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Newsletter Summer 2007

An OFCCP Audit May Be In Your Recruitment Future. Are You Ready?


Federal auditors may soon be on your recruitment doorstep. Are you ready?

The Office of the Federal Contract Compliance Programs (OFCCP) is responsible for overseeing the Internet Applicant rule, which took effect in February of 2006. The Internet Applicant guidelines were implemented due to the changing landscape of the recruitment industry, driven by the increase in electronic recruiting. The guidelines define what it means to be an ' Internet Applicant. ' The ruling specifically defines electronic data techniques, creates a new ' Basic Qualification ' standard and establishes recordkeeping requirements.

Since 2006, the responsibility has been on individual employers and their HR departments to ensure they comply with the ruling and maintain the appropriate records for an OFCCP review. However, the honeymoon is over and the OFCCP has begun audits of companies' compliance with their ruling.

What does this mean for HR professionals? Poor recordkeeping compliance and inconsistent recruitment practices can result in conciliation agreements and significant financial loss. Companies that fail an OFCCP audit could face a number of unpleasant and costly consequences, including back pay settlements, and a tarnished reputation. Thus, taking precise steps now to ensure compliance is more important than ever.

So, how can smart companies prevent the downside of non-compliance? HRworks suggests a qualified third-party conducts an internal audit of hiring processes to get an accurate read on both effectiveness and compliance. Among the areas evaluated would be the recordkeeping, selection by recruitment stage, data management techniques and online recruiting methodology.

Comprehensive audits need to include internal recruitment practices of recruiters and hiring managers as well as third-party search firms. Once the internal audit is complete, consider solutions to any exposed problems and develop a strategy for implementing any corrections or changes.

Careful selection of the right advisor for your internal audit is important. Waiting for the OFCCP to audit is not an option. Working with an experienced partner can improve your performance, enable you to minimize liability for non-compliance and help continue to attract the necessary talent to build your business.

With our depth of resources and recruitment governance expertise, HRworks can perform comprehensive audits of your entire recruitment process, applicable systems and technology and provide recruitment support as you address compliance issues.

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