HRM FPX 5025 Assessment 1 Workforce Utilization Analysis

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 investigates the statistical patterns of equal opportunity data within organizations. This analytical tool evaluates the availability of a company’s workforce in a specific legal context. Additionally, utilization analysis aids human resources in making informed decisions when assessing the company’s hiring needs. It is also employed in affirmative action plans that include objectives, timelines, and actionable steps.

The Equal Employment Opportunity Commission (EEOC) is a federal agency dedicated to enforcing civil rights laws against workplace discrimination. The EEOC develops equal employment opportunity (EEO) policies and oversees all litigation related to equal employment opportunities. One of the key responsibilities of the EEOC is the administration of the EEO-1 survey, which is mandated by federal law. This survey requires companies to categorize employment data by race, ethnicity, gender, and job responsibilities. Private employers subject to Title VII of the Civil Rights Act of 1964 with 100 or more employees, employers with fewer than 100 employees who are part of an affiliated company, and federal contractors with 50 or more employees who are not exempt under 41 CFR 60-1.5, are required to complete Standard Form 100 (EEO-1) (EEOC, 2019).

Evaluating Stock Statistics

CapraTek is a virtual company that specializes in designing and manufacturing computer server components. The company, with a 45-year history, employs nearly 1,000 individuals across various skill levels, including supervisors and management. A stock analysis collects demographic data on employees and compares it with demographic information from the company’s location. Statistics for CapraTek reveal underrepresentation of Blacks/African Americans, Hispanics/Latinos, and females in the employed, hired, and applied categories within both skilled and unskilled labor groups. The stock statistics show that out of a combined total of 1,240 unskilled labor applicants, new hires, and current employees, 50% are Black/African Americans, 27% are Hispanic/Latino, and 73% are female.

There were 730 applicants, with Hispanic/Latino representation at only 11%. The Hispanic/Latino group also had the lowest percentages in terms of hiring and current employment. Among Blacks/African Americans and Hispanics/Latinos, more Blacks/African Americans were hired. Despite this, Blacks/African Americans only constituted 16% of those currently employed. Although 36% of females were hired, they only represented 18% of the current workforce. The stock statistics for skilled laborers show even lower percentages across all three categories. Black/African Americans made up only 4% of those currently employed, which was 2% higher than Hispanics/Latinos. Hispanics/Latinos had the lowest hiring percentage at less than one percent.

Although 13% of females were hired, they still represent a small portion of the currently employed group. If CapraTek operates in a rural city in Georgia, where the majority of the population is white males, this could account for the low percentage of Black/African Americans and Hispanics/Latinos employed at the company. Cultural factors may also contribute to the low number of females employed at CapraTek. These statistics could potentially lead to discrimination claims and allegations of unfair hiring practices. If the company’s demographics continue to mirror those of the surrounding area, these trends may persist.

Unskilled Laborers

Skilled Laborers

Evaluating the Concentration Statistics

Concentration analysis focuses on the percentage of relevant data across various job categories. Based on the data in Figure 2 below, female representation is lower in both skilled and unskilled groups for the employed, hired, and applied categories. Females constitute 43% of the full-time workforce in the United States (U.S. DOL, 2016). Comparing this national percentage with CapraTek’s female workforce reveals a significant gap. Black/African Americans, both male and female, make up only 11% of CapraTek’s workforce, while Hispanics/Latinos represent just 5%. Various factors, such as education requirements, previous work experience, and geographic location, could contribute to these disparities. The emphasis on geographic locations, particularly the distinction between urban and rural settings, may play a crucial role, as rural areas often have fewer minorities.

Relevant Labor Forces

Evaluating Flow Statistics

Flow analysis identifies common trends across different groups. For all CapraTek’s applicants, new hires, and current employees, it is essential to ensure a level playing field. Flow statistics will examine protected groups to determine if significant differences exist among them. Federal law prohibits discrimination in applicant and employment practices based on race, color, sex, national origin, age (40 or older), and disability. The 4/5ths rule states that if the selection rate for any class is less than 4/5ths of that for the class with the highest selection rate, there is evidence of adverse or disparate impact.

Adverse impact refers to discriminatory practices affecting a protected class, which can occur during recruiting, hiring, promotion, and layoffs. There is a four-step process to determine whether a selection process violates the 4/5ths rule, with results presented in Figure 3 below. In the example given, females hired as operations supervisors did not experience discrimination when compared to applicants. However, females who applied for and were hired as operations managers met the adverse impact criteria under the 4/5ths rule (SHRM, 2020).

4/5ths Calculation

Recommendations to Correct Identified Issues

Based on the information provided, CapraTek should review its selection process to determine whether adverse impact exists. Utilizing the 4/5ths rule as a foundational guideline can help identify potential discriminatory practices in recruitment, hiring, promotions, transfers, training, workforce reduction, and performance evaluations. Any issues identified in the selection and hiring process should be promptly addressed with an actionable plan.

Engaging an external consultant to implement diversity and inclusion programs would be a beneficial step in updating the company’s mission and vision to support all employees. If CapraTek is found to be non-compliant with Title VII, the company should take measures to mitigate lawsuits and other discrimination claims. Ultimately, CapraTek should focus on recruiting a diverse workforce and continue to build from there. Job descriptions should always include an EEO statement and ensure that discrimination against all protected classes is strictly avoided (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 for Human Resource 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