The example below shows how a hypothetical contractor might establish a benchmark using the five-factor method.
This example is not prescriptive; it simply demonstrates a possible approach contractors may take when establishing an individualized benchmark. Contractors, however, may take other approaches. So long as the contractor reasonably describes and documents the factors it took into account and its methodology for considering them, it will be found to be in compliance with the 41 CFR 60-300.45 requirement to establish a hiring benchmark.
Example of Contractor Data
FCI, a contractor in Dayton, Ohio, establishes an individualized hiring benchmark for its AAP of 7%. The data considered using the five factors and the methodology FCI used to create its benchmark are shown below. FCI is an engineering and aerospace firm.
Hiring Benchmark: 7%
Factor 1: Average percentage of veterans in the civilian labor force in Ohio (data is for illustrative purposes only)
| 2020 | 2021 | 2022 |
|---|---|---|
| 6.2% | 6.3% | 6.2% |
Factor 2: Number of veteran participants in Ohio Employment Service Delivery System (ESDS) over the last four quarters (data is for illustrative purposes only)
3,715
Factor 3: Applicant and hiring ratio data for the previous year (41 CFR 60-300.44(k))
The total number of applicants: 3,500
The total number of applicants who self-identified as a protected veteran: 200
The total number of new hires: 500
The total number of new hires who self-identified as a protected veteran: 35
Veteran applicant percentage: 5.7%
Veteran hiring percentage: 7%
Factor 4: Recent assessments of the effectiveness of contractor’s outreach and recruitment efforts
Outreach/ recruitment activity | Date of activity | Description | Protected Veteran data from activity |
|---|---|---|---|
| Compliance with Mandatory Job Listing requirement as required by 41 CFR 60-300.5(a). | Ongoing | Listed all job openings with the appropriate local Employment Service Delivery System (ESDS). | Qualified applicants from activity: 38 This activity resulted in hiring qualified protected veterans: 12 |
| Briefing of Vet-Reps at local community college campus | 15-Jul-22 | Briefed Vet-Reps regarding FCI’s services and current hiring needs. FCI will begin sending job openings to Vet-Reps for assistance in attracting veteran applicants. | Qualified applicants from activity: 18 This activity resulted in hiring qualified protected veterans: 1 |
| Participated in Veteran Job Fair | 13-Nov-22 | Veteran Job Fair was hosted by local veterans’ groups, and over 30 employers participated. | Qualified applicants from activity: 42 This activity resulted in hiring qualified protected veterans: 16 |
Factor 5: Other factors affecting the availability of qualified protected veterans
Contractor location is less than 15 miles from the Wright-Patterson Air Force Base. The base is headquarters of the Aeronautical Systems Center and the Air Force Research Laboratory. Estimates from the local media outlets are that between 100 to 250 veterans leave military service while stationed at this base annually and many are highly skilled.
Analysis of Each Factor
To arrive at its benchmark, FCI considers the data in the following way:
- Factor 1 indicates that the percentage of veterans in the civilian labor force in Ohio decreased slightly in 2022.
- Factor 2 shows the number of veterans registered with the ESDS and seeking employment in the state of Ohio. The number of veterans decreased from 2020 to 2022 as shown under Option II in the VEVRAA Benchmark Database.
- Factor 3 shows the applicant and hiring ratio data for FCI’s VEVRAA AAP. The percentage of veteran hires at FCI are 7%.
- Factor 4 shows FCI’s overall outreach and recruitment efforts. Each activity provides the number of veteran applicants and the number of veterans hired from the activity.
FCI used the following criteria to evaluate their outreach and recruitment efforts:- To what extent did the activity attract qualified applicants who are protected veterans?
- To what extent did the activity result in the hiring of qualified protected veterans?
- To what extent did the activity expand FCI’s outreach to protected veterans in the community?
- To what extent did the activity increase FCI’s capacity/capability to include protected veterans in its applicant pool and workforce?
After evaluating the outreach and recruitment criteria, FCI found that it attracted veteran applicants due to participation in veteran job fairs and veteran hiring from local colleges as listed above. The activities resulted in hiring veterans at a percentage greater than the Ohio civilian labor force data (6.2% for 2022).
- Factor 5 indicates that there are likely good veteran recruitment opportunities for FCI, at the local level, due to its proximity to a major military installation. The skills match with Wright-Patterson is also very compatible with FCI’s needs, as many of the separating veterans are highly skilled in engineering and related fields.
After reviewing factors 1 through 5, FCI decides to take into account factors 3 and 4 data for its individual hiring benchmark. FCI’s outreach and recruitment efforts resulted in hiring ratios (7%) that are higher than the statewide percentage of veterans in the Ohio civilian labor force (6.2%). Therefore, FCI concludes that it would be more effective to base its hiring benchmark on its own hiring ratio data and use the higher percentage (7%) to maximize recruitment of protected veterans. FCI is also mindful that the statewide availability of veterans, listed under factor 1, has decreased a little since last year. Therefore, FCI’s methodology for setting its 7% benchmark appears reasonable based on how it considered and assessed the significance of all five factors.
For more information on the VEVRAA hiring benchmark, please visit OFCCP’s VEVRAA frequently asked questions.
Last updated on March 27, 2024