.thomashouston.com, call (800) 330-9000 or click here to schedule a convenient time for a call from an Affirmative Action Consultant.

Where's the Availability?

Proposed regulation changes to "Affirmative Action and Nondiscrimination Obligations of Contractors and Subcontractors regarding protected Veterans" require contractors to establish hiring benchmarks "using existing data on veteran availability".

The proposed rule recognizes that availability data is not readily available: ". . .the Bureau of Labor Statistics and Census Bureau do not tabulate data pertaining to the specific classifications of protected veterans under part §60-300 . . ." and requires contractors to "consult a number of different sources of information" in establishing hiring benchmarks.

Two of the required sources are established using new contractor data collection and analyses requirements also included in the proposed rule:

1. Historical ratios (referral, applicant, and hiring), newly established under the proposed rule. The OFCCP believes that the newly required data collection analysis will provide "important information that does not currently exist"; and
2. A review of the effectiveness of the previous 12 months of outreach and recruitment efforts - this will incorporate the contractors' established ratios.

Two additional required sources will be posted on the OFCCP web-site. In establishing hiring benchmarks, there are a total of five sources that contractors "shall take into account":

1. The average percentage of veterans in the civilian labor force in the State(s) where the contractor is located, over the preceding three years, as calculated by the Bureau of Labor Statistics and published on the OFCCP Web site;
2. The number of veterans, over the previous four quarters, who were participants in the employment service delivery system in the State(s) where the contractor is located, as tabulated by the Veterans' Employment and Training Service and published on the OFCCP Web site;
3. The referral ratio, applicant ratio, and hiring ratio for the previous year, as set forth in §60-300.44(k);
4. The contractor's recent assessments of the effectiveness of its external outreach and recruitment efforts as set forth in §60-300.44(f)(3); and
5. Any other factors, including but not limited to the nature of the contractor's job openings and/or its location which would tend to affect the availability of qualified protected veterans.

View the proposed rule here

THOMAS HOUSTON associates, inc. can assist you in meeting the challenges that will arise as a result of the upcoming OFCCP's regulatory efforts. We offer pro-active and proven compliance tools and methods.

For more information on the affirmative action compliance services offered by THOMAS HOUSTON associates, inc., visit our website, call (800) 330-9000 or click here to schedule a convenient time for a call from an Affirmative Action Consultant.