How to Supercharge Your Workforce Analytics

Key Takeaways from the December 2025 Webinar 

The landscape of workforce analytics for federal contractors has undergone a seismic shift in 2025, driven by regulatory changes and evolving best practices. In our recent webinar, industry experts Phil Akroyd and Patrick Nooren walked attendees through the new compliance environment and how organizations can leverage “supercharged” analytics to drive value, mitigate risk, and ensure legal compliance.

Regulatory Changes: From EO 11246 to EO 14173

• Executive Order 11246 Revoked: As of January 21, 2025, EO 11246, which mandated affirmative action plans for women and minorities, was rescinded. 

• Executive Order 14173 Introduced: On the same day, EO 14173 was signed, requiring federal contractors to certify compliance with all federal anti-discrimination laws and to ensure no illegal DEI (Diversity, Equity, and Inclusion) programs are in place. 

• Compliance Is More Complex: Contractors must now certify compliance with a broader set of laws (Title VII, Equal Pay Act, ADEA), and certifications are subject to criminal and civil penalties under the False Claims Act, enforced by the DOJ—not just the OFCCP.

The Importance of Workforce Analytics

• Beyond Policy Scrubbing: Legal exposure stems from actual employment decisions (hiring, promotion, compensation), not just written policies. Though this has always been the case, there’s an increased focus now on facially neutral criteria and proxy effects. 

• Analytics Are Essential: Statistical workforce analytics are the best way to evaluate whether facially neutral criteria have unintended proxy effects for protected characteristics (race, sex, etc.). 

• Focus on All Groups: Analyses should now compare all race/ethnic groups and genders, not just females and minorities. 

Previous vs. Supercharged Analytics 

Previous (Restricted) Analytics: 

• Rigid Structure: Analyses were prescribed by location and job group, often misaligned with how organizations actually make decisions. 

• Limited Insight: The structure was more about risk mitigation than actionable business intelligence. 

Supercharged Analytics: 

• Flexible Structure: Organizations can now align analyses with real decision-making processes—by division, department, manager, job title, or requisition, among other ways of arranging the analysis, based on company needs. 

• Two Baseline Methodologies: 

                             - Selection Rate Analysis: Compare selection rates (for                                         example, applicants vs. hires) across demographic groups to                               identify disparities.

                            - Proportional Analysis: Assess whether the composition of                                  workforce/applicant pools matches external benchmarks (for                              example, census data), revealing potential barriers or outreach                            gaps. 

• Whole-Body MRI Approach: Treat annual workforce analytics like a comprehensive health check, proactively identifying issues before they escalate, then diving into potential problem areas with further analysis.

Practical Applications

• Selection Rate Analysis: Use for hiring and competitive promotions, stratified by relevant business units or job titles. 

• Proportional Analysis: Apply to applicant pools, non-competitive promotions, and terminations to detect disparities and inform outreach strategies. 

• Merit-Based Variables: Incorporate factors like time in job, performance ratings, education, and pay grade to explain differences and ensure decisions are job-related and consistent with business necessity.

Strategic Recommendations

• Customize Your Analytics: Structure analyses to reflect how your organization operates and makes decisions. 

• Monitor Continuously: Run analytics on a regular basis (annually, semi-annually, or more frequently for high-volume areas). 

• Investigate Issues: If statistical significance is found, dig deeper—use step analysis, job analysis, or regression, among other tools as appropriate, to understand root causes. 

• Prepare for the Future: Proactive analytics not only support compliance but also improve workforce planning, employee satisfaction, and readiness for potential mandatory reporting.

Final Thoughts

The shift from prescribed, compliance-driven analytics to flexible, business-aligned workforce analytics presents both challenges and opportunities. By embracing supercharged analytics, organizations can better manage risk, support strategic objectives, and foster a fair, inclusive workplace. 

Reach out for more information or to discuss how these changes impact your organization.