For any organization working with the U.S federal government, compliance with the OFCCP guidelines around workforce and hiring practices is essential. Non-compliance can result in significant fines.
Discriminatory practices could cost you up to $9 million in fines
The OFCCP has issued over $200m in violation fines to over 430 companies and this is increasing. $45 million in fines were issued in 2020 alone, up over 30% on 2019 and a 110% increase from 2018 - with an average fine of $460,000 and larger fines reaching over
Desk Audits cost over $23 million in time and resourcing
It’s not just the financial burden of a violation fine, however, there are also the ‘hidden costs’ of administering an OFCCP audit. In addition to investigating complaints, the OFCCP conducts audits to determine whether the Federal contractor (the employer) is fulfilling the obligation to maintain non-discriminatory employment practices.
As a result, the OFCCP can issue a request to conduct a desk audit at any time, where they will review your data, policies and practices to determine whether you are fulfilling the obligation to maintain non-discriminatory employment practices.
Over the course of 2021, the OFCCP expects to conduct over 3,000 audits annually. According to industry experts, the average audit lasts 720 days and costs US companies a total of $23,910,884 in time and resources.
In summary, organizations are paying a heavy price for poor practices and non-compliance. To further this point, the OFCCP keeps a record of these violations, and they are retained on the organization’s procurement record for all prospective federal government customers to see.
The average OFCCP audit lasts 720 days and cost US companies a total of $23,910,884 in time and resources
How you design, manage and report on the inclusivity of your jobs has a huge impact on ensuring OCCCP compliance and plays a vital role in the data provided in an OFCCP compliance audit. If you are not prepared, it can cost you millions in unnecessary time and resources.
Achieving OFCCP compliant Job Descriptions
STEP 1: Integrate a systematic review of Job Qualifications into your recruitment process
STEP 2: Ensure candidates are selected and hired based on valid job qualifications
STEP 3: Put an equality statement on all job postings
STEP 4: Ensure gender neutral job descriptions
STEP 5: Job Family diversity analysis and reporting
STEP 6: Quick access to accurate job descriptions for desk audits
The RoleMapper platform has a range of modules that adhere to all requirements and enables you to, not just standardize and digitize your library, but also debias roles, job ads and descriptions, access data-led insights and practice good governance with a range of reporting features.
With RoleMapper, businesses are able to Digitize, Standardize, Optimize, Connect and Manage job families, libraries, ads and recruitment practices.
If you’re looking to improve compliance across the enterprise, why not book a demo and find out how we can help your organization.