The Wonder of the Web: Why Web-Based Applications are Necessary for Effective Affirmative Action Compliance

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1 By: Carla Pittman Most of us can still remember having to pop in a cassette tape to play our favorite song. If we wanted to hear the song again we pressed rewind and waited patiently for the tape to backspin to the beginning. Fast forward to today, and we have music literally at our fingertips. The changes in technology have completely streamlined our process. What does this have to do with HR? Everything. Did you know it took nearly two decades after President Lyndon B. Johnson signed Executive Order to introduce technology that could help HR professionals comply with affirmative action laws? Before software was available, professionals painstakingly went through the process of manually calculating the statistics required to prepare an affirmative action program (AAP). Now, manual processes have faded away like the cassette tape and soon desktop software will see the same fate. HR processes have met innovation, and there is no turning back. Innovation is Faster When innovation was slow, companies had the luxury of adopting new technology at a snail s pace. Now that innovation happens at a faster rate, waiting has significant consequences for most human resource departments. The existing paradigm (designed decades ago for single users in single workspaces) for IT systems, including those built around requirements for HR, are increasingly becoming outdated. Companies are willing to expand the role of HR, but still lag in obtaining the technology proven to assist professionals in handling demanding responsibilities. The function of HR calls for data collection with accuracy and efficiency. It calls for managing remote workers, flexible schedules, multiple job sites, and continuously changing employment regulations. Now that innovation happens at a faster rate, waiting has significant consequences for most human resource departments. For those reasons, HR requires agile and flexible applications. Desktop software is defined and self-contained by design. If you are responsible for AAP compliance, you need an application that can be quickly updated to reflect changing requirements. Especially with the approaching and inevitable changes to the way census data is used to prepare plans. Desktop Software is a Dying Breed In the case of affirmative action planning, using live technology, rather applications that are easy to update, is imperative. Live applications are instrumental in helping companies keep up with regulation changes. In addition, AAP demands collaboration with other departments, and at times, other locations. It requires organizing processes like data collection, distributing reports, or communicating and monitoring goals. For these reasons, web-based

2 affirmative action applications are a better match for companies who have to comply. Desktop applications are built with a single user and single machine in mind a model gradually vanishing in a world where networking and shared communications are essential to accomplishing objectives. Desktop Software Needs to be installed separately on each individual computer Runs locally from computer IT support is needed for installation and maintenance Has to be upgraded on every single computer Confined to a physical computer and has mobility constraints Tends to have richer and complex user interfaces Desktop vs. Web Characteristics Web Applications There is no installation necessary; users log in to gain access to application Requires Internet connectivity Virtually no IT resources or support needed Seamless upgrades from one location Users can access web applications from anywhere with an Internet connection Tends to have lighter and more simplistic user interfaces If you are responsible for AAP compliance, you need an application that can be quickly updated d to reflect changing requirements. Rarely works with mobile devices Minimum hardware requirements that usually include memory size and speed Data is stored on a network or individual machine Functionality is difficult, so it is usually reserved for new versions of the software Stand-alone functionality makes it difficult to collaborate in real-time Can easily be adapted for mobile access Only hardware requirement is an Internet connection Data is hosted on the cloud Other web applications can be integrated for added functionality Enables the possibility of sharing work and collaborating in real-time

3 Today innovation is moving at an accelerated speed. In fact, businesses notoriously known for adopting new technology late, can no longer afford to delay transitioning. In this era of high-speed information exchange it could mean the difference between success and failure. Putting the Power in the Hands of Human Resources Web-based applications virtually require no internal IT support. This means busy HR professionals can manage the application on their own making web applications the ideal choice. With desktop applications, HR is often left waiting for the next upgrade cycle to get the latest version. This means risking creating documents, using calculations, and conducting analyses from outdated requirements that no longer exist. HR no longer has to be dependent on IT, and by utilizing a web-based application professionals can rest assured they are using technology based on the latest regulations. Web s Impact on Affirmative Action Outsourcing Most, if not all, affirmative action consulting firms prepare reports for AAPs using an application that analyzes their client s data. Using desktop software may pose a higher risk of preparing inaccurate plans than firms using web-based technology. What happens when Office of Federal Contractor Compliance Programs (OFCCP) changes rules and requirements? If the changes affect data requirements, calculations, or even recordkeeping, then whatever technical applications are being used must be updated to reflect the changes. Firms using web technology in conjunction with their own in-house product development staff are far more prepared and likely to make changes quicker and faster than firms that don t. Since desktop applications tend to be a bit more rigid in structure, they are harder to update. Some firms find workarounds by manually making the necessary adjustments, but that increases the chance of human error. Ultimately, this could result in inaccuracies or a plan of poor quality. This weakens a company s ability to fight an audit or safeguard against potential liability. If a company decides to outsource, it needs to be aware of what type of system is being used to prepare its plan(s). Even if a company decides to outsource, it can still take advantage of the benefits of web technology. Businesses notoriously known for adopting new technology late, can no longer afford to delay transitioning. ning Centralized Affirmative Action Planning and Monitoring Another wonderful benefit of web technology is the centralization of AAPs. Companies can create an affirmative action program hub centralizing information pertaining to its plans. Web-based AAPs mean securely sharing reports, goals, and other information across locations, departments, organizational levels, or units. Companies save time and resources by using one central system as opposed to buying multiple licenses for everyone involved in

4 the planning process. In addition, the possibilities of more robust collaborative tools are far more realistic with web technology than traditional software installations. Whether an HR professional is taking the lead on their company s compliance efforts or overseeing the entire affirmative action program, the need to collaborate is inescapable. Collecting data, evaluating personnel actions, and communicating goals all require pulling information from other sources. Companion Application Opportunity AAPs are multi-faceted. They require the use of salary data, applicant data, and data on various personnel actions. This means information has to be gathered from a multitude of sources. Even companies with an HRIS system lack the standard data necessary to build a compliant plan. For example, applicant data including their disposition may not be captured in a company s human resource database. Web-based affirmative action planning affords employers the chance to integrate programs and functions. Integration means seamless data collection, sharing information across programs, and adding functionality that makes the planning process easier. Social media, recruitment efforts, and dashboard capabilities can all be potentially integrated with web-based programs. Companies can even customize added functionality. There is no shortage of applications, widgets, add-ons, and plug-ins in the world of web development. The possibilities are endless and features can be added to suit a company s needs. In addition, when shopping for a web-based affirmative action program HR professionals need to seek a vendor with other companion products (i.e. applicant tracking, diversity scoreboarding, adverse impact calculations), or at least the web development skills to shape the application to meet unique compliance objectives. HR no longer has to be dependent on IT, and by utilizing a webbased application professionals can rest assured they are using technology based on the latest regulations. Security and Connectivity There are some companies who are still hesitant about choosing to use a webbased application for AAP or any other human resource function. The concern with web technology is largely due to three factors: speed, connectivity, and security. Let s tackle speed first. In the past speed was a problem, especially when transferring large sets of data. Analog (dial-up) was a nightmare, and people are still traumatized from the eerie crackling sounds as the computer tried to connect to the Internet. The speed of the Internet is now significantly better, especially with broadband technologies both at the office and in the home. Companies are not bound to physical lines anymore. Wireless technology is a real option for a company s connection to the Internet. If speed is an issue, additional bandwidth is likely needed.

5 Connectivity and speed go hand-in-hand at times, given it is likely tied to the carrier a company uses for transferring voice and data. If a company has a reliable carrier that can guarantee a certain level of up time, this should reduce the risk of Internet disconnections. As far as the vendor for web applications, companies should ask who they are using for their carrier as well as inquire about interruptions. A reliable company will have minimal downtime, and will have a protocol in place to minimize the impact on its customers. Lastly, let s discuss security. Human resource professionals responsible for affirmative action handle sensitive information and must take security seriously. Quality vendors that build web applications perform intense security testing to reduce or eliminate vulnerable areas. Security is a valid concern and necessary steps can be taken to mitigate risks. There have been a number of advances in security regarding web-based applications. The evolution of industry standards has made web applications safe for business use. All technology, whether desktop or web-based pose some risk. Companies have to ask the right questions, including what type of encryption is used for data security. Companies need to make sure their vendor is SAS 70 (now SSAE 16) certified or has been audited to ensure their internal controls are suitable and are not likely to expose them to unnecessary risks. Even if a company decides to outsource, it can still take advantage of the benefits of web technology. Speed, connectivity, and security are all real concerns for those choosing to transition to web-based affirmative action planning. Advances in both technology and processes have significantly reduced the possibility that speed, connectivity, or security will hinder a company s ability to effectively comply with affirmative action regulations. Fast Approaching Regulation Changes Recent activity level at OFCCP may be enough to nudge any company toward web-based solutions. In 2011 alone, there have been more changes to affirmative action and related requirements than there have been in the past ten years. There are still pending changes that will carry over to Most notable are the changes to the rules for analyzing compensation, Veteran AAPs, and the impending use of the 2010 census data. These changes are significant and require substantial system updates. Employers preparing their 2012 plans using a web-based technology will have an advantage over companies who do not. Web-based applications are more likely to have the critical changes necessary to help you meet future regulatory requirements. Companies using desktop applications can expect to wait for changes typically until their vendor s or IT department s next upgrade cycle rolls around. The wise choice for anyone who has not started their 2012 plans is to prepare plans using a web-based format.

6 The Difference in Pricing Structure Web-based applications are almost always subscription based. Subscriptions can run monthly, quarterly, annually, or on other terms, and oftentimes unit pricing varies. Some companies charge based on number of employees, others based on storage size. Pricing based on storage is common with web applications designed for individuals. A person can purchase gigabytes of storage. Pricing based on employee size is common for products sold in the HR industry. Using employee size assists vendors with helping to assess a customer s needs. The larger the workforce, the greater need for increased functionality and use of the product. Although companies have expressed concern about the recurring fees associated with the subscription model, this type of pricing works best for web applications; especially applications designed to comply with federal regulations. Updates are particularly important think about what would happen if you did your taxes using an application that contained requirements from old regulations? Tax laws change so frequently that you would run the risk of filing an inaccurate tax return. You would be vulnerable to audits or tax debt. The same applies to AAP. Plans must be developed using current requirements or run the risk of debarment, penalties, and costly liability. Paying subscription fees means companies are paying for regular updates, data security, data storage, and the peace of mind knowing their plans are prepared using the latest regulations. Web-based affirmative action planning affords employers the chance to integrate programs and functions. Subscription based pricing also typically includes unlimited users, opposed to software based installations where purchasing a license per user or per seat is common. The difference between desktop software and web-based applications pricing models is with desktop, companies pay for technical support on some recurring basis, and a sizeable fee to upgrade to the latest version. Normally, technical support and upgrades are included with web-based applications. Conclusion Web-based technology is a better option for companies required to prepare and implement an AAP. The wonder of the web has offered us conveniences we couldn t fathom years ago including advances in business processes and communication that contribute to making our jobs more efficient. Web technology will continue to expand and deliver functionality we haven t even thought of yet. A company investing in desktop software is parallel to buying a VHS player today. It may show a movie and even give you a sense of nostalgia, but there are far better options on the market. Options for web-based applications provide better quality, a better experience, and a better return on your investment.

7 To learn more about the next generation in affirmative action planning web technology, please contact Berkshire Associates at or berkshireassociates.com. You can also visit The difference between desktop software and web-based applications pricing models is with desktop, companies pay for technical support on some recurring basis, and a sizeable fee to upgrade to the latest version. Facebook: Twitter: Berkshire Associates Inc., Corporate Headquarters 8924 McGaw Court, Columbia, MD Phone: Fax: [email protected] Web: