Given that a regression analysis is a complex process, not all contractors will be able to undertake one in order to comply with the Voluntary Guidelines. What should these contractors do?
OFCCP realizes analysis of employee compensation is a challenging frontier for many contractors. In discussion with contractors and consultants, OFCCP has found that the key challenge in implementing the new procedures will be the creation of the similarly situated employee groups (SSEGs). Once the SSEGs are created, the task of conducting a regression analysis can be undertaken with little statistical expertise through relatively inexpensive software packages that yield sufficiently informative results. OFCCP does not expect contractors to hire statisticians or economists to perform this work or to buy expensive software systems. OFCCP will develop compliance assistance tools to assist with performing regression analyses. In addition, OFCCP’s acceptance of a simple SSEG-by-SSEG approach for the Voluntary Guidelines will help to eliminate some of the complexity that is associated with other types of regression analyses such as the pooled analyses discussed. While some statistical exper
