STATE OF THE AGENCY FY 10 EEO Program Status Report & FY 11 EEO Plan The purpose of this briefing is to provide information on the FY 2010 EEO Program Status Report, and the FY 2011 EEO Plan which was recently submitted to EEOC. OFFICE OF DIVERSITY AND INCLUSION Office of Human Resources and Administration U.S. Department of Veterans Affairs 1

Background and Legal Foundation EEOC Management Directive 715 (MD-715) Provides policy guidance and standards to Federal Agencies for establishing and maintaining affirmative programs of equal employment opportunity under: Title VII of the Civil Rights Act of 1964, as amended (Sec 717 USC 2000e) Section 501 of the Rehabilitation Act of 1973 Requires agencies to: Assess Agency’s performance against EEOC’s six essential elements for a Model EEO Program Analyze workforce, perform barrier analysis, and develop corrective strategies to facilitate equal opportunity in the workplace Submit an annual report to EEOC and brief the Agency Head on the Agency’s EEO status EEOC through its Management Directive 715 establishes an annual requirement that all agencies provide an assessment of their performance against EEO’s six essential elements for a Model EEO program. Provide at this slide is a brief background and legal foundation for developing the annual MD 715 EEO report and EEO Plan. .

VALUE In order to be a high performing organization in the 21st century, organizations must tap into the rich diversity of our global community and leverage the diverse knowledge, skills, and perspectives of all of our human resources. Only then can we realize the full performance potential and competitive advantages that diversity brings in service to our Nation’s Veterans. This is the business case for diversity and inclusion in the VA workforce that supports the legal and moral imperatives. This is our value statement. A diverse and inclusive workforce is a key factor for providing the best service possible to our Veterans. Studies have indicated that in order for an organization to meet its mission, to be organizationally competitive, and to be productive, that organization needs to tap into its diversity of our community and leverage the diverse knowledge, and skills of its human resources.

MD 715’s Six Essential Elements of a Model EEO Program Demonstrated commitment from agency leadership Integration of EEO into the agency's strategic mission Management and program accountability Proactive prevention of unlawful discrimination Efficiency Responsiveness and legal compliance These are the six Essential Elements of a Model EEO Program which EEOC established. The next couple of slides address accomplishment made essential element

Model EEO Program: Accomplishments Leadership Commitment Secretary issued new EEO, Diversity & No FEAR Policy statement, adding sexual orientation protections Secretary issued Diversity & Inclusion Excellence Award and ADR Award linked to D&I Strategic Plan Secretary established 2 % hiring goal for individuals with targeted disabilities Expanded VA Diversity Council to include employee unions and affinity group representatives VHA established its 1st Chief Diversity Officer position focusing on diversity & cultural competency Integration of EEO into the Agency’s Strategic Mission EEO Director (ASHRA) meets regularly with the Secretary and Deputy Secretary on diversity issues ASHRA and DAS for D&I co-chair the VA Diversity Council, comprising senior execs from all Admins ODI meets quarterly with Admin EEO/Diversity senior staff to strengthen collaboration and integration Maintained robust communications on D&I issues via Newsletter, webcasts, broadcasts, web site. Management and Program Accountability Implemented mandatory EEO, diversity and inclusion critical element in SES performance plans Created VA’s 1st Centralized Reasonable Accommodation Fund for people with disabilities (90) Created VA’s 1st Centralized Diversity Internship Program resulting in a record 164 diverse interns Developed new EEO Dashboard to report on EEO complaints, workforce analysis, and ADR Issued VA Diversity & Inclusion Annual Report showing progress made in FY 10 . Accomplishments towards reaching the Model EEO Program goals are provided in the following 2 slides

Model EEO Program: Accomplishments Proactive Prevention of Unlawful Discrimination Implemented VA’s 1st VA-wide Mandatory EEO, Diversity, and Conflict Mgt Training for Mgrs Trained over 2000 employees plus 10,000 managers in EEO, RA, diversity, and ADR in FY 10; 27,000+ to date. Reduced VA’s per capita EEO complaint filing rate from 0.76 to 0.72 in FY 10 Efficiency Increased EEO process efficiency and reduced processing time to below the regulatory 180 days Responsiveness and Legal Compliance Reduced EEO average counseling time to 27 days, below EEOC’s mandate of 30 days Reduced average ADR process time to 71 days, below EEOC’s mandate of 90 days VA leads Federal govt in the area of workforce analysis and EEO reporting systems

Model EEO Program: Challenges and Potential Barriers to EEO Inconsistent training for employees in EEO and diversity Inconsistent State of the Facility briefings to leadership Lack of corporate, integrated strategic recruitment outreach & retention Inconsistent collaboration between EEO and HR program offices/functions Applicant Flow system not yet available in VA; SES pilot in development As a result from detailed analysis ODI has identified several challenges and potential barriers to EEO. With the recent implementation of mandatory training for all managers and supervisors we are well are underway in applying best EEO and diversity practices. Currently more than 95 percent of supervisors and managers have taken the mandatory EEO and diversity training Many facilities do or don’t brief their leadership on the current state or progress made towards developing a Model EEO program at their facility. We need to improve upon that. Decentralization of many of the EEO and or HR functions has created a challenge in developing a more strategic and cohesive recruitment outreach program VA-wide. We realize there may be barriers in the job application process and are working to develop and implement and applicant flow system to aid in adverse impact analysis on the protected classes.

VA Workforce Representation (Permanent and Temporary) as of September 2010 Less than expected representation White women are significantly underrepresented, appears to be chronic. Hispanics somewhat underrepresented, mostly in blue collar occupations. RCLF standard for Hispanics and Asians will grow significantly in 2010 Census, and VA is certainly below those levels. During FY 2010, VA experienced a net loss of 455 (a 13% of the FY 2009 workforce) American Indians which still exceeds its respective RCLF. The total population for Native Hawaiians and Pacific Islanders is 580. The population size is small enough that it does not register on the graph clearly. NOTE: Courts have established that the RCLF is the appropriate legal standard for identifying unlawful barriers to EEO. EEOC recommends using CLF for its Total Workforce comparisons in Table A1 (in order to make gov’t-wide comparisons), but requires use of RCLF for the occupation-specific comparisons. CLF: Civilian Labor Force: Everyone in USA 16 and older who is working or seeking work. Based on 2000 Census RCLF: Relevant Civilian Labor Force: CLF limited to occupations that are comparable to those we employ (weighted by occupation size if combining multiple occupations).

5-Year Trend (Permanent and Temporary) Less than expected representation Decrease on FY10 most likely due to recoding of 2 or more races category The five year trend of the total workforce, both permanent and temporary, indicates the demographic trends have been relatively flat. Both the White and Hispanic population have been well under-represented during the five year trend. The Black, Asian, Native Hawaiian & Pacific Islander, and American Indian population have exceeded their expected representation. As noted on the graph, Native Hawaiians and Pacific Islander were identified as Asian s prior to FY 2009. The numbers are too small to register on the graph. Graph reflects workforce as of September 30 of each Fiscal Year

Targeted Disabilities Permanent Targeted Disabilities: Deafness, Blindness, Missing extremities, Partial paralysis, Complete paralysis, Epilepsy, Severe intellectual disability, Psychiatric disabilities, Dwarfism Permanent & Temporary VA is well above the government average for employees with a targeted disability. Since the FY 2000 the government average has been declining. The VA target disability population also has been declining through to FY 2009 and remaining above the government average by approximately 0.60 percent. FY 2010 people with target disabilities represented1.51 percent of the total permanent workforce, an increase from 1.43 percent in FY 2009. Generally, the government is moving away from the occupations that have traditionally employed the most people with targeted disabilities. Over this period in VA, the largest declines have been in the occupations with the largest growth, suggesting that an effort for targeted disabilities is not being made by HR and selecting officials. This is an issue that is responsive to management direction. By contrast, the proportion of disabled veterans has continued to increase despite the decline in the proportion of total veterans.

Workforce Veteran Population (FY 2006 - FY 2010) Permanent and Temporary Corrected using DoD BIRLS data As a percentage of the workforce the Veteran population has been remaining relatively constant at 30 percent. We are seeing some growth of Veterans with disabilities. The disabled Veteran population has grown from 8.5 percent in FY 2009 to 9.02 percent in FY 2010. VA discovered that many veterans had not self-identified and so did not show up in our data base as Veterans prior to FY 2007.  The Beneficiary Identification Relocator System (BIRLS) data from DoD corrected that starting in December FY 2007. The addition of BIRLS data does not affect the direction of the trends.

Internal Promotions (GS/GM & Title 38) High promotion. Significant under-promotion (Includes high concentration in Title 38) Overall the distribution of promotions across the ethnic and gender groups are proportionate, with the exception of the Asian population. A large proportion of the Asian population are in the medical field (Title 38) at VA, specifically Doctors, since doctors are GS 15 equivalents they don’t receive promotions, thus showing an inaccurate picture (further explained on the next slide).

Internal Promotion Rate for FY 2010 GS/GM 7-9-11-12 GS/GM 13-15 % % The Left slide shows that White women and Asian men & women in GS/GM professional series occupations 7-12 (non-administrative) show a slight disproportion when compared to the other REG’s. The same for the professionals GS/GM 13-15 seems to be apparent. ODI will perform further analysis to identify and eradicate possible barriers within specific occupations and areas in an effort to level the percentages in the future. VA promotions compared to availability in feeder grades 12-14. FY 2010 permanent and temporary VA promotions compared to availability in feeder grades for these occupations.

Grade Disparity VA GS/GM permanent only as of 9/30/10 Like the rest of the government, there is obvious grade disparity in VA: the higher the grade, the greater the proportion of whites and the lower the proportion of minorities. This is the single most galling issue for minorities. There are several variables contributing to this trend: number of hires, promotion rates, grade of hires, resignations, and age of leadership pipeline. We have looked at each of these to determine the best course of action. Grade

Hires and Separations For FY 2010 Disabilities (Permanent Only) It is important to understand that in situations where under-representation already occurs for any demographic group, comparing hires and separations against RCLF is not sufficient. Comparing actual counts of hires to separations is necessary. Further analysis identifies approximately 52% of the separations from permanent positions are regrettable losses ( resignations from government, or transfers to other federal agencies.) Retirements account for another 44%

Separations By Type and Race/Ethnicity For FY 2010 (Permanent) Regrettable Loss: Resignations from government and transfers to other government agencies

Change in VHA Leadership White men are the oldest group. White women soon to be largest group Average Age GS 13: 48 GS 14: 52 GS 15: 54 Younger minorities outnumber retirement eligible minorities, but numbers are much lower than their white counterparts In the VHA GS leadership pipeline, White men are the oldest group but are retiring rapidly. White women trail about 5 years behind, so will soon be the largest group. There is a significantly larger proportion of minorities in the younger ages, which means that over time they will be a larger portion of the leadership pipeline. Minority men are not as well represented as minority women, reflecting hiring and education patterns. In VHA, currently White men are predominate, but due to retirement eligible’s, White women are poised to be the predominate group. There is a good presence of younger minorities and they outnumber the retirement eligible’s, theoretically painting a slightly better future picture. VHA GS 13-15 permanent and temporary as of Sept. 30, 2010

Change in VBA Leadership - White women soon to be oldest group Average Age GS 13: 48 GS 14: 48 GS 15: 48 In the VBA leadership pipeline, the pattern is similar but more pronounced. White men are clearly the oldest group, but have much less strength on the bench. White women will clearly be the majority in 5 years. Younger minority women are almost as large as White men. Minority men are significantly below minority women; their supply is less determined by education because advanced degrees are not required for Veteran Claims Examiners. The recent hires of Vet Claims Examiners have mostly been under the Federal Intern Program, which hires directly from colleges which in turn reduces the number of minorities and veterans being hired. In VBA, White women are the predominate group, with good numbers in the younger ages. Minorities at the younger ages outnumber those that are retirement eligible and the number are sizable so future pictures are promising. - Minorities show good numbers at lower ages VBA GS 13-15 permanent and temporary as of Sept. 30, 2010

Change in NCA Leadership - White men clearly the oldest group now and in the near future Average Age GS 13: 51 GS 14: 54 GS 15: 56 - Minority women have a strong younger presence In the NCA leadership pipeline white men are clearly the oldest group both now and in the near future, but after that it looks like the minority female will do well. Minority men are significantly below every other group both now and more pronounced in the future, this should raise some concern. In NCA, unlike the other administrations, White men are clearly the oldest and predominate group now and in the future. It looks like minority women have the largest presence in the younger ages. NCA GS 13-15 permanent and temporary as of Sept. 30, 2010

Change in VACO Leadership - White men clearly the oldest group now and in the near future Average Age GS 13: 49 GS 14: 49 GS 15: 52 Younger minorities outnumber retirement eligible minorities, but numbers are much lower than their white counterparts In VACO, White men are clearly the oldest and predominate group now and in the future, but it looks like all of the REGs show a larger presence in the younger ages when compared to retirement eligibles. Note, younger minority numbers are much lower than their white counterparts and this issue should be addressed. VACO GS 13-15 permanent and temporary as of Sept. 30, 2010 20

Identified Triggers/ Potential Barriers to EEO Low participation rates of White and Hispanic women in comparison to RCLF Representation of people with targeted disabilities Diversity decreases as grade level increases Lack of current, legally sufficient training in EEO and diversity areas Organizational climate indices: High per capita rate of complaints High resignation rates

Plan to Eliminate Barriers; Continue implementation of VA Diversity & Inclusion Strategic Plan Dept-wide; enforce corporate diversity policies and accountability measures; explore ODI Regional Model Promote use of special hiring authorities (Schedule A, Disabled Veteran) and internship programs such as National Diversity Internship Program, Presidential Management Fellow to increase diversity of employment pipeline Market My VA Career to bridge career gaps and grade disparities Strategically target outreach of leadership development programs to underrepresented communities Designate Special Placement Coordinators and Local Reasonable Accommodation Coordinators in all facilities; train all managers in disability employment strategies Based on in depth analysis we have identified plans to eliminate employment barriers. Many of the plans are identified in the next two slides. The third bullet relates to adding additional demographic data to the information system in order to perform additional cause effect modeling. A central Diversity Intern program has proven to be effective in FY 2010. The plan is to establish a multi-year contract increase the diversity of applicants to VA. The role of the Special Placement Coordinators should be strengthened and measured.

Plan to Eliminate Barriers continued Fully implement VA Plan on Employment and Retention of Individuals with Disabilities Implement Applicant Flow/Adverse Impact Analysis tool in VA recruitment and leadership development selection processes Provide standardized VA-wide training in EEO, diversity, and conflict management for all employees Increase use of ADR throughout Discrimination Complaint process Expand use of organizational climate survey data to identify potential barriers to inclusion (e.g., disparate perceptions of fairness and empowerment based on race, ethnicity, gender and generation) VA needs an electronic system to collect applicant flow data (race, national origin, gender, disability) at the time that people apply to USA Staffing or USA Jobs. ODI is working on a developing a system for the SES applicants. And we need better exit interviews that are done by mail about 6 months after people leave.

QUESTIONS? ODI Contact Information: Georgia Coffey, DAS for Diversity & Inclusion 202-461-4131