HRM FPX 5025 Assessment 1 Workforce Utilization Analysis

Student Name

Capella University

HRM-FPX5025 Talent Acquisition and Workforce Planning

Prof. Name

Date

Workforce Utilization Analysis

Workforce utilization analysis examines the statistical behavior of equal opportunity data from employers. This tool assesses the availability of a company’s workforce within any given legal environment. Utilization analysis also assists human resources in making better decisions regarding the company’s hiring needs. It is used in affirmative action plans, which include goals, timetables, and action steps.

The Equal Employment Opportunity Commission (EEOC) is a federal agency dedicated to administering and enforcing civil rights laws against workplace discrimination. The EEOC formulates equal employment (EEO) policies and approves all litigations involving equal employment opportunities. The EEOC is responsible for the EEO-1 survey, mandated by federal statute, which requires company employment data to be categorized by race, ethnicity, gender, and job responsibilities. All private employers subject to Title VII of the Civil Rights Act of 1964 with 100 or more employees, employers with fewer than 100 employees owned by an affiliated company, and federal contractors not exempt per 41 CFR 60-1.5 with 50 or more employees are required to complete Standard Form 100 (EEO-1) (EEOC, 2019).

Evaluating Stock Statistics

CapraTek is a virtual company that designs and manufactures computer server components. The 45-year-old company employs nearly 1,000 employees, including both skilled and unskilled workers, supervisors, and various management levels. A stock analysis collects demographic employee information and compares it against the demographic information of the company’s location. Statistics for CapraTek, shown in the visual below, indicate low employee representation of Blacks/African Americans, Hispanics/Latinos, and females in the categories of employed, hired, and applied, in both skilled and unskilled labor groups. The stock statistics reveal that, out of a mixed total of 1,240 unskilled laborer applicants, new hires, and currently employed individuals, 50% are Black/African Americans, 27% are Hispanic/Latino, and 73% are female. There were 730 Hispanic/Latino applicants, the lowest at 11%. The Hispanic/Latino category also rated lowest in being hired and currently employed. Between the Black/African American and Hispanic/Latino categories, more Black/African Americans were hired. Even though more Black/African Americans were hired compared to Hispanic/Latinos, they only made up 16% of those currently employed. Although 36% of females were hired, they only constituted 18% of the current workforce. The skilled laborers stock statistics show a lower percentage for all three categories. Black/African Americans made up only 4% of those currently employed, which was 2% more than Hispanic/Latinos. Hispanic/Latinos had the lowest percentage of being hired at less than one percent. Although 13% of females were hired, this category still represents a low number in the currently employed group. If CapraTek operates in a rural city in Georgia, where the majority population is comprised of white males, this could explain the low percentage of Black/African Americans and Hispanic/Latinos employed at the company. Cultural beliefs may also contribute to the low number of females employed at CapraTek. The statistics shown could potentially lead to discrimination claims and allegations of unfair hiring practices. If the company’s demographics mirror the city’s demographics, this trend could persist for years to come.

Unskilled Laborers

Skilled Laborers

Evaluating the Concentration Statistics

The methodology of concentration analysis here focuses on the percentage of relevant data that falls into different job categories. Based on the data in Figure 2 below, it appears that female representation is at a lower value for both skilled and unskilled for currently employed, hired, and applied groups. Females make up 43% of the full-time workforce in the United States (U.S. DOL, 2016). When comparing the national percentage against CapraTek’s female workforce, there is much room for improvement. Black/African Americans, both male and female, comprise only 11% of CapraTek’s workforce, and Hispanic/Latino representation is only 5%. Various factors may contribute to this disparity, such as education requirements, previous work experience, and geographic location. Urban and rural settings may play a more critical role, as there may be fewer minorities in certain rural settings.

Relevant Labor Forces

Evaluating Flow Statistics

Flow analysis shows common identifiers but in different groups. For all CapraTek’s applicants, new hires, and current employees, there must be a level playing field. In this case, flow statistics will examine protected groups and determine if there is a significant difference in each group or sub-group. Federal law prohibits applicant and employment discrimination based on race, color, sex, national origin, age (40 or older), and disability. The 4/5ths rule states that a selection rate for any class that is less than 4/5ths of the rate for the class with the highest selection rate indicates evidence of adverse or disparate impact. Adverse impact refers to discriminatory action against a protected class. It can occur at any stage of recruiting, hiring, promoting, and even laying off employees. A four-step calculation is used to determine whether a selection process violates the 4/5ths rule. The results are shown in Figure 3 below. For example, females hired as operations supervisors compared to applicants did not show discrimination. However, females hired as operations managers did meet the adverse impact criteria according to the 4/5ths rule (SHRM, 2020).

4/5ths Calculation

Recommendations to Correct Identified Issues

Based on the information provided, CapraTek needs to review its selection process to determine if there is an adverse impact. Using the 4/5ths rule as a foundational process can help identify any foreseeable discriminatory practices in recruitment, hiring, promotions, transfers, training, workforce reduction, and performance appraisals. Any issues identified in the selection and hiring process should be addressed immediately with an action plan. Seeking an outside source to initiate diversity and inclusion programs would be a good start to help update the company’s mission and vision to include leverage for all employees. If the company is out of compliance regarding Title VII, CapraTek should work to lessen lawsuits and other discriminatory accusations. Ultimately, CapraTek needs to focus on recruiting diverse employees and ensuring that job descriptions always include the EEO statement, taking serious precautions to prevent discrimination against all protected classes (Hughes, 2016).

References

Hughes, C. (2016). Using diversity intelligence for an inclusive organization. TD: Talent development, 70(6), 76-77. Retrieved from http://search.ebscohost.com.library.capella.edu/login.aspx?direct=true&db=ehh&AN=115859711&site=ehost-live&scope=site

Society of Human Resources Management, (2020). SHRM. Avoiding adverse impact in employment practices. Retrieved from https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/avoidingadverseimpact.aspx

U. S. Department of Labor, (2016). Women’s Bureau. Full-time/part-time employment. Percent Distribution of workers employed full-time and part-time by sex. Retrieved from https://www.dol.gov/agencies/wb/data/latest-annual-data/full-and-part-time-employment#Percent-distribution-of-workers-employed-full-time-and-part-time-by-sex

HRM FPX 5025 Assessment 1 Workforce Utilization Analysis

U. S. Equal Employment Opportunity Commission, (2019). EEO-1: Who must file. Retrieved from https://www.eeoc.gov/employers/eeo1survey/whomustfile.cfm