The process of determining whether there are any subgroups whose proportion in a given job category within a company is substantially different from their proportion in the relevant labor market is called _.
A. adverse treatment analysis
B. workforce utilization review
C. subgroup reconciliation
D. discrimination analysis
E. leading indicator
The correct answer and explanation is :
The correct answer is:
B. Workforce utilization review
Explanation:
A workforce utilization review is a process used by organizations to compare the representation of different demographic subgroups (such as race, gender, or ethnicity) within specific job categories to their availability in the relevant labor market. The purpose is to identify any disparities that may suggest potential barriers to equal employment opportunity.
Why Workforce Utilization Review?
- Comparison with the Labor Market
- This review involves analyzing workforce composition and comparing it to external labor market data. If a subgroup is significantly underrepresented, it may indicate potential barriers to hiring or promotion.
- Legal and Compliance Considerations
- Many organizations conduct this review as part of affirmative action plans (AAPs) to comply with regulations such as those enforced by the Equal Employment Opportunity Commission (EEOC) or the Office of Federal Contract Compliance Programs (OFCCP) in the U.S.
- Identifying Disparities
- A workforce utilization review does not automatically imply discrimination, but it helps employers recognize imbalances that might require further investigation or corrective action.
- Strategic Workforce Planning
- Beyond legal compliance, companies use workforce utilization analysis for diversity and inclusion (D&I) initiatives to ensure fair representation in hiring, promotions, and retention.
Why Not the Other Options?
- A. Adverse treatment analysis – Focuses on discriminatory actions against individuals rather than workforce composition.
- C. Subgroup reconciliation – Not a standard HR term for this type of analysis.
- D. Discrimination analysis – More general, does not specifically refer to comparing workforce proportions.
- E. Leading indicator – Refers to predictive metrics, not workforce representation analysis.
Thus, the best choice is B. Workforce utilization review.