fundamentals of eeo in a career-banded environment career-banding 101 office of state personnel...
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Fundamentals of EEO in a Career-Banded Environment
Career-banding 101
Office of State PersonnelFebruary, 2007
Fundamentals of EEO in a Career-Banded Environment
Training Objectives:
- Discuss EEO laws and pay equity concepts related to compensation systems.
- Provide an overview of the different types of discrimination and their application in compensation systems.
- Provide strategies and tools for addressing EEO and pay equity concerns.
- Discuss components of the Employee Advisory Committee.
Laws Related to the Administration of Pay
Fair Labor Standards Act
Equal Pay Act Title VII of the Civil
Rights Act Civil Rights Act (1991) Age Discrimination Act Americans with
Disabilities Act
Types of Pay Equity in a Career-Banded Environment
Internal Equity
External Equity
Individual Equity
Pay Factors
FAIR Financial Resources Appropriate Market Rate Internal Pay Alignment Required Competencies
Types of Discrimination
Disparate Treatment
• Direct discrimination
• Unequal treatment• Intentional• Prejudiced actions• Different standards
for different groups
Disparate ImpactIndirect discriminationUnequal consequences or resultsUnintentionalNeutral actionsSame standards but different consequences
Disparate Treatment
Examples:• Automatically reject
Hispanic applicants• Sexual harassment (quid
pro quo)• Different entry
requirement for men and women
• Inconsistent management practices (discipline for white versus minority employees)
Disparate Treatment
Precedent-Setting Discrimination Case: McDonnell Douglas Corp. v. Green
Supreme Court ruled that individuals can show a prima facie case of disparate treatment if they:
• Belong to a minority group.• Applied for a job.• Were rejected despite being qualified.• Were rejected and yet the employer kept
looking for people with their qualification.
Disparate or Adverse Impact Example:
• Nonessential education requirements for certain jobs that impact minority groups.
• Nonessential height and weight requirements.
Evaluated using the Uniform Guidelines on Employee Selection
Procedures
Disparate or Adverse Impact
Precedent-Setting Discrimination Case:• Griggs v. Duke Power (1971)
Employment discrimination need not be overt or intentional to be present. Employment practices can be illegal even when applied to all employees.
Burden of proof lies with the employer to show that any employment requirement is directly job-related.
Possible Connections
Concern PossibleImpact
PossibleOutcome
Too Much Management Control
Inconsistent pay decisions and/or
prejudicial actions
Loss of EquityDisparate Treatment
Competencies that are Not Job Related
Unequal consequences or results
Disparate Impact
Inadequate Resources for Implementation
Staggered or unequal implementation
Wage Gaps Loss of Equity
What If?
Manager A values “market” as the most important pay factor and gives 1 employee a 10% adjustment to close the market gap.
Manager B values “equity” as the most important pay factor and gives 10 employees a 1% adjustment to be fair.
What If?
Manager A in the Division of Very Smart People insists that all Administrative Support Associates be required to have a college degree. This training requirement is higher than the state standard and has not been validated for its relationship to job success.
What If?
Inadequate resources result in a management decision to focus salary reserve funds on career-banding implementation, while other actions within the graded system are recognized as a lower priority.
Strategies and Tools
Strategies and Tools to Address EEO and Pay Equity Concerns:
1. Training2. Accountability3. Decision-Point Monitoring Techniques4. Four-Fifths or 80% Rule5. Employee Advisory Committee
Training
Managers and Supervisors
• Preliminary to implementation
• Continued high level technical support
Accountability
1. HR Office Responsibilities
2. Management Responsibilities
3. Employee Responsibilities
4. Employee Advisory Committee
Decision-Point Monitoring Techniques
Internal Monitoring Systems
External Monitoring Systems - PMIS
• PM669• PMEMP• PMXCLASS
Four-Fifths or 80% Rule Uniform Guidelines on Employee
Selection Procedures• Covers all aspects of the selection process • Applicable actions include:
Movement from one banded class to another with a higher journey market rate.
Movement from one competency level to another.
Movement within a competency level that results in compensation change.
Example of 80% Calculation
Contributing AdvancedMales 40 20Females 30 6
1. Identify selection rates (males = 50% (20/40)) (females = 20% (6/30))
2. Identity group with highest rate = males at 50%3. Establish selection rate to avoid adverse impact (selection rate
threshold) = 4/5th or 80% of 50% = 50% x .8 = 40%4. Determine if adverse impact is indicated. In this case, female
selection rate is only 20%, less than the 40% threshold.
Employee Advisory Committee
Required beginning in 2007 (EEO Plan)
Combine with EEO Committee or Stand Alone
Reporting Requirements to OSP, A/U Head, and HR Director
Employee Advisory Committee
Guidelines: Mission Statement Role and Responsibility Membership Composition Selection and Appointment Length of Appointment Voting Meetings Training Reporting
Employee Advisory Committee (Reporting)
Area of Analysis #1 (Representation)
A demographic analysis of employees by standard occupational category and competency level.
Area of Analysis #2 (Activity)A demographic analysis of employee activity involving 1) competency level change within band, and 2) promotions.