Utilization Rules
Utilization Rules
When comparing incumbency to availability, five acceptable utilization tests may be used in order to determine if there is a placement goal in any particular job group. Incumbency (employment) refers to the percentage of minorities and women employed in each job group. Availability refers to the estimated percentage of minorities and women available internally and externally for each job group.
Whole Person Rule
A placement goal is set when availability exceeds employment by at least one whole person.
Formula:
(availability - employment ) × total in job group is more than 1 whole person.
Example:
Availability = 26.8% Employment = 23.5% Total Job Group = 68 employees
(26.8% availability - 23.5% employment) x 68 persons employed in job group = 2.24 persons
In this case, a placement goal would be set in this job group for this protected class because the difference of availability over employment represents 2.24 persons, more than one whole person.
Eighty Percent Rule
A placement goal is set when employment is less than 80% of availability.
Formula:
(.8 × availability percentage) is more than employment percentage
Example:
Availability = 26.8% Employment = 23.5%
(.8 × 26.8 availability percentage) = 21.4
21.4 is NOT more than 23.5 employment percentage
In this case, no placement goal would be set. While the availability did exceed employment, 80% of availability did not exceed employment.
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 consult the BALANCEaap Statistics Information page for more information.