Common Mistakes to Avoid When Drafting Your Affirmative Action Plan

By Kayla E. Snider - Skoler Abbott P.C.

December 9, 2024

Creating an effective Affirmative Action Plan (“AAP”) is crucial for fostering diversity and inclusion within an organization. Some employers, primarily federal contractors and subcontractors and those that receive federal grants or aid, are required to have AAPs that comply with federal regulations. Whereas other employers, even if not legally required, often put an AAP in place to foster a welcoming and equitable environment.

What is an AAP?

An AAP works to ensure job applicants and current employees are evaluated and treated without regard to their race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. AAPs include policies, practices, and procedures that an employer implements to ensure that all qualified applicants and employees are receiving equal opportunities for recruitment, selection, advancement, and any other terms or privileges associated with employment.

Many companies stumble upon common pitfalls when developing and implementing their AAPs. These mistakes can range from failing to conduct a thorough analysis of the workforce, to overlooking the importance of setting measurable goals. So, what are some of the most frequent errors and how do you avoid them, ensuring your AAP is not only legally compliant, but actually working to promote equal opportunity?

Mistake #1: Inadequate Data Collection and Analysis

One common error is failing to collect and analyze relevant data. Accurate data on the workforce composition, hiring practices, promotion rates, and compensation systems is essential for identifying areas that need improvement. Without this data, it is impossible to create clear, measurable objectives. The most common way to gather employee demographics is through their self-identification. However, some employees may elect not to self-identify, which can lead to gaps when drafting an AAP.

Mistake #2: Lack of Clear Objectives

A frequent mistake that we come across is failing to set clear, measurable goals and objectives. Effective and legally-compliant AAPs must to have specific goals that outline what the organization aims to achieve in terms of diversity and inclusion. These goals should not, and legally cannot, be quota-based. Goals for the equal opportunity of minorities and women should be formulated for each organizational unit and job group and must be expressed as a percentage. The formulation of each goal should be based on what would be reasonable, considering the cultural and gender profile of the geographic area from which recruitment occurs.

Mistake #3: Failure to Communicate and Train

Effective communication and training are vital for the success of an AAP. Employees must understand the purpose of the plan, their role in it, and how it will benefit the organization. The AAP names a designated coordinator for the plan.  The designated coordinator should ensure those who will have a more active role in implementing the AAP understand what will be required of them not only in terms of taking steps to increase diversity and inclusion, but also in terms of reporting data and auditing the effectiveness of the procedures the AAP has put in place.

AAPs are intended to guide a company’s policies and plans for the year. They should be customized to reflect a particular employer’s structure, policies, and practices.  Employers who are not mandated to have an AAP but are interested in demonstrating a commitment to a diverse workforce should give thought to implementing an AAP plan in 2025 that outlines the steps it will take to ensure equal employment opportunities.  If you have any questions about drafting an AAP for your organization, or your organization’s current AAP, consider contacting experienced labor and employment counsel for guidance.

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