Compensation Practices Self-Evaluation

President Johnson aimed to change the social, political, and economic environment of the US by building a great society. The Executive Order 11246 was issued as a significant move towards equal employment opportunities. Making certain that minorities receive fair treatment in hiring, training, and contracting was the duty of the secretary of labor. This executive order prohibits racial, ethnic, and religious discrimination in employment and contractual agreements (Wilcox and David 10). This provided a guide on how racial, ethnic, and religious discrimination would be stopped and opened doors to affirmative actions. Since then, the Executive order gas underwent a series of amendments to strengthen it further to protect workers from discriminatory federal contractors.
Required Resources
Under the regulations of federal affirmative actions, federal contractors are obliged to perform an annual evaluation that ensures that minorities and women are treated fairly. Self-evaluation of compensation practices mandates contractors to choose their desired self-evaluation procedures that should comply with the Office of the Federal Contract Compliance Programs. This means that their self-evaluation outline principles they should adhere to. Therefore, the Office of Federal Contract Compliance Programs would be required to do an independent analysis of the compensation data and practices of the federal contractors (Federal Register, 2011). Adequate information should include how the evaluation was conducted, data and results of any statistical analysis, indications of investigations into the inequality and solutions undertaken. Also, it is critical to note that the self-evaluation should cover at least 80% of the entire workforce.
In this regard, a self-evaluation for compensation requires a dedicated team who will conduct their evaluation and analyze collected data. Since the evaluation would be done on not less than 80% of the workforce, statistical tools of analyzing data would be critical (Federal Register, 2011). Analytical instruments such as commercially available SAS software would evaluate data and carry out a multiple regression analysis to test for possible disparities. Most importantly, since regression is involving, the self-evaluation would require a statistician. Costs of investigating, collecting, and sorting data that would be analyzed is high considering it includes many workers. Therefore, federal contractors would be required to have adequate finance to fund this activity. Furthermore, the evaluating team would have to be paid. Also, back-dated payments and other reliefs would have to be made as part of the remedial action. Not to forget, the workforce is a fundamental component in the evaluation process thereby being part of the required resources. Employees with similar skills and responsibilities are to be placed under Similarly Situated Employee Groupings. The groupings should include not less than 30 employees and at least five comparisons for each of the minority groups.
Employing legal lawyers and auditors would also be a requirement when doing the self-evaluations. This means that additional costs and resources will be spent for their rendered services. Legal lawyers need to explore any likelihoods of unnoticeable loopholes that may be regarded as discriminatory. They are also helpful in educating on what the law requires with regards to self-evaluation of compensation. It is fundamental to note that Office of Federal Contract Compliance Programs will use the same criterions courts use to evaluate discriminatory pay cases that are brought by individual workers. For instance, a black worker having the same qualifications and responsibilities as a white worker should have an equal pay to the counterpart. Therefore, legal business attorneys will be necessary throughout the process.
What to Consider
Contractors who opt to follow these guidelines should know its implications. According to the Office of Federal Contract Compliance Programs, this self-evaluation is a means of identifying discriminatory practices. Therefore, the principal danger lies in the fact that any income disparities identified through the review would be an indication of discrimination (Thomas 2). Also, in the case of discrimination lawsuits, plaintiffs will outwardly be made aware of the obligations federal contractors have. As a result, they might pursue harsh lawsuits following the established guidelines of self-evaluations by the Office of Federal Contract Compliance Programs.
In this respect, federal contractors should engage in full legal counsel with the participation of relevant attorneys. Through this, they would gain privileged information on how employees are grouped among other factors that are considered crucial for compensation processes. However, regardless of the type of evaluation chosen, grouping of employees should fall under privilege at the full disposal of legal attorneys. Essentially, if a federal contractor does not comply with the compensation guidelines, there are possibilities of been accused of discriminatory practices.
In the same regard, including possible risks to manage would be helpful in eliminating likelihoods of having discriminatory practices. For instance, federal contractors should review what criteria they use to compensate their employees. As it stated in Executive Order 11246, compensation should not be based on bias and favoritism. Rather, it should be open and fair to all workers regardless of their differences (Thomas 2). Therefore, if a contractor uses different compensation procedures that factor in gender and race, it would not be wise to follow the guidelines as they would be exposed.
















References
Federal Register, (2011). Office of Federal Contract Compliance Programs; Voluntary Guidelines for Self-Evaluation of Compensation Practices for Compliance With Nondiscrimination Requirements of Executive Order 11246 With Respect to Systemic Compensation Discrimination. U.S Department of Labor. Retrieved from http://webapps.dol.gov/FederalRegister/PdfDisplay.aspx?DocId=24587
Thomas, Stephanie R. "Why Equity in Compensation Matters." Compensating Your Employees Fairly. Apress, 2013. 1-17. Retrieved from http://link.springer.com/chapter/10.1007/978-1-4302-5042-5_1/fulltext.html
Wilcox, Kirby C., and David M. Youngsmith. "Overview of Equal Employment Opportunity Laws." California Employment Law 2 (2015). Retrieved from https://litigation-essentials.lexisnexis.com/webcd/app?action=DocumentDisplay&crawlid=1&doctype=cite&docid=2-40+California+Employment+Law+40.syn&srctype=smi&srcid=2B5F&key=964a2c90dfef2a9ed544190bffcf4882

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