Disposition codes are standardized labels or codes used to categorize and track the outcomes or status of job applicants throughout the recruitment and hiring process. These codes are typically used within applicant tracking systems (ATS) or recruitment management software to streamline and organize the hiring workflow. For legal purposes, these codes document an employer’s legitimate nondiscriminatory reasons for an adverse hiring/promotion selection decision. Disposition codes provide a structured and transparent method for documenting job candidate progress, contribute to the establishment of an audit trail, and assist in conducting analysis to ensure equal employment opportunity (EEO). The strategic use of these codes is not only a best practice for efficient recruiting but also a crucial element in meeting OFCCP compliance obligations.
Key Aspects of Disposition Codes
- Purpose: Disposition codes are used to record and communicate the outcome of each stage of the hiring process for job applicants. They provide a clear and consistent way to indicate whether an applicant has moved forward to the next stage, been selected for hire, or has been rejected for a particular position.
- Examples
- Interviewed: Indicates that the applicant has been interviewed for the position.
- Withdrawn: Indicates that the applicant has withdrawn their application.
- Offer Extended: Indicates that an offer has been extended to the applicant.
- Offer Declined: Indicates that the applicant has declined the employer’s job offer.
- Hired: Indicates that the applicant has been hired for the position. This code should include a hiring date.
- Pending: Indicates that the application is still under consideration or awaiting a decision. Employers must follow up as to the final disposition once that information is available.
- No Show: Indicates that the applicant did not attend a scheduled interview or assessment.
- Duplicate Application: Indicates that the applicant has submitted multiple applications for the same position.
- Codes must be unique to the organization: Even though we provided some general examples above, there is no generally applicable list of disposition codes. Each organization must devise codes unique to its needs and to each position.
- Codes must be meaningful: “Not Qualified” or “Not Best Qualified” are not meaningful disposition codes. A meaningful disposition code will indicate specifically what qualifications are lacking. “Not Hired” is also not a sufficient disposition code. Rather, disposition codes must properly and completely document the employer’s “legitimate nondiscriminatory reason(s)” for the employer’s adverse employment action so that anyone conducting a subsequent EEO analysis clearly understands the reason for the employer’s action.
- Benefits
- Standardization: Disposition codes ensure consistency and clarity in communication among hiring team members and stakeholders regarding the status of applicants.
- Efficiency: They streamline the hiring process by automating updates and notifications based on the status changes recorded through the disposition codes.
- Reporting and Analysis: They enable organizations to generate reports and analytics on recruitment metrics, such as time-to-hire, applicant conversion rates, and reasons for candidate rejection.
- Integration with ATS: Disposition codes are integrated into applicant tracking systems (ATS) and recruitment software platforms, allowing recruiters and hiring managers to easily update and track applicant statuses directly within the system.
- Legal Compliance: Proper use of disposition codes can help organizations demonstrate compliance with equal employment opportunity (EEO) regulations by ensuring consistency and transparency in candidate evaluation and selection processes.
In summary, disposition codes are essential tools in the recruitment and hiring process, providing structured categorization of applicant statuses and outcomes to support efficient workflow management, decision-making, and compliance with organizational and legal standards.