Utilization Rules

For information on related modules, see:

What is the Utilization Rule used for?

Federal contractors are required to conduct an analysis to determine whether minorities and females are being employed (or utilized) at a rate that would be reasonably expected, based on the estimated Availability of qualified minority or female candidates, both externally to the organization and internally. When the percentage of minorities or women employed in a Job Group is less than what would be expected, a goal is established for use in remedying the underutilization.

Accepted Utilization Rules

When comparing the employment of minorities and females to availability, the contractor may choose from five Utilization rules:

Any Difference

A placement goal is declared when employment is less than availability, regardless of the size of the difference.

Whole Person

A placement goal is declared when employment is less than availability by at least one whole person.

Formula: The result of (Availability - Employment ) × Total in Job Group > 1 Whole person

Example:

Number of Total Persons in Job Group: 68

Female Employment: 23.5%

Female Availability = 26.8%

(26.8 - 23.5) x 68 = 2.24

A placement goal would be set in the Job Group.

Eighty Percent

       A placement goal is declared when employment is less than 80% of availability.

Formula: The result of (Employment/Availability) x 100 > 80%.

Example:

Female Employment = 23%

Female Availability = 25%

(23/25) x 100 = 92%

Utilization meets statistical requirements.

Eighty Percent/ Whole Person

       A placement goal is declared when employment is less than 80% of the availability by one whole person or more.

Formula: The result of (0.8 x Availability %) x Total Persons in Job Group > 1 Whole person

Example: Total Persons in Job Group = 40

Female Employment = 23% female employment20%

Female Availability = 25% female availability30%

(

23/25)(0.8 x 10030) = 92%24; and 0.24 x 40 = 9.6

0.20 x 40 = 8

Because 9.6 exceeds 8 by more than 1, a placement goal is set.

Significant Difference

       A placement goal is declared when employment is less than availability by a statistically significant amount.

Eighty Percent/Whole Person Rule

A placement goal is set when employment falls short of 80% of the availability by one whole person or more.

Formula:

(.8 x availability percentage) x Number of people in the job group is 1.0 or more greater than the employment percentage.

Example

Availability = 30%, Employment = 20%, 40 people in the job group

(.8 x 30.0 availability percentage) = 24%

(24% x 40 people in the group) = 9.6 expected

(20% employment x 40 people in the group) = 8 employed.

In this case, you would have a goal for this group, since the 9.6 expected is more than 1 whole person greater than the 8 persons employed.

Any Difference Rule

For a protected class in a job group, a placement goal is set when availability exceeds employment by any amount.

Significant Difference Rule

A placement goal is set when availability exceeds employment by a statistically significant amount.

Formula:

[(Availability x total employees in the job group) - number of protected class employees]

divided by the square root of

[(1 - Availability ) x Availability x total employees in the job group]

Please consultsee: the BALANCEaap Statistics Information page for more information..