Moving applicants to other postings or requisitions (or inviting specific applicants to do so) impacts a company's applicant pool. Broadly speaking, when hiring by job title or requisition, the appropriate hiring analysis is conducted by that specific job title/requisition. Only those for that job competed against each other for that job. When a company causes an applicant to be considered for another job, then, again, broadly speaking, those two job title pools become combined, leading to a larger pool. The larger the numbers in your statistical analyses, the more likely it is that there will be statistically significant adverse impact. (If a person flips a quarter 4 times and it is heads once - 25%, that's not unexpected. If a person flips a quarter 100 times and it is heads only 25 times, then that would be very unusual. Even though both scenarios are equal to 25%.) Even asking the individual to apply for another position can lead to problems. Consider an audit where the OFCCP finds impact against a particular group (whether statistically significant or annual outreach goals) and those individuals that were invited to apply for other positions are part of the favored group. It becomes very difficult to defend. One exception is not evidence of discrimination and it does not put a company out of compliance. However, the more exceptions a company makes, the more difficult it becomes to keep the analyses pools small or defend in an audit. I hope this helps, but let us know if you need more clarification.
You can use this OFCCP audit checklist to ensure you're doing what is required to maintain OFCCP's regulations including VEVRAA, Section 503, and EO 11246. Or request a demo to streamline your compliance and recruiting efforts.