Utilization Rules

Utilization Rules

When

What comparingis incumbencythe Utilization Rule used for?

Federal contractors are required to availability,conduct fivean acceptable utilization tests may be used in orderanalysis to determine ifwhether thereminorities isand females are being employed (or utilized) at a placementrate goalthat inwould anybe particularreasonably jobexpected, group.based Incumbencyon (employment)the refersestimated Availability of qualified minority or female candidates, both externally to the organization and internally. When the percentage of minorities andor women employed in eacha jobJob group.Group Availabilityis refersless than what would be expected, a goal is established to remedy the estimatedunderutilization.

Accepted percentageUtilization Rules

When comparing the employment of minorities and womenfemales availableto internallyAvailability, andthe externallycontractor formay eachchoose jobfrom group.five Utilization rules:

WholeAny Person Rule

A placementDifference: lacement goal is setdeclared when availabilityemployment exceedsis employmentless than avilability, regardless of the size of the difference Whole Person       –availability by at least one whole person.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       –80% of availability

Eighty Percent/ Whole Person       –80% of the availability by one whole person or more

Significant Difference       –availability by a statistically significant amount

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.

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.