HRM FPX 5025 Assessment 1

Workforce Utilization Analysis

Workforce utilization analysis examines the statistical pattern of equal opportunity data about employers. The measure assesses the availability of a firm’s workforce within a specific legal environment. Utilization analysis can also assist human resources in decision-making when examining hiring requirements for the firm. Workforce utilization analysis is used with affirmative action plans that will include goals, timetables, and action steps.

The Equal Employment Opportunity Commission (EEOC) is a federal government agency committed to enforcing and applying civil rights laws against employment discrimination. EEOC formulates equal employment opportunity (EEO) policies and approves all equal employment opportunity-related lawsuits. The EEOC also conducts the EEO-1 survey, which is a federally required survey on which company employment data must be segmented by race, ethnicity, gender, and job categories. All private employers subject to Title VII of the Civil Rights Act of 1964 with 100 or more employees, those with fewer than 100 employees that are company-owned affiliated employers, and federal contractors who are not exempt under 41 CFR 60-1.5 and have 50 or more employees are required to complete Standard Form 100 (EEO-1) (EEOC, 2019).

Evaluating Stock Statistics

CapraTek is an online company that designs and manufactures computer server parts. The 45-year-old company has close to 1,000 unskilled and skilled workers and supervisors along with management of various levels. A stock study collects employee demographic data and subsequently compares it with the company’s location demographic data. Statistics for CapraTek show that Blacks/African Americans, Hispanics/Latinos, and females have poor employee representation and are underemployed, underhired, and underapplied in both skilled and unskilled laborer categories. Stock statistics show that of a combined total of 1,240 unskilled laborer applicants, new hires, and current employees, 50% are Black/African American, 27% are Hispanic/Latino, and 73% are female. There were 730 candidates with Hispanic/Latino presence last at 11%.

The Hispanic/Latino category also ranked lowest in being employed and working currently. Between the Black/African American and Hispanic/Latino categories, Black/African Americans were employed more. Though more Black/African Americans were employed compared to Hispanics/Latinos, they represented only 16% of the current labor force. Whereas 36% of women were employed, they represented only 18% of the current labor force. Figures of skilled laborers’ stock indicate that all three categories possess a lower percentage. Black/African Americans were just 4% of currently employed individuals, who were 2% higher than Hispanics/Latinos. There is the lowest rate of Hispanics/Latinos being employed at less than one percent.

HRM FPX 5025 Assessment 1 Workforce Utilization Analysis

While 13% of women were working, the category is still responsible for a low number in the presently working group. If CapraTek operates in a rural town in Georgia that has a predominant population of white males, then this would be responsible for the low percentage of Black/African Americans and Hispanics/Latinos working for the company.

Cultural beliefs can also explain the low percentage of females employed at CapraTek. The figures presented could indeed be employed to discriminate against claims and unjustifiable hiring. If the company’s demographics match the city’s demographics, then the same will apply for many years to come. 

Evaluating the Concentration Statistics

The method of concentration analysis relies on the percentage of relevant data in different categories of occupations. From the figures in Figure 2 below, the percentage of females is lower in both skilled and unskilled categories for currently employed, hired, and applied categories.

Women make up 43% of full-time workers in the United States (U.S. DOL, 2016), and if we consider the national percentage and compare it with the female employees of CapraTek, then there is a lot of room for improvement. Black/African Americans, both men and women, make up only 11% of the employees of CapraTek, and Hispanics/Latinos only 5%. There can be many factors involved, such as education levels, previous work experience, and geographic locations. With emphasis on geographic settings, urban and rural settings might play an even greater role since there might be fewer minorities in other rural settings.

Evaluating Flow Statistics

Flow analysis will find similar identifiers in several groups.

For every CapraTek applicant, new employee, and current employee, there must be parity.

Here, flow statistics will examine protected groups and determine if there is any significant difference between each of the groups or subgroups.

Federal law forbids applicant and employment discrimination on the basis of race, color, sex, national origin, age (age 40 or older), and disability. The 4/5ths rule is that the selection rate for any class that is less than 4/5ths of the selection rate of that most selected class with the highest rate shows evidence of disparate or adverse impact. In simplest terms, adverse impact means discriminatory treatment of a protected class. Adverse impact can take place at any interval of employment, termination, promotion, and even firing within a company. There exists a four-step calculation to determine whether a selection process violates the 4/5ths rule, resulting in Figure 3 below.

According to the given example, female hires as operations supervisors to applicants did not suggest discrimination. Females who applied and were employed as operations managers meet the adverse impact requirements according to the 4/5ths rule (SHRM, 2020). 

Recommendations to Correct Identified Issues

As per the information provided, CapraTek has identified that they need to check their selection process to determine if there is adverse impact in the selection process. Implementing the 4/5ths rule as a general process may decide if discriminatory practices are to be expected in their recruitment, hiring, promotions, transfers, training, reduction in force, and performance appraisals. Whatever is wrong in the hiring and selection process needs to be changed immediately with an action plan. Sourcing an outside resource to initiate diversity and inclusion efforts would be a good place to start to help bring people’s mission and vision of the company to incorporate leverage for all individuals. If the company is non-compliant under Title VII, CapraTek needs to work on decreasing lawsuits and other discriminatory allegations. Finally, CapraTek needs to begin by sourcing diverse employees and work from there. Job postings should always include the EEO statement and should reflect serious caution to avoid discrimination against all protected classes (Hughes, 2016).