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.

Within the completed AAP, this analysis is reflected in the INCUMBENCY VS. AVAILABILITY report, while goals will be displayed on the PLACEMENT GOALS report.

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 (System default)

A placement goal is declared when employment is less than availability by at least one whole person, or the result of (Availability - Employment ) × Total in Job Group > 1 Whole person.

Example:

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, or when:(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, or when: (0.8 x Availability %) x Total Persons in Job Group > 1 Whole person.

Example:

Total Persons in Job Group = 40

Female Employment = 20%

Female Availability = 30%

(0.8 x 30) = 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, or when:

[(Availability x Total Persons in Job Group) - Number in Protected Class] / the square root of [(1 - Availability ) x Availability x Total Persons in Job Group].