Survey Result with regard to Applicant Tracking Systems (ATS)

By Nina Le-Tse

BCG Institute for Workforce Development (BCGi) sponsored a survey to compile the perceived success of diversity initiatives across organizations of all sizes. As a model for this survey, BCGi used the recommendations outlined in the articles written by Dan Biddle, PhD and Patrick Nooren, PhD, titled, Diversifying Your Organization: How to Actually Make it Happen in EEO Insight. The survey was circulated in January 2009.

One of the questions asked whether respondents evaluated their Applicant Tracking Systems (ATS) to ensure that it is capable of collecting/retaining the required EEO information. The results indicated that a vast majority of contractors, regardless of company size, claim to have evaluated their ATS to ensure it is capable of collecting proper information to address Equal Employment Opportunity (EEO) data requirements (e.g., disposition codes). ). As a consultant who have been in this field for more than six (6) years, these results are surprising because in the event of an audit, most contractors are unable to identify the step where each applicant fell out of the selection process (e.g., did not meet minimum qualifications, passed or failed phone interview, declined offer, etc.). Tracking applicants through the selection process is not an easy task. The OFCCP is aware of the difficulty of collecting and retaining proper applicant data, and this unfortunately makes contractors vulnerable to recordkeeping violations during audits. At the 2009 National Industry Liaison Group Conference in Atlanta, Georgia, the OFCCP noted that recordkeeping is still the number one violation issued during compliance reviews. In fact, during the 2008 fiscal year, Office of Federal Contractor Compliance Programs (OFCCP) collected $67,510,982 in back pay, salary, and benefits from federal contractors for systemic discrimination. As always, the OFCCP can rely on an “adverse inference” if proper applicant information is not collected or retained Given the current focus of the OFCCP and other federal enforcement agencies on adverse impact in hiring, proper design of applicant tracking systems is vital.
It is an unfortunate situation when employers are unable to defend themselves in the event of an audit or litigation simply because they lack the data to properly do so. If the goal is to create a diversified workforce, then employers need reliable reports that can direct their efforts towards meeting this goal. Outside using the appropriate metrics to create meaningful reports, correct and reliable data should be the first and foremost in any employer’s agenda. It’s not just about the right statistical process; it’s about the right data.

Below are some of the recommendations that will help employers properly collect and retain applicant data and consequently, impact their diversity initiatives:
• Configure your applicant tracking system to collect and retain all necessary information.
• Configure your applicant tracking system to collect and retain a history of disposition codes for each applicant, or
o Develop disposition codes to identify where each applicant is within the process and where each applicant has fallen out and why
• Implement a requisition-based system to more easily link applicants to hires
• Train on the proper usage of the system and regularly evaluate usage of the system
• If at all possible, funnel the steps in the recruitment process to force users of the ATS to follow the designated steps and eliminate manual decisions and selections wherever possible
• Proactively run adverse impact analyses (at least on the high-volume positions) and inform those with the ability to affect change
• Validate all steps in the process

To view the full results of the survey as well as the article, Diversifying Your Organization: How to Actually Make it Happen, please visit www.EEOInsight.com.