Contractors preferring to establish more individualized hiring benchmarks can choose the Five-Factor Method. To establish a benchmark using this method, contractors must consider all of the five factors listed below. However, contractors are not required to use all five factors to create their benchmark.
The first two factors are U.S. Department of Labor statistics on state-level availability of veterans, which are available on the VEVRAA Hiring Benchmark webpage. The second two factors, applicant and hiring ratio, are items that contractors can obtain from their affirmative action programs (AAPs). The last factor allows contractors to consider any other relevant factors that might affect the availability of qualified protected veterans for their workforce. Contractors using this individualized method must document each factor considered and explain the methodology and rationale used to arrive at the benchmark selected.
Contractors with multiple written AAPs that choose this option may establish individualized benchmarks for each of their written AAPs or may choose, instead, to adopt the “National Annual Veteran Benchmark" as the benchmark for one or more of their written AAPs. Contractors may utilize only one benchmark option per AAP.
Contractors must consider all five of these factors when developing an individualized hiring benchmark:
- The average percentage of veterans in the civilian labor force for the state where the establishment is located for the previous three years. The U.S. Department of Labor’s Bureau of Labor Statistics calculates this information regarding the general availability of veterans for employment for each state.
- The number of veterans who participated in the employment service delivery system (ESDS) in the state where the establishment is located, over the previous four quarters. The U.S. Department of Labor’s Employment and Training Administration tabulates this data regarding the number of veterans seeking jobs.
- The applicant ratio and hiring ratio for the establishment for the previous year. To make these computations, use the data your company has collected to comply with 41 CFR 60-300.44(k) of the VEVRAA regulations, which should also be included in your AAP. To calculate the applicant ratio, compare the number of protected veteran applicants to the total number of applicants. To calculate the hiring ratio, compare the number of protected veterans hired to the total number of hires.
- The most recent assessment of the effectiveness of your outreach and recruitment efforts. This information is included in your AAP.
- Any other factor, such as the nature of the job openings or the facility’s location, which would tend to affect the availability of qualified protected veterans. This factor provides contractors with the flexibility to consider any other pertinent factors about your establishment or the nature of your business that might affect the availability of qualified protected veterans as part of the process of establishing the hiring benchmark.