Just a Good Read For HR by Berkshire Associates by Carla Pittman

Just a

Good Read for HR

Expert Articles, Insights, and Best Practices on Human Resources

Introduction

It’s time to sit back, relax, and enjoy an incredibly good read! Just a Good Read for HR is an easy, yet valuable read for anyone in the human resource profession. No matter where you are, or what time of day it is, flip through the pages and soak up relevant information to help you handle the challenges of your profession. Whether you’re dealing with a host of personnel activities, or charged with handling social media in your workplace, Just a Good Read for HR has the answers you need! We can’t promise you won’t get hooked …but we can promise that you’ll gain insight with every article. So go ahead, click the arrow below and start turning those pages. About Berkshire Associates Inc.

Berkshire Associates is a human resources consulting and technology firm, specializing in helping companies build the ideal, balanced workforce. For over 25 years, Berkshire has provided the latest solutions for affirmative action, applicant management, compensation, workforce planning, diversity, and professional training.

Contributors

Andrea Csordas Candace Snyder Carla Pittman Charu Avasthy, PHR Cindy Karrow, SPHR Claudia Jones, PHR Dana Lake-Streams Karl Hester Kelly Romanoski Kristyn Hurley, PHR Lauren Collinson Liz Balconi, PHR

Lou Ann Helminiak Manoj Tiwari Michele Whitehead, PHR Mindy Goldman Misty Glorioso, PHR Nancy Mitroka Nicole Butts, SPHR Rachel Rubino Sonia Chapin, SPHR, CCP Suzanne Keys, SPHR Sybil Randolph, PHR

Table of Contents Affirmative Action Utilizing HR as a Change Agent Audit Preparedness—What You Need to Do to Stay Compliant Affirmative Action Planning and Workforce Culture Effectively Implementing Your Affirmative Action Plan Affirmative Action Planning—Are You Audit Ready? Timely Affirmative Action Planning Is Your Company Audit Ready? Historical Perspective on Affirmative Action Impact of Unorganized Data Affirmative Action Industry Profiles—Understanding the Different Compliance Needs in the Manufacturing, Healthcare, and Finance Industries Importance of Conducting Adverse Impact Analyses Examining Upcoming Veterans Requirements

14 16 18 20 24 28 30 32 34 36 42 44

Applicant Tracking Attaining True Workforce Inclusion through Applicant Management

Today’s Applicant Tracking and OFCCP

58 62 72

OFCCP Trends in Applicant Tracking Creating an Updated Applicant Management Process in Seven Easy Steps

Workforce Planning Can Temporary Employees Help Companies Navigate Difficult Economic Times?

8 Aligning Work Culture with Business Objectives Changing Workforce Culture The Importance of Organizational Culture Competitive Work Climate has Employers Vying for Top Talent Getting On-Board with Onboarding The Real HR Soup Proceed with Caution: Before You Downsize, Perform a “Workforce Balance” Check Compliance and Management Issues The Generation Factor–Understanding How Differences in Generations Affect Your Workforce

80 82 84 88 92 94 98 104 112

Veteran Transition and Reservist Reintegration into the Workplace: How Will it Impact Your Company?

120

Workforce BALANCE—The Key to Success in Today’s Business Environment

128

An Effective Approach to Communicating With Employees

130 134

Engaging New Employees: Building Relationships and Maintaining the Connection

Training Training & Professional Development—an Investment Worthwhile Putting the Rumors to Rest—Effective Diversity Training is Real Going Virtual with Web-Based Training Online HR Training—Saving Time and Money Inside the Booth—How Berkshire Works to Serve You Inside the Sessions—How to Benefit from Conference Presenters New Trends in Training Delivery

140 142 144 146 148 150 152

Consulting Outsourcing During Economic Hardships Not Only Makes Sense, it Saves Cents!

158

Hiring Update: Preparing Your Recruitment Efforts for Tomorrow

162

Compensation Compensation Check-up: Conducting Your Self-Assessment Paying for Performance—Creating a Merit Program that Works

168 170

9 What Does Your Compensation Strategy Say About Your Organization?

172

Prep School: Compensation Interview

174

Effective Compensation Management and its Importance to Your Organization

178

Compensation Heat Wave: What You Need to Know to Stay Cool

182 184 188

Paying for Performance—Are You Rewarding the Right Factors? The Importance of Sound Compensation Practices

Diversity Celebrating Diversity During the Holidays Keeping Up the Effort—The Importance of Diversity Initiatives Even During Tough Times

192 196

Don’t Forget About Diversity—Why Workforce Inclusion is a Vital Part of Your Company’s Success

198

Making the Connection: Affirmative Action and Workforce Inclusion

200

The Diverse Workforce Benefit

202 204

If Your Company Values Workforce Inclusion, Communicate It!

Technology Selecting an Applicant Tracking Software—What You Need to Know

210

Affirmative Action Automation for Today’s Professional

214 216 222 228 232 234 236

Social Media and the Workplace—To Be or Not to Be? HR On Demand Affirmative Action & HR Technology—When Two Worlds Collide HR Automation—Moving from Software to Web-based Systems Communicating with Technology Do You See What I See? Examining the Key Features in a Good Applicant Tracking System Berkshire Perspective—We’re an HR Automation Nation The Wonder of the Web

238 242

Employee Relations Communicating Employee Performance: Tips for the Feedback Averse Manager

252

Revenue Per Employee—How Productive Are Your Employees?

256 258 260

Inside the Sessions—How to Benefit from Conference Presenters Inside the Booth—How Berkshire Works to Serve You

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Utilizing HR as a Change Agent By: Berkshire Associates

When policies, behaviors, or thoughts change within your organization, who is responsible for the management? The answer is a “change agent” which is defined as a person who acts as a catalyst and assumes responsibility for managing change activities. The more difficult part to the question is who will be the change agent? While a change agent can be anyone in the organization, it

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While a change agent can be anyone in the organization, it appears almost natural for HR to assume that role, especially when policies are in play.

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appears almost natural for HR to assume that role, especially when policies are in play. Policies affect

not only thought processes, but lead to behavior changes as well. HR professionals touch so many areas of the organization that it is almost a reflex reaction for them to not only be the voice of the people but also to influence the “pulse” of it. Just because an organization is ready to make some changes does not mean that everyone is ready or even willing to accept them. Some of the more irrational beliefs and thought patterns about change are: • • • • • •

Change is bad Adjusting to change takes too much effort Change is unfair Too much change has already taken place in the past Change can be ignored There is no need for change

According to renowned humanities author David Lodge, “To prevent yourself or your organization from becoming stranded mudflats of an

www.berkshireassociates.com obsolete ideology, you must become a champion of change.” The problem is that even when the change is necessary and positive, there are still employees that resist it. How do we, as change agents, overcome the resistance until there is acceptance? Realizing that where there is change there is resistance is a good place to start the process for accepting change. According to Daryl Conner, who wrote, Managing at the Speed of Change, there are five steps that people go through when accepting change. These include: 1. Denial—cannot foresee any major changes 2. Anger—towards others involved in the change process 3. Bargaining—working out solutions to resist change 4. Depression—needing support and having doubt in change 5. Acceptance—the reality of change People do not like straying from the norm. This is especially true when it comes to performing work tasks where employees are comfortable with their job.

That includes both the process and the task. Variance from the norm is viewed as disruptive and produces attitudes of uncertainty, which further complicates the process. Kurt Lewin, father of social psychology, created three stages to change that still hold true today. These stages include: • Unfreezing—old ideals and processes are tossed aside so that new ones may be learned • Changing—the steps to new ideals are learned by practicing • Refreezing—the new processes are now intellectually and emotionally accepted When researching successful organizations that utilize HR change agents, Lewin’s theory still applies. In particular, HR tends to initiate and lead the change by supporting top executives’ ideals, championing the change, and increasing comfort and support, all of which assists in the overall management of change.

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Audit Preparedness—What You Need to Do to Stay Compliant By: Suzanne Keys, SPHR

When faced with an Office of Contract Compliance Programs (OFCCP) audit, many companies don’t know where to start. It’s extremely important to have a course of action prepared—just like you would an emergency preparedness plan. If OFCCP is planning on auditing your company, you may receive a Corporate Announcement Scheduling Letter (CASL). Receiving this letter gives you a head start on making sure your affirmative action plan (AAP) is in place. If you did not receive a CASL, you may receive a phone call from a Compliance Officer confirming your mailing address. An official scheduling letter is sure to follow a few days later. It is important to know scheduling letters are sent by certified mail, and are signed for upon delivery. Make sure your company’s mail department or CEO knows you must be informed immediately if a scheduling letter is received. You only have 30 calendar days, from the date your letter is received, to get your AAP postmarked and on its way to OFCCP.

Here is a helpful compliance evaluation checklist to utilize if you are facing an OFCCP audit.

Compliance Evaluation Checklist Identify your current Affirmative Action Plan date _________________________________

Determine Submission Date A. Date letter was received _________________________ B. Date plan is due for submission (A + 30 days) _________________________ C. Date plan should be ready for submission (B – 5 days) _________________________ Notify Other Company Staff  Berkshire Associates  CEO or Other Top Managers  In-house Counsel  HR Team  Compensation Experts  Staffing Experts  Location Manager  HRIS Personnel  Policy Signer and AA Officer of the Plan

www.berkshireassociates.com Determine Reports to Submit  Organizational Profile (Organizational Display or Workforce Analysis)  Job Group Analysis  Availability Analysis  Utilization Analysis and Significance of Utilization Analysis  Placement Goals  EEO-1 Reports for the previous three years  Collective Bargaining Agreement (if applicable)  Goal Attainment  Personnel Action Summaries  Summary of Compensation Data  AAP Narratives (Minorities & Women as well as Disabled & Veterans) Is it six months or more into your plan year? Yes No

processes for any possible “Red Flags”  Significant adverse impact • Large shortfall  Compensation issues  Presence of other problem areas • Technical issues with AAP • Non-compliance with regulations • Failure to keep records Audits can be extremely overwhelming, so it’s important to gather the right information and be prepared to protect your company from liability. For further audit support or compliance information, please contact Berkshire Associates at 800.882.8904 or email bai@ berkshireassociates.com.

If yes, submit the following update information:  Progress on goals established in the current AAP  Personnel action data for the first six months of the current AAP Review Plan Prior to Submission  Double-check plan for accuracy  Make copies for submission  Review plan and HR

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Affirmative Action Planning and Workforce Culture By: Berkshire Associates

Your company’s affirmative action plan is a powerful tool that positively impacts the culture of your workforce. If you think of your plan as only a necessary step in meeting federal regulations, then you are missing out on many great benefits of being an affirmative action employer.

greater innovation and creativity. Affirmative action is about aggressive outreach to women and minorities. To most effectively utilize the affirmative action plan, you should apply the information to your organization’s employee relations programs.

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By design, an affirmative action program will help to grow an organization that is reflective of your community. Your business is selling products and/or services to a diverse market, and having a diverse workforce is one way to aid in this goal. A diverse organization opens up the possibility of different perspectives, which leads to

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Updating your plan at least every six months will help you to evaluate if the recruiting program you developed is helping you to meet your goals.

The data in your plan is a great source from which to turn your efforts into quantifiable, measurable programs. Your recruiting program can benefit from the affirmative action plan, especially if you find yourself short on time and budget. Look to your affirmative action plan’s incumbency versus estimated availability analysis and

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You can also use your affirmative action plan the next time you develop and evaluate your company’s mentoring and training programs. Turn to the personnel actions analysis in your plan. If there are areas of adverse impact for promotions, this can be a starting point to develop your mentoring and training programs. This analysis is an invaluable tool to ensure your programs are growing your workforce fairly and in a way that benefits the organization the most. Even your employee retention programs can benefit from your affirmative action plan. The adverse impact analysis on terminations will give you information as to the rate at which various groups are leaving

your company. Areas of adverse impact for terminations may indicate a need to improve or develop a program of retention.

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The affirmative action plan is your starting point to successful diversity, recruitment, compensation, and mentoring programs.

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goals to prioritize your efforts. For example, if you have a goal to recruit women professionals, then your first priority may be to contact organizations that promote the professional women you seek. Updating your plan at least every six months will help you to evaluate if the recruiting program you developed is helping you to meet your goals. This will not only give you an opportunity to improve your goal attainment, but will also ensure an effective recruiting campaign.

These are only a few of the ways your affirmative action plan can enhance your workforce. Your company is already using time and money to prepare a compliant affirmative action plan. Be sure to maximize your investment by thinking of ways that the data can strengthen other programs in your organization. The affirmative action plan is your starting point to successful diversity, recruitment, compensation, and mentoring programs.

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Effectively Implementing Your Affirmative Action Plan By: Cindy Karrow, SPHR

Your affirmative action plan (AAP) is complete—now what? Maybe you place it in a binder on the shelf, or keep it stored on a secure website or CD in case you receive a scheduling letter. Perhaps you plan to hold a meeting to review it with hiring managers and senior executives at some point. Regardless of where your AAP is at this point, it’s time to dust it off, because there’s so much more to be done with that valuable information! An AAP is actually an action plan in itself, and there are some other actions that regulations require you to take with your AAP. Some contractors have fallen into the common routine of completing their plan and forgetting about it until the next time it’s due. This article will highlight ways to find a new direction for your AAP information. After all, it takes a lot of time and energy to develop an AAP—why not put that plan to work for you? One of the key components of an AAP is an annual assessment of how your workforce compares

with the current availability estimate. The result of this analysis shows you if there are goal areas where you must establish action plans for placement, or recruitment activity. These activities could be job fairs, advertisements, job postings, or training programs. Each year your AAP should include an analysis of the prior year’s goals. If the results indicate the same or similar goals from year-to-year, despite job openings that have occurred, it may be time to examine your recruitment activities and efforts. Review your selection process and ask yourself the following questions: • Are the basic qualifications identified and up-to-date? • Are salaries in line with the marketplace? • Are there interview questions or tests that should be reviewed or validated for relevance to the job? • Are hiring managers aware of the goals? • Where are the company’s

www.berkshireassociates.com openings posted or advertised, and are you receiving a diverse pool of candidates from these resources? If the resources are not providing results that will assist with goals, then research some alternatives or find new sources. The Office of Federal Contract Compliance Programs (OFCCP) provides a Resource and Referral Directory on their website at http://www. dol.gov/ofccp/ERRD/errsrvs.htm. A Toolkit for finding Veterans is also available at http://www. americasheroesatwork.gov/ forEmployers/HiringToolkit.

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Contractors are required to communicate the results of their AAPs periodically with hiring managers and executives.

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Contractors are required to communicate the results of their AAPs periodically with hiring managers and executives. Hiring managers should be

aware of the goals and the good faith efforts taking place within the organization during plan development in order to show progress. Companies are expected to become involved with community organizations and actively seek relationships with organizations that can refer qualified applicants of all races and ethnicities, as well as women, Veterans, and individuals with disabilities. Self-monitoring is another requirement. This means periodically reviewing your progress toward the goals set at the beginning of the plan year. If there are openings in a goal job group, targeted efforts can be made to let qualified job seekers know about the openings. It is best to review this progress at least once during the AAP year, and more often when you advertise for open positions. Engaging in self-monitoring will allow you to make adjustments while there is recruitment activity occurring, rather than waiting until the end of the year to find out when you have no opportunity for changes. Another form of self-monitoring involves examining adverse

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22 impact results to highlight issues in the employment process. If you see results that indicate adverse impact for applicants, there are a few items you can review to find answers. Examine your definition of an applicant to ensure you are appropriately tracking candidate results. Do your disposition codes track a job seeker through the process so you can identify the decision points for each applicant? Can you identify where an applicant was eliminated from consideration? Are there a large

when and how often you provide the opportunity for job seekers to self-identify race, ethnicity, and gender. Use referral source information to see if your recruitment efforts are attracting a diverse pool of candidates from which to choose. Compensation information from your AAP can be used to determine if there are pay equity or pay compression issues in your workforce. The regulations require an annual review of compensation systems

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The regulations require an annual review of compensation systems to determine if there are pay disparities due to race, ethnicity, or gender.

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number of applicants with race, ethnicity, or gender unknown? Are you using requisition numbers for individual job postings to assist in identifying applicant pools? Use this information to determine if changes should be made to these processes, for example,

to determine if there are pay disparities due to race, ethnicity, or gender. The AAP analysis can provide timely information about the fairness of compensation decisions, and determine what factors are influencing compensation. This may be time-in-job, time-in-company,

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education, experience, or most recent performance rating. These are a few common examplesâ&#x20AC;&#x201D;your analysis may reveal other factors. Developing and implementing an AAP can involve a review of all employment decisions. This is an opportunity to examine those decisions and their processes. It is also a good time to review what information is retained to document those decisions. Look at your organization from an outsiderâ&#x20AC;&#x2122;s point of view during this process. Berkshire can provide you with assistance and guidance in implementing your AAP. Contact us at 800.882.8904, or email bai@ berkshireassociates.com for more information.

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Affirmative Action Planning— Are You Audit Ready? By: Berkshire Associates

If you received a certified letter from Office of Federal Contract Compliance Programs (OFCCP) stating that your organization is under audit, are you prepared to submit all 11 items as requested within the 30 day time frame? Is your organization prepared for an onsite compliance review? If you had any hesitation in answering yes, do not panic! A compliant and audit ready affirmative action plan is easy to construct by maintaining accurate employment records, keeping affirmative action plans current, and by completing additional compliance obligations.

Applicant data is an essential piece of an affirmative action plan and should be tracked electronically or using specially designed software to show each candidate’s progression through the process. Ensure your company’s applicant data is valid by verifying: • • • •

the number of new hires match the number of applicants coded as hired applicants applied to specific positions applicant records contain disposition codes requisitions are closed after they are filled

Maintain Accurate Records A compliant affirmative action plan starts with maintaining accurate employee records. Companies that use Human Resources Information Systems (HRIS) software to store employee data must make sure the employee records are accurate and contain up-to-date information on all personnel actions including promotions, transfers, work locations, salary increases, and terminations.

Maintaining accurate data will produce statistical reports that reflect an organization’s true structure and demographics. Required Components of an Affirmative Action Plan Federal contractors and subcontractors are required to develop written affirmative action plans which document current and future actions to ensure equal employment

www.berkshireassociates.com opportunities. Required components of the written affirmative action plans include: • • • • • •

Narratives for minorities and women, individuals with disabilities, and Veterans outlining polices, practices, results, and good faith efforts the contractor is taking to comply with Executive Order 11246 Overview of the contractor’s establishment using the organizational display or workforce analysis methodology Job group analysis that organizes the contractor’s workforce by job group, and details the percentage of minorities and women in each job group Comparison of the contractor’s workforce against the availability of minorities and women with similar skills sets in the area where the contractor would reasonably recruit Placement goals for job groups where the percentage of minorities and women employed is less than what would be expected Identification of problem areas by reviewing the organizational units, personnel actions,

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compensation systems, and selection procedures to determine if any disparities exist Designation of two company officials to implement, monitor, and communicate the affirmative action plan to executive management and hiring managers Action oriented programs designed to address placement goals in the contractor’s workforce, and outreach efforts to expand employment opportunities

Compliance Obligations Obligations of federal contractors and subcontractors are not limited to written affirmative action plans and are subject to review at the desk audit or onsite review stage of an OFCCP audit. Additional compliance responsibilities include documented postings with state and Veterans employment agencies, completion of EEO1 and VETS-100/100A filings, and notifying subcontractors through purchase orders that they may be subject to federal affirmative action guidelines. Other requirements include

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26 communicating polices by displaying the required EEO posters and sending letters to recruitment and community agencies. Completed affirmative

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receive equal opportunities for advancement and work privileges. Successfully implementing an affirmative action plan includes monitoring the results of

Federal contractors and subcontractors

are required to develop written affirmative action plans which document current employment opportunities.

action plans should be signed and implemented within a reasonable time frame. Update plans should monitor progress towards goals and adverse impact six months into the plan year. Affirmative action plans expire twelve months after the plan date; a best practice is to set a reminder and begin to gather data just after the plan date. Current OFCCP trends include verifying outreach practices, policies, and procedures are effective and are making progress towards creating a balanced workforce. Contractors should review policies and procedures to ensure all qualified applicants and employees

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and future actions to ensure equal

internal and external trainings, recruitment activities and initiatives, and other outreach strategies. Documenting successes and failures, and outlining innovative recruitment and training strategies, will provide proof your organization is committed to affirmative action and diversity. Berkshire Associates provides comprehensive support on affirmative action plans and OFCCP audits. For information on how our experts can help prepare your affirmative action or audit plan, please contact us at 800.882.8904 or bai@ berkshireassociates.com.

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Timely Affirmative Action Planning By: Dana Lake-Streams

Gathering data for your annual Affirmative Action Plan (AAP) can be a time-consuming and frustrating task. The pressure is mounting to get your plan in on time and achieve your AAP goals. You say to yourself, “I’ll get it done,” and before you know it, you’re rushing to finish. If this sounds familiar, you may need to examine your data collection process.

Plan your placement goals ahead of time and use focused methods to widen your target area when recruiting. In addition, have your affirmative action officer communicate the company’s

Generally, you have 30 days from the annual plan date to have an effective affirmative action plan in place.

Generally, you have 30 days from the annual plan date to have an effective affirmative action plan in place. On average, most companies will need a week or so to generate their plan data, and it can take up to 6-8 weeks to complete a full plan. Welltimed data collection is the key to developing and implementing your strategy. Since late planning

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can deter you from reaching your goals, Berkshire Associates recommends giving yourself appropriate time to develop objectives.

goals to recruiters and managers. The successful completion of your goals depends upon the number of open positions you have, so take full advantage of all opportunities available. With these things in mind, you may no longer feel rushed during the planning period.

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Is Your Company Audit Ready? By: Dana Lake-Streams

Office of Federal Contract Compliance Programs (OFCCP) will use a significant portion of its budget to conduct audits. The OFCCP is responsible for enforcing equal opportunity and non-discrimination in employment based on race, sex, religion, color, national origin, disability, or Veteran status for businesses contracting with the Federal Government. Over the years, government contractors have come to fear governmental audits of their affirmative action plans. There are numerous horror stories about multi-million dollar claims and large settlements resulting from unlawful employment discrimination. In FY 2006, the OFCCP recovered a record $51,525,235 for 15,273 American workers who had been subjected to unlawful employment discrimination. Such audits can be highly arduous, however, with a little preparation, the negative effects can be drastically reduced. Here are a few tips for preparing for an onsite audit with OFCCP:

Make sure affirmative action plans are up-to-date, signed, and implemented. Review all personnel records, interview notes, and any disciplinary actions. Before an audit, the designated affirmative action officer (AAO) should review the affirmative action plan to gain a complete understanding of the goals, objectives, and implementation. Reviewing the plan will also allow for familiarity with the companyâ&#x20AC;&#x2122;s problem areas as well as its strengths. This gives the officer the opportunity to address problem areas and seek counsel if necessary by: Identifying any actions taken to correct problem areas, ensuring sufficient explanation when actions taken were unsuccessful, reviewing all signatures, and make sure dates are correct. Review interviewing, selection, and hiring processes. Be prepared to discuss hiring practices, including internal

www.berkshireassociates.com and external recruiting efforts, and selection procedures. Be able to provide job descriptions and/ or information used in advertising job openings, and explanations of the process used to update them.

For more information on how to protect your company from potential audit, or for help getting your next AAP completed, please contact Berkshire Associates Inc. at 800.882.8904, or email bai@berkshireassociates. com.

Have thorough explanations if recruiting efforts fail to represent minorities and females. Develop a rapport with the OFCCP investigator, showing the company is committed to affirmative action and equal employment. Take a tour of the facility to ensure all EEO posters and appropriate notices are displayed and visible. Before the audit interview, review the affirmative action plan with managers and inform them about the nature of the audit, advising them on appropriate actions and comments. Review I-9s to make sure they are completed correctly. Always consult counsel if there are any questions or concerns before an audit. Table of Contents

Historical Perspective on Affirmative Action By: Berkshire Associates

Affirmative action has received both praise and criticism since it was enacted over thirty years ago. Debates on the value and constitutionality of affirmative action have divided the United States for almost three decades. Some believe affirmative action is the basis for rigid quota systems and reverse discrimination, while others view it as a needed tool to create an equitable society. Most of these disagreements focus on identifying who has suffered injustice, appropriate terms of compensation, and the steps

needed to promote justice and equality. The controversy over affirmative action is unlikely to disappear or be resolved because it is so closely tied to the assignment of valuable commodities, such as access to education, promotions, pay rates, and employment selection. However, statistical benchmarks pertaining to unequal salaries, admission rates, and unemployment rates have demonstrated that there is a need for some type of affirmative action and reporting systems for monitoring progress toward

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Some believe that affirmative action is the basis for rigid quota systems and reverse discrimination, while others view it as a needed tool to create an equitable society.

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www.berkshireassociates.com eliminating such disparities. In 1961, President John F. Kennedy issued Executive Order (E.O.) 10925, which established the President’s Committee on Equal Employment Opportunity. Its mission was to end discrimination in employment by the government and its contractors. President Lyndon B. Johnson introduced the policy of affirmative action, E.O. 11246, in 1965 to readdress issues of discrimination that persisted, despite the inception of civil rights laws. This policy set the requirement that all government contractors and subcontractors take affirmative action to expand job opportunities without regard to race, creed, color, or national origin. As a result, Office of Federal Contract and Compliance (OFCC) was established to administer the order.

to create “acceptable affirmative action programs” identifying areas of underutilization of minorities and females. Contractors were also required to develop time frames and positive actions showing good faith efforts to correct deficits. When the Workforce Standards Administration was formed in 1971, OFCC became part of it, and added the word ‘Programs’ to the title (OFCCP). In 1972, the Equal Employment Opportunities Act created a commission to enforce such plans. In 1972, the Workforce Standards Administration changed its name to the Employment Standards Administration (ESA), as it is known today.

Two years later, this order was amended to prohibit discrimination based on gender (E.O. 11375). Acting on this mandate in December 1971, President Richard M. Nixon revised the order, requiring all government contractors and subcontractors

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Impact of Unorganized Data By: Berkshire Associates

For many human resource professionals, the time will come when you have to begin working on your annual affirmative action plan. Whether you are outsourcing in order to complete your plan, or you are doing it yourself, having unorganized data will make the process slow and burdensome. On average, having unorganized data could require up to 50-70

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On average, having unorganized data could require up to 50% to 70% of an AAP plan’s creation time just in clean-up alone.

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percent of an AAP plan’s creation time just in clean up alone. If you outsource to Berkshire Associates Inc., and send in unorganized data, we would need to call

or email you for clarification. This pulls you away from your daily duties and hinders the completion of your plan. With organized data and prompt responses to emails, Berkshire can complete your plan in six to eight weeks. Remember the AAP is a plan for the year going forward, and the major purpose is to meet the goals outlined in your plan. If your data is unorganized, it will take much longer to process, delaying its implementation. When plan execution takes an extended amount of time, you are setting your company up for failure by minimizing opportunities to meet the goals set forth in the AAP for the plan year. The data Berkshire requires in order to complete your plan is the same data Office of Federal Contract Compliance Programs (OFCCP) would ask for if you were chosen for an audit. If you have a difficult time fulfilling standard outsourcing requirements, then you will have an even harder time providing that same information to the

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OFCCP under time constraints. For more information on strengthening your AAP data, please contact Berkshire Associates Inc. at 800.882.8904, or email bai@ berkshireassociates.com.

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If you have a difficult time fulfilling standard outsourcing requirements, then you will have an even harder time providing that same information to OFCCP under time constraints.

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Affirmative Action Industry Profiles— Understanding the Different Compliance Needs in the Manufacturing, Healthcare, and Finance Industries By: Lauren Collinson and Kristyn Hurley, PHR

Different Industries, Different Needs When it comes to effective affirmative action compliance— one size doesn’t always fit all. Depending on the industry, affirmative action compliance and planning can vary greatly. This is especially true when it comes to the needs, expectations, requirements, industry trends, and solutions for best practices. Three industries that must comply with affirmative action regulations, but have differing concerns and requirements, are the manufacturing, healthcare, and financial industries. Affirmative Action and the Manufacturing Industry According to economywatch.com, the manufacturing industry refers to “those industries which are involved in the manufacturing and processing of items, and indulge in either creation of new commodities or in value addition. The manufacturing industry accounts for a significant share of the

industrial sector in developed countries. The final products can either serve as finished goods for sale to customers, or as intermediate goods used in the production process.” Companies in the manufacturing industry have similar issues and concerns when it comes to effective affirmative action planning. Usually companies in the manufacturing industry have many employees based on operative and labor needs. Because of this, high turnover in necessary positions can become a big factor. It is essential these companies have an automated system, or Human Resource Information System (HRIS), to track necessary data to ensure compliance standards are being met, but many manufacturing companies lack an efficient HRIS to meet their unique needs. It’s important to take the time to research systems being offered, and find the one that fits best. Manufacturing firms should look for a system that streamlines their processes, and easily allows for affirmative action plan (AAP)

www.berkshireassociates.com data extraction. Another issue many companies in the manufacturing industry face is attracting and retaining females in the workplace. Because of the nature of the industry, companies have a hard time finding females that are not only qualified, but willing to do the job. In order to remain in compliance, diverse hiring practices are necessary. One way manufacturers can remain in compliance is to broaden their recruitment efforts to directly source female applicants in their industry. This can be done through targeted job descriptions and job postings. Another option is to train the current workforce on the positions available, and recruit internally.

of understanding. It is extremely important the Affirmative Action Officer and the Union Representative have a clear understanding of both sides of the regulations, allowing them to work together to keep compliance at the forefront when making personnel decisions. Salaries are also dictated by collective bargaining agreements and may skew results in salary analyses. To avoid potential liability, compensation analyses must be reviewed by breaking out the union jobs from the nonunion jobs to account for the differences in compensation. When it comes to affirmative action compliance, another issue manufacturing companies face is their heavy reliance on temporary

Manufacturing companies also have a heavy union presence, which dictates compensation and promotional tracks.

Manufacturing companies also have a heavy union presence, which dictates compensation and promotional tracks. This can inadvertently lead to compliance issues due to a lack

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agencies to provide candidates to fill open positions. Many of these individuals progress from

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It’s important to be aware of these unique compliance needs and hurdles faced in the manufacturing industry to ensure proper affirmative action planning and avoid liability. Affirmative Action and the Healthcare Industry The Bureau of Labor Statistics, when describing the healthcare industry, states, “Combining medical technology and the human touch, the healthcare industry diagnoses, treats, and administers care around the clock, responding to the needs of millions of people—from newborns to the terminally ill. About 595,800 establishments make up the healthcare industry; they vary greatly in terms of size, staffing patterns, and organizational structures. About 76 percent of healthcare establishments are offices of

physicians, dentists, or other health practitioners. Although hospitals constitute only one percent of all healthcare establishments, they employ 35 percent of all workers.” When it comes to affirmative action compliance, companies in the healthcare industry have their own set of unique concerns and requirements. It is important to be aware of these to proactively combat liability and maintain a fair and equitable workplace.

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One of the top issues facing the healthcare industry is high turnover.

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temporary to regular employees, and this poses a challenge, since the temporary positions are not typically captured in the applicant flow data. In order to rectify this, companies need to establish a process to account for applicant flow when hiring from temporary agencies. Not capturing this data could cause a negative impact when it comes to compliance efforts.

One of the top issues facing the healthcare industry is high turnover. With the rapidly moving and changing employee life cycle in this industry, it is important to keep accurate data in order to ensure compliance. High turnover can greatly influence adverse impact results, leading to red flags and liability. In order to collect the appropriate data necessary for an AAP, companies should adopt an efficient applicant management system

www.berkshireassociates.com to automate their processes. Companies can also work towards lowering high turnover. To do so, they can conduct exit interviews to pinpoint the reasons for employee departures, and institute programs to decrease the turnover based on the results found. Companies can also provide on-the-job training to encourage employee growth while increasing retention. When it comes to tracking positions within the healthcare industry, many companies have problems with accurate data for primary and secondary job coding. In hospitals, it is common for an employee to have a primary job code, plus one or more secondary job codes so they can fill in, or work extra shifts. To combat this issue, companies should utilize a tracking system that accounts for each position an employee holds. The company can use full-time equivalency values to slot employees into multiple jobs. This will help with any confusion, and lead to more accurate data for compliance use. Healthcare companies are now being faced with another important issue regarding AAP compliance. It is important for them to determine if the hospital receiving payments from a health

plan providing medical services to U.S. government employees are federal subcontractors required to comply with OFCCP requirements. In order to do so, employers should review their vendor agreements to determine whether the goods or services being provided establish federal subcontractor status, subjecting them to affirmative action obligations. Companies also need to investigate if they have contracts with organizations setting up health maintenance organizations for federal government employees, or with Tricare, providing care for military personnel and their dependents. If so, and they meet the 50 employee and $50,000 standards, then an AAP needs to be implemented. Oftentimes, determining whether to do a multi-plan or single plan, especially if the company is in a city with multiple establishments, becomes a question of concern in the healthcare industry. Any physical establishment with more than 50 employees should have an AAP. Companies need to review locations and employee counts to determine the number of plans required, as well as which AAP employees in physical

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40 locations of less than 50 should be included in. Along with planning expectations, healthcare companies often experience several mergers and acquisitions. To maintain proper compliance, companies should discuss separating new hires from acquisitions when pulling AAP data. It’s important to re-evaluate the number of plans needed after a merger or acquisition. Because healthcare companies are constantly hiring nurses, they leave the job requisitions open all year. This can cause issues with applicant tracking, especially with adverse impact by increasing the applicant pool to very large numbers. It also increases the pool of individuals affected if there is a case for discrimination in hiring. Healthcare companies need to define a method to create applicant pools for specific requisitions. They could use time frames to group applicants into requisitions for analyses. The availability of registered nurses (RN), licensed practical nurses (LPN), and certified nursing assistants (CNP) positions is very high for women. Many companies invariably face statistically significant placement goals, even though they may have a very high employment rate of females because these

groups are so large and the external availability is extremely high. Companies often accept the result because it is in conflict with diversity goals to have a fair mix of men in RN, LPN, and CNP categories. They understand having men in their business is a necessity based on patient preference. There are many issues, recent regulation changes, and challenges healthcare industries must face to remain compliant, and it’s important they consider their unique needs when it comes to effective affirmative action planning. Affirmative Action and the Finance Industry According to Silver Career Management, “a financial institution acts as an agent that provides financial services for its clients. Common types of financial institutions include banks, insurance, securities, stock brokerages, and similar businesses.” Like the healthcare industry, the finance industry faces many mergers and acquisitions. To combat these changes, finance companies must separate new hires from acquisitions when pulling AAP data. They

www.berkshireassociates.com should also re-evaluate the number of plans needed after a merger or acquisition. The finance industry also faces a lower number of female applicants for positions. To combat this issue, companies should proactively broaden recruitment searches to capture a more diverse group of candidates. Internal training should also be offered to promote people within the company. Another option to attract and retain minorities and women in this profession is offering benefits such as tuition and certification reimbursement, on-the-job training, and mentoring programs. In the finance industry, it is very important companies understand the issues that impede their compliance efforts to protect themselves from potential liability.

effective affirmative action plan based on its unique needs, please contact Berkshire Associates at 800.882.8904 or email bai@berkshireassociates.com. About Berkshire Berkshire Associates is a human resources consulting and technology firm specializing in helping companies build the ideal, balanced workforce. As an industry leader, Berkshire provides the latest tools and services for affirmative action, applicant management, compensation management, workforce planning, diversity, and professional training. For over 25 years, Berkshire has serviced the nationâ&#x20AC;&#x2122;s most recognizable companies; and as a result has mastered providing clients with cost-effective solutions to everyday human resources challenges.

Find the Right Compliance Fit With differing industries and compliance requirements, it is important for every company to assess how to strategically implement best practices when it comes to affirmative action. To learn more about how your company can ensure its compliance and create a truly

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Importance of Conducting Adverse Impact Analyses By: Liz Balconi, PHR

Adverse Impact indicates a practice, policy, or bias that has a negative impact on women or minorities. Often the adverse impact is not caused by discrimination, rather a practice that inadvertently has a negative impact on one group. However, occasionally there is a bias or discriminatory practice

• Uncovering unintentional practices that adversely impact women or minorities • Avoiding costly lawsuits by identifying biased managers. •

Saving thousands in recruiting and training costs by identifying causes of turnover.

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Adverse impact analyses should be conducted on hiring, promotion, and termination activity throughout the year.

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that causes the adverse impact. Regardless of whether the negative impact is intentional, companies need to be aware of actions that prevent hiring and retaining women or minorities. Conducting an adverse impact analysis can benefit the bottom line by:

• Conducting adverse impact on compensation may explain low morale and productivity. Adverse impact analyses should be conducted on hiring, promotion, and termination activity throughout the year. If your company is planning a layoff, it is particularly important to determine if

www.berkshireassociates.com women, minorities, or individuals over 40 are affected at a higher rate than the non-protected. An analysis should be done prior to the layoff so adverse impact can be avoided.

and so there is adverse impact for women

The majority of companies do not intend to discriminate. Yet, many exclude women and minorities through employment tests, policies, practices, and work environment without realizing the impact of their decisions. Conducting adverse impact analysis ensures that your intentions to a fair equitable workplace are a reality. Example of Adverse Impact Calculation: Women in department: 50 Women promoted in 2005: 4 Men in department: 30 Men promoted in 2005: 4 Selection rate for women: 4 of 50 = 8% Selection rate for men: 4 of 30 = 13% The selection rate for women is 61.5% of the selection rate of men 8 / 13 = .615 or 61.5% 61.5% is below 80% threshold

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Examining Upcoming Veterans Requirements By: Charu Avasthy, PHR

Federal contractors’ responsibilities with respect to affirmative action, recruitment, and placement of Veterans have remained largely unchanged since first being published in 1976. In the last couple of years large numbers of Veterans have returned, or are in the process of returning to civilian life, from tours of duty in Iraq and Afghanistan. Their employment is a high priority of the current Administration. Consequently, on April 26, 2011, Office of Federal Contract Compliance Programs (OFCCP) published a Notice of Proposed Rulemaking (NPRM) to change the regulations that govern how federal contractors and subcontractors complete their Veterans affirmative action plan (AAP). The comment period is over, and the final rule is expected in spring of 2012. While no action is needed at this time, once the implementation date is established, all plans will need to comply with the changes. The NPRM is expected to be finalized without any major changes, and federal contractors and subcontractors need to be ready to comply.

One of the first proposed changes is to rescind Part 60250 in its entirety. Regulations under Section 60-250 implement the affirmative action provisions of the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) of 1974. The proposed changes will rescind Part 60-250 because the regulations in this section only cover contracts of $25,000 or more, entered into prior to December 1, 2003 that have been unmodified since that time. Generally, government contract duration does not exceed five years (Federal Acquisition Regulation; 17.204). Hence, any contracts covered exclusively by part 60-250 would have expired by December 1, 2008. The new regulations will be known as “Section 4212” and VEVRAA will no longer be used. The term “other protected Veterans” would change to “active duty wartime or campaign badge Veterans.”Additionally, the term “covered Veterans” would change to “protected Veterans,” which will include all four of the protected Veterans

www.berkshireassociates.com categories under Sec 60-250 and Sec 60-300. Once the regulations are finalized OFCCP will work with Department of Labor’s (DOL) Veterans’ Employment and Training Services (VETS) to conform the VETS-100 form to the new Section 4212 regulations. There are significant changes that could impact both analysis and recordkeeping obligations under the new guidelines. Below is an outline of the primary changes contractors should be prepared to comply with in 2012: Recruitment Compliance Federal contractors and subcontractors will need to adjust their Veteran recruitment efforts in order to comply with the upcoming proposed regulations. The following are some of the updates they need to be aware of: •

Contractors will need to list all job openings with the employment service delivery system in a manner prescribed by the service so job openings are listed accurately in their database. This also applies to any third party job service or exchange the contractor uses to fulfill its mandatory

listing obligation. Contractors will need to provide the state employment service with additional information such as its status as a federal contractor, contact information of the official at each location in the state, and request priority referrals of protected Veterans. If any third party recruiters are used, the contractor must also provide their contact information to the state employment service. This information will need to be updated annually.

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On an annual basis contractors will be required to analyze total referrals received, number of priority referrals of protected Veterans received, and the ratio of protected Veteran referrals to total referrals. Records associated with these referrals will need to be maintained for five years.

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Effectiveness of the outreach efforts will be evaluated by considering the number of protected

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46 Veteran referrals, applicants, and hires for the current year and two previous years. Qualified Veterans that are actually hired will be primary indicators of effectiveness. • Contractors must enter into linkage agreements with several Veterans’ employment sources specified by OFCCP in the proposed rule. At a minimum, three are required. OFCCP compliance officers nationwide will assist contractors in drafting these if requested. Documenting the agreements and activities undertaken, annually reviewing these for the previous 12-month period, and retaining these documents for a period of five years has also been outlined. •

All applicants will have to be invited to self-identify as a “protected Veteran” prior to the offer of employment. This proposed change would not seek the specific protected classification of protected Veteran nor would it require protected Veteran applicants to

disclose their status if they choose not to. The contractor will maintain the pre-offer self-identification data and supply it to OFCCP upon request.

• After the offer of employment, contractors will need to invite individuals to self-identify as a member of one or more of the four classifications of protected Veterans. Applicants will only identify themselves as disabled Veterans after an offer of employment is made and would not be required to disclose the nature of their disability, as is currently the case. The post-offer invitation also requests special disabled Veterans describe possible workplace accommodations. The rule now requires the contractor to seek the advice of the applicant regarding accommodation. If multiple reasonable accommodations exist, the contractor would not be required to utilize the reasonable accommodation preferred by the applicant or employee. • OFCCP will provide the model language to be used

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with the pre- and post-offer forms. Invitations to selfidentify have new language that explains to applicants the information is being requested in order to measure the contractor’s outreach and recruitment efforts required under part 60-250/60-300. This replaces the current language which only inquires whether individuals would like to be included in the contractor’s affirmative action program.

exists. Contractors will also need to track the criteria set forth in the ‘direct threat’ definition in these regulations and maintain the written statement as set forth in the recordkeeping requirements in Sec. 60-300.80. Any information obtained, regarding the medical condition or history of any applicant, will be treated as confidential medical records in accordance with Sec. 60300.23(d).

• Physical and mental requirements of all jobs must be reviewed and updated annually as necessary. The results of this annual review must be documented. The proposed regulations also spell out the criteria the contractor must consider in determining whether a direct threat exists. If an individual poses a direct threat to the health or safety of the individual or others in the workplace, contractors will be required to do a direct threat analysis by contemporaneously creating a written statement of reasons supporting its belief that a direct threat

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Contactors will be required to inform all applicants of their affirmative action obligations and their rights under the EEO clause. Contractors will be required to use an electronic posting to notify job applicants of their rights if the contractor utilizes an electronic application process. Such electronic applicant notices must be conspicuously stored with, or as part of, the electronic application. These additions were made in response to the increased use of Internet-based application processes in which

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applicants never enter a contractor’s physical office. These revisions ensure access to the required notices for applicants.

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The proposed regulations add a new paragraph, 13, to the EO clause which would require the contractor to state in solicitations and advertisements that it is an equal employment opportunity employer of Veterans protected under Section 4212.

Quantitative Assessment of Affirmative Action Efforts When it comes to the quantitative assessment and placement of affirmative action efforts, contractors need to be prepared to meet the following changes: •

Contractors will be required to calculate ratios using referral, applicant, hiring, and job openings data. These quantitative measurements will have to be documented annually and associated records maintained for five years.

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Annual hiring benchmarks are required to be set. These benchmarks will be

expressed as the percentage of total hires that are protected Veterans the contractor seeks to hire in the following year. In setting this benchmark, the contractor will refer to sources such as the ratios mentioned above, percentage of Veterans in the civilian labor force (Bureau of Labor Statistics), number of Veterans who were participants in the state employment service, and other factors including but not limited to the nature of the contractor’s job openings or its location—which would tend to affect the availability of qualified protected Veterans. Some of this information will be available on OFCCP’s website. The records will need to be maintained for five years.

Dissemination of AA Obligations The changes proposed to disseminate contractors’ affirmative action obligations are designed to ensure the contractor understands and communicates effectively its affirmative action obligations to its employees and others it does

www.berkshireassociates.com business with. To that end, the following are updates contractors need to be aware of: •

Under Section 60-300.44, a contractor will have to provide notices of its AA Policy Statement, employee rights, and contractor obligations in a manner that is accessible and understandable to persons with disabilities. For persons with disabilities, reading this statement is outdated. A new suggestion—to provide Braille, large print, or other versions to allow persons with disabilities to read the notice themselves—has been made. The proposed rule also requires providing notices of rights under Section 4212 in accessible formats for those working offsite (i.e., electronicallyaccessible postings) so all parties understand their respective rights and obligations under the law.

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To ensure employees and Veteran applicants understand the protections and benefits of Section 4212, the rule also mandates contractors include AA policy in its

policy manual and inform all applicants and employees of AA obligations. Contractors should also conduct meetings with executive, management, and supervisory personnel to explain the intent of the AA policy, responsibility for its implementation and recruitment, hiring, and advancement of protected Veterans. They must then discuss the policy in orientation and management training programs, and hold meetings with its employees at least once a year to discuss AA policies, the AAP, contractor and individual responsibilities, and individual employee opportunities for advancement. The suggested formats are in-person meetings, webinars, or videoconferencing. If collective bargaining agreements apply, then the contractor needs to meet with union officials and representatives to inform them about the policy and

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seek their cooperation.

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The new rules have replaced ‘chief executive officer’s attitude on the subject matter’ with ‘chief executive officer’s support for the affirmative action program.’ This proposed change has been made to clarify the intent of including a statement from the contractor’s CEO in the AA Policy Statement.

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Contractors are required to send written notifications of the company’s policy related to affirmative action efforts to its subcontractors, subcontracting vendors, and suppliers. Contractors are not required to send notifications to vendors and suppliers who are not subcontractors as defined by these regulations—such disclosure remains an encouraged activity.

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Under Section 60-300.5 (Equal Opportunity Clause), OFCCP has replaced the outdated suggestion of “having the notice read to a visually disabled individual” as an accommodation with the suggestion to provide

Braille, large print, or other versions that allow persons with disabilities to read the notice themselves. With respect to employees who do not work at a physical location of a contractor, the contractor will satisfy its posting obligations by posting such notices in an electronic format. Electronic notices for employees must be posted in a conspicuous location and format on the company’s Intranet, or sent by electronic mail to employees. Contractor’s notifications to labor organizations or other workers’ representatives must include “non discrimination,” in addition to “affirmative action.” The current paragraph 11 does not specifically mention the contractor’s non discrimination obligations. Contractors will be required to include the entire Equal Opportunity Clause verbatim in federal contracts and subcontracts. This is to ensure the contractors, and especially subcontractors, are aware of their Equal Opportunity Clause statutory obligations.

www.berkshireassociates.com • Efforts must be documented and retained, subject to recordkeeping requirements of Sec. 60 300.80. Identity of officials responsible for AA activities must appear on all internal and external communications. •

A sentence has been added to Section 60-300.41 which sets forth the manner by which the contractor must make its affirmative action programs available to applicants and employees for inspection. In instances where the contractor has employees who do not work at the contractor’s physical establishment, the contractor shall inform these employees about the availability of the affirmative action program by means other than a posting at its establishment. Current Section 60-300.41 also refers to making this available for applicants. It is unclear from the proposed rule what is expected for applicants. However, elsewhere in the NPRM it has been mentioned notices need to be made available by an

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electronic posting and kept as part of the electronic application. “Periodic review of personnel processes” has been changed to “review personnel processes on an annual basis.” Contractors will have to document personnel actions taken with regard to protected Veterans. Proposed revisions mandate certain specific steps the contractor must take, at a minimum, in the review of its personnel processes. First is to identify vacancies and training programs for which protected Veteran applicants and employees were considered. Second is to provide a statement of reasons explaining the circumstances for rejecting protected Veterans for vacancies and training programs, and a description of considered accommodations. Finally, is describing the nature and type of accommodations for special disabled Veterans who were selected for hire, promotion, or training

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programs. The specific reasons for personnel actions need to be made available to the employee or applicant upon request.

Reasonable Accommodation •

“Appropriate accommodation” has been replaced with ``reasonable accommodation.” Several changes have been made to Appendix A mandating certain activities that were earlier only suggested. For example, contractors should seek the advice of special disabled Veterans in providing reasonable accommodation. If an accommodation would constitute an undue hardship for the contractor, rules require special disabled Veterans be given the option of providing the accommodation or paying the portion of the cost that constitutes the undue hardship for the contractor. A new clause in the proposed rule states individuals who reject a reasonable accommodation made by the contractor may still be considered qualified disabled Veterans if they subsequently provide or pay for a

reasonable accommodation. Contractors must consider the totality of the circumstances when determining what constitutes a ``reasonable amount of time” in the context of available vacant position. Training •

The new rules specify topics to include in training. Topics include benefits of employing protected Veterans, appropriate sensitivity toward protected Veteran recruits, applicants, and employees, and legal responsibilities of the contractor and its agents regarding protected Veterans generally and special disabled Veterans specifically (e.g. reasonable accommodation for qualified disabled Veterans). Contractors will have to document who receives the training, when they receive it, and who administers it. Records of all written or electronic training materials used will have to be maintained subject to recordkeeping requirements of Sec.

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60-300.80.

Compliance Reviews Proposed changes to how OFCCP conducts compliance reviews include emphasis on electronic data and flexibility: • OFCCP may examine information after the date of the scheduling letter to determine if violations persist or have been remedied. This will affect the temporal scope of audits. •

Relevant documents will be provided on-site or off-site to OFCCP at its request, not at the contractor’s option. Contactors will be required to specify all formats in which data and records are available. OFCCP will select the format (it prefers electronic). Currently, focused reviews must take place ``on-site”(contractor’s place of business). The word ‘on-site’ has been deleted in the changes to allow CO’s greater flexibility in where reviews take place.

Conclusion In the past, many companies have not been diligent about collecting Veterans information or conducting Veterans outreach and recruitment efforts. With the proposed changes on the way, now is the time for federal contractors and subcontractors to collect the required information and put updated processes into place. Using the Employment Service Delivery System alone will not suffice. Contractors should now focus on developing meaningful relationships with organizations that support Veterans. Berkshire Associates will continue to monitor these changes and provide the contractor community with updates as they become available. For more information on these proposed regulations and how they may impact your organization, please contact one of Berkshire’s compliance experts at 800.882.8904 or email bai@ berkshireassociates.com.

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Applicant Tracking

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Attaining True Workforce Inclusion through Applicant Management By: Kelly Romanoski

A diverse workforce can yield infinite benefits. Companies that embrace a philosophy of inclusion realize both fiscal and work-life return on investment. In The Inclusion Paradox by Andres Tapia, inclusion is described as an approach that ensures every person, regardless of ability or background, can meaningfully participate in all aspects of life. There are a vast amount of resources that exist for staffing professionals who

An effective applicant management system is one in a series of steps to ensure workforce inclusion is a company priority.

want to enhance the quality of their workforce. An effective applicant management system is one in a series of steps to ensure workforce inclusion is a company priority. Inclusion takes all forms—and not just those in protected classes. Most inclusion programs

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focus on Veterans, disabled, and traditionally underserved parts of the population. SHRM offers a Diversity & Inclusion Strategic Leadership Program, where participants strive to develop and communicate the business case for diversity by understanding the diversity value proposition and how firms may gain competitive advantage through effective diversity practices and tactics (more information is available at shrm.org).

In order to see inclusion is achieved in the workplace, recruiters and staffing professionals should have an effective applicant management tool that captures the entire process—including the initial job postings, sourcing candidates, extending a job offer, and beginning the onboarding

www.berkshireassociates.com process. The first step in ensuring a diverse pool is to post job openings at different sites than those used in the past. Sites such as disability.gov or recruitmilitary. com can help recruiters find new sources for qualified applicants, and even a required job posting to the state job boards can help achieve inclusion. As applicant management increases global reach, the traditional geographic workplace boundaries are quickly crumbling. No longer are applicants and job seekers marketing themselves only to the state in which they may reside. They can market themselves anywhere in the country, or even internationally. Recruiters and staffing professionals must be doing the same when it comes to job postings, outreach programs, and targeted recruitment efforts. Extending outreach programs outside the normal recruitment sources can allow companies to â&#x20AC;&#x2DC;cast a wider netâ&#x20AC;&#x2122; making it so not only are they getting the company name out as a great place to work, but creating a more diverse pool of potential candidates. This will allow companies to enhance selection methods and ultimately achieve workforce inclusion. It is essential to move beyond the best practices that have worked in the

past, and adopt new paradigms to break down the usual recruitment efforts and extend beyond the norm. By doing this, companies will be rewarded with a workforce that reflects their customers and helps to build a culture of inclusion. Having a proficient applicant management system can keep all processes in place and can even help meet key business objectives. Keeping track of referral programs, required postings, background checks, and outreach programs are all vital tools that can aid in reaching workforce inclusion. Inclusive work environments must be fostered, where all people are valued for what they bring to the organization rather than surface characteristics. It is then, and only then, that true workforce inclusion can be attained. To find out more about how you can ensure your applicant management and workforce inclusion connection, please contact Berkshire Associates at 800.882.8904, email bai@ berkshireassociates.com, or visit www.balancetrak.com.

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Today’s Applicant Tracking and OFCCP By: Michele Whitehead, SPHR

Applicant Management is a hot topic in the HR arena right now, especially since the Office of Federal Contract Compliance Programs (OFCCP) has been focusing on consistency within recruiting processes. In July 2000, the Office of Management and Budget directed OFCCP and other agencies to clarify the recordkeeping requirements for applicants, taking into account the Internet and other recent technological advances. The Uniform Guidelines on Employee Selection Procedures of 1978 offered a definition of an applicant that was ambiguous, and had become outdated with the increase of electronic applicants, growth of online résumé databases, and email. In October 2005, the OFCCP published its long-awaited final rule on the definition of an Internet applicant. This rule clarifies when a contractor must solicit race and gender and recordkeeping requirements for applicants sourced through the Internet. In short, OFCCP wants to ensure companies are effectively

communicating and meeting recruitment and staffing requirements. OFCCP collects applicant data to determine if the hiring practices are consistent with the applicant pool. OFCCP does not expect the percentage of selected minorities and women to match the percentage of minorities and women applicants exactly. However, they do expect the selection rate of women and minorities to be no less than 80 percent of the selection rate of men and non-minorities. So, how can a company make sure it is meeting regulations for compliant applicant management? There are numerous methods of tracking applicants depending on the needs of the company. Some use a method as simple as a spreadsheet or desktop database. Given the level of detail needed, many companies have invested in an applicant tracking system (ATS). There are many different types of ATS with a broad range of capabilities. Most systems allow you to quickly query out information about an applicant

www.berkshireassociates.com pool, as well as limit input fields to ensure consistency. There is an applicant tracking system for almost any budget, and most are well worth the investment, especially for decentralized recruiting. One aspect of a good applicant tracking process, no matter the system, is clean data. It is important to review your company’s applicant data for accuracy. If there are many

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One aspect of a good applicant tracking process, no matter the system, is clean data.

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people involved in the recruiting process, the data integrity can suffer. Here are some best practices to ensure clean applicant data: • •

Make sure the number of new hires on your payroll matches the number of hired applicants in your ATS. Be sure you are tracking rejection reasons and

stages. • Create a disposition code for declined offers. • Beware of low applicant counts. • Train recruiters and managers on using the system and why consistency is important. • Hold recruiters accountable for inaccuracies in their applicant tracking. • Hold temporary agencies accountable for tracking applicants. • Use detailed disposition codes to make research easier. When evaluating the recruitment and selection process, it is also important to consider not only the contractor’s applicant pool, but the availability of female and minority candidates in the census area where the recruitment is conducted. When determining action oriented programs, targeted recruitment should be established for each job group where there is a goal or adverse impact from the previous year. Make sure every outreach effort encourages all qualified applicants to apply, including minorities, women, Veterans, and individuals with disabilities.

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60 While these good faith efforts are critical to a compliant plan, keep in mind they can backfire. If the contractor is doing targeted recruitment and gets an applicant pool rich in minorities, it will raise the expectation that more minorities should be selected. So in areas where there is adverse

practices within the organization, and evaluating areas for potential adverse impact, can save a company from having to scrutinize past employment decisions and potentially pay large settlements in the future.

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Although OFCCP only requires an annual affirmative action plan, to be proactive, the employer must conduct selfaudits to monitor its progress and correct areas of potential adverse impact.

Although OFCCP only requires an annual affirmative action plan, to be proactive, the employer must conduct self-audits to monitor its progress and correct areas of potential adverse impact. Examining recruitment

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impact, compare the pool of minorities and women in the applicant pool to the census data. If the applicant pool is much richer than the census data, this can be an additional factor to consider if the OFCCP scrutinizes the contractor’s hiring practices.

To learn more about effective applicant management, and how to make sure your company is reaching its full workforce balance potential, please call 800.882.8904 or email bai@ berkshireassociates.com. Don’t forget, with Berkshire’s applicant management software, BALANCEtrak, you can automate and standardize your entire hiring process, and save time by concentrating on the most qualified applicants.

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OFCCP Trends in Applicant Tracking By: Berkshire Associates

Background In July 2000, the Office of Management and Budget directed the Office of Federal Contractor Compliance Programs (OFCCP) and other agencies to clarify the recordkeeping requirements for applicants, taking into account the Internet and other recent technological advances. The Uniform Guidelines on Employee Selection Procedures of 1978 offered a definition of an applicant that was ambiguous, and had become outdated with the increase of electronic applicants, growth of online rĂŠsumĂŠ databases, and email. In March 2004, the EEOC issued a proposed definition (which is not finalized as of this writing), and OFCCP also issued a different definition. After a period of public comment, in October 2005, OFCCP published its long-awaited final rule on the definition of an Internet applicant. This rule clarifies when a contractor must solicit race and gender and recordkeeping requirements for applicants sourced through the Internet.

In an OFCCP press release, Deputy Assistant Secretary Charles James, Sr. said, This new rule provides clear guidance to allow us to better enforce the law. This final rule will enable OFCCP to effectively evaluate whether federal contractors are recruiting a diverse pool of qualified applicants and hiring new employees on a non-discriminatory basis. It also helps contractors by clarifying an ambiguity that, until now, left contractors guessing about what information they needed to collect from Internet applicants. The purpose of this paper is to track recent trends in how OFCCP has applied this rule in audit situations in the intervening years. For more information about the definition, please go to http://www.berkshireassociates. com/infocenter/whitepapers/ internetapplicants.aspx.

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What OFCCP Does with Applicant Data OFCCP collects applicant data to determine if the hiring practices are consistent with the applicant pool. OFCCP does not expect the percentage of selected minorities and women to match the percentage of minorities and women applicants exactly. However, they do expect the selection rate of women and minorities be no less than 80% of the selection rate of men and non-minorities. As an example:

The information submitted to OFCCP in an audit generally looks like:

Job Group B-Professionals

Offers Applicants

Tot

Unk

Min

Wht

108

Grand Totals Offers Applicants

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64 In this example, the selection rate for minorities is 2% (1/50) and the selection rate for non-minorities is 6.7% (4/60). OFCCP draws a ratio of those two selection rates to determine if there is adverse impact against the protected class.

Minority offers

Minority applicants

Non-minority offers

Non-minority applicants

= 2.0%

= 6.7%

2.0% = 6.7%

30.0% if less than 80% there is adverse impact

OFCCP expects the ratio of the two selection rates to be at least 80% or higher. In the example above, the ratio is 30% (2% minority selection rate / 6.7% non-minority selection rate = .30). Since this is less than 80%, the selection process had an adverse effect or adverse impact on minorities. Adverse impact does not mean discrimination has occurred. There is an additional test that can be run to determine if observed adverse impact is statistically significant. For smaller groups,

Significant adverse impact is a prima facie case for discrimination.

â&#x20AC;&#x153;

www.berkshireassociates.com the most accurate way to determine if adverse impact is statistically significant is to use the Fisher’s exact test. This calculation will tell you the probability that the difference in selection rates occurred by chance. If the probability is more than 5%, the adverse impact is not significant. If the probability is less than 5%, the adverse impact is significant. Significant adverse impact is a prima facie case for discrimination. This means the government can assume the employer is discriminating and the burden shifts to the employer to demonstrate a business reason to explain the adverse impact. The basic equation for the Fisher’s exact test is:

(A+B)! (C+D)! (A+C)! (B+D)! N! A! B! C! D! A = # of protected applicants selected B = # of protected applicants not selected C = # of non-protected applicants selected D = # of non-protected applicants not selected N = total number of applicants The “!” in the Fisher’s formula is a factorial. To calculate, multiply all

integers, up to and including the one shown, to get the value. For example, 4! = 4 x 3 x 2 x 1 = 24. With large numbers, or even in the average spreadsheet, this calculation is very difficult to do by hand. The result will usually be a decimal. Any value of 0.025 or less is considered statistically significant. The 0.025 represents a 2.5% probability, and these calculations are based on a two tailed distribution, so the total is 5% probability. Another option for larger groups is to calculate the standard deviation result for the data set. Regardless of how significance is calculated, it is important to know if areas of adverse impact are significant. If there is significant adverse impact, it is important to review the selection criteria and applicant qualifications to ensure the best qualified person was selected for the job. It is particularly important to ensure the non-minorities and men selected were more qualified than the minorities and women who were not selected. Desk Audit Trends During a desk audit, a compliance officer will look for adverse

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66 impact for each personnel action (e.g., applicants, terminations, promotions) by job group. Where adverse impact is found, statistical significance is calculated to determine if the difference in selection rates is due to chance. A compliance officer is more likely to investigate areas that have statistically significant adverse impact, particularly in groups with large numbers of incumbents and/or activity. The larger the group size, the easier it is to find evidence of a pattern or practice of discrimination. If a compliance officer wishes to investigate the applicant data for a particular group in more detail, they will generally request the following for each new hire and applicant: name, race/gender (depending on where the adverse impact was found), reason for non-selection, the phase in the selection process where they were removed, the job title they applied for, hire date, and application date. Once the compliance officer receives the information, they will perform what is typically referred to as a “step-by-step” analysis. A step-by-step analysis is done by calculating adverse impact at each step or phase of the contractor’s selection process in which a decision is made to

no longer consider an applicant for hire. Typical steps include initial application, employment test, phone screen, first interview, second interview, reference check/drug test, and offer. When performing a step-by-step analysis, each person that moves on to the next step is considered “selected,” and the pool of applicants narrows for each step of the analysis. For example: 100 applicants are received; 50 possess basic qualifications 50 applicants have basic qualifications; 20 selected for phone screen 20 phone screened; 10 selected for first interview 10 first interviews; 5 selected for second interview 5 second interviews; 2 selected for reference check 2 reference checked; 1 selected for offer 1 offer In this example, adverse impact calculations would be run six times, once for each step of

www.berkshireassociates.com the hiring process. In the first example, there are 50 selections and 100 in the pool; in the second, 20 selections and 50 in the pool; and so on. It is critical that a contractor have a good selection process in place and use accurate, detailed disposition codes for why an applicant was rejected and when in the process they were rejected. By performing a step-by-step analysis, a compliance officer or contractor can pinpoint a particular phase of the process that has adverse impact. With this information they then can decide what, if any, areas need further investigation. For example, if adverse impact is found at the phone screen phase of the selection process for females, the compliance officer may come back and ask the contractor for the interview notes to determine they are standardized. If the adverse impact occurs at the second interview stage, the officer may question the manager conducting the second interviews. Importance of an Applicant Tracking Process and System As illustrated in the example above, good applicant information is critical in defending incidents of adverse

impact, and it is important that recruiters and hiring managers are aware of, and trained in, the company recruiting policy. Another recent area of focus for OFCCP has been consistency in the recruiting process, and they have often interviewed various members of the recruitment team to ensure expectations are consistently communicated and applied. There are numerous methods of tracking applicants depending on the needs of the company. Some use a method as simple as a spreadsheet or desktop database. Given the level of detail needed, many companies have invested in an applicant tracking system (ATS). There are many different types of ATS with a broad range of capabilities. Most systems allow you to quickly query out information about an applicant pool, as well as limit input fields to ensure consistency. There is an applicant tracking system for almost any budget, and most are well worth the investment, especially for decentralized recruiting. Importance of Clean Data Once you have established a good applicant tracking process, Table of Contents

68 it is important to review the data for accuracy. If there are many people involved in the recruiting process, the data integrity can suffer. Here are some best practices to ensure clean applicant data: Make sure the number of new hires on your payroll matches the number of hired applicants in your ATS. Often if an applicant accepts an offer but does not show on the first day of work, they still appear in the ATS as “Hired.” This disposition code should be changed to reflect that they did not start on the first day of work. Be sure you are tracking rejection reasons and stages. Auditors will expect you to be able to show them who had a first interview and who moved on to the second interview.

process. An auditor may question why there was a lack of good faith effort to get a larger, more diverse applicant pool. Train recruiters and managers on using the system and why consistency is important. Hold recruiters accountable for inaccuracies in their applicant tracking. Review applicant tracking logs often so deviations from policy can be corrected quickly. Hold temporary agencies accountable for tracking applicants—make sure the requirement is included on new contracts and follow up to make sure data is available. Detailed disposition codes make research easier. Instead of simply “not best qualified” consider expanding codes to be more specific: “NBQ-Education,” “NBQExperience.”

Have a disposition code for declined offers. This allows you to take credit for both offers and hires when calculating adverse impact.

Compare Applicant Pool to Census Data

Beware of low applicant counts. Requisitions with just one applicant and one hire demonstrate there was not a complete recruitment

When evaluating the recruitment and selection process, it is also important to consider not only the contractor’s applicant pool, but also the availability of

www.berkshireassociates.com female and minority candidates in the census area where the recruitment is conducted. When determining action oriented programs, targeted recruitment should be established for each job group where there is a goal or adverse impact from the previous year. Make sure every outreach effort encourages all qualified applicants to apply, including minorities, women, Veterans, and individuals with disabilities. While these good faith efforts are critical to a compliant plan, keep in mind they can backfire. If the contractor is doing targeted recruitment and gets an applicant pool rich in minorities, it will raise the expectation that more minorities should be selected. For example, the census data may indicate that a particular job pool is 20% minority, but because of targeted recruitment efforts, the applicant pool is 50% minority. If the contractor selects minorities at 20%, chances are there will be adverse impact because minorities make up a larger part of the applicant pool. So in areas where there is adverse impact, compare the pool of minorities and women in the applicant pool to the census data. If the applicant pool is much richer than the census data, this can be an additional factor to consider if the OFCCP scrutinizes

the contractorâ&#x20AC;&#x2122;s hiring practices. How to Defend Adverse Impact Although OFCCP only requires an annual affirmative action plan, to be proactive, the employer must conduct selfaudits to monitor its progress and correct areas of potential adverse impact. Examining recruitment practices within the organization, and evaluating areas for potential adverse impact, can save a company from having to scrutinize past employment decisions and potentially pay large settlements in the future. If adverse impact exists, contractors should evaluate the potential reasons. What were the main selection criteria? Was the selected person the best qualified? Compare each person who was not selected to the person(s) selected. In each comparison, it is important that you can clearly identify why the selected person was more qualified than the rejected candidate. Do your job descriptions clearly depict the position for which you are hiring? The job description is key to attracting the best and most qualified job

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discrimination has occurred. Some of the most diverse organizations will have adverse impact. To mitigate the risk of

The job description is key to attracting the best and most qualified job seekers.

job-related and consistent with business necessity, which can be a difficult burden for employers to satisfy. For example, if your job descriptions say “must be able to lift 50 pounds,” this requirement may adversely affect women. Does the position require lifting 50 pounds, or must the person be able to move 50 pounds? This small semantic change could make a big difference in the inclusion of women. Human Resources should partner with the managers in its organization to analyze the job function and duties, and document in a clearly written job description to determine the most appropriate interview questions for the job during screening. How to Fix Adverse Impact Adverse impact does not mean

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seekers. If a job requirement is shown to have adverse impact, the employer generally must show the requirement is

adverse impact, it is important to identify it early, research it, and address any true bias in the selection process. If adverse impact is present in the recruitment and hiring process, here are some specified steps companies can take to establish a nondiscriminatory recruiting process: • Review the interview format and questions for possible bias • Ensure that reasonable accommodations are made to applicants when needed • Create a diverse selection panel for group interview processes • Use a uniform selection procedure to evaluate all applicants

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•

Consider all skills that qualify the applicant, including experience with actual tasks as well as transferable skills

• Use competency-based interviewing techniques • Eliminate interview questions that are not job related •

Keep written records of all applicants interviewed and be certain the information recorded relates to the individual’s ability to perform the duties of the position

• Keep detailed documentation of each stage of the selection process. By following these steps, contractors can mitigate the risk associated with adverse impact calculations and OFCCP audits. If you have any questions about the topics presented in this white paper, please contact Berkshire’s experts at 800.882.8904.

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Creating an Updated Applicant Management Process in Seven Easy Steps By: Laura Pohopin, Business Solutions Specialist

I’ve talked with so many clients over the last several months who tell me they know they should and could be doing a better job with their applicant flow, but they just don’t have the time, personnel, or expertise to assess their applicant process. Just like your schoolteacher didn’t accept the excuse that your dog ate your homework, neither will Office of Federal Contractor Compliance Programs (OFCCP) accept any of yours. OFCCP fully expects you to have a compliant applicant process firmly in place. Whether you are the only one in your company managing the recruitment function, you have a staff of recruiters, or you use a third-party recruitment source—take a minute to find your recruitment and selection policy and procedures manual. Then take several more minutes to dust it off and make sure it is up-to-date and everyone has a copy so they can follow the process that someone so carefully developed. What? You don’t have a written policy? You mean

everyone does their own thing? Are you not sure? With the increased focus on applicant requirements from OFCCP—you need to be sure. Remember, OFCCP fully expects you to have a compliant applicant process firmly in place. If you are not sure where to begin, Berkshire recommends an easy seven-step process to help: 1. Conduct a comprehensive audit of your current applicant tracking and recordkeeping processes to assess compliance with the final OFCCP rule on collection and retention requirements for applicant data. 2. Develop a definition based on the final OFCCP rule of an “Internet applicant” that best meets your company needs, mitigates risks, and eases the burdens associated with applicant tracking and monitoring.

www.berkshireassociates.com 3. Establish basic qualifications for jobs to narrow your recruitment search efforts and ease your applicant data collection and retention requirements. 4. Identify the most appropriate recruitment methods and sources for the various types of positions within your company. 5. Create a practical process for collecting and retaining applicant data and to manage the flow of job applications. 6. Establish monitoring practices to measure the effectiveness of your recruitment and applicant tracking processes. 7. Develop a communication plan for consistency in applying your processes to remain compliant with regulations. So if you feel you donâ&#x20AC;&#x2122;t have the time or expertise to take on this project, Berkshireâ&#x20AC;&#x2122;s experienced consultants will work with you on any, or all of, the steps described above. We have assisted clients by holding workshops to discuss and develop processes and

best practices unique to their organization. We have also conducted comprehensive audits of clientsâ&#x20AC;&#x2122; existing processes to assess compliance with OFCCP requirements for applicant data, provided recommendations for areas of improvement, developed flow charts for applicant tracking, and assisted in prioritizing action items. As experts who present on applicant tracking at national conferences and associations, Berkshire knows how to assess your current business situation and guide you in developing a standardized applicant tracking program. We can construct a process your company can embrace, follow, and maintain. To learn more, please contact Berkshire Associates at 800.882.8904 or email bai@ berkshireassociates.com.

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Workforce Planning

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Can Temporary Employees Help Companies Navigate Difficult Economic Times? By: Nicole Butts, SPHR

Economic downturns can change the way companies hire and retain employees. Often, during difficult economic times, companies layoff regular employees who perform essential tasks—those which still need to be completed despite workforce reductions. Then companies often turn to temporary employees. In fact, the temporary industry was created to help companies weather economic ups and downs, by pairing a relative workforce with a relative economy. It was to be expected that during this recent U.S. economic downturn, businesses once again turned to temporary employees to help them survive the recession. What makes this particular economic downturn unique for temporary and nonregular employees is in the past, temporary employees were typically clerical positions. Today, temporary and non-regular employees fill work gaps in just about any area from clerical to Chief Executive Officers, and all the jobs in between.

If your company is considering utilizing temporary or nonregular employees, it is important to weigh the advantages and disadvantages of doing so. Advantages of Hiring Temporary Employees For the employer, there are several advantages to using temporary or non-regular employees. • Agility: Temporary employees enable business to adjust quickly and easily to changes in demand, production, and workload. •

Cost: Utilizing temporary employees can allow companies to save on payroll administration, fringe benefits costs, costly unemployment insurance, and workers’ compensation.

•

Time: Using a temporary agency can save companies time on recruiting, interviewing, testing, background checks,

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and all other employment requirements prior to hire. Additionally, companies are more likely to get people with the qualifications they specified.

•

Non-commitment: When unsure whether there is enough work for a full-time employee or how long the work may last, a temporary employee can be assigned. If the workload does not justify a full-time or permanent employee, the temporary assignment can be cut back or terminated. Additionally, if a temporary employee does not work

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hire the temporary employee. •

Specialized Skills: Today’s temporary employees can be highly skilled with a wide range of educational backgrounds and work experience and are available in virtually every industry. Temporary employees can be brought in to tackle critical one-time projects that are limited in time and scope.

Disadvantages of Hiring Temporary Employees While temporary employees do

When unsure whether there is enough work for a full-time employee or how long the work may last, a temporary employee can be assigned.

“

up to the expectations and standards of the company, the company can request a different worker from the agency. Conversely, if the temporary employee meets the company’s expectations and needs, the company can offer to

seem like a great option, they are not without their disadvantages. • Training Needs: Every time a temp starts a new work assignment some training

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78 is required in order for them to perform their assigned tasks. • Morale Issues: Morale and employee relations problems can arise when temporary employees work alongside permanent employees for an extended period of time, doing the same work and putting in the same hours, but not receiving the same benefits afforded the permanent employee. •

Safety Issues: Certain jobs are inherently dangerous and require careful safety training. Studies show frequency and severity rates of on-the-job injuries are significantly higher with temporary workers.

•

Legal Concerns: Hiring temporary employees does not eliminate the need to comply with employment laws, and companies can’t avoid providing benefits or complying with employment rules by misclassifying employees as temporary employees. Recent court decisions have highlighted the fact that businesses must be careful how they contract for temporary

staff. There must be no doubt about the worker’s status and about the lack of eligibility for the benefits of permanent employees.

If your company is considering utilizing temporary or non-regular employees to help navigate economic difficulties, take time to consider the advantages and disadvantages of doing so. Whereas, it can be a cost saving measure, be sure to plan for and mitigate the disadvantages.

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Aligning Work Culture with Business Objectives By: Carla Pittman

As one of the critical drivers used to attract talent and retain superstar employees, workplace culture is a business imperative. More times than not, corporate cultures grow organically through accepted practices that become the norm over time. Aligning workplace culture with corporate objectives and a changing marketplace means looking at culture through strategic lenses and deliberately changing practices. That is easier said than done. Most HR professionals are swamped with other day-today activities, so getting started and following through is a real challenge, even when awareness exists that cultural change is needed. The following timesaving activities will help keep your work culture competitive and aligned with internal goals: •

Identify cultural issues that are incongruent with corporate objectives. If possible, use an outside consultant to conduct an audit and identify areas for change. To save time,

the consultant could also prepare a plan based on audit outcomes. •

Establish what ideal culture is conducive to the corporate vision and mission.

• Determine objectives to reach that ideal culture. This could include: inclusion, strengthening interdepartmental relationships, employee loyalty, fostering innovation, and creativity. •

Create a plan of action using short milestones that will gradually move the company in the envisioned direction. Your plan could include diversity, training, flex time, fair pay practices, meal plans, corporate newsletters, space planning, health club memberships, etc.

•

Use existing practices like fair pay, diversity, and equal employment opportunity. Plan to embed them in your

www.berkshireassociates.com culture through reinforcement. • Put metrics in place to monitor the effectiveness of programs •

When planning, start with a small, yet effective perk like a health club membership. Acceptance of change is effective when it happens gradually. Don’t start with a “take your pet to work day” in a traditional office setting.

• Be sure to keep steering and maintaining control of building your culture by constantly monitoring progress and making improvements.

using added perks works much like positive reinforcement. Employees view additional perks and practices as an employer’s commitment to them. This in return builds loyalty and increases productivity. According to a survey by Oxford Health Plans, employees “jump” to take full advantage of these benefits and non-conventional perks will soon become mainstays. For more information about how to align your business objectives with work culture, please contact Berkshire Associates Inc. at 800.882.8904, or email bai@ berkshireassociates.com.

Changing workforce culture takes a good blend of business,

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Changing workforce culture takes a good blend of business, sociology, and art to work effectively.

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sociology, and art to work effectively. Experts agree that

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Changing Workforce Culture By: Lauren Collinson and Dana Lake-Streams

In recent years, it has become a challenge for many organizations to respond to the evolution of workforce culture. As culture continues to evolve, it is imperative organizations embrace change to increase their chances of success. As companies position themselves for competitive advantage, a well-designed culture must be implemented. This includes specific elements that will serve to create and preserve an accomplished workforce.

against the very establishment for which they work. Without positive culture, the mood within an organization will drop, resulting in employee absences, dissatisfaction, unmotivated work habits, and potential resignation. As employees’ needs and responsibilities, both at work and in their personal lives, continue to grow, employers face the choice of embracing new expectations or remaining the same—potentially losing workers and decreasing productivity. This reasoning contributes to over 70 percent of businesses beginning workplace culture initiatives.

In the past, workplace culture has been something that organizations have overlooked, and often never recognized. Historically, companies have been solely results driven, and rarely concerned with company morale or employees’ feelings. But as the workplace evolves and traditions, needs, and processes change, culture is becoming recognized as a necessity for the well-being of a company’s future.

Workplace culture is achieved when a company works in unison with its employees. If there is no teamwork, a positive result cannot occur. The employees, employers, and the habitat surrounding them directly influence workplace culture. So how do you build a productive habitat at work?

Good workplace culture can cause a business and its workers to thrive, while a negative culture will result in employees fighting

The first thing to do is identify any weaknesses that may be causing negative attitudes within the workplace. These could be lack

www.berkshireassociates.com of recognition, communication problems, favoritism, instability, etc. Once the problems have been recognized, you can move forward in changing the culture to benefit the organization. The next step is to create a positive and supportive environment. This can be achieved by: • Recognizing and rewarding achievements • Providing fair and equal treatment for each employee • Practicing a relaxed and open management style • Conducting honest and open communication • Initiating opportunities for employees to continue training or learning • Setting unified goals stemming to the success of the organization • Allowing more relaxed regulations, encouraging employee communication •

The link established between employees and the workplace must be strong enough to motivate performance. If a positive culture is created, employees will excel at their jobs, which transcends into their personal lives and goals. This builds a strong worker both inside and outside the office. Also, by creating an environment of high trust, individuals will feel more secure in their positions and input in the organization. Once trust and motivation are instilled, employees will be equipped to expand their abilities, potentially increasing creativity, task completion, and innovation. No one looks forward to working their best for a company that doesn’t work just as hard for them. By creating an environment and culture in which people want to contribute, your organization will prosper. The bottom line is that workplace culture is vital to your success, so take advantage of the change now, and enjoy achievement and growth from the inside out.

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The Importance of Organizational Culture By: Lauren Collinson

Right now there is an unseen force in your company that can increase revenues by an average of 682 percent, expand your workforce by an average of 282 percent, and grow your company’s stock prices by an average of 901 percent. According to the book Corporate Culture and Performance, this force is your company’s culture. Workplace culture is a topic that is growing in importance as companies realize the significance of its effects. So what is good company culture, and why is it necessary? Part of the evolution of our country’s workforce is the growth and acceptance of employees’ needs and attitudes. Satisfied and positively reinforced employees work harder, feel better, and have an increased drive to support their organization. Every company, regardless of size or industry, can become more productive by utilizing organization culture. A great example of a company that has workplace culture

down to a science is Google Inc. Google is continuously named as one of the top companies to work for. Many of the reasons it is chosen reflects directly on its culture. A Forbes press release discussing Google states, “At Google you can enjoy free gourmet meals, do your laundry, drop off your dry cleaning, get an oil change, and get a massage all onsite. Work is such a cozy place that it’s sometimes difficult for Google employees to leave the office, which is precisely how the company justifies expenses, none of which it breaks out of its administrative costs. Engineers can spend 20 percent of time on independent projects—no wonder Google gets 1,300 résumés a day.” Google understands how to assess its employees’ needs and concerns, offering solutions while creating an atmosphere of worklife balance. For example, new parents can be reimbursed for up to $500 for takeout meals during the first four weeks they are with their baby. Other benefits include:

www.berkshireassociates.com • Financial assistance for parents of autistic children • Financial assistance for parents who adopt • Flexible work hours • On-site doctors and exercise equipment By creating a supportive environment, Google’s employees devote more time and energy into the good of the company because they are proud of who and what they work for. So what about companies who don’t have the budget to offer added incentives or benefits, or what about companies who don’t have the flexibility of a

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based on effective commitment to the organization, lower intention to leave, higher job satisfaction, lower levels of stress, and the experience of less conflict between work and home life. According to The Department of Employment and Industrial Relations, there are three main ways of changing workplace culture: 1. 2. 3.

Education and Communication Management Support Changing Key Values

The first step is to educate the entire company about the significance of work-life balance, and how it directly relates to a company’s culture. By discussing expectations between

Every company, regardless of size or industry, can become more productive by utilizing organization culture.

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drastic cultural change? There is an answer for every company, regardless of revenue and size. Workplace culture’s foundation is

management and staff, solutions can be developed. Team

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The next step is uniting management of all levels in the process of culture change. If employees see upper management taking a proactive approach to culture change, they will be more apt to participate and believe in the new processes. The traditional work culture focuses on achieving work goals. With the changing evolution of our work environment, the focus is now using work-life balance policies to strengthen the company while achieving goals. Establishing programs for employees such as clubs for parents, divorcees, new graduates, those who want to help the community, etc., can create a sense of unity, aligning life interests and needs with daily work activities. The third step is addressing main characteristics of the company, and how they support the culture. Company values and norms are important characteristics that need to align with change. An example of this attitude would be a company rewarding its employees based on their performance rather than

their number of hours worked. Employees who feel pressured to work long hours may develop an attitude that impedes them from having a stable personal life,

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Company values and norms are important characteristics that need to align with change.

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members should also be encouraged to communicate openly, and help each other solve problems that may have once been internalized.

which may negatively impact their productivity. Another way to enforce culture change is to update work surroundings. Some examples include: • Changing the color scheme/ decor in the work area to evoke a certain mood • Providing entertainment for employees to enjoy during lunch or free time • Creating a relaxation space where employees can go to reflect or reboot There are endless possibilities and not all have to be costly.

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At some point during culture growth, companies may need to draw the line. Donâ&#x20AC;&#x2122;t let the changing environment alter your approach to business. Your companyâ&#x20AC;&#x2122;s success should always come first. What is important is having employees work their best to reach that success. If you provide staff with every amenity and benefit out there, you may lose track of the overall goals, and end-up taking the focus off your organization. Like Google, effective workplace culture is achieved by providing your employees with respect and benefits. By taking these extra steps in development, you too can experience the growth and satisfaction that thousands of companies enjoy. Remember, if your employees are happy, your company will prosper.

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Competitive Work Climate has Employers Vying for Top Talent By: Berkshire Associates

Seventy-five percent of employees are actively looking for another job, and in the process asking themselves, “What can a company do for me?” Workers want the best opportunities, benefits, and treatment, which drive them to look at what other companies have to offer. What added benefits does your company offer? How about flextime? With a large majority of the current workforce looking to work a flex schedule and with 63 percent of U.S. companies offering it, your organization may find itself at a loss if popular benefits are not included. By

showing that your organization values its employees through work-life programs such as flexible scheduling, dependent care, time-off policies, financial assistance, and health and wellness programs, you will have job seekers knocking on your door. The Benefit/ROI to Companies Offering Extra “Perks” Losing an employee in the first year of employment costs the company three times the employee’s salary. Most employers understand that keeping good employees keeps money in their pockets, and that

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With a large majority of the current workforce looking to work a flex schedule and with 63 percent of U.S. companies offering it, your organization may find itself at a loss if popular benefits are not included.

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www.berkshireassociates.com employee turnover is a direct drain on their bottom line. The reason that most people leave their company isn’t for more money, but for additional benefits such as flexible schedules and other non-traditional work perks. Employers should keep in mind that work-life plans do not cost extra, yet can double productivity. Once a company acknowledges that employees have necessary responsibilities outside of work, and begins supporting them in their work-life balance, employees will begin to work harder and more efficiently. For example, some companies have determined that by introducing a pet-friendly policy, employees are much more relaxed, have lower stress levels, and in turn create a highly motivating environment. By adding a new employee program, individuals feel valued and in turn are more proficient with their time, having an increased commitment to the company. The Shift from Process-Oriented Jobs to Skilled Professional Jobs Increases Value of Employees Competitive pressures in the marketplace put a premium on the development of new technology. For companies to keep up with emerging

technologies, they also need employees who are knowledgeable in those emerging trends. It is in this shift to the “knowledge workers” that most organizations find themselves today, and competition for those workers is tough. Companies that prevail realize that they need to distinguish themselves from their competition by treating their current and future employees with value. Gone are the days when companies could easily replace an employee. Now when an employee leaves there is a large gap that other employees must fill, which decreases the productivity and value of that person. Creating a corporate culture in which employees are valued is the stepping-stone to increasing productivity while retaining the workforce. Companies Must Adapt to Stay Competitive in the Job Market What does your company culture say about your organization? You may not realize it but your company’s environment is what helps to create a culture of which employees are excited to be

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• Attract the most talented individuals even in times of labor shortages • Increase retention, thereby decreasing turnover costs • Decrease absenteeism, which increases profitability and productivity The Upside and Downside to Non-Traditional Work Cultures Most of us think it would be great to have a game table and our pet at the office. Having a pet or game in the office encourages employees to leave their desks and talk about work related topics or projects while increasing interaction and workflow. This is a great way to increase work-life culture. However, it is important the games and/or pets do not interfere with another employee’s work. This can be done by setting guidelines. Studies have shown the attraction of a pet-friendly workplace can extend beyond employees who own pets. Even those who do not own pets appreciate the informal, flexible environment that comes with having a pet-

friendly policy. These policies say something about the culture of the organization and will create greater camaraderie centered on the pets. Often the pets become the company mascots and represent what the organization stands for. Your Talented Employees May be your Best Buzz Generator and Recruitment Source Your employees can be your best, and least expensive, recruiting tools. When organizations create a positive workplace culture, employees in turn will talk about their company in a more positive light. If your employees are happy they will want to share

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Your employees can be your best, and least expensive, recruiting tools.

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involved. A positive workplace culture will:

that emotion. When employees broadcast that they have the option to work from home or have flexible work time, they stir interest in your organization.

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Each person that hears good things about your company will potentially tell others. This word-of-mouth effect may not be measurable, but it is a direct outcome of the programs that your organization offers, and can lead you to the employees you are looking for. Meet your employees’ needs now, and increase your chances of not only retention, but also recruitment. Good talent is a key aspect of the success of your organization—don’t let it pass you by.

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Getting On-Board with Onboarding By: Dana Lake-Streams

Onboarding activities begin prehire through precise and effective recruitment communications, followed by an interviewing and screening process that increases the success rate of acceptance for the position. The orientation of new hires starts prior to the employee’s start date and usually extends through the first six months of employment. Having an onboarding process can make new employees feel confident

about their job decision, and engage them in their work quickly—providing long-term retention. For employees to feel engaged and acclimated to their organization, onboarding needs to be proactive and clearly defined. Organizations are now

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A strong orientation program can both accelerate employee performance and

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A new employee orientation and mainstreaming procedure known as ‘employee onboarding’ has emerged in the world of talent management. Onboarding is the process of interviewing, hiring, orienting, and successfully incorporating new employees into an organization’s culture. The most advantageous onboarding strategies will provide the quickest and most direct route to achieving solid employee relationships and meaningful, productive work. Keeping in mind that first impressions are lasting, your organization should be sure that newly hired employees feel welcome, and that they are a valuable contribution.

deter failure. coming to the realization that the orientation programs of the past, marked by large inaccessible manuals, outdated videos, and a few weeks of paperwork, do not produce effectiveness or retention of valued employees. Too many new employees leave within the first year and a half, resulting from expectations not being met on either side.

www.berkshireassociates.com To guide new hires through an easy transition from the recruitment stage, companies are researching and investing in technology to improve their experience. Automated Web-based solutions can help companies address pressure to improve retention rates and productivity time. There are two major goals of the onboarding process: 1. Making Employees Feel Welcome Studies conducted by the Corporate Leadership Council indicate that itâ&#x20AC;&#x2122;s important for new employees to quickly acclimate to their work environment. It is also important for employees to start building rapport with colleagues so they can begin to assimilate into their work environment. By doing so, new employees experience a sense of purpose within their organization and the transition is less disruptive. 2. Minimizing the Learning Curve From the employerâ&#x20AC;&#x2122;s perspective, onboarding can help minimize the downtime typically

experienced when bringing a new employee on board. By communicating information such as performance expectations immediately, there can be a meaningful reduction in the amount of misunderstandings, which can often lead to frustration and even the premature departure of a new hire.

A strong onboarding program is worth the up-front investment if carried out effectively with the support of senior management. Although companies generally invest considerable financial and management resources in recruiting and development, very little attention is given to the crucial first months of the newly hired employee. Companies that have seen talented employees leave on their own accord, or fail within the first year, have taken notice and are looking at better ways to integrate them. A strong orientation program can both accelerate employee performance and deter failure. So take advantage of your new talent, and create an onboarding system that will benefit both parties.

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The Real HR Soup By: Suzanne Keys, SPHR

Organizations are like soup, and who is the chef that puts it all together? Human Resource professionals, of course! Sure, there’s always the option of purchasing a can of soup off the shelf, but we all know the best soups are the ones made from scratch—hearty and customized to yield the best results. Each ingredient in good soup must be carefully selected not only for their appeal, but for their costeffectiveness and the value they add to the organization. Here is Berkshire’s recipe for the perfect organizational soup. All good soups start with a roux, which acts as a bonding and thickening agent—these are your employees. Without them your soup would fall apart. Good employees take good organizations to the next level. So how do you find the right employees for your soup? As the chef, HR professionals first need to envision their soup and decide how they want it to taste and come together—what kind of employees do you need to meet your strategic goals? How will you track all the applicants

coming in? A good chef looks at the big picture. They also need to determine if they want just enough roux to make a single pot of soup or if they want to prepare a large batch to set aside to be used later on down the road. In the HR world we call this the recruiting pipeline. At Berkshire, we understand the importance of effective employee management, outreach, tracking, and management. This is why we developed our leading BALANCEtrak, the only webbased Software as a Service (SaaS) applicant management solution that completely streamlines your recruiting process while helping you get the right candidates in the door. To learn more, please visit www. balancetrak.com. Once we have the roux, it is time to prepare the heavy stuff. The meat in an organization’s HR soup is compliance. The meat will take up the majority of your time as you properly handle and prepare it before introducing it to your soup. The question is, will you use a knife and cutting board, or take

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analyses and draft narrative sections. BALANCEaap also helps you generate VETS-100A and EEO-1 reports using existing plan data. To learn more, please visit www.balanceaapweb.com. Berkshire also offers affirmative action planning outsourcing, where our expert consultants deliver a compliant AAP for your organization with minimal work for you and your staff. Recognized as a leader in affirmative action compliance, Berkshire has helped hundreds of companies prepare a comprehensive and OFCCP compliant plan.

One of the top spices an HR chef can add is a competitive and fair compensation package and plan.

application that gives you much more than traditional software. BALANCEaap allows you to create, monitor, and manage a complete OFCCP compliant affirmative action plan—right from the web. You can produce plans with BALANCEaap that contain all the reports required by OFCCP, including adverse impact

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advantage of a food processor? Some HR chefs still go about their compliance preparation the old fashioned way, using manual spreadsheets (knives and cutting boards) that consume valuable time and resources. However, many organizations are now utilizing software (food processors) to streamline their compliance efforts—making them more accurate and efficient. Compliance is an extremely important responsibility HR professionals must manage, which is why Berkshire has developed software and service solutions to make things easier. Berkshire’s BALANCEaap software is a secure, web-based

Another software application Berkshire developed to help HR professionals remain compliant is an adverse impact calculator, BALANCEact. BALANCEact is a web-based application that gives you the advantage of

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96 running adverse impact analyses right from the web. Why is this important? Employment regulations prohibit employers from using employment practices that unfairly affect members of a protected class. BALANCEact is a necessity for employers who want an easy, yet effective way of preventing adverse impact. You can learn more about BALANCEact, and sign up for a free trial, by visiting http:// www.berkshireassociates.com/ affirmativeaction/balanceact.aspx. Now that our meat is done, it’s time to spice things up a bit to make our soup, or organization, more appealing and appetizing. One of the top spices an HR chef can add is a competitive and fair compensation package and plan. Compensation is undoubtedly the most powerful instrument available to employers who want to entice, motivate, and retain the right employees. Berkshire gets this, which is why we offer leading consulting services to help companies develop a plan that takes full advantage of the benefits of compensation. From driving the right behavior to remaining competitive in the marketplace, Berkshire partners with companies across the country to engineer employee performance, desired outcomes, work culture, and values through

sound compensation planning. Berkshire also understands compensation compliance is a necessity, which is why we created BALANCEpay—a comprehensive salary equity software that allows you to manage fair pay the easy way. BALANCEpay makes running complicated salary equity analyses convenient and costeffective. Simply import salary data, and BALANCEpay quickly identifies pay inequities. This saves companies time and money, and reduces the risk of pay-related lawsuits and claims. Check out BALANCEpay by visiting http://www. berkshireassociates.com/ compensation/balancepay.aspx. You’ve got the protein and the flavor in your HR soup, but what about the healthy stuff? Vegetables make your soup hearty and healthy. These are things like workforce planning, training, worklife balance, and employee assistance programs. At Berkshire, we offer HR chefs the veggies they need in the forms of training, job description services, diversity planning, and succession planning, among others. HR training programs can be the best veggie in your soup, as they not only strengthen the overall organization, but help you and your employees

www.berkshireassociates.com thrive. Companies are often in need of training that specifically addresses a corporate need or objective. Berkshire’s certified trainers work with you to develop comprehensive human resource training which is designed and customized to meet those needs. Our training programs are effective for any size group, from a few HR professionals to a corporate-wide initiative. We have successfully conducted customized training for hundreds of companies on a variety of topics. To learn more about Berkshire’s training courses and delivery options—including Public, Group Online, Oneon-One Online, Self-Paced Online, Private, and Webinars, please visit http://www. berkshireassociates.com/training/ delivery.aspx. Training, along with other workforce planning programs, consistently provide for a healthy, strong, and happy workforce. As we know, “it’s all about presentation” when it comes to an appealing soup. Not only do HR professionals need to be good cooks, but they have to be good at presenting it too. The HR chef knows how good the soup tastes, and how much sense it makes for the organization to eat it, but it has to be presented it in such a way to entice people

to try it. HR professionals need to sell their soup in the most attractive and costeffective manner possible. To do this, they need to base their recommendations on the overall corporate strategy while saving time and money and increasing the return on investment. This can often be a challenging task, and Berkshire understands that, which is why our Client Solutions Managers can work directly with you to make this easier. Any seasoned HR professional knows it takes a lot of knowledge, experience, and support to make the perfect soup for their organization. Berkshire wishes you happy cooking, and is here for any of your HR needs to help you develop a unique recipe for your organization’s success. To learn more, please visit www. berkshireassociates.com.

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Proceed with Caution: Before You Downsize, Perform a “Workforce Balance” Check By Carla A. Pittman

If your company is responding to today’s economic environment with downsizing or layoffs— proceed with caution. While workforce reduction offers some relief from financial difficulty, steps must be taken to soften the inevitable blow to corporate culture. Studies have shown downsizing activities rarely return the expected benefit. The termination of employees is a traumatic event, with the power to weaken a company’s brand. The impact to the overall culture and company reputation usually results in some loss, offsetting the anticipated cost-savings. Performing a Workforce Balance check will help you uncover potential problems, so you can take proactive steps to mitigate them. Conducting this type of evaluation forces the examination of how workforce reduction efforts affect diversity (and/or affirmative action compliance if you are a federal contractor), compensation, and your applicant management practices. These areas are instrumental in both cultivating the desired corporate culture, and complying with

employee regulations. If the aforementioned areas are not safeguarded, they become areas of potential liability and conduits for negatively altering company values. This can lead to the loss of talented employees you had hoped to retain, loss of productivity, low morale, inability to attract top talent, and lastly upset your existing employer brand. The following diagram illustrates the effects of a workforce reduction.

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Using the Workforce Balance Check means you can uncover potential problems and take proactive steps to mitigate them.

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100 Below is an example of a Workforce BALANCE Check:

Once your company has decided workforce reduction is the way to go, follow the below steps to conduct a Workforce Balance Check-up: Are There Other Expendable Activities?

The first step is to doublecheck whether you really need to make eliminations or reductions. Conduct an analysis of other activities that are more expendable. Can you forgo the annual picnic, the company holiday party, contract workers, or even the snacks in the kitchen? Are there perks that can be

suspended or eliminated? Have you considered a hiring freeze, no overtime, or a reduced work schedule?

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Adverse Impact Analysis

After your company has come to the conclusion to eliminate or reduce the workforce, and you have earmarked positions for separation, the next step is to conduct an analysis on the selected positions. This is to ensure one group isnâ&#x20AC;&#x2122;t being adversely affected at a greater rate than another and is called an adverse impact analyses.

www.berkshireassociates.com Conduct an adverse impact analysis on employees by race and gender first. Since these are protected classes, you don’t want to end up with a potential lawsuit. 

Affirmative Action Compliance

If you are a federal contractor, check to see if you have an affirmative action plan. If you don’t have one, seek to get your affirmative action plan created. If you already have one, be sure to update your plan and consider how your terminations will affect your plan results. 

Diversity

In addition to performing an adverse impact analysis on race and gender, conduct an adverse impact analysis on other diverse groups defined by your company. This is to ensure your diversity efforts are not undone by the downsizing. During the diversity check you should also evaluate what the post-downsized workforce will look like. Is the composition of the new workforce a reflection of your company’s diversity values, vision, and mission? 

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comes the elimination of salaries. A pay analysis must be conducted to identify any pay gaps caused by the downsizing that could be a potential liability. Also, if positions are being replaced at lower salaries, evaluate how this will impact the unaffected positions. Are there similar positions with significant pay disparities? 

Applicant Management

Consider your applicant practices and procedures. Whether hiring is suspended or slowed, downsizing is the time you want to have your applicant management practices and procedures in order. Check to see if you have: 1. defined an applicant, 2. an effective database to store and classify your applicants, and 3. updated job descriptions with the appropriate qualifications identified. This will help keep your recruitment strategy in order. If your company is fortunate, there will be replacements or an upsizing in your future. This

Compensation

With the elimination of positions,

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102 will also help monitor whether recruits maintain and reinforce your desired workplace culture.

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Whether hiring is suspended or slowed, downsizing is the time you want to have your applicant management practices and procedures in order.

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While it is almost impossible to foresee everything that could go wrong, conducting the Workforce Balance Check will help you be prepared. Going through these assessments may seem cumbersome, but the upfront evaluations will save you time, money, and even lawsuits. Berkshire offers a line of software and service solutions to help streamline the Workforce Balance Check. So, if you’re faced with downsizing, Berkshire can assist you with the appropriate proactive analyses. We are also

available to answer any questions. Contact us at 800.882.8904 or bai@berkshireassociates.com, and put “downsizing” in the subject line.

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Compliance and Management Issues by: Sonia Chapin, SPHR, CCP

What is the Immigration Reform and Control Act and Who Does it Govern? The Immigration Reform and Control Act of 1986 (IRCA) makes it unlawful for an employer to hire any person who is not legally authorized to work in the U.S., and it requires employers to verify the employment eligibility of all new employees. The IRCA also prohibits discrimination in hiring and discharge based on national origin (as does Title VII) or on citizenship status. IRCA’s anti-discrimination provisions are intended to prevent employers from attempting to comply with the Act’s work authorization requirements by discriminating against foreign-looking or sounding job applicants. The IRCA is enforced by the Department of Justice and applies to smaller employers than those covered by EEOC-enforced laws. IRCA’s citizenship discrimination provisions apply to all employers with at least four employees.

The Social Security Administration’s No-Match Rule A rule from the Department of Homeland Security (DHS) was proposed to help employers ensure they are employing only those authorized to work in the U.S. and provide safe harbor provisions in the case of a “no match” letter. When a social security card is presented as evidence of one’s ability to work in the U.S. and the name does not match the Social Security Administration’s files, the agency can issue a “no match” letter to inform employers. Although there can be many reasons for a “no match,” receiving this notification alerts the employer the employee may not be authorized to work in the U.S. The rule outlines safe harbor procedures employers should follow, including reasonable steps to correct the record within 30 days, resolving discrepancies within 90 days, and completing a revised I-9 within 93 days if the discrepancy is not resolved within the 90-day period.

www.berkshireassociates.com According to DHS, the rule does not create a new legal obligation for businesses. It simply outlines the steps a reasonable employer should take in resolving “no match” letters. The rule provides safe harbor procedures that will make it likely DHS will not find the employer in violation of their legal obligation not to continue to employ those not authorized to work in the U.S. simply based on the receipt of a “no match” letter. The rule can be viewed as a tool usable by businesses to help them navigate the points of action when they receive “no match” letters. It is important to note the safe harbor provisions only apply to situations in which an employer receives a “no match” letter. Employers who are found to have knowingly hired unauthorized workers are still subject to either criminal or civil penalties. Currently, the rule is under preliminary injunction in Federal Court, and DHS has filed paperwork to allow the rule to go into effect in March 2009. Electronic Signature and Storage of I-9 Forms The new Electronic I-9 Rule would allow employers to electronically record and store their I-9 forms. According to DHS, storing I-9

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forms electronically will enhance the effectiveness of Immigration and Customs Enforcement, and assist agencies in worksite enforcement. The Electronic I-9 Rule assists efforts by U.S. businesses to electronically record and store their I-9 employment forms. All U.S. employers are responsible for verifying the identity and work authorization or eligibility for all individuals hired after November 6, 1986. To be in compliance, employers are required to complete an Employment Eligibility Verification Form I-9 for all newly hired employees. The employer is also required to keep the I-9 form for the latter of three years after hiring the individual employee, or one year after the termination of employment. DHS expects many employers will experience cost savings by storing these forms electronically rather than using conventional filing and storage methods. Electronically retained forms are more easily searchable, which is important for verification, quality assurance, and inspection purposes. Many employers have expressed frustrations with having to maintain I-9 paper files while

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106 the rest of their business is computerized. This new rule helps to resolve the problem and gives employers flexibility for storing records electronically. Some Contractors Also Required to Use E-Verify Beginning in mid-2009, most federal contractors will be required to use the E-Verify system in addition to standard I-9 procedures. The E-Verify clause will be inserted into contracts over $100,000 and agencies will begin amending existing contracts to include the clause. The clause requires most federal contractors to use E-Verify to verify all current employees working on a federal contract as well as all new hires, regardless if they will be assigned to work on a federal contract. However, higher education institutions, state or local governments, Indian tribes, and a few other exceptions, are only required to use E-Verify to confirm the status of existing employees and new hires assigned to a contract, as opposed to all new hires. There are four requirements under the new regulation: • The contractor must enroll in E-Verify as a federal contractor.

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Within 90 days of enrollment, all new hires working in the U.S. and its territories must be verified through the E-Verify system within three working days of hire.

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Within 90 days of enrollment, or 30 days of assignment to the contract, the contractor must verify all employees currently working on contracts through the online system. Those employees hired before November 6, 1986 or working in support, indirect, or overhead positions not related to a contract are excluded.

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Employers must require their subcontractors with contracts of $3,000 or more to use the E-Verify system by including a clause in all service/supply or construction subcontracts. Exceptions to this requirement include contracts under which all work will be performed outside the U.S., lasting for less than 120 days, or for commercially available off-the-shelf items.

Contractors have the option to

www.berkshireassociates.com verify the employment eligibility of all current employees, not just those assigned to a contract. These verifications must be complete within 180 days of enrollment and do not apply to individuals with a current security clearance. Compliance with Immigration Employment Laws In today’s global economy, immigration compliance is a fundamental component of reasonable diligence. A company’s failure to consider immigration issues can expose liability for immigration noncompliance, or can lead to the loss of key human capital. Recruiters in the U.S. are facing new obstacles as they work to attract and hire a new generation of immigrant innovators. Employers have two options for hiring a person from outside the U.S.—either through the Employment Based Immigrant Visa (or green card) process, or through the Non-Immigrant Visa process (or H-1B work visa). The H-1B visa is the primary work visa available to foreign workers outside the U.S. The purpose of the H-1B visa is to enable highly skilled foreign professionals to live and work in the U.S. for a specified period of time.

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Applicants must have a bachelor’s degree or higher, have training in a specialty occupation (e.g., engineering, medicine, or business specialties) and be sponsored by the employer. H-1B visa holders are considered non-immigrant workers and the number of visas issued is capped each year. Green card holders are known as “lawful permanent residents” of the U.S. They have been authorized to live and work in the U.S. permanently and are considered immigrant workers. There are five categories of green card employment based immigration visas: •

First Preference (priority workers): include those with extraordinary ability, outstanding professors and researchers, and certain multinational executives and managers

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Second Preference (workers with advanced degrees or exceptional ability): those who are members of the profession holding advanced degrees or their equivalent, or who, because of their exceptional ability in the sciences, arts, or business, will substantially

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benefit the national economy, the cultural or educational interests, or the welfare of the U.S.

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Third Preference (professionals, skilled workers, and other workers): those with at least two years of experience as skilled workers, professionals with a baccalaureate degree, and others with less than two years experience, such as an unskilled worker who can perform labor for which qualified workers are not available in the U.S.

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Fourth Preference (special workers such as those in a religious occupation): those who, for at least two years before applying for admission to the U.S., have been a member of a religious denomination that has a non-profit religious organization in the U.S., and who will be working in a religious vocation at the request of the religious organization

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Fifth Preference (employment creation): immigrant status in the U.S. granted for the

purpose of engaging in a new commercial enterprise Talented global employees hoping to immigrate to the U.S. are increasingly frustrated with the extended waiting period and uncertainty of the immigration process. As a result, they are going to other areas such as Canada and Europe where they face fewer immigration restrictions. Employers actively seeking to hire top talent for difficult to fill positions would benefit from incorporating these employees into their recruiting strategy. If committed to this recruitment strategy, the company should create a solid route for foreign candidates, despite the grueling requirements for labor applications and the potentially time-consuming recruitment and documentation process. Employee Communication Once employed, a blended workforce faces many challenges in the workplace. One of the main challenges for these employees and their employers is effective communication. Communicating corporate vision, direction, and mission to an entire organization is vital, and effectively communicating with all employees is a complex task.

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A possible solution for improving employee communications includes identifying

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provide ongoing support to integrate the employee into the company. Also, supervisors of diverse employee groups should participate in targeted diversity or cultural training to learn how to effectively handle differences, communicate expectations, provide feedback, and improve morale. Additionally, language can be a large barrier to overcome. In many industries, especially the manufacturing sector, employers are realizing they cannot assume their workforce is only English speaking. Latinos are the fastest

A possible solution for improving employee communications includes identifying communication barriers.

communication barriers. A new job, different work culture, and presence of diverse colleagues at the workplace can be very overwhelming for a newly hired employee, immigrant or not. A company’s new hire orientation is an introductory program which provides the company with a significant opportunity to show a culture of inclusion, increase employees’ comfort level, and

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Companies with a diverse workforce also have to incorporate the many cultural nuances distinctive populations can have, and that may create communication barriers. Built-in cultural values, behavior patterns, and ways of thinking have a profound effect on communication in the workplace. These considerations can make the task of employee communication all the more challenging.

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growing ethnic group in the U.S., and the manufacturing sector employs a large part of this population. Some possible solutions for overcoming language barriers may include providing ESL (English as a Second Language) classes for employees and providing

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110 incentives upon completion of the course. Bilingual policy and procedures manuals, employee handbooks, and trainings can also be created and provided to this section of the workforce. It will help them understand their rights, safety rules, harassment policies, and benefits provided by the employer. Such initiatives can reduce company liability and impact participation in employer sponsored benefits. Presentations on the 401(k) plan, health insurance, direct deposit etc. by the company or its third party administrators should be designed to meet the needs of all employees.

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Hiring employees who are immigrants can create challenges, but it also has its rewards

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Lastly, with current workforce diversity levels, companies should make a concerted effort to prepare and promote a group of diverse employees into leadership roles to ensure

equal employment opportunity. These efforts will build trust, increase participation in employer sponsored programs, increase retention, and control recruiting costs. Hiring employees who are immigrants can create challenges, but it also has its rewards, such as employee loyalty and dedication. At the end of the day, a good worker is a good worker and employees should be given the chance to do the job, regardless of protected class or first language. Summary Many nations do not have the privilege of having such diverse communities with an equally diverse workforce. The most successful economies and companies will be the ones who will integrate and embrace potential differences. During the 1990s, there was a huge wave of immigrants to the U.S. and many successful companies were launched by immigrants, such as Yahoo and Google. The next set of company leaders may be immigrating to the U.S. and should be treated fairly in employment decisions and provided with equal opportunity while working towards their American Dream. For more information about

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compliance and management issues related to employment based immigration in the workplace, or communication issues within a diverse workforce, please contact Berkshire Associates at 800.882.8904 or email: bai@bekshireassociates.com. About the author As Senior Manager of Affirmative Action Outsourcing for Berkshire Associates, Sonia Chapin is responsible for the development and implementation of Office of Federal Contract Compliance Programs (OFCCP) audit support and compensation services. Ms. Chapinâ&#x20AC;&#x2122;s expertise in organizational analytics coupled with an intense knowledge of employmentrelated regulation has assisted hundreds of clients in saving millions in potential liability by identifying risk areas and taking corrective action. To interview Sonia or find out more about her other articles and white papers, please contact Lauren Collinson at 800.882.8904, ext. 1307, or email laurenc@ berkshireassociates.com.

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The Generation Factor–

Understanding How Differences in Generations Affect Your Workforce by: Berkshire Associates

Outside your office door, everything may appear fine, but tension may be brewing among your Baby Boomer, Generation X, and Generation Y workforce. How can managers and HR work together to optimize each group’s strengths while creating a productive and satisfying environment for all three styles? The core of this tension originates from differing work values and perceptions of relationships with employers. Baby Boomers lean towards job security, corporate loyalty, formal hierarchy, long

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The core of this tension originates from differing work values and perceptions of relationships with employers.

hours, and advancement. Generations X and Y are cautious of corporate loyalty due to their witness of mass layoffs and company closures as they entered the workforce. However, Generation Y places a great deal of importance on close, open relationships with supervisors and co-workers. Baby Boomers tend to see Gen Yers as lacking commitment and appearing entitled, while Gen Yers perceive their counterparts as selfabsorbed workaholics. What is the best way to communicate the values and vision of the organization? Let’s take a moment to explore what is unique about these three generations. Baby Boomers are people born between 1943 and 1960–1964 (depending on the source). Baby Boomers grew up in a time of monumental changes; civil rights movement, sexual revolution, space travel, assassinations, and the draft, just to name a few. Boomers have often found it difficult to manage their time and money due to

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www.berkshireassociates.com a situation other generations have not had to deal with. The Baby Boomers’ parents are living longer, their children are seeking more education, and they themselves are having children later in life. Boomers have to care for elderly parents, as well as their own children. They are now called the “sandwich” generation. They began their careers during the industrial age and were thrown into an era where brainpower is more valued than brawn. They have had to adapt rapidly from manual processes to automation and computerization. Due to the sheer number of them (76 million), Boomers have always been assertive and competitive. They are hardworking individuals who believe strongly in a work ethic that demands time and energy. Status, and the symbols that go with it, is extremely important and defines their worth.

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work affords. Their commitment to the business is very strong. Great knowledge of the business: Due to their work ethic, they are very involved in all levels and aspects of the business. Teamwork is essential: Personal relationships with co-workers are important. Challenge authority: Boomers may not want to totally rock the boat, but may question groupthink. They lived though events such as the Vietnam War and Watergate, causing them to become less trusting of authority. Need for personal growth: Often Boomers did not follow the career path in which they were most interested, but the ones that were best economically. Civic responsibility: They exhibit enthusiasm for causes. Baby Boomers in the workplace

Characteristics of Baby Boomers Workaholics: Boomers live to work. They feel it’s important to pay their dues and work their way up the corporate ladder. Boomers expect to make sacrifices to receive the prestige and status

Above all, Boomers are loyal to their companies. In them you will find a wealth of knowledge on the “hows and whys” to which the next generations were

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114 not privy. They understand organizationsâ&#x20AC;&#x2122; intricacies and can lend their knowledge to whoever is willing to listen. They are often rated as great managers and mentors. To other generations, Boomers may seem stodgy and set in their ways, unwilling to change. However, this is only because Boomers tend to be very methodical and need to know the facts before making a decision. They have worked throughout their organizations and are willing to wait their turn, expecting their efforts and knowledge will pay off in the end. Generation X are people born between 1960 and 1976â&#x20AC;&#x201C;1980 (depending on the source). Gen Xers were considered latchkey kids. They grew up in a time of corporate layoffs and company instability, and therefore had to be very self-reliant. Generation X is independent, enjoys informality, believes in diversity, is pragmatic, and is technologically competent. They want to build a repertoire of skills and experiences they can take with them if they need to, and they want a career path with increasingly interesting steps along the way.

Characteristics of Gen Xers Not big on loyalty to a company: Many will switch jobs several times seeking positions with more responsibility and opportunities for personal growth. Suspicious of hierarchy: Gen Xers want to be seen as equals. They are comfortable in expressing their opinions to those in charge, since rank means very little to them. Teamwork is a very important aspect of their jobs. Believe in work-life balance: Being able to spend time with family and pursue other interests is also important to this group. Generation X in the workplace This generation saw layoffs and a downward sloping economy. Therefore, they have loyalty to their team members and a good boss, but not necessarily to a company. They are individualistic and dislike anyone looking over their shoulders. At the same time, they encourage feedback and are quick to give you their opinions. Their careers may be filled with several moves, not all going in one fluid direction. Part of their goal is to learn new things and have many experiences along the way.

www.berkshireassociates.com Turning to Generation Y Gen Yers are people born between 1977 and 1994 (depending on the source). This generation makes up over 20 percent of the overall workforce with approximately 70 million people. They are the children of the Baby Boomers and some older Generation X members. They grew up in an age of technology, in a time of educational availability, and with parents who wanted to give them everything. Growing up in the age of technology allowed this generation to experience instant gratification. As they grew up, technology got faster and more efficient. Everything from computers and the Internet, downloading music, and instant messaging gave this generation the luxury of rarely having to wait. Gen Yers were in high school with cell phones and lived in houses with computers and Internet access before they went off to college. Chances are they even had a computer to take with them to college. This generation grew up with very little free time. As children they were shuttled from scouts to dance class, from music lessons to soccer practice. Almost

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every minute of their day was structured by working parents who wanted to make sure their kids had every opportunity to be well-rounded. This idea carried over from elementary school to high school where the Yersâ&#x20AC;&#x2122; main objective was building their rĂŠsumĂŠs to ensure acceptance into a reputable college. Eightyfive percent of Gen Yers attend college full-time after graduating high school. And now with degrees in hand, Generation Y is entering the workplace with new values and new ideas. Characteristics of Generation Y Impatient: Raised in a world dominated by technology and instant gratification. Skeptical: In recent years there has been more scamming, cheating, lying, and exploiting than ever from the major figures in the media. This includes everyone from rock stars to Presidents. Blunt and expressive: Self-expression is favored over self-control. Making their point is most important.

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116 Image-driven: Making personal statements with their image is very important. Adaptability: Generation Y tends to be adaptable and comfortable in an array of situations. Technologically savvy: They grew up in the age of technology and are taking advantage of it. Ability to grasp new concepts: This is a learning oriented generation. Efficient multi-taskers: They often do more, and will do it faster and better than their competition. Still young: Although they have a “seen-it-all, done-it-all” air about them, lack of life experience means they don’t know everything yet. They are aware of this and are not afraid to ask questions. For this generation, it is better and more time-saving to ask questions, than to waste time trying to figure it out. What Makes Them Tick in the Workplace? The Gen Yers are bringing a fresh perspective and new life to the

workplace, but managers and employers are having difficulty figuring out how to reap the benefits of this new generation. Generation Y has a whole new set of values and motivators that need to be addressed in order to keep them engaged and satisfied. This generation values education. They have a need for ongoing learning and challenges. It is important for employers to give members of this generation challenging projects to prevent boredom. They are happy as long as they are being stimulated and are able to build upon what they already know. The Gen Yers desire immediate responsibility. They are a highly educated generation and want the opportunity to use their knowledge. They want to make an impact immediately on projects and look for immediate gratification in excelling. This generation is very attracted to opportunities for work-life balance. They aren’t driven only by the large paycheck but also with flexibility for their life outside of work. Work is only one component of a “wellrounded” life for this generation. Opportunities for telecommuting and flexible work schedule can result in better performance as well as higher retention rates.

www.berkshireassociates.com Overview What makes these generations stay and work in harmony? Is it corporate loyalty or the belief their job is making a difference? Corporations with a multigenerational workforce need to strike a balance between the groups. Baby Boomers want to feel valued and vested in their organizations. They believe their continued loyalty should

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Turning to growth opportunities as a tool for retention

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be rewarded with seniority and company investments. Gen Xers want to feel they are growing, at work and in other pursuits. Flexibility and freedom is their reward. Gen Yers in turn do not tend to focus their loyalty to a corporate brand, but to companies who are socially vested within the community. Find out the organizations and causes in which your employees are interested and provide the opportunity for employees

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to spend a certain amount of time volunteering. Ultimately, the generations need to experience a sense of ownership of their positions. Encourage participation in products, procedures, and marketing allowing employees to see how they tie into the success of the company. Help employees see how meeting their individual goals directly impact these efforts. Turning to growth opportunities as a tool for retentionâ&#x20AC;&#x201D;what happens when what is good for one generation is not always a driver for the others? While all the generations value promotional opportunities, they perceive the path to promotion differently. Baby Boomers see a clear career path achievable through tenure, hard work, and loyalty. Gen Xers may take several different routes with stops and starts along the way. Gen Yers are more invested in companies who reward top performers individually, not just in increased responsibility, but with time and reimbursement for additional education. They also value performance-based cultures where results count more than seniority. This means

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A strong leader who is well versed in the learning styles of these generations is crucial in the design and facilitation during the meeting or class.

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companies need to outline career progression while providing perks for employees who strongly add to the bottom line. It is wise to invest time finding out what motivates your employees—it may be promotional opportunities as well as work-life balance. As an employer you will also need to be aware of the best way to train the three generations and how to disseminate general information. Baby Boomers tend to enjoy information presented in annual meetings and newsletters. Gen Xers want a more casual approach with oneon-one interaction, while Gen Yers utilizes electronic means such as blogs, podcasts, and streaming video as a means to gather all sorts of information. This will also satisfy their desire to feel as if they have direct access to information from the decision makers in your

organization at any point in time. Perhaps a blended approach would be the solution. Annual “State of the Union” addresses can satisfy the Boomers’ desire to gather information from a more traditional means, while quarterly updates can be available on the Intranet and other downloadable media. When it comes to training, Generation Y, Generation X, and Baby Boomers receive and retain new information differently. Baby Boomers tend to learn best from round-table discussions, Gen Xers learn from an interactive relationship, while Gen Yers learn best in more unstructured and interactive brainstorming sessions. Using a variety of training methods can offset these differences. Consider structured training sessions and meetings incorporating brainstorming aspects and information sharing. This will allow you to capitalize

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on the experience of the Baby Boomers while opening the floor to innovative ideas of Generation X and Y employees. A strong leader who is well-versed in the learning styles of these generations is crucial in the design and facilitation during the meeting or class. Understanding the differences between these three groups will allow you to utilize their experiences and diverse views effectively. Itâ&#x20AC;&#x2122;s your job to figure out how you can best build your environment to balance the needs of cross-generational workers in your company. Just remember not all individuals will fall perfectly in-line with the characteristics of their generation, but all will benefit from variations in communication styles and new management techniques.

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Veteran Transition and Reservist Reintegration into the Workplace: How Will it Impact Your Company? By: Lou Ann Helminiak

The Office of Federal Contractor Compliance Programs (OFCCP) is requiring federal contractors and subcontractors to increase their efforts relating to Veteran outreach. Many organizations are working hard to increase their Veteran outreach activities, and increase the number of Veterans entering their workforce. While much effort and emphasis is being placed on the recruitment and employment of Veterans, organizations must also focus on the transition process for Veterans entering or returning to the civilian workplace. This is essential to the retention and productivity of these individuals. Veterans are most often considered to be attractive candidates to employers. They typically possess many desirable skills including technical expertise, leadership experience, adaptability, and strong strategic mindsets. There are numerous Veteran recruitment programs and resources available to help organizations attract and recruit these highly skilled individuals. With a strong Veteran recruitment program in place,

an organization should then be centrally focused on how to successfully transition and retain them. Why is it necessary to develop a transition program for Veterans? By improving your retention and the productivity of these individuals, you can reduce costs associated with turnover and lost productivity. For most Veterans returning from active duty, the civilian workplace and how it operates is a foreign concept. Most of these Veterans do not have full-time work experience prior to entering the service, and therefore are unfamiliar with the typical workplace environment. Returning reservists reintegrating into the workplace may have difficulty coping with a different set of interpersonal dynamics, corporate cultureâ&#x20AC;&#x201D;which is more relaxed than the militaryâ&#x20AC;&#x201D;and a value system that encourages independent thought process and functioning. These can leave Veterans feeling out of place. Whether the individual is retiring from active duty or is a returning

www.berkshireassociates.com reservist, your organization needs to address these transition issues and develop an appropriate program to accommodate our service men and women, thereby enhancing their retention and productivity. When developing a comprehensive strategic plan to transition and retain these individuals, keep in mind the Veteran population is divided into two groups, those retiring from active duty and those in the Reserves. Since each group has different issues and concerns, a specific transition plan should be created for each. Understanding the different characteristics and attributes of each group, and the specific challenges they face will help you in focusing your integration efforts. Typically, Veterans returning from active duty have limited experience in the civilian workplace, and military service may have been their first fulltime job. The majority of them enlist with only a high school education, although many are college graduates through Reserve Officersâ&#x20AC;&#x2122; Training Course (ROTC) or one of the service academies. Due to the nature of military service, the majority of Veterans have relocated at least once or twice resulting in

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limited connections to their local community, and limited personal and professional contacts to gain access to employment opportunities. Reserve soldiers tend to have a higher educational background. They are typically older than the average soldier returning from active duty, joining the Reserves later in their career. Reservists will usually be well-established in their career; hold significant financial obligations such as mortgages, education costs for dependent children, and retirement planning; and have strong personal and professional connections within their local community. Typically they bring about five more years of experience to the military than active duty members. The transition challenges for each group are different, and therefore the integration solutions must also vary. For retiring active duty soldiers, professionally, the integration issues may include workplace culture shock. Most are used to a command and control type leadership style, taking and giving orders. Therefore, they may have difficulty adapting to a more

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122 collaborative management style. Additionally, many Veterans have to deal with bias and stereotypes from coworkers. Some coworkers may have an anti-military bias and their feelings may become evident in the way they treat or interact with Veterans in the workplace. They may also be dealing with some personal transition issues as well. These might include behavioral health issues, family life issues, financial concerns, and physical disabilities. For employers seeking to integrate Veterans returning from active duty, these transition challenges must be addressed. The challenges for the employer may include lacking a strategic and well-defined Veteran transition plan, assisting Veterans in understanding and dealing with corporate culture— culture shock, understanding the differences between work experience and military experience, and harassment policies that deal with employees that have a bias against military Veterans. It is also important to note, Veterans are commonly recruited by their military friends or associates who are working for another company. And if their transition into your organization

is less than satisfactory, you may begin to lose many of these individuals to these other organizations that are considered more “military friendly.” The military family is strong and connected, therefore poaching commonly occurs. Having a military friendly company image is very important. To address these challenges, your organization can begin by developing a comprehensive Veteran transition and integration program. Some steps you can take to build your program include: 1. Ensure the outward physical appearance at your company reflects a Veteran friendly environment •

Utilize bulletin boards to post not only Veteran notices but perhaps Veteran employee success stories, positive and uplifting quotes about the company from current Veteran employees, information on current civilian military employees deployed, Veteran activities or events, Veteran support groups, etc.

• Utilize the company website to post similar

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2. Develop a mentor program for Veterans •

Identify current employees who are Veterans and enlist their support as mentors to new employees who are Veterans

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Follow-up with Veterans in the beginning of their employment to ensure their mentor match is working

• Encourage feedback from mentors and mentees regarding the program 3. Solicit support and assistance from current Veteran employees to develop specific solutions to improve the current workplace environment •

Manage expectations by discussing Veteran’s expectations, and determine if any disconnects exist between their expectations and the reality of your workplace

• •

Discuss the transition experiences of current Veterans to determine positive and negative experiences Discuss integration of

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Veteran’s job training needs with vocational rehabilitation training programs when appropriate

4. Develop a Veteran specific module for your orientation program to include: • Discussion of corporate culture • Discussion of relevant company services and programs such as: • Employee Assistance Program (EAP) • Veteran networking and support groups • Veteran mentorship program • Veteran celebrations and other related events •

Provide a list of relevant outside Veteran services and programs such as the Veterans Employment and Training Service program

5. Accessing The Skills Translator on O*NET www.onetcenter.org • Can be useful during the employment process including internal promotions

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Can be used to assist hiring managers who are considering Veterans for promotional opportunities, job changes, or department changes, to help them better understand military experience

6. To combat poaching: • Develop your own strong internal Veteran network

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their careers Develop shadow programs for various positions and levels in your organization

7. Provide HR professionals, managers, and administrators with mandatory training and annual retraining on your Veteran employment and integration strategic plan such as:

• Build strong relationships with the armed services community

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• Frequently participate in and get involved in military programs and events

• Understanding culture shock issues for Veterans and how best to handle

• Build strong relationship with local military facilities and frequent them often

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• Keep in touch with Veterans, Veteran offices, military offices, etc.

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Understanding that motivational needs can be significantly different, especially if the Veteran has been in the military for a significant amount of time

• Understanding they may demonstrate a strong resistance to change

• Develop and outline specific career paths • Provide career path counseling

Understanding the transition issues Veterans face and how best to handle

Continue to work with Veterans on translating their military experience into the workplace to advance

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Identifying certain behavioral issues related to Post Traumatic Stress Disorder (PTSD) and when or how to refer Veterans for appropriate counseling or programs

www.berkshireassociates.com For reservists returning to the workplace, the challenges and solutions are somewhat different from those Veterans returning from active duty. Reservist reintegration issues are similar to those faced by employees who are returning from other non-military absences such as job related injuries and extended absence or leave. Some of these issues include dealing with new service related injuries or disabilities (physical disabilities, PTSD, Traumatic Brain Injury (TBI), readjustment to home life, stereotyping of returning Veterans, employers not willing to work around the possible multiple deployments, coworkers’ anger over having to “pick up the slack” during deployment, and workplace or management changes that may have occurred during their absence. The reintegration of reservists into the workplace presents certain challenges for the employer as well. Upon return, it is a potentially uncomfortable situation for the employer, coworker, and reservist to know whether to just “pick up where we left off” or to acknowledge the time away. Employers want the reservist to know the company values their service, but they are concerned about asking

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questions the Reservist may not want to talk about. Since changes to the organization may have occurred while the employee was on leave, employers need to make sure he or she is brought up to speed on these changes without making them feel like a new hire. Another challenge for the employer is to ensure the sensitivity of managers and staff to the reintegration issues the reservists face. For employers seeking to reintegrate Reservists it is important to: •

Solicit support and assistance from current reserve employees to develop specific solutions in improving the current workplace environment

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Ensure compliance with the Uniformed Services Employment and Reemployment Rights Act (USERRA) law

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Welcome the service member back and show appreciation for their contribution as well as enthusiasm for their return to the workplace

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126 • Communicate expectations clearly and describe any office procedures or department dynamics that have changed, and solicit feedback

• Determine the need for accommodations for those returning with a disability, whether physical or behavioral

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Conduct a performance appraisal prior to deployment and using it as a baseline for when the reservist returns to work

• Support the employee and their family during deployment

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Determine training gaps— identify specific skill sets that need to be acquired before the reservist can resume the same job upon their return

• Maintain communication through appropriate personal contact,while respecting individual privacy •

Send company newsletters and emails to help them feel connected and cared for during deployment

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Invite deployed employees’ families to company social functions, such as annual picnics and holiday parties

• Conduct sensitivity training for immediate managers and co-workers • Provide education to co-workers on how and when to ask questions,

knowing some returning employees may be reluctant to share details about their deployment or may only do so with certain individuals at certain times

In summary, the transition, integration, and reintegration of Veterans and reservists into the workplace represent an essential component of a successful Veteran and reservist employment program. Developing a Veteran and reservist integration and reintegration plan that is comprehensive, realistic, and actionable for your organization should result in higher retention, improved productivity, and lower costs. Apply the following components to ensure an effective program: 1. Identify current employees

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who are Veterans or reservists and enlist their support and assistance with developing the recruitment, reintegration, and integration plans

2. Develop and provide training for HR staff and management on Veteran recruitment and integration or reintegration of Veterans and reservists to ensure a consistent military friendly message 3. Modify your current orientation program to include a Veteran specific module, or create a separate orientation program for newly discharged Veterans that will aid in projecting a positive first image

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the federal government to model your programs Veterans and Reservists offer their employers significant skills and unique experience, and in return employers should offer them a military friendly and supportive workplace environment. The benefits far outweigh the costs for both the employee and the employer. To learn more about creating a strategic Veteran and reservist workforce plan, or for more information on how to recruit and retain Veterans in your company, please contact Berkshire Associates at 800.882.8904 or email bai@ berkshireassociates.com.

4. Follow-up with Veterans regularly to determine how they are transitioning 5. Ensure EAP is made known to, and is available for, Veterans and reservists seeking assistance 6. Develop a mentor program for Veterans 7. Manage Veteransâ&#x20AC;&#x2122; expectations of the civilian workplace 8. Look to other companies and

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Workforce BALANCE—The Key to Success in Today’s Business Environment By: Manoj Tiwari and Lauren Collinson

In today’s business environment, the definition of a balanced workforce has evolved from being focused solely on a demographically diverse workforce to a workforce that is balanced in every aspect of human diversity. This not only includes traditional diversity based on race, gender, age, nationality, and sexual orientation, but includes the diversity of thoughts, culture, emotions, and spirituality. In today’s HR environment, Workforce BALANCE is the practice of leveraging the differences in talents, skills, and backgrounds to produce advancement, growth, and innovation. A balanced workforce keeps companies competitive, relevant, and in touch with the marketplace. This is what we call the ideal balanced workforce, which has driven me to maintain a company dedicated to providing solutions to build the ideal, balanced workforce using a blend of expertise, innovation, and collaboration.

is vital for company longevity. When you create a balanced workforce you are not only working in the spirit of diversity, but you are benefiting from having diverse perspectives from generational, emotional, and cultural viewpoints. Not having these full representations in the workforce robs businesses of critical key elements in the social order. At the core of your company is its workforce, and in order to succeed in meeting strategic goals your company must find balance within its core. When HR processes are designed with Workforce BALANCE in mind, companies will benefit from the long-term advantages of: • maximizing workforce productivity • proactively evolving in their marketplace • producing advancement, growth, and innovation • increasing efficiency

Creating a balanced workforce

www.berkshireassociates.com • remaining competitive • reducing liability and exposure to lawsuits

Through Workforce BALANCE, a company strikes the right balance of talents, backgrounds, and experiences—allowing the opportunity to evolve with the marketplace. When HR processes are designed with Workforce BALANCE in mind, companies benefit from the long-term advantages of attracting the right talent, maximizing workforce productivity, applying consistent practices, and reducing exposure to lawsuits. Workforce BALANCE has a long and lasting positive impact on the workplace. Processes and procedures should be created with Workforce BALANCE in mind. Each company’s ideal Workforce BALANCE is different, and can be achieved by utilizing every area of HR effectively, including attracting the right talent, paying equitably, applying consistent practices, meeting government compliance, leveraging data results, identifying the most qualified applicants, and streamlining processes, procedures, tools, and training. I am proud to say Berkshire is the industry leader in helping companies find their

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unique blend of Workforce BALANCE. With thousands of clients who have turned to us with their core needs, from applicant management, compensation, affirmative action, and workforce planning, we understand the ins and outs of an effective workforce, and how to help companies evolve with the marketplace. No matter where your company is right now with its workforce, keep in mind products and services are a true reflection of a business’ workforce. If your workforce looks alike and thinks alike, then your products and services will appeal only to those who look and think like your business. As HR professionals, it is our duty to stay ahead of the curve and create a balanced workforce that truly reflects our company’s revenue generating offerings. Our success and survival depends on creating an ideal, balanced workforce. To request more information about Workforce BALANCE please visit www.berkshireassociates.com/ balance or call 800.882.8904.

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An Effective Approach to Communicating With Employees By: Berkshire Associates

Effective communication helps employees understand their role in the business, actively participate on the job, and increase their overall level of satisfaction. Competent organizational communication is vital to promoting employee loyalty and commitment. In an age of declining employee loyalty, poor job satisfaction often leads to attendance issues, job turnover, and burnout. Why not

receive education on the business and their role in the organization’s goal achievement. Knowledge encourages employees to behave in a manner consistent with achieving the goals of the organization. Additionally, employees want to know what is happening in the organization, and why it is happening. Employees want to know the rationale behind business decisions. If they are

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Competent organizational communication is vital to promoting employee loyalty and commitment.

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ensure that your employees feel engaged and connected? What Are Some Things That Should Be Communicated? Strategic Organizational Goals While education, culture, and values of the organization are necessary, employees should

able to understand why certain steps were taken, you are more likely to receive buy-in. Relevant Job Information Clear job direction with challenging and measurable work objectives shows employees how their role is significant to the ‘big picture.’ This means

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Policies and Procedures Other pertinent information to communicate with employees are policies and procedures. An up-to-date employee handbook is one of the best ways to do this. Employee handbooks aid and protect both employee and employer by outlining what is and is not acceptable behavior. Employers should carefully craft the handbook and include a disclaimer that informs employees that nothing in the handbook, expressed or implied, guarantees continued employment. The goal is to provide employees with the information they need to succeed. Ensure that the handbook is well organized so employees can easily locate necessary information.

Employee Feedback After processing messages, employees need opportunities

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Upward communication through employee satisfaction surveys is one way of identifying employee attitudes.

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identifying individual or team job accountabilities and the skills and knowledge essential to perform the work. Write job descriptions that accurately reflect job duties as well as the essential functions of the job. Review the job description indepth with employees so they understand their specific duties and the degree of accountability in their performance.

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to give feedback. Employees possess key information that can be used strategically for goal achievement. Upward communication through employee satisfaction surveys is one way of identifying employee attitudes. Think about what your organization is trying to achieve through the survey and clearly communicate this to employees. Actions taken following the receipt of the results should be realistic. It may be helpful to decide on the number of issues you will follow up on, assign a staff representative for accountability, and let employees know who will be responsible for that area of concern.

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132 Demonstrating commitment from top management is the most critical step, as employees will be less likely to partake in the survey process if they are not convinced that proper follow-up will be done. There are numerous ways to communicate information to employees, and though faceto-face interaction may be ideal, it may not always be practical. Furthermore, organizations and companies with off-site employees are realizing that multiple communication vehicles are becoming necessary. To ensure employees are kept ‘in the loop,’ consider using a variety of communication methods: • Company town hall meetings • Department staff meetings • Newsletters • Memos and letters • Intranet • Staff emails • Open door policies • Web and phone conferences • Lunch with the President/ CEO Choosing the right communication method for your company can increase employee satisfaction and bring positive results to the organization as well.

Berkshire Associates HR Services Division can help your organization develop customized HR solutions, visit our website at: www.berkshire-aap.com/services.

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Engaging New Employees:

Building Relationships and Maintaining the Connection By: Berkshire Associates

Properly acclimating employees to your organization is a one-shot deal. In order to ensure a smooth transition, organizational leaders should consider ways to help both parties adapt to this process of change. New hire orientation is fundamental to forging a positive relationship between employee and organization. The length of orientation can

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New hire orientation is fundamental to forging a positive relationship between employee and

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organization.

span anywhere from a oneday session to a several month process, ranging from traditional new hire sessions to the lengthy “onboarding” process. Onboarding is the process of integrating employees into their new work environment. Regardless of the type of

orientation, your company should send a message that employees are valued and supported. In that light, an organization should develop an orientation process that fits its organizational culture. Does your message to new employees convey a ‘sink or swim’ attitude or give the perception of a welcoming, open environment that encourages learning and growth? Your orientation program should provide information, tools, and support needed for success on the job. An effective orientation program can: • Help new employees become engaged • Encourage company loyalty and employee retention • Build and strengthen relationships through open communication • Save time and speed productivity

www.berkshireassociates.com You want employees to be excited about their new undertaking and have a realistic perspective of their new role. Employees want to know their work will be challenging and fulfilling. Providing tasks that can help new recruits feel productive reinforces their belief that they made the right transition into your organization. Companies sustain a stronger workforce with employees who are engaged. This state of engagement should begin on the first day. Engage new hires by communicating expectations from the start. Individuals responsible for orientation can encourage feedback when appropriate. Management should discuss short-term goals, career development, and opportunities for training with new hires. This communicates to the employee the company is committed to helping them succeed. Building relationships through mentoring is another way to ensure new employees have the resources they need to succeed. Seasoned employees can help new employees on the job and provide support. New employees are hesitant about asking questions for fear of appearing

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incompetent. Your orientation program should include easy access to resources to reduce new employee frustration. What can your organization do to ensure it is making the connection with new employees? • Encourage organizational members from different departments to make an effort to bond with new hires • Choose mentors that are positive and personable to show new hires the ropes •

Help new employees be productive from day one by giving them a basic understanding of their job and what is expected of them

• Be sure to provide just enough information, to not overwhelm the new hire • Ask for feedback and make use of it • Consistently explore ways to improve the orientation process

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136 To gauge the success of your programs, measure what works and does not work for you.

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Orientation has the potential to build employee morale and connection through a positive

Whether you choose the onboarding method or a simple new hire orientation approach, your organization should have a process in place that will help new employees understand how their role fits with the goals

One method is to analyze new employee feedback through surveys and identify patterns in the data. You can also compare the growth rate and the time it takes for employees to get “onboard.” This can be done with oriented hires and non-oriented hires. Whether you choose the onboarding method or a simple new hire orientation approach, your organization should have a process in place that will help new employees understand how their role fits with the goals of the organization. More importantly, orientation should inspire employees by demonstrating they are valued for their unique talents and abilities.

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of the organization.

image presented in the beginning stage of employment. Let Berkshire Associates’ HR Services division help your organization develop a customized Employee Relations and Retention program. For more information, visit our Website at www. berkshireassociates.com.

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Training

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Training & Professional Development— an Investment Worthwhile By: Charu Avasthy, PHR

Businesses across the country know they need to keep up with the pace of change, and to do this they focus on developing and training their biggest resource— human capital. Training your employees impacts the bottomline results in the following areas: • • • • •

Productivity Innovative advancements Competition Regulation changes Employee retention

With all the benefits training brings, it’s hard to understand why in a time of economic downturn it’s one of the first things to go. According to a study conducted by the American Society for Training and Development (ASTD,) businesses that allocated $1,500 per employee in training experienced on average: 24 percent higher gross profit margins and 218 percent higher income per employee. Employees that are placed in jobs without training take six times longer to perform the same tasks. According to business publications and surveys, including the Harvard

Business Review, the top reason for employee turnover is lack of training and professional advancement. Training enhances employee retention. The replacement cost of an employee is estimated to be in the ballpark of one third of his or her annual salary. In addition, a well trained, confident, and knowledgeable employee will make all the difference in winning or losing customers/business. With such tangible and intangible costs associated with lack of training, professional development costcutting is neither wise nor an advisable approach to meeting the bottom-line. Many businesses contend that they don’t want to pay to train and certify employees, only to lose them to a competitor in a high turnover environment. If high turnover is an issue, training will make new employees more productive, and they will feel better about themselves and their jobs. People want opportunities for personal growth and development through education,

www.berkshireassociates.com training, career progression, and challenging assignments. Like any other business function, training and professional development needs to be treated as a profit center. Companies that spent more than average on training had 86 percent higher shareholder return than companies that spent the lowest amount (ASTD). The first step

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and professional development must be measurable. The reason for any form of training is to improve the bottomline. The ROI in training can be determined by considering the training investment in terms of the cost (direct and indirect) and comparing this cost to the effect of training on the company profits.

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The replacement cost of an employee is estimated to be in the ballpark of one

towards training benefits is a company-wide commitment. This commitment then needs to be reinforced in communications (preferably top down). Employees need to understand there is a direct correlation between their individual training experiences, acquisition of new skills, career advancement, and company success. Decisions on where to invest limited training dollars for maximum impact is one of the biggest strategic decisions a business must make. The return on investment (ROI) of resources committed to training

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third of his or her annual salary.

Hiring the right candidate, followed by an investment in training and professional development on an ongoing basis, is the most effective way to meet your operational and strategic business goals.

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Putting the Rumors to Rest—Effective Diversity Training is Real By: Sybil Randolph, PHR

There has been much speculation lately about whether or not diversity training is effective. A recent study featured in the Washington Post suggested diversity training ineffective. The study reports, “Most diversity training efforts at American companies are ineffective and

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If organizations are serious about wanting a diverse organization, change will occur.

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even counterproductive to increasing the number of women and minorities in managerial positions” (Washington Post, Jan. 2008). Unfortunately, some organizations may look at this article and conclude that they are correct in not conducting diversity training at their

companies. Before reacting too hastily, take a closer look. If organizations are serious about wanting a diverse organization, change will occur. As a diversity trainer, I often get calls from organizations that want to have training on diversity sensitivity. They want the class to be short—no more than two hours (many people feel they are too busy to spend more time on this). During this hour or two, it is expected that every participant learns the error of their ways and come out holding hands. They feel they have done their due diligence, and can check diversity training off of the list. I say now what I said then—diversity training is about a cultural shift and may take time. It’s not just about race and gender, it’s about the opportunity to explore how similar we all are, and to be successful, organizations need everyone to contribute. According to Alexandra Kalev, the sociologist that led the research in the study at hand, when organizations made attendance to diversity training voluntary, there was an increase

www.berkshireassociates.com in managerial diversity. By involving employees in a different manner, they will be more likely to respond positively.

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To have effective diversity training, an organization must embrace diversity, show support from upper management,

Due to changing demographics, the global marketplace, different perspectives, and ability to compete,

organizations should embrace and learn

Experts have long touted the business case for diversity. Due to changing demographics, the global marketplace, different perspectives, and ability to compete, organizations should embrace and learn to manage a diverse workforce. Diversity training should have goals that follow the goals of the organization. There must be real commitment and support from the top, including time, resources, and visual presence for it to have an impact on the rest of the company. According to recent diversity research, companies that appointed task forces with the authority and responsibility to increase diversity in top jobs saw the number of female and minority managers increase.

â&#x20AC;&#x153;

to manage a diverse workforce.

create goals that align with the organization, and have accountability for reaching those goals. So, if you were considering diversity training and were having a difficult time convincing the powers that be, take heart. Diversity training can be effective, just make sure it has the proper foundation.

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Going Virtual with Web-Based Training By: Mindy Goldman

With all the emerging technologies and growing bandwidth capabilities, Webbased training is becoming a popular solution for many businesses. Web-based training is any training course or tutorial that is made available over the Internet. There are quite a few options available. One is offering a synchronous learning course, which is a real-time session accessed over the Internet by multiple students at the same time. Synchronous courses resemble a typical instructor-led training, and most often have a set curriculum and schedule. Another option is using an asynchronous approach through self-paced courses or online discussion groups. This allows people to participate based on their availability. Emerging technology has also expanded asynchronous methods to include collaborative software such as blogs, wikis, and webcasts.

training is the reduction of cost. Companies can save money on travel expenses and instructor and facility fees by not sending employees to an off-site training location, or having an instructor

come for an on-site session. Another benefit of Web-based training is that it provides convenience. Employees looking for a flexible solution that will allow them to spend less time away from their jobs and families can take advantage of a virtual learning environment.

What makes this virtual learning environment more appealing than the traditional instructor led classroom style training? The key benefit of Web-based

Offering a Web-based training session also allows for easier content management. It is likely the training material used will require updates to be made on

â&#x20AC;&#x153;

The key benefit of Web-based training is the reduction of cost.

â&#x20AC;&#x153;

www.berkshireassociates.com a regular basis. A company can spend a great deal of time and money updating and recreating printed materials every time a change is needed. With Web-based training, updated information can easily be uploaded and instantly available to students. Unlike printed material, Web-based material is digital and has the ability to be customized more frequently to suit the audience.

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students to attend training and have the ability to be close to home and work so in most cases students are able to retain more information. Virtual training is quickly becoming the classroom of tomorrow.

How can you be sure to get the most out of Web-based training? Each individual has his or her own learning style. If possible, choose a program that fits your learning needs. If you rely on the ability to have interaction with an instructor, do not choose a pre-recorded webcast that offers no direct means to contact an instructor if needed. If you prefer to have the option to interact with other students, choose a course that uses chats or discussion boards. To excel in any Web-based training session, you must make the commitment to strive to maximize your learning experience. When it comes to training, whether virtual or traditionalâ&#x20AC;&#x201D; the material, instructor, and student must all be focused and have interest in the topic. Virtual training allows your

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Online HR Training—Saving Time and Money By: Nicole Butts, SPHR

In current economic times, business professionals are faced with the challenge of meeting organizational needs with few financial resources. It is during times like these new resources and technologies are sought out, and human resource training is no exception. Most human resource professionals have relied heavily on tried-and-true traditional classroom learning to meet training needs. Although this method has numerous

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organizations cannot afford right now, so it makes sense to explore other options. There are many alternative approaches to traditional training. With the HR industry expanding into Web-based software and services, it is not surprising online training has become a leading trend. Online training can take many forms, including tutorials, webinars, live meetings, and virtual classrooms. Regardless of the type of online training, they share some common benefits.

Take advantage of the economic climate, and put some new training

advantages, one disadvantage is cost. Typically, attending classroom training requires not only the cost of the class itself, but also the cost of transportation, accommodations, meals, and loss of production from being out of the office. All these are expenses many

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strategies to use.

Benefits of Online Training: •

Provides the same learning content without the travel related expenses associated with classroom training

• Accessible without taking time away from the office

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• Allows for multiple learners in dispersed areas to receive the same training

training and discover how it can help you and your organization thrive.

•

For more information on Berkshire’s training delivery options, please visit: http://www. berkshireassociates.com/training/ delivery.aspx or call 800.882.8904.

Conducted and accessible at the learner’s own pace, and is not affected by learning needs or styles of classmates

• Provides on-demand access to the latest industry and regulatory updates •

Allows for the design and delivery of customized training for both individual and group use

Berkshire Associates offers two forms of online training, both of which save production time and travel expenses by allowing you to learn from the convenience of your desk. Instructor-led online training provides the live interactive training you get from traditional classroom training, just in an online version. Self-paced online training can be done at your own pace, and has the extra benefit of being available for 12 months after date of purchase. Take advantage of the economic climate, and put some new training strategies to use. Berkshire challenges you to explore and experience online

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Inside the Booth—How Berkshire Works to Serve You By Berkshire Associates

Many HR professionals invest time each year attending tradeshows and conferences around the country. Tradeshows and conferences present excellent opportunities for HR professionals to gain a broad perspective about best practices. They also help guard HR professionals against the pitfalls that come with being isolated and insulated by their own corporate culture. Seeing what your competitors are up to and the latest innovation helps keep your perspective fresh, and your own creativity flowing. As HR professionals invest time to attend the educational sessions, interacting with vendors, and visiting the hundreds of booths and exhibits, they often

When an exhibitor greets you with an inviting smile, the catchy theme of the booth attracts your attention, or you simply heard they have some cool “stuff” to give away, asking a few questions can help you avoid wasting precious time cornered by an aggressive vendor. First, ask the person who approaches you what role they play within the organization and how long they’ve been there. If they are not directly involved in the solution design aspect of the

Tradeshows and conferences present excellent opportunities for HR professionals to gain a broad perspective about best practices.

struggle to process the mountain of information and sensory stimuli being directed their way. Which

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exhibitors are worth spending time with? How can you know you are getting good and accurate information? How do you determine if you are being educated or merely sold to? Let me offer a few suggestions.

business or in the delivery of subject matter expertise, they may not be a good investment

www.berkshireassociates.com of your time. A professional who is in the solution design role will be able to quickly ask the right questions and explain to you creative ways to address real problems. If they’re doing most of the talking, run in the other direction! You also want to make sure you can get face-time with a decision maker right there at the show. Can someone there really make a decision for you (complete with the concessions you would require) on the spot? You may not make a purchasing decision right then, but you want a bottom-line understanding of what the scope of their flexibility will be as you consider your options. Is what you are being told true? If it sounds too good to be true, it almost always is. Look for a demonstrable track record of successfully serving companies like yours. Finally, listen to the tone of the questions the exhibitor is asking you. Are they “self-centered” or are they “you-centered” in their tone. If the first thing the exhibitor wants to know is how many employees you have, what’s your annual budget, who is your current vendor, etc., that is a good indication the exhibitor is thinking more about

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themselves than helping you and your company meet its business objectives. If, however, the exhibitor asks you questions like what kind of business challenge are you trying to solve, how comfortable are you with what you’ve learned so far, are there things you want to know that I have not addressed—then you have a good indication the exhibitor sincerely wants to understand you and your business objectives. Be on the lookout for leading questions— these should alert you of possible manipulation and not being listened to objectively. Berkshire staffs our exhibits with trained subject matter experts who are completely interested in understanding your firm’s needs and your business objectives. If our products and services are not the best fit for your business we will not try to force them on you! Helping you meet your business objectives is our primary concern. We value your trust too highly to ever place our sales objectives ahead of your business objectives. To find out more about our leading solutions visit www. berkshireassociates.com or call 800.882.8904. We hope to see you at an upcoming show! Table of Contents

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Inside the Sessions—How to Benefit from Conference Presenters By: Nicole Butts, SPHR

As a presenter at numerous industry shows throughout the country each year, I understand how important it is for attendees to take part in knowledge-rich sessions during their conference experience. Individuals attend tradeshows to further their education and to gain knowledge and better understanding of their profession. This is why I always strive to present on topics that pertain to today’s most prominent HR issues, answering the questions people want to know, and showing them how to execute a result. Not only have I spoken at tradeshows in the industry,

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to learn more myself. When attending a big show there are so many topics and sessions to choose from, it can become overwhelming. One thing I do to make things easier to process is create a plan of attack. For instance, when attending the Industry Liaison Group National Conference in 2010, I knew I wanted to find out more about the OFCCP’s plans for the upcoming year, as well as the latest trends in affirmative action planning. So, I highlighted those topics that met my needs, and then read through the presenter’s session descriptions. These descriptions are a great way to find out more about what the

Take advantage of the knowledge and expertise waiting to be shared with you at these industry conferences, and do so

strategically, mapping out the best sessions for

including the SHRM Conference this past year, but I attend shows

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your needs.

presenter has in store. Don’t just look at the titles and the time

www.berkshireassociates.com slots that are most appealing, read more about the session and find out if you’re really going to be learning about the same thing advertised. Another tip when looking to attend sessions is to try and take part in those that offer execution techniques, and not just an overview. Yes, overviews are sometimes necessary, but it is those presentations that offer best-practices techniques and strategies for application that will make the most impact. As a presenter, I am determined to always provide attendees with a great experience, giving them something to walk out the door with to apply to their profession. That’s what you want in a presenter, not someone who is going to throw their products or services at you, but who is genuinely excited to help you better your profession by providing information you can use. If you attend a presentation that leaves you empty, make sure you fill out the evaluations and share your feedback. Also, don’t be afraid to approach the presenter after the session to ask more detailed questions. Many times presenters can’t get into too many specifics based on time restrictions. Most speakers would be happy to sit down with you

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and discuss the presentation in more detail pertaining specifically to your needs. Take advantage of the knowledge and expertise waiting to be shared with you at these industry conferences, and do so strategically, mapping out the best sessions for your needs. That’s what we are here for as speakers, to help you grow. And the best part of speaking to such great professionals is as speakers we always walk away learning something new as well.

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New Trends in Training Delivery By: Berkshire Associates

Technological innovations, employee retention strategies, and the need for organizations to constantly develop their employees’ ability to keep up with the pace of change are magnifying options for employee training and development. The new mantra in training is to use multiple ways of delivering training to meet the needs and preferences of all employees. You’re limiting your potential to serve the needs of your organization if you are not exploring methods of delivering training that utilize CDs, the Intranet or Internet, and subject matter experts. Traditional approaches have dwelled in classroom training, on-the-job coaching, and employee orientation. The more modern trends encompass multimedia and online training, Web-based training (WBT), mentoring programs, brown bags (transfer of training), book clubs, and new employee on-boarding. As an organization, your company can pick one or a combination of training delivery methods

based on how training needs have been determined, what the defined expected outcomes are, and what level of investment the company is willing to make. A couple of different but popular modern trends have been illustrated below. Turn to your in-house superstars— let them share their insight and techniques for positively adding to your bottom line. These sessions serve a dual purpose of providing leadership components to positions while increasing the knowledge of coworkers. Always retain your knowledge base, don’t let it walk out the door with your employees. “Brain dumps” have been used in the IT industry for years and serve as invaluable resources for design and general IT knowledge for certifications and specific business applications. Internal brown bag sessions and internal user groups are also increasing across all lines of business. These sessions provide great opportunities for members of your company to share what they have learned over the years, or even just brainstorm on

www.berkshireassociates.com new ideas and products. Also, consider taping these sessions and adding them to your learning library. Take a survey of your workforce—you may be very surprised to learn the wealth of knowledge you already have on hand. Don’t forget to invite all departments to join in these sessions, allowing you to receive input from different angles of the organization. These sessions will also increase the opportunity for employees to participate in crosstraining, which will broaden skill sets across the company. Make your vendors work for you—ask vendors for price reductions on training for new software packages and systems,

your budget. Consider vestibule training for production positions. These allow mock training environments for employees to train on similar machinery, but do not compromise the integrity of the actual product on the line. Mentors can also be used in conjunction with these training sessions to pass on valuable pointers learned during their time with your company. Reach out to your local colleges, trade schools, and businesses to see if they have work-study programs allowing students to provide information on an area of study or on certification

Consider vestibule training for production positions.

and bring them to your site whenever possible, rather than sending a large group of employees out of the office for days. Be aware of bundled trainings whenever possible, since many vendors will apply a discount to trainings purchased ahead of time in groups. What better way to ensure all your training needs will make it into

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programs. These types of opportunities will also serve to increase your community involvement along with your knowledge. One of the other popular ways to contain training costs is to use

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154 some form of Web-based and/ or online training. There are a few different methods of training or online learning from which to choose. One is static presentations, which allow people to download training modules at any time. Another is a remote access, where people from all over connect by phone and Web, like a webinar. The final method is online classes. Web-based training can consist of a simple PowerPoint with a voice-over. The advantage of this method is employees can download the information at a time convenient to them. The information can be easily updated and anyone using the Web-based training will have the most up-to-date presentation at any time. Also, web-based training is relatively inexpensive and can be disseminated to people all over the world. This training tends to be produced with minimal additional internal resources. One of the disadvantages of the Web-based training is its passive natureâ&#x20AC;&#x201D;the employee can watch and listen, but there is no interaction or opportunity to ask questions. Also, there is no way to assess if the employee is absorbing the information. Although Webbased training can be a great way to get information out to many people in different places, you

will need to factor in ways to assess knowledge gain at the end of the training. Webinars consist of online meetings where people call a main number and usually watch a presentation, typically in real time. The webinar has increased in popularity and frequency in the past few yearsâ&#x20AC;&#x201D;even the government uses them. Presenters have the capability in a webinar to allow questions from trainees, and the presenters can add in survey questions to gather information. Some of the advantages are the ability to connect people from all over, and it is live, so the participants can ask questions if the presenters wish. A possible disadvantage is the potential technology needed. The company requires access to a main conference phone service to accommodate the number of participants. Some of the services are priced per participant, and have relatively low limits on the number of participants. Also, the employer needs to have Web conferencing software which allows participants to view the presenterâ&#x20AC;&#x2122;s screen or presentation. There can be limits on this aspect as well. Much of the Web conferencing software has both phone and presentation components.

www.berkshireassociates.com A final type of online learning is a class or set schedule using the Internet and other similar media. This is often used in online classes at universities. It can involve some of the passive information dissemination techniques, and these classes usually have a component where the students virtually â&#x20AC;&#x153;meetâ&#x20AC;? in an online chat room. A lot of online classes have a required online meeting time to discuss the topic or to ask questions from the instructor. This format is not as commonly used as the previous two in corporations, but can be a useful tool for an in-house university or certification. The online class usually takes a bit more technology and savvy to track when, and if, participants have logged on and participated. The advantages and disadvantages are similar to other forms of online learning. Another consideration in assessing whether online training will be the best means for disseminating information is evaluating the learning style of the participants. If the information is relatively straightforward and is time sensitive, the online learning tools may be the best way to disseminate the information. Online dissemination can reach a wide audience rapidly. If the

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information is complex and may require much discussion, the online learning tools may not be the most effective way of communicating. A combination of online and more typical classroom training could be the most efficient way to communicate complex information. One training trend is for sure. Traditional classroom training is no longer the exclusive opportunity to learn. The new age of training includes training CDs, email classes, online learning, and blended learning which is exploding. These training opportunities are here to stay since they tap into the advantages of including interconnectivity and the ability to publish real-time, up-to-theminute information. So, sending an employee off for training at a one-day seminar or a weeklong workshop is only one of many options that now exist. For more information on how to protect your company from potential audit, or for help getting your next AAP completed, please contact Berkshire Associates Inc. at 800.882.8904, or email bai@berkshireassociates.com. Table of Contents

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Outsourcing During Economic Hardships Not Only Makes Sense, it Saves Cents!

By: Charu Avasthy, PHR, Claudia Jones, PHR, and Cindy Karrow, SPHR

Undoubtedly, todayâ&#x20AC;&#x2122;s economy has impacted business operations in the United States and abroad. In an effort to preserve the efficiency of business operations, some companies have turned to outsourcing. Outsourcing is defined as the procurement of services or products from an outside source. Often, the decision to outsource is made with the objective of lowering costs, improving the allocation of labor and capital resources, or improving focus on the core business competencies. The reasons are as varied as there are types of businesses. Outsourcing functions or components of a companyâ&#x20AC;&#x2122;s business operations to competent subject matter experts in times of economic hardship can result in the retention of talented workers and improved service to customers. There are wide varieties of businesses that have made it their mission to be the best in a field and provide expertise in areas where others lack the time, resources, or capability to achieve this level of performance. These businesses can save you time and money.

In the current economic environment, the federal government continues to be the largest purchaser of products and services in the country. The symbiotic relationship between the government and the federal contractor community is the best example of how outsourcing helps everyone thrive. The government spends about $200 billion annually in government contracts, outsourcing goods and services. The federal government is mandated to direct 23 percent of contracts specifically to small businesses. These funds are supporting programs from home weatherization and wellness, to schools and public works programs. Outsourcing of these related activities has directly benefited contractors who provide such specialty services. Although these are tough economic times, some transportation contractors have been able to rehire dozens of previously termed employees and have averted further layoffs. Depending on the types of contracts, many federal contractors remain in a sound

www.berkshireassociates.com financial position despite today’s market conditions. Even during tough economic times, outsourcing by the private sector has not slowed. Economic data reveals many companies are actively engaged in Information Technology Outsourcing (ITO), Business Process Outsourcing (BPO), and Human Resources Outsourcing (HRO). Outsourcing to independent workers or businesses has been a key to growth for many private and public companies during this time. Nike is a supreme example of outsourcing: All it does is

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and Malaysia and advertising material is created by U.S. and European firms. Outsourcing is a smart business practice and is proven to be cost effective most of the time. In an effort to avoid the high costs (hiring, salary, benefits) and time (selection, training) associated with full-time labor, companies may outsource nonessential functions that do not have to be performed internally. In doing so, companies also benefit from avoiding employee terminations in an economic downturn, or paying severance packages, and

Outsourcing functions or components of a company’s business operations to competent subject matter experts in times of economic hardship can result in the retention of talented workers and

organize marketing. All other phases in its product’s value chain are done by firms Nike chooses on the basis of quality and cost, irrespective of country of origin. So, sneakers are made in Vietnam

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improved service to customers.

there is less danger of knowledge transfer. Outsourcing is done because it allows companies

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160 to focus on key business activities instead of trying to be comparatively good at many nonintegral activities. Outsourcing also opens doors to business experts who may be too expensive to employ. It allows businesses to acquire technical capabilities externally that might otherwise be too difficult and expensive to develop inhouse. Outsourcing mitigates risk in these uncertain times and provides for flexibility to start or stop business operations that are not profitable, without having to worryabout tangible and intangible costs associated with business closure and layoffs. Some financial estimates claim companies can save up to 50 percent from outsourcing. These savings can help organizations meet their bottom line, expand business operations, acquire new businesses, invest in research and development, or pass savings to their customers by offering lower prices. A dialog on whether to outsource or not is incomplete without understanding the potential risks associated with outsourcing. Quality could suffer as a result of lack of oversight or poor communication between buyer and supplier. Customer confusion and dissatisfaction can result from language barriers and

cultural differences most often experienced in call center outsourcing where face-toface interaction is lacking. Also, employer branding is impacted. In some regions, there is strong public opinion that outsourcing damages the local labor market by denying wages, benefits, and jobs. To leverage the benefits of outsourcing and avoid pitfalls, companies need to have a carefully planned outsourcing strategy. There is no “one size fits all” solution. Some of the basic framework to make outsourcing work for your company would include: •

an assessment of business strategy to understand functions critical to meet your organizational goals

• current organizational capabilities to perform core functions • resource evaluation to reduce or control costs and improve functionality • external scans to assess how your competitors operate • management’s ability to assess external vendors,

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and manage expectations (both internal and external) Ultimately, outsourcing has created a means to improve business operations and maintain the status quo on certain functions. This allows organizations to focus on other business goals at a reduced cost. Regardless of where your organization stands in the outsourcing spectrumâ&#x20AC;&#x201D;provider or beneficiaryâ&#x20AC;&#x201D;both reap the ultimate financial benefit of increasing cash flow to the organizationâ&#x20AC;&#x2122;s bottom line.

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Hiring Update: Preparing Your Recruitment Efforts for Tomorrow By: Andrea Csordsa and Suzanne Keys, SPHR

Most economists believe this year is not the year of recovery, but it is without question a better year than the prior. As the economy begins to grow, hiring will increase. What will you do then if you do not prepare now? Use this lull in hiring to plan for the future. What better time to update, replace, or create hiring related policies and procedures? First, consider conducting a self-audit of your current hiring process. The primary outcome of this self-audit is to ensure your policies and processes are in compliance with federal regulations. Ask yourself: • Is my company posting its open positions with the state employment agency? • Does our process accurately capture applicant flow data? • Does our process comply with OFCCP’s Internet applicant definition? • Is our online system Americans with Disabilities Act (ADA) friendly?

Once you are satisfied the process is compliant with the various regulations and laws, ask yourself, does this work for us? The same hiring process will not work for each company. Keep doing what you do well, but add or change steps in the process that will help to: • streamline the process; • make the process more efficient both internally and externally; • increase Return On Investment (ROI);

• shorten the time to fill for position openings. Keep in mind any changes to your process should be viewed from the applicants’ perspectives as well. Are you currently asking your applicants the same questions over and over because you need the answers in multiple places? Is there any way to get the information you need into multiple systems by only asking the applicants once?

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updates, or consider new technology. It’s possible the expensive system your organization considered a couple of years ago is available at a

Streamline the process.

be answered by looking at the applicant’s résumé? In that case, a résumé parsing tool might be a nice feature to add to your online system. The application process is critical in establishing a good relationship and a pleasant experience for both the employer and applicant. You want your process to appear seamless and ensure communication throughout is clear and accurate. Evaluate your technology. Technology is constantly improving and HR related technology is no different. Review your electronic applicant tracking system to ensure its ability to track and maintain the data required by regulations, and to ensure it can handle your organization’s volume of candidates. After updating or creating your processes, determine if your applicant tracking system needs any

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Be a “secret shopper” or ask a friend to pretend to be an applicant to your company. Does the online application ask a lot of questions that could

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more reasonable price today. Now is also a good time to analyze your organization’s jobs by gathering, examining, and interpreting data regarding the specific tasks. Areas to consider are job design, job evaluation, compensation, employment, and performance management. In addition, consider equal employment opportunity, equal pay, overtime eligibility, workplace safety, and ergonomic requirements. Afterward, existing job descriptions should be reviewed, or new ones created, to include job identification, job summary, duties and responsibilities, and job specifications. Once job descriptions are revised and updated, HR professionals

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164 can engage in targeted recruitment. Start partnering with industry related organizations where the “best of the best” can be found once the organization is ready to hire. Companies, especially federal contractors, should consider partnering with groups, organizations, universities, and schools working with minorities, women, Veterans, and individuals with disabilities. Partnerships with such parties can assist employers in meeting placement goals or in showing efforts for targeted recruiting. Once the new policies, procedures, systems, and job descriptions are in place, find time to communicate the changes to all employees, especially hiring managers. The communication and training methods used are specific to each organization. Factors to consider are the size of the organization, company location, usual method of company communication, and timing. Some of the procedures can be communicated several months before hiring starts, and soft copies of communication can be placed on the company’s Intranet site for future reference. Others are more time sensitive, for instance training on new software. If training is provided too early and at a time when

the product is not available for immediate use, information might be forgotten by the time it is implemented. If training occurs too late, the database that is supposed to help will slow the work down. Recruiting is a never-ending process, whether the economy is flourishing or lacking. Right now look at the down economy for its silver lining, and use this time to your advantage. Prepare your hiring related methods and procedures for the next economic boom, and reap the benefits of a streamlined process, and an increase in your ROI. Berkshire Associates offers software and service solutions to meet all your applicant management needs. To find out more call 800.882.8904 or email bai@berkshireassociates.com. Don’t forget to follow us on facebook and Twitter!

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Compensation

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Compensation Check-up: Conducting Your Self-Assessment By: Berkshire Associates

Many organizations are not confident their compensation is truly competitive to the market. This can greatly affect retention, attraction of new talent, and more importantly—drive current workforce behavior. Do you have a pay structure and internal review process to ensure fair and consistent pay decisions are made? Compensation discrimination may include: •

Disparate treatment in pay in relationship to established range for a job, whether at entry, or later (e.g., Blacks with backgrounds similar to Whites on the legitimate factors considered for initial salary are hired at less money)

•

Discrimination in the opportunity to earn money (placement, job assignments, promotions, opportunities for overtime pay)

• Equal Pay Act-type

discrimination (sex based differentials in wages paid for “substantially equal” work).

Office of Federal Contract Compliance Programs (OFCCP) strongly encourages analyses of an organization’s compensation systems in accordance with the self-audit responsibilities under Executive Order 11246, to eliminate or prevent discriminatory policies and practices. So, where should you start? The first step in conducting a typical compensation self-assessment is to determine the factors which your organization chooses to use to establish compensation levels for each job. These factors vary between companies and industries. Typically, a company may include such factors as: • • • • •

Grade or pay level Market value of the position Length of time at the company, in the position, or both Performance ratings Educational degrees or

www.berkshireassociates.com certifications required and/ or earned Related experience in previous employment

Reviewing compensation by job title (and grade or pay level if the structure exists) to identify employees who are below the minimum and above the maximum pay rates is a good first step in any compensation analysis. Next, reviewing various

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time at a company significantly influences pay). If you’d like to discuss how to conduct compensation analyses, or the software tools and consulting support services available to assist you, please contact us for a brief conversation and assessment at 800.882.8904 or bai@ berkshireassociates.com.

Office of Federal Contract Compliance Programs (OFCCP) strongly encourages analyses of an organization’s compensation systems

legitimate factors which are thought to influence pay should be considered. Organizations should also consider performing analyses to look for statistically significant differences in compensation among various groups (e.g., gender groups, particular race/ethnic groups). Lastly, regression analyses can be conducted to account for legitimate influences on pay differences (e.g., the length of

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Paying for Performance—Creating a Merit Program that Works By: Michele Whitehead, SPHR

Merit pay is the most common method of rewarding individual contributions in an effort to motivate employees to be high performers. However, without a formal merit plan employees often don’t see the connection between their performance and pay, and so pay increases are seemingly an entitlement for ongoing tenure with the organization. To link performance and pay effectively, your company’s compensation strategy should include a formal merit program.

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you have pay grades, you might consider basing merit increases on performance and position in the pay range. Individuals at the bottom of the pay range will receive a higher percentage increase than individuals at the upper end of the range. This accelerates new hires to the midpoint of the range, but keeps them from hitting the maximum of the range where pay may be frozen. A simpler method is to base merit increases solely on performance. This approach is easier to administer and

To link performance and pay effectively, your company’s compensation strategy should

Assuming you already know what performance standards you want to reward, you now need to establish how merit increases will be awarded. If

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include a formal merit program.

communicate; however, it is not as effective in controlling pay inequities over time. As with most HR programs,

www.berkshireassociates.com successful implementation of the merit program hinges on management buy-in. Since the biggest concern is likely to be cost control, make the merit budget process an annual activity where senior management determines the merit increase budget for the year. The budget, which is usually a percentage of payroll, should be based on factors such as the companyâ&#x20AC;&#x2122;s net profit, projected national, regional, or industry salary budget increases, and cost-ofliving. For continued success of the program, you will need to communicate effectively the plan to managers and employees. Managers must understand the companyâ&#x20AC;&#x2122;s merit program philosophy and policy to administer the program appropriately. Employees should know the performance appraisal program and process, general information about the compensation system, and have a complete understanding of how their individual contributions align to corporate objectives. Companies will also want to obtain feedback periodically on employee satisfaction with the performance and merit pay programs, and look for trends between actual performance ratings and pay increases to

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make sure the merit program is serving its purpose. With a well designed and communicated merit program, employees know how they control their own pay, and the company gets performance results that drive its successâ&#x20AC;&#x201D;a win-win for everyone. For more information on how to design or communicate a merit program for your company, please contact Berkshire Associates Inc. at 800.882.8904 or email bai@berkshireassociates. com.

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What Does Your Compensation Strategy Say About Your Organization? By: Suzanne Keys, SPHR

Your organization’s compensation strategy says a lot about your expectations, goals, and rewards. Effective compensation planning and implementation increases current employee satisfaction and helps in future recruitment efforts. Compensation plans should match the image a company wishes to portray, and express the values it holds dear in a tangible way. Compensation planning should start in two places; one is with a leadership or management committee to define the image you wish to portray to the outside world. In other words, what your compensable factors will be. The next place to start is with your employees, to discover what they are looking for in an employer. Then brainstorm with them on how you can meet those expectations and work together to make it happen. Here are some questions you should consider: • How do your employees see your organization now?

• How would they like to see it? •

Do they have any suggestions on how to improve any areas that are perceived as weak?

A 2008 WorldatWork survey released May 2008 by Randstad USA, an Atlanta-based employment services provider, showed employees are looking to be valued the same as their employer’s customers. The survey identified 15 attributes of importance to employees, the number one being that the organization recognizes the value an employee brings to them. Developing a compensation plan is only half the battle. How you sell it is going to be key in getting your message to employees. You want to keep the message simple. If the new compensation and reward strategy is complex, don’t overburden your audience with information overload. Break the communication up into segments and provide ways for them to gain more information on their own.

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should be considered, even those who are not yet employees.

Compensation plans should match the image a company wishes to portray, and express the values it

your compensation plan is your target audience. This will affect how you communicate your message. There are generation differences, position types, and sometimes shift differences that require some creative thinking in how you deliver your message. What media are you going to use? Will it be Web-based, paper-based, or face-to-face meetings? Most importantly, remember to go back and evaluate the effectiveness of your communication. It can be an uncomfortable thought, but often it may be necessary to go back to the drawing board and take a different approach. Sending the right message about who your organization is through your compensation strategy is a very large undertaking that should be well thought out. Everyone who may be affected

â&#x20AC;&#x153;

holds dear in a tangible way.

For more information on effectively developing your compensation strategy and plan, contact Berkshire at 800.882.8904 or email bai@ berkshireassociates.com.

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Prep School:

Compensation Interview

By: Nancy Mitroka

There’s a very important connection between human resources and compensation departments, yet many companies have yet to take notice. In the following interview, Berkshire’s Manager of Client Services, Sonia Chapin, SPHR, gives insight and advice on how to bridge the gap between these two departments, and how effective communication and awareness can lead to a greater return on investment, and lessen liability.

the salary structure and comp strategy for a company, but it’s ultimately the HR department that would implement this strategy across the organization. An HR department should share with the compensation department what new hires are asking for, and what the current trends may be with salaries and comp packages. In turn, the compensation department would do the research and analysis to determine what is suitable to implement.

Question: How important is the connection between HR and compensation, and why?

There is a requirement in the affirmative action regulations that states you must conduct a compensation analysis and make any updates as needed. Regular review and adjustments of salaries and compensation packages is not only the correct practice, it is a contributing factor to attracting and retaining both talented and diverse employees.

Sonia Chapin (SC): A compensation department is usually a smaller unit or division of an HR department, but often with larger companies they are two separate units. Regardless of the organizational structure, it is essential to work together and have an understanding of what each unit does. For instance the compensation department would have the responsibility of determining

Question: What type of relationship should a company’s HR department and compensation department have, and why?

www.berkshireassociates.com SC: The compensation department needs to understand the strategic direction of the HR department, and the HR department needs to understand how the compensation department derives the comp structure for the company. There needs to be trust, and opportunities to share information and ideas. The HR department needs to maintain good business and partner relationships with the operations management of a company to

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is vital in the relationship between these two departments. They need to be onboard to the policies, standards, and regulations that guide each other. Ideally, the two departments work hand in hand to help the company reach their HR and operational goals. Question: What are the risks of HR and comp departments not being on the same page? SC: The pay scale and comp packages

Both departments should be more forthcoming in sharing information, especially about how salary structures.

communicate the compensation packages and the reasons for ongoing monitoring and adjusting of such policies. Question: How important is it for these two departments to communicate? SC: Ongoing information exchange

â&#x20AC;&#x153;

compensation derives

a compensation department recommends may not be fully utilized when recruiting and retaining if HR doesnâ&#x20AC;&#x2122;t trust in the resources and research used by the compensation department. From a compliance standpoint, there could be a risk of having

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176 incorrect classification for exempt and non-exempt positions without a full understanding of the job titles and pay scales. Question: What advice would you give to HR professionals and compensation professionals who want to begin bridging the gap in communication? SC: Both departments should be more forthcoming in sharing information, especially about how compensation derives salary structures. This can be done by holding regular meetings or having a liaison to communicate between them. A company could use a job sharing or shadowing opportunity for professionals to watch and learn what otherâ&#x20AC;&#x2122;s jobs entail. They should make the effort of continual sharing of information obtained with surveys, updates to policies, and industry trends, which would result in more strategic decisions. For more information on bridging the gap between these two departments, please contact Berkshire Associates Inc. at 800.882.8904 or email bai@ berkshireassociates.com.

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Effective Compensation Management and its Importance to Your Organization By: Claudia Jones, PHR

Why is it crucial for companies to have an effective compensation planning system in place? In 2009, the Lilly Ledbetter Fair Pay Act focused our attention on the inequities that exist in the workplace. Employers were not always administering equal pay for equal work. This act, and the government’s effort to enforce equal pay laws, caused companies to take pause and reassess their processes for analyzing compensation. Many organizations that did not have a formal process in place put

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the federal government has been assessing the compensation of its contractor community for years as part of its audit investigations. Even though companies were only given Voluntary Guidelines for SelfEvaluation of Compensation Practices for Compliance in 2006 to detect systemic compensation discrimination, they were not required to follow the outlined process. Instead employers were only required to complete their own compensation analysis once a year. Prior to December 2010,

In an effort to promote equality, the federal government has been assessing the compensation of its contractor community for years as

the wheels in motion to adopt one quickly. In an effort to promote equality,

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part of its audit investigations.

Office of Federal Contract Compliance Programs (OFCCP) would only schedule a full compliance review for every 50th

www.berkshireassociates.com lucky contractorâ&#x20AC;&#x201D;which included a comprehensive compensation evaluation for pay inequities of its employees. The previous guidelines were rescinded in January 2011. The guidelines of Active Case Management were replaced by Active Case Enforcement, which requires every 25th (rather than every 50th) contractor to be reviewed for a full compliance review. This includes a complete review of compensation for indicators of systemic discrimination. The previous compensation assessment process would highlight differences in pay for race and gender based on differences in average pay by grouping, job title, or grade of five percent along with other key factors. Recent developments reveal not only will the federal government continue assessing pay for its contractorsâ&#x20AC;&#x201D;but will do so based on differences of two percent, or $2,000 in average pay for race and gender for a group. These slight differences will leave a lot of explaining to be done by contractors. The OFCCP is even proposing the development of a compensation data collection tool to assist in the evaluation, enforcement, and administration of fair pay. It is imperative to prepare current HR systems to handle these types of

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comprehensive evaluations. What can you do to ensure employees are being compensated fairly? Be sure your current HRIS has the capability to accommodate storing key factors used by external agencies to conduct cohort and regression analyses on pay for annual reviews. If the system is inferior, start taking steps to find a competent tracking system that has the capability to house and retrieve relevant factors for employees such as pay grade level, time in company, time in positions, part- time and full-time status, exempt/nonexempt status, salary, wages, hours worked, commission or bonus, education or additional training, and work location. This will be your starting point for preparation in evaluating pay factors since these are some important details that can assist with a regression analysis on pay data. Organizations can opt to assess pay manually by reviewing pay by job title, bands and grades, or groups. They can then compare averages and pay differences by percent or dollar amount. This might not be ideal for organizations that have complex compensation systems

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180 or numerous employees to assess each year. Be prepared to explain differences in pay by grouping to establish the cause for the pay discrepancy. In the current audit and enforcement climate, being

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broadening the pool of potentially talented job seekers. When employers strive to practice and implement equal pay, it can be a factor in creating high morale for the employees.

Be prepared to explain differences in pay by grouping to establish the

proactive can protect your company’s reputation from negative media attention. When inequalities are determined early, and unjustifiable differences that can indicate systematic compensation discrimination in pay are rectified based on consistent findings, this diffuses a potentially damaging situation. The benefit of administering and monitoring a fair pay compensation system certainly outweigh the negative effects. When your organization has a favorable reputation of fairly compensating its employees, it is another attribute that can attract employees who value competitive pay—indirectly

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cause for the pay discrepancy.

The benefits are real and so are the penalties. If the organization is assessed and inequalities in pay are discovered by a federal external assessment, the organization must be able to prove that systemic discrimination is not a factor. Be sure your systems are aligned to support your organization in proving all pay differences are justifiable. To learn more about any of these changes, or developing and implementing a compensation plan, please contact Berkshire Associates at 800.882.8904 or email bai@berkshireassociates. com.

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Compensation Heat Wave: What You Need to Know to Stay Cool By: Berkshire Associates

Compensation affects both the productivity and profitability of a company and has a major impact on the ability to effectively implement a strategy. Total compensation is typically one of the largest of controllable costs in business. Competitive starting salaries are needed to attract talented employees. Once competitive pay ranges are established, increases in employee compensation should be tied to factors that add value to the organization. A compensation structure design that includes fairness and internal equity (real and perceived) is a strong cultural imperative, as well as a requirement to minimize legal exposure. There are various methods in creating a compensation structure. However, the common purpose is to establish value and group jobs into grades or bands, such as: •

Defining three to ten factors that impact pay for each position (for example, time in company, market

rate for job, performance) These will vary between jobs—the factors that influence pay for an HR Generalist, a Sales Manager, and a Receptionist are very different. •

Assigning a value to each compensable factor— Education may be very important for some jobs, less important for others, or not relevant at all.

•

Grouping jobs with similar compensable factors and values of those factors— these groups become your grades or bands. Determining minimum and maximums for each grade or band and then ranking them.

• Documenting processes for evaluating new jobs and slotting them into grades. Once you have defined what is valued in each job and how they rank against one another, you have created the compensation structure and foundation for a

www.berkshireassociates.com compensation philosophy. The compensation philosophy for your company should be refined by the executive team and then communicated to employees and incorporated into the handbook. This allows employees to

rebut a race or gender complaint. The compensation philosophy should be communicated early and often to employees as a proactive measure to ensure an understanding of how

There are various methods in creating a compensation structure.

understand where the company stands. Once employees know what factors make them a more valuable employee, they are able to understand their current compensation level and how to increase it. Obviously not all compensation factors are quantifiable, so it is important to communicate that factors such as company financial performance and employee attitude are variables also. Once a compensation structure is implemented your company can say, “We know our pay differences are not related to race or gender because they are determined based on job-based, nondiscriminatory factors.” This will limit liability by providing the often missing defense needed to

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compensation is determined. This assurance that compensation is consistently determined based on value of the job will prevent the perception of inequities that can lead to complaints, and keep your company cool and compliant. For more information on compensation structure and strategy, please call 800.882.8904 or email bai@berkshireassociates.com.

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Paying for Performanceâ&#x20AC;&#x201D;Are You Rewarding the Right Factors? By: Kelly Romanoski and Sybil Randolph, PHR

What can human resource professionals do when faced with the direction from senior management to evaluate the compensation structure of the organization and to propose cost effective strategies that will impact the bottom line? This is an unfortunate conversation many companies are having when faced with the current economic conditions of rising unemployment, declining company revenues, and changing stock prices. The directive to reduce spending puts HR professionals in the precarious position of balancing the reduction of overhead while retaining top talent and maintaining employee productivity.

â&#x20AC;&#x153;

in evaluating all decisions which are subject to requirements under various state and federal laws. Some of these laws include the Fair Labor Standards Act, the Older Workers Benefit Protection Act, the Fair Payment Act, and the Worker Adjustment and Retraining Notification Act. Before implementing any labor cost reduction initiative, employers must review handbooks, offer letters, and collective bargaining agreements to ensure changes in benefits or compensation will not alter pre-established contracts or agreements. Employers should also conduct analyses on all employment decisions to make sure they do not have an adverse impact on members of a

One tool that can be used to

determine if you are truly paying for

When evaluating which measure to take, HR will play a critical role

â&#x20AC;&#x153;

performance is a regression analysis.

protected class of employees.

www.berkshireassociates.com There are many different ways to control costs surrounding compensation such as evaluating executive compensation packages, freezing salaries, reducing annual salaries, ceasing merit increases, or more non-traditional approaches such as sabbaticals or a shift to performance-based compensation. Much is now said about performance-based compensation as a way to keep salaries in line with company performance objectives, decrease the existence of low performers, and attract the best talent. In any performance based system there should be trained managers to conduct the evaluations as well as a way to ensure everyone

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is being graded on the same scale. But connecting pay to performance may be more difficult than you think. How can you be sure performance is truly the factor that drives how much your employees are paid? One tool that can be used to determine if you are truly paying for performance is a regression analysis. A regression analysis is a statistical technique used to summarize the relationship of “predicting” variables, such as time in company, time in grade, level of education, previous experience, and performance rating on a “dependent” variable such as salary. If you were to plot these variables on a graph, the regression analysis would estimate the equation for a

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186 straight line that best fits the data. From the regression line equation, we could determine: â&#x20AC;˘ if the variables are positively or negatively related; â&#x20AC;˘ how strongly they are related; and

â&#x20AC;˘ if they are significantly related. Using the predictor variables you choose, you can build a regression equation to determine if these legitimate, nondiscriminatory factors can explain any differences in pay.

Building a pay for performance system is a painstaking effort. If an organization is unintentionally valuing the wrong factors, the integrity of the system comes into question and the initial goal of motivating top performers, eliminating low performers, and attracting top talent will be lost. Make sure your pay for performance system is truly rewarding the right factor. To learn more about creating a pay for performance system, contact Berkshire Associates at 800.882.8904 or email bai@berkshireassociates.com.

An example of a simple regression equation to predict salary using performance rating is: Actual Salary = a + (b * Performance Rating)

(starting point)

A multiple regression would include multiple predictor variables and estimate the impact of each factor on salary.

cient Predictor Variable (impact factor has on pay )

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The Importance of Sound Compensation Practices By: Berkshire Associates

Effective compensation practices are vital in attracting, retaining, and motivating employees; maintaining internal pay equity; staying within defined budget parameters; and complying with applicable legal obligations. Compensation practices of your employees can be viewed as a reflection of management’s

Having current job descriptions is an important step in identifying and documenting essential job functions for compliance

As business goals and economic conditions change, you will need to monitor and update your compensation practices.

attitudes and concern for staff, and can influence productivity and profitability. Attracting and retaining qualified employees is a common challenge for employers. Determining how you will pay these employees when you hire them–and their ongoing compensation–requires some forethought and a fair and systematic process. While the

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specifics of your program may vary, job descriptions, salary ranges/structures, and written procedures provide a solid foundation.

with the Americans with Disabilities Act (ADA), as well as for Worker’s Compensation cases and other litigation. Written job descriptions also serve as a communication tool to convey job duties and set expectations for job performance. A good rule of thumb is to update job descriptions annually. Once established, these job descriptions can also serve as a foundation to determine

www.berkshireassociates.com appropriate levels of compensation. Creating pay structures is especially useful for standardizing compensation practices, controlling payroll expenses, and aids in avoiding salary compression. Established pay structures become a framework for establishing pay rates for new jobs for new employees and for salary increases. Generally, pay structures include several grades with an associated minimum salary and steps within the grade level.

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need to monitor and update your compensation practices. However, the absence of sound compensation practices can greatly increase your liability, particularly in light of the Ledbetter Fair Pay Act. This legislation virtually eliminates the statute of limitations for pay related law suits. Need help with compensation? Turn to Berkshire for help with job descriptions, pay structures, or salary equity analyses. Call 800.882.8904 or email bai@ berkshireassociates.com.

By looking at external market data such as salary surveys, you can confirm your companyâ&#x20AC;&#x2122;s current compensation philosophy is still in practice; and use this data as a planning tool for compensation adjustments to keep your pay structure in line with your compensation philosophy. Market surveys allow you to monitor trends for hot jobs in the marketplaceâ&#x20AC;&#x201C; necessary for attracting and retaining employees. Outsourcing a market survey is a legal and compliant means for gathering competitive intelligence on compensation practices in your industry. As business goals and economic conditions change, you will

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Diversity

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Celebrating Diversity During the Holidays By: Sybil Randolph, PHR

It’s almost that time again, the time between Thanksgiving and the New Year when companies begin thinking about the number of important religious holidays and cultural celebrations that occur throughout the winter months. Mangers and/or committee members scramble to create a celebration that will not offend anyone. Do you call the celebration a holiday party or a winter party? Should you hold it in December or sometime after the New Year? Should you have a tree, a bush, candles, snow with reindeer, or elves and frolicking woodland creatures?

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may be losing an opportunity to celebrate the differences as well as the similarities among our staff. If we are to truly celebrate diversity, we must be able to respect differences in religious beliefs, as well as respect those who don’t believe in religion. I know, I know, it’s a lot easier said than done. Here are a few things to do to create an inclusive environment for celebrating the holidays. • Create a learning environment: Have information and/or speakers available to educate staff on

Those differences may cause some angst, but if you create an environment of inclusivity, your employees and the

In trying to be politically correct, we often throw up our hands and go with the path of least resistance. But in doing so, we

“

company itself will benefit.

different holidays and traditions. If you decide to decorate the office, ask employees to help

www.berkshireassociates.com and dedicate specific areas to different holiday celebrations. • Be sensitive to cultural differences: People celebrate a variety of holidays during this season. Be mindful of the differences, and avoid making assumptions. Some people may want to share their spiritual and/or cultural heritage, while it may be against others’ religion to celebrate holidays. Consider other ways to celebrate together, such as collecting food and/ or clothes for the homeless, toy drives for children, etc.

•

Be aware of legal issues: Employers may not treat employees more or less favorably because of their religious beliefs or practices, except to the extent a religious accommodation is warranted. Employers must reasonably accommodate employees’ sincerely held religious practices unless doing so would impose an undue hardship on the employer. Employees cannot be forced to participate, or not participate, in a religious

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activity as a condition of employment. The most important thing is to be respectful of others’ ideals and beliefs. Remember diversity is about the ways in which we are alike and different. Those differences may cause some angst, but if you create an environment of inclusivity, your employees and the company itself will benefit. Here are a few holidays that occur October through December: Ramadan (Islamic, Muslim) is the ninth month of the Muslim calendar (beginning around September 24). It is during this month that Muslims observe the Fast of Ramadan. Lasting for the entire month, Muslims fast during the daylight hours and in the evening eat small meals and visit with friends and family. It is a time of worship and contemplation. Yom Kippur (Jewish) means “Day of Atonement.” This day is one of the most solemn and holy days set aside to atone for your mistakes and sins of the past year. (Oct 1)

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194 Sukkot (Jewish) begins the fifth day after Yom Kippur and commemorates the forty-year period during which the children of Israel were wandering in the desert, living in temporary shelters. (Oct 7-13) Lailat Ul-Qadr (Islamic, Muslim) is a festival that celebrates the giving of the Koran to Muhammad. It usually falls at the end of Ramadan. (Oct. 14) Diwali (Buddhist, Hindu) is known as the festival of lights symbolizing the victory of good over evil. Lamps are lit as a sign of celebration and hope for mankind. (Oct. 21) All Saints Day (Christian-Roman Catholic) is also known as “All Hallows,” or “Hallowmas,” and is a feast celebrated to honor saints known and unknown. (Nov 1) All Soul’s Day (Roman Catholic) day of prayers of intercession for the dead. (Nov. 2) Birth of Baha’u’llah (Baha’i), founder of the Baha’l faith. (Nov. 12) Christmas (Christian) celebrates Jesus Christ’s birth. (Dec. 25) Hanukkah (Jewish) is an eight-day Jewish festival of rededication,

also known as the festival of lights. (Dec. 16-24) Kwanzaa (African-American) is not a religious holiday, but celebrates cultural heritage. (Dec 26-Jan 1)

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Keeping Up the Effortâ&#x20AC;&#x201D;The Importance of Diversity Initiatives Even During Tough Times By: Berkshire Associates

In times of economic hardships, budget cuts, and layoffs, most organizations are just trying to stay afloat financially. Recruiting, retention efforts, diversity initiatives, and other nonessential business activity budgets have been significantly cut or eliminated. In a poll conducted by the Society for Human Resource Management (SHRM), 18 percent of respondents said they made cuts to recruitment initiatives specifically related to increasing diversity of their workforce. The poll also found that 16 percent of respondents made cuts to their diversity training program. In addition, the respondents revealed that if the current financial challenges were to continue, 19 percent are very likely to continue to make cuts to diversity initiatives. Given those statistics, how can todayâ&#x20AC;&#x2122;s HR professional emphasize the importance of diversity efforts in the workforce? And is this a program that management can afford to cut? It would be beneficial for management to rethink the companyâ&#x20AC;&#x2122;s diversity strategy,

because having a diverse workforce provides organizations with the competitive advantage to compete in the global marketplace. Diversity efforts should not only include gender and ethnic/race groups to maintain this competitive edge, but also make an effort to capture Veterans and disabled employees. There are thousands of highly trained individuals who leave the military and look to join the civilian workforce every year, and disabled employees can make up to 15 percent of the American workforce (according to a report from Massachusetts General Hospital). Building diversity within organizations in tough economic times holds more significance than building when the organization is doing well. Diversity fosters learning, development, and inspires creativity. The current business environment requires companies to generate innovative ideas and fresh concepts with problem solving. Cutting back on diversity efforts can leave companies struggling to compete and

www.berkshireassociates.com unable to develop progressive solutions to current challenges. Organizations that have effective diversity programs create work environments that enhance the ability of people from diverse backgrounds to work together, capitalize on differences to create

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to professional associations that focus on the advancement of minorities, females, Veterans, and individuals with disabilities is an excellent way to create awareness of the company. In addition, joining social networking sites and attending

Building diversity within organizations in tough economic times holds more significance than building when the

strategic advantage for the organization, and eliminate bias within work groups. Companies should not give up on their diversity efforts for financial reasons alone. Instead, they should look to other alternatives to continue to reach targeted groups. Simple solutions include revamping the company website to include a diversity section featuring current initiatives, outreach programs, company history, and a commitment to diversity. Scaling back on national advertising programs, opting for a more targeted direct media approach, or creating volunteer programs are other possible options. Reaching out

â&#x20AC;&#x153;

organization is doing well.

professional networking events are low cost alternatives to enhance diversity efforts. These and other approaches can assist companies in retaining important portions of their diversity efforts in our current economic conditions.

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Donâ&#x20AC;&#x2122;t Forget About Diversityâ&#x20AC;&#x201D;Why

Workforce Inclusion is a Vital Part of Your Companyâ&#x20AC;&#x2122;s Success

By: Andrea Csordas

More recently than ever, workforce inclusion and its impact on corporate America has been one of the top HR trends and concerns, and for good reason. The fact is the U.S. population is changing rapidly. Most places we go today, we are surrounded by an extremely diverse group of people. For companies to keep up with unavoidable change and continue to grow their businesses, diverse representation from as many different groups as possible is needed. None of us are the same. We think, work, and act differently in similar situations. You can probably recall a time when you had a disagreement with someone. He or she might have had a different point of view or idea than you. You might have presented thoughts he or she would not have thought about. In the end, the conversation was probably beneficial to both of you as you considered new, original, and innovative ideas. It is a common fact people are friends with people similar to them. It is human nature and

there is nothing wrong with that. However, if you think a step further, a diverse group of people from different backgrounds with various ethnicities, genders, cultures, or disabilities can bring even more diverse ideas and experience to the table. Workforce diversity can greatly improve decision making and problem solving. What if we gather a diverse group of people in one meeting room to work on a problem? By having people with different backgrounds, experiences, cultures, and genders, the outcome will most likely be one of greater innovation, creativity, originality, and improvement as different positions on the same issue are discussed. Of course, you need proper communication to come to the final conclusion, but it is worth considering the possibilities and how it can benefit your organization. Additionally, companies with a diverse workforce are better able to understand the demographics of their market than the ones with a limited range of diverse

www.berkshireassociates.com employees. Understanding your audience and having a team with representation from various groups—possibly individuals from the industry you are servicing— will lead to successful business. A workforce that makes each person feel welcomed, respected, and valued as a team member will be able to retain the talent, experience, knowledge, and insight needed to impact their bottom line. Diverse workforce retention will allow organizations to solve problems more effectively, accept and embrace new situations, and recognize future prospects. Another good reason for a diverse workforce is providing the opportunities for individuals to make a living, accomplish objectives, and become contributors to their communities. People who are not given those chances could be an untapped resource to take your company to the next level. It’s important to remember, organizations face legal responsibilities in today’s business market. Companies can expect fines, or even loss of government contracts, by not meeting equal employment opportunity or affirmative action compliance legislation.

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Having a diverse workforce is no longer just a preference, it is a requirement. Considering all the advantages of having representation of various ethnicities, genders, cultures, ages, or people with disabilities in your workforce, it makes perfect business sense to utilize the difference these individuals have to offer for a competitive advantage. No matter what reason motivates your organization to diversify its employees, rest assured you will gain a head start over those who don’t. For companies who want to build a balanced workforce (one that uses diverse perspectives and talents to foster growth and remain competitive), Berkshire can prepare a plan designed to meet your organization’s diversity objectives. We can prepare a traditional diversity plan—or based on your company’s definition of diversity—work with you to create a plan that goes beyond race and gender. Ultimately, we’ll work together to shape a compliant and diverse workplace that’s reflective of your vision. To learn more, please call 800.882.8904, or email bai@ berkshireassociates.com. Table of Contents

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Making the Connection: Affirmative Action and Workforce Inclusion By: Berkshire Associates

Affirmative action and workforce inclusion plans are types of diversity initiatives that foster a positive and inclusive work environment, while potentially leading to enhanced organizational performance. Affirmative action programs generally coincide with specific federal compliance measures with outreach, recruitment, and training objectives; whereas workforce inclusion programs aim to build competitive advantage by making employees feel

Workforce inclusion activities foster diversity, innovation, teamwork, and creativity among all employees.

engaged while contributing towards organizational objectives. The relationship between affirmative action and workforce inclusion plans can be described as a building block that reinforces and helps to achieve the objectives of the other.

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Affirmative action programs are designed to ensure all individuals have equal employment opportunities in the workforce. The main goal of affirmative action is to ensure over time— absent from discrimination—an organization’s workforce will reflect the gender, racial, and ethnic profiles of the surrounding labor pools. Effective affirmative action plans contain specific outreach activities to attract and retain talented females, minorities, Veterans, and

individuals with disabilities. Ideally, organizations that have a strong commitment to affirmative action and outreach efforts will have a diverse workforce. A diverse and inclusive workplace will benefit everyone in the organization by making it

www.berkshireassociates.com stronger, more resilient, and competitive. Organizations with a commitment to affirmative action have the foundation set for a strong workforce inclusion plan. A workforce inclusion plan is a set of organizational policies and practices that ensure employees feel they belong within the organization. Workforce inclusion activities foster diversity, innovation, teamwork, and creativity among all employees. An inclusive work environment treats individuals with dignity and respect, values differences and similarities, and allows all employees the opportunity to participate in the success of the business. Inclusion activities like mentor programs, team building activities, and affinity groups allow organizations to take advantage of varying perspectives, experiences, and problem solving skills. Organizational diversity creates a work environment where differences are respected and valued. Collectively, effective affirmative action and workforce inclusion plans develop an analysis of an employer workforce, highlights ways to capitalize on the differences and similarities between employees, reduces conflicts, and gains

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employee loyalty. Organizations with an affirmative action and workforce inclusion plan reflective of their mission and values statement have the potential to gain competitive advantage by leveraging the talents and competencies each employee brings to the company. To find out how you can utilize your affirmative action plan to strengthen your diversity initiatives, please contact Berkshire Associates at 800.882.8904 or email bai@ berkshireassociates.com.

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The Diverse Workforce Benefit By: Rachel Rubino

One of the biggest trends right now is embracing diversity, and for good reason. Having a diverse workforce is more than just the “right thing to do,” it can benefit a company’s bottom line. Companies embracing workforce diversity are seeing an increase in customers, higher quality employee hiring and retention, and improved products and services. There is an undeniable link between a diverse workforce and improved business results. A 2006 University of Illinois at Chicago study found companies with higher levels of diversity reported higher sales revenues, larger market shares, and larger profits when compared to companies who had lower levels of diversity (www.shrm. org). The results of this study show there is a strong business case for companies to implement or strengthen their diversity initiatives, and to ensure they become integral parts of their organizations. One way companies can leverage a diverse workforce is through their sales staff and support

teams who directly interface with their customers. As the consumer population becomes more diverse, a diverse sales and support team is going to more accurately mirror those they are selling to and supporting. A diverse sales staff can connect to customers on various levels, whether they speak their language, understand their culture, or simply provide the customer with someone at the company with whom they identify. In turn, this connection between a company’s employees and its customers has been proven to drive sales (Diversity Best Practices, 2006). A company’s diversity can also impact their recruitment efforts, helping them to attract high-quality employees. Many employees recognize the value of diversity within a company, and consider it when making the decision to accept a job offer. These employees value diversity within a potential employer because they see the company develops and promotes all types of people, and they are more likely to see someone like

www.berkshireassociates.com themselves at the higher levels of the organization (SHRM Emerald Coast Chapter #459, 2003). Employees who value diversity are looking to work for companies where they aren’t just handed a brochure about the company’s diversity program, but where they are exposed to

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Having a diverse workforce is more than just the “right thing to do,” it can benefit a company’s bottom line.

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the diversity of the organization throughout the recruitment and interview process. Recruiting diverse employees ensures an organization is bringing in employees with fresh perspectives and experiences, as opposed to continuously hiring employees who all fit the same mold. The benefits of hiring diverse employees continue long after their onboarding stage

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is completed. A diverse set of employees brings a variety of backgrounds, experiences, perspectives, and ideas to an organization. When they are encouraged to share these in the workplace, it can often result in more creative ideas, stronger solutions, and challenges to the status quo. While it can take time, effort, and money to create and maintain a strong diversity initiative within a company, if the program is managed effectively, the benefits can outweigh the costs. A diverse workforce can yield higher sales and profits, attract high-quality employees, and increase the quality of employee ideas and solutions. Take advantage of your diverse workforce today. Contact Berkshire at 800.882.8904 or email bai@berkshireassociates. com to find out more. Or visit www.berkshireassociates.com.

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If Your Company Values Workforce Inclusion, Communicate It! By: Carla A. Pittman

If a tree falls in the forest, and no one is around to hear it, does it make a sound? Some would argue no. Why? Sound is transmitted by the sense of hearing…no ears, no sound. Hearing, in part, helps process and form reality. It’s an essential contributor to how people view the world and their surroundings. Let’s apply this philosophical riddle to the real world. If you value diversity and inclusion, yet it’s not communicated, do you really? Most companies spend time and resources preparing a plan, and little on effective communications. Often missed is the opportunity to manage and control messages delivered to their workforce. Consequently, employees are exposed to meetings, discussions, and materials unsupportive of the company’s mission—causing them to form a perception of the workplace different than what the company intended. Controlling your message of workforce inclusion means

managing perceptions and attitudes. It means creating a core message and ensuring it is delivered persistently and consistently. Always remember your employees’ perceptions are your reality. The sights and sounds of your workplace will influence how they perceive you as an employer. Sounds include everything from what they hear from the leaders of your organizations, to what they hear by the water coolers. If you want your plan to work, ensure the communication supports your vision. Consider these best practices in effective communication as you implement your diversity and inclusion plan: •

Before you rollout your plan, gather information on how your employees currently perceive your organization. You will be able to identify the gap between how employees perceive you now and how you want them to perceive you.

• Come to an agreement of

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what diversity and inclusion means to your company. Some companies include marital status, sexual orientation, and ethnicity. For instance, Qualcomm started special interest groups like Lambda Pride which is a gay, lesbian, and bisexual support group. They also have groups for Hispanic engineers and women in science.

•

Create one key message or theme that conveys your commitment to diversity and inclusion, and include support statements for managers on the benefits.

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Conduct an audit of all communication channels. Edit materials so they support your mission and vision. Make sure your images, content, internal posters, newsletters, and website demonstrate workforce inclusion.

•

Have your marketing department or design team create a “look and feel” for your campaign. Use this new image for internal promotions only. The “look and feel” acts as constant reinforcement and reminder to staff of the company’s

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commitment to diversity and inclusion. •

Conduct a manager’s meeting to ensure managers understand and can communicate the company’s key messages before the plan is launched.

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Incorporate your diversity and inclusion training or coaching into your orientation or your onboarding process.

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Launch your campaign with a unique kickoff meeting headed by a top leader. Unveil your diversity and inclusion objectives using your new “look and feel” as the backdrop.

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Soon after your kickoff meeting, ensure every manager schedules their respective department meetings to reiterate the mission; and that diversity is a regular item on meeting agendas.

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Take advantage of newsletters or your Intranet to reinforce your message. Ensure your editorial

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206 and web content include information on company activities and progress. •

Collect testimonials of employees with different backgrounds and experiences and use them for internal promotions.

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your employees hear what you want to achieve. It may not be the sound of a tree crashing down, but these best practices will make a loud enough boom for employees to take notice and begin to change their perceptions. If workforce inclusion is on your

Make sure your images, content, internal posters, newsletters, workforce inclusion.

•

Create a feedback channel for employees. Employee feedback will allow you to gauge whether the culture is developing into your ideal state.

•

Distribute a semi-annual or annual report of your activities. Paint a picture for your staff of what was completed and where you are now. Include workforce statistics, performance of past initiatives, and what to expect from upcoming activities.

There are several other tactics that can be used to ensure

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and website demonstrate

“to-do” list and you would like more information on the subject, please contact Berkshire Associates at 800.882.8904 or bai@berkshireassociates.com.

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Technology

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Selecting an Applicant Tracking Softwareâ&#x20AC;&#x201D;What You Need to Know By: Liz Balconi, PHR, Dana Lake-Streams, and Suzanne Keys, SPHR

Many companies are faced with the question of how to improve their recruitment operations. Applicant tracking systems were developed to help alleviate the perplexities of the recruitment process. However, before selecting an applicant tracking system, there are a few factors to consider in the decision making process. First, the main decision-making authority must be identified. Recruitment and hiring affect the entire company, so input must be considered from not only executives, managers, and human resources, but all functional divisions of the organization. It is also vital to get buy-in from technology groups, since they may be the ones to ultimately support the applicant tracking system. There are two important questions to ask during the decision making process: 1. Why is the organization buying an applicant tracking system?

2. Is your current talent management aligned with the goals of your organization? The decision makers should then analyze the reality of their current organizational recruitment and hiring process and envision what they want it to be. Also, take into account the required technological standards the new applicant tracking system must meet in order to be fully utilized. Your applicant tracking system should foster a better alliance between your organizationâ&#x20AC;&#x2122;s recruiters and hiring managers. It should improve the efficiency of your requisition and approval process, and improve the quality of talent hired within your organization. The applicant tracking system should streamline the recruitment process through automation, resulting in a more efficient and cost-effective hiring process. Analyzing your hiring process will allow your decision makers to compare the needs of your process with the capacity of the applicant tracking system.

www.berkshireassociates.com The organization’s decision makers should be expected to examine the strengths and weaknesses of each applicant tracking system vendor. It is important the vendor has the ability to sustain the full life cycle of employees, from applicant tracking, to offboarding, no matter the size of the organization. If not, your company may be hindered, resulting in re-evaluation and costly implementation fees. Carry out an in-depth investigation of the vendor’s security and maintainability of the applicant tracking system. Investigate the vendor’s financial situation and carefully review the contractual agreement offered by each vendor.

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will need to use, or otherwise are affected by the system. You will need to determine what functionality is necessary in order to be compliant with state and federal regulations. Consider whether the system will retain all the required information for the appropriate amount of time. Also, ask your vendor about updates to the system to coincide with changes in regulations. The level of administration you have or want from the product is another issue. Do you want to have control over who can access the system, or would you prefer to contact your vendor with the information? Some systems allow you to customize the data inputs, but others have only set fields

You will need to determine what functionality is necessary in order to be compliant with state and

The biggest question you’ll need to ask yourself is “what do we require of the system?” There are the usual standard field requirements like the applicant’s name and application date. To start, talk with all the people who

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federal regulations.

and standards. Some systems will not allow you to extract the data; you must contact the vendor and there may be a cost associated

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212 with each extraction. Developing your own queries or creating your own reports is another issue. Can you create the report on your own, and is there a one-time cost associated with setup or even a cost associated with each time the query or report is run? The administrator of the applicant tracking system may also want to be able to monitor the input of the data from users. The timeline for selecting an applicant management system

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The timeline for selecting an applicant management system is a critical piece to the process.

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is a critical piece to the process. When figuring out a timeline one should consider the research process, demonstrations, cost, and when the company can implement the system. Form a committee and do a needsassessment for the tool. Your company will want to create a list of all possible vendors, get an

RFP, and then have a shorter list of vendors that meet its needs. The budget can influence a major piece of the selection of an applicant management tool. Taking into account all the factors, including the technology and maintenance, will help point to the correct applicant management system for you. Three main areas will help finalize your decision: usability, flexibility, and price. The system should work with your process and users. Choosing and implementing an applicant tracking system is not a minor concern. Companies should invest in the right applicant tracking system to assist with critical hiring functions. For more information on selecting an applicant management tool, or to find out about Berkshire Associateâ&#x20AC;&#x2122;s BALANCEtrak ATS, please call 800.882.8904 or email bai@ berkshireassociates.com.

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Affirmative Action Automation for Todayâ&#x20AC;&#x2122;s Professional By: Karl Hester

Affirmative action plan analyses, concepts, and calculations can become incredibly overwhelming for many companies trying to remain compliant. When developing an affirmative action plan (AAP), the reasonable recruitment areas, feeder pool calculations, factor weights, employment, underutilization, adverse impact for hires, promotions, and terminations can become hard to manageâ&#x20AC;&#x201D;even if you are familiar with all these terms and concepts. On top of managing these elusive concepts, and the calculations that go with them, if your organization has any potential problem areas, you still have to consider whether any are statistically significant! These concepts and calculations can be quite cumbersome and take years to master. Additionally, changes mandated by the government, and periodic changes to the information available, make the process of developing a 100% compliant AAP a moving target, and even more difficult to learn. Thankfully in this day and age,

compliance professionals can embrace software solutions to help automate the cumbersome process of developing an AAP. For example, Berkshireâ&#x20AC;&#x2122;s BALANCEaap Web was designed to handle the heavy lifting of performing the analyses necessary, and providing the information needed to complete an entire AAP. Federal contractors simply need to get the necessary information from their Human Resource Information System (HRIS), and supply it to this automated solution. BALANCEaap Web will handle all of the compliance aspects for them. Using an automated solution also allows federal contractors to focus on making the decisions and changes necessary to make their plan accurately reflect their organization, and not get caught up in the details of updating each and every calculation whenever a change is made. The time saved in manually performing calculations can also be devoted towards performing more analyses proactively to gain a more in-depth understanding of

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Software solutions like BALANCEaap Web pay even larger dividends in the event of an audit by OFCCP—as contractors already have their information properly imported and cleaned up to produce their affirmative action plan. In this case, producing any number of additional analyses is as simple as clicking a few buttons. The time spent reviewing and cleaning up data to ensure the plan is accurate is important for the initial plan development, but also for any audit support to fulfill additional OFCCP requests. Contractors with a plan date between July and September have the added benefit of being able to produce their EEO-1 and VETS-100/VETS 100A reports with only a few steps, as well. Many automated solutions are moving to becoming web based solutions, like BALANCEaap Web, so regulation updates and supporting information can be applied even faster without any intervention from IT resources. Information is also much more accessible and can be shared instantaneously with all members of an organization, for a variety of purposes, including recruitment and diversity initiatives.

In a job market that is still recovering, employees at all organizations are being asked to

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In a complex arena such as AAP development, automation is the perfect answer.

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the demographic dynamics of the organization.

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do more—especially in areas they might not be specifically trained or skilled. Turning to automation, and tools that can provide not only efficiency but added guidance and expertise, can help organizations empower these time constrained employees. In a complex arena such as AAP development, automation is the perfect answer. To learn more about Berkshire’s web-based AAP solution, BALANCEaap Web, visit www. balanceaapweb.com or call 800.882.8904.

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Social Media and the Workplace —To Be or Not to Be? By: Lauren Collinson

Did you know Facebook has over 300 million users? Chances are many of the employees at your company contribute to this number. Right now we’re living in a time of TwitterFaceSpacePandemonium. No, this isn’t a real word—but as the emphasis on social media sites and its impact on the workplace continue to grow, it may soon become one. Let’s break the term down. We’ve got Twitter, Facebook, and MySpace, three of the top social networking sites on the Internet right now. Individuals can sign up for free, create profiles, share videos, listen to music, receive live updates, and interact on a 24/7 basis with a community of millions. Social media is becoming the newest phenomenon, even people who aren’t tech savvy, and of every age, are participating. How is this wave of social change impacting your workforce? Your workforce is important to you. It’s what keeps your company growing, your key to success. Every employer wants

a happy workforce, because a happy, BALANCED workforce is a productive workforce. With that in mind, many businesses are having a hard time deciding how to handle social media use during work hours, and whether restricting access to these sites, or setting parameters is pushing too far, or not pushing enough. Does your workforce have a social media policy established? According to a study commissioned by Robert Half Technology, an IT staffing company, “Fifty-four percent of U.S. companies say they’ve banned workers from using social networking sites like Twitter, Facebook, LinkedIn, and MySpace, while on the job.” The study also found 19 percent of companies allow social networking use only for business purposes, while 16 percent allow limited personal use.

www.berkshireassociates.com “Using social networking sites may divert employees’ attention away from more pressing priorities, so it’s understandable that some companies limit access, “ said Dave Willmer, Executive Director of Robert Half Technology, in a statement. “For some professions, however, these sites can be leveraged as effective business tools, which may be why about one in five companies allow their use for work-related purposes.” Let’s look at the positive arguments in regards to allowing social media in the workplace. Some of the benefits of social media access at work are: •

Boost morale— Mental breaks are important. Sending out a few tweets on Twiter can be just the break needed. Many business owners believe mental breaks throughout the day can boost morale and help employees focus better. The University of Melbourne released a report in April 2009 that found social media use by

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employees leads to a nine percent productivity boost The university’s press release states,

“Surfing the net at work for pleasure actually increases our concentration levels and helps make a more productive workforce.” The university’s Department of Management and Marketing’s Dr. Brent Cook says, “People need to zone out for a bit to get back their concentration. Think back to when you were in class listening to a lecture—after about 20 minutes your concentration probably went right down, yet after a break your concentration was restored. It’s the same in the work place.” •

Solve work problems/ questions— Social networking can potentially be a great tool for resolving questions or problems. With a large network at your fingertips, chances are someone out

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218 there has the answer or an idea. • Increase recruitment efforts— Social media can be a great way to interact with potential employees. By tweeting or posting a job description on an interactive site, you’re opening your job market up to thousands based on different online connections. • Build knowledge of social media— Hands-on experience is a great way to encourage the use of social media. And right now, many companies are using social media to increase their bottom-line. By taking advantage of individuals who understand the value, and have the skills in social media, a company could create a whole new level of marketing strategy. Some of the negatives to social media use are identified as: •

Productivity loss— According to a July 2009, media study by Nucleus Research entitled, “Facebook: Measuring

the Cost to Business of Social Networking,” companies effectively lose an average of 1.5 percent of total office productivity when employees can access Facebook during the work day. Nucleus says,

“Although for specific users this may drive greater productivity, companies should carefully weigh the total business benefit of lead generation and qualification or responding to comments on social networking sites about their operations or products against potential broader productivity loss of all employees with access to those sites.” • Security and privacy concerns— A growing concern for allowing employees to use social media at work is the potential for confidential business information to be shared online. Most individuals are using these sites for personal reasons such as keeping in touch with friends or family; however, there is a risk of an employee sharing private company ideas and

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information. There is also a concern for hackers to identify company names and information, and then infiltrate a company network. Recruitment decision risks— Companies using social media sites for recruitment purposes may risk adversely impacting minorities by inadvertently focusing on recruiting one class over another. According to Richard Vernon, Founder

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attract similar employees to those already present, they may be overlooking potential minority candidates. This could have an adverse impact on minorities and likely run afoul of EEO standards and requirements. It is similar to the long-discredited method of hiring only by word-ofmouth.” Another issue employers using social media sites when hiring are facing is a backlash by individuals who feel they were not hired

A growing concern for

allowing employees social media at work is potential for confidential business information

and Co-chair of the Employment and Labor Department at Lerch, Early & Brewer, Chtd., a full service Bethesda, Md., 48-member law firm,

“Employers using social networking sites to find employees may be increasing their liability risks. If they are only recruiting on these sites, and trying to

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to be shared online.

because of their social site profiles. At Lerch, Early and Brewer, Chtd., they recommend companies protect themselves from possible breach of privacy claims by having applicants acknowledge this aspect of hiring during the interview process. For example, a

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220 company may want to have an individual sign the following during the application process: I expressly authorize the Company, for the purpose of investigating my background, to contact my prior employer(s), my current employer, references I have named in this Employment Application, and such other persons, entities, or sources, without limitation, as the Company and/or its agents may deem to have relevant information about me. I acknowledge that such an investigation may include a review of information publicly available on the Internet, and I further acknowledge the Company may undertake a criminal background check of me… © Lerch, Early & Brewer, Chtd. • Inappropriate online behavior— What about work bullies? The use of social media may be another way for employees to harass, discriminate, or bully one another during work hours. • IT problems— Employees downloading/

uploading video or photo content online while at work can affect computer network system performance. When it comes to Web 2.0 and social media, there is no inbetween. Every company must pick a side, and either ban social media, or allow it. No matter which side you choose, human resources will likely be taking an active role in creating an employee-friendly Web 2.0

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Every company must pick a side, and either ban social media, or allow it.

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policy. Many professionals are now adopting these policies, which are given to both existing employees, and new employees upon hire. These guides iron out the rules for social websites, and discuss the consequences so each employee can remain accountable. Your policy should have one primary goal—to set

www.berkshireassociates.com boundaries for what employees can and cannot do in order to protect your organization.

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these worldsâ&#x20AC;&#x201D;because with or without you, it is inevitable.

You may be wondering how to get started on your social media policy. As an HR professional, the first step is to talk to management, educate them on some of the pros and cons to social media in the workplace, and push for a policy to better communicate the rules to employees. Your workforce needs to remain BALANCED in order to thrive. Social media and Web 2.0 is now an added aspect to the general business culture. TwitterFaceSpacePandomonium is here to stay, so itâ&#x20AC;&#x2122;s important companies adapt to not only reduce risk, but create more cohesion within the office. According to Amy Chulk from careerbuilder.com, The way I see it, it comes down to mutual respect. Give your employees the opportunity to blend their personal and work lives, and realize that although they may be shopping for that last-minute birthday gift at work, they are also likely responding to work email at home and take care of business matters on their off-hours. Accept and embrace the merging of

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HR On Demand By: Misty Glorioso, PHR

Web 2.0 is one of the biggest trends taking over the business community. Web 2.0 is the general phrase attached to new communications media such as blogs, wikis, podcasts, and RSS (Really Simple Syndication) feeds. All these technologies are used to distribute information and foster a sense of community. The concept of Web 2.0 was the result of a brainstorming session in 2005 between two media technology companies, Oâ&#x20AC;&#x2122;Reilly and MediaLive International. The bursting of the dot-com bubble made many people think the web had reached its peak, but the creators of Web 2.0 saw it differentlyâ&#x20AC;&#x201D;the web had sustainability. Web applications and sites were popping up regularly, proving the web was still more important than ever. Finding that common denominator was the key to Web 2.0 technology. Principles of Web 2.0 The Web as a Platform: For corporate individuals, the web is a platform for business; for

marketers, communications; for journalists, new media; and for IT specialists, software development. Harnessing Collective Intelligence: Collective intelligence is achieved when a critical mass of participation is reached within a site or system, allowing the participants to act as a filter for what is valuable. This is the central principle for such companies as Google and Amazon, who in fact survived the tech crash in 2001. Data is the Next Innovation: Web 2.0 emphasizes the ownership and creation of userproduced data or content within a system. End of Software Release Cycles: Software has traditionally been released as a product. It has been packaged and sold to users who have to install it on their computers. Patches and upgrades were periodically released as versions 1.1, 1.3, etc. pending a completely new version. On the web there is no need to install programs and

www.berkshireassociates.com patches—software is delivered as a service. Upgrades and future versions happen seamlessly, most without the user’s knowledge. Lightweight Programming Models: It’s about providing simplicity, syndication, and re-usability. Software Above the Level of a Single Device: In today’s world, users not only access information through their computers, but through a variety of other devices such as iPods, PDAs, cell phones, etc. Web 2.0 developers strive to create their software so it is compatible with more than just the computer. Rich User Experiences: Web developers are able to build web applications as rich as local PCbased applications by binding together several technologies for: • interface display and interaction • data interchange and manipulation • data retrieval Web 2.0 in HR Wikis Wikis are becoming very popular in the HR world, especially for collaborative project work. For

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example, when gathering people in one place is just not feasible due to cost, time, and space, a wiki can be used as a virtual workplace. A wiki is a knowledge base developed over time by users with access to create and edit text on the site. It can be a repository for existing text documents like employee handbook edits, company forms, drafts of press releases, and company newsletters. Forms can be uploaded to the wiki and then downloaded by the users for editing. Instead of sending emails back and forth with attachments for everyone to have his or her own copy to make edits, a wiki allows people to look at content on a single shared page where the entire team can edit. Social Networking Web 2.0 is all about open collaboration, exchanging ideas, networking, learning, and having fun. Social networking sites are capturing the essence of the Web 2.0 technologies. There is Facebook, MySpace, and LinkedIn, which allow users to create and edit their pages to share with the world. Facebook and MySpace users can post news feeds, blogs, pictures, and create groups to share content.

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224 This free exchange of ideas, thoughts, and collaboration enables companies to learn more about potential employees, vendors, and customers. HR professionals can create accounts to showcase and advertise their open positions. Candidates can post questions or engage in discussions related to employment, benefits, and daily work life. It also gives the HR Professional a chance to get a better feel of potential candidates and allows a candid flow of communication. Instead of just relying on a résumé and a few references to make a hiring decision, looking at candidates’ pages can generally tell a lot about a person’s writing style, interest, and personality. LinkedIn is a professional social networking tool that allows users to create a profile that showcases their professional expertise, reconnects them with current and past colleagues, share business opportunities, and receive advice from industry experts. In cases of hard to fill positions, LinkedIn just may be the recruiters’ key to find the ideal candidate. Intranet Networking Growth of new Web 2.0 technology is encouraging companies to increase collaboration in the workplace by way of an intranet. Historically,

company intranet systems were just used for changes to personal information, quick links to various departments, newsletters, handbooks, and various other HR functions. Today’s intranets include those basic principals along with new communication features similar to those of Facebook or LinkedIn. Employees can post pictures, videos, general areas of interest, languages they speak, business expertise, and describe exactly what they do at the company. Online collaboration systems like instant messenger, discussion boards, and blogs enable employees from various departments to post questions, share ideas, and get feedback on various topics. Work environments where the free exchange of ideas and feedback is encouraged allows for open communication regarding projects and various company initiatives. Twitter Twitter is the new phenomenon amongst everyone—celebrities, students, companies, and friends. Twittering is essentially microblogging random thoughts, events, and important updates. It is very common to visit a company website and see logos for ‘follow me on Twitter’ or ‘add me to your Twitter friends’ to advertise sales or events.

www.berkshireassociates.com HR professionals can capture thousands of followers or potential candidates by setting an account to “tweet” job postings or job fair announcements. This idea is great if you are working on a limited budget and want to get your message to a wide audience quickly. It also can serve an internal purpose for communicating with current employees on company updates, meetings, and reminders because it’s flexible, real-time, and cost efficient.

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locations still need to get the messages effectively. Instead of memos with meeting minutes or transcripts of quarterly staff meetings, employers are posting videotaped meetings and podcasts online. Podcasts can be downloaded to your computer, IPod, and mobile devices, while video blogs and YouTube videos require an active Internet connection. Regardless of your media preference, the information is there and available to be viewed anytime. Employers can hold employees who miss

Regardless of your media preference, the information is there and available to be

Video On Demand YouTube, podcasts, and video blogging are the newest ways to get your message out. Millions of people watch YouTube, download podcasts, and create video blogs daily. Clients and employees are not always available at specific times to see presentations or meetings. Clients with hectic schedules or employees who work at offsite

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viewed anytime.

meetings accountable for the information and still deliver that personal touch. Video messages are fairly easy to set up and generally require only a camera, audio software, and a microphone. Posting the videos or podcast by way of your own company website is free.

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226 However, if you choose to go with a syndication website, a cost may be incurred. Chat Rooms Instant messaging and chat rooms are not just for teens anymore. HR professionals are using interactive chat sessions to provide external customer service and give guidance on the recruitment process. Candidates in chat sessions can ask detailed questions on job descriptions, gain an understanding of the recruitment process, and even

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a virtual booth where they can display videos, presentations, literature, and contact information. In addition, they can chat with candidates and have them submit résumés online, all from a location that is convenient to them. Exploring these technologies can save employers the time and expense of going to job fairs and recruiting events. It’s here and here to stay. Web 2.0 technology is making its way around the office. Understanding

Exploring these technologies can save

employers the time and expense of going to

speak to current employees that may end up being their teammates. Innovations like this can cut down on phone calls, office visits, and emails. These interactive sessions allow businesses to have one-on-one interaction with candidates without having to leave the office. Universities and organizations conducting job fairs are also utilizing these interactive technologies by creating “Virtual Job Fairs.” Employers are given

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job fairs and recruiting events.

the basic principles of Web 2.0 and expanding on those ideas can take your business to the next level. The next time you have a collaborative project or recruiting requisition to fill, take a step outside the box and use your technology. MySpace, Twitter, Facebook, wikis, virtual job fairs, and podcasts are the wave of today. Web 2.0 technologies are fairly inexpensive and have numerous advantages from cost reduction,

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to a low level of maintenance, with a high level of convenience. No need for in-house technical support, desktop system upgrades, or complicated programs which require tutorials. The future is about accessibility, interaction, and collaboration. Taking your organization to that level means maximizing your technical resources and finding ways to make it work for you.

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Affirmative Action & HR Technology— When Two Worlds Collide By: Lauren Collinson

Affirmative Action Compliance When it comes to compliance and human resources, few tasks trump affirmative action and the regulations that govern it. Affirmative action is more than just hiring individuals from protected classes; it has the potential to set the foundation for a balanced workforce, impacting not only a company’s bottom-line, but its growth and success. Who Sets the Rules? On September 24, 1965, President Johnson signed Executive Order 11246 prohibiting federal contractors from discriminating in

What does AAP Compliance Entail?

Web technology offers you an easier and more accurate compliance process.

employment decisions on the basis of race, color, religion, sex, or national origin. Contractors are

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also required to take affirmative action to ensure all individuals have an equal opportunity for employment. The Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) enforces affirmative action laws by requiring federal contractors with 50 or more employees, and $50,000 or more in government contracts or subcontracts, prepare a formal, written affirmative action plan (AAP). A contractor in violation of the law may have its contracts terminated or suspended in whole or in part, and the contractor may be ineligible for future government contracts.

In order to comply with affirmative action regulations, contractors must complete a

www.berkshireassociates.com 100% compliant AAP. Below are some of the most important aspects of an AAP: • Data compilation and accuracy • Job group analysis • Organizational profile • Recruitment areas and feeder groups • Internal and external availability • Incumbency vs. estimated availability • Placement goals for the current plan year • Goal attainment from the previous year • Adverse impact on personnel actions • Compensation analysis • Both required narratives: • Minorities and Women • Individuals with Disabilities and Veterans With the penalties associated with non-compliance, and the amount of work required to prepare an AAP, companies often search for more efficient ways to complete their plans. The current breakthrough in web technology offers you an easier and more accurate compliance process. HR Technology Saves the Day There are many options for you to choose from when completing an

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AAP. You can do your plan manually–a task requiring highlevel expertise and resources from your company–or you can take advantage of HR technology options to streamline your process. With the emerging web-based technology trend, you can create the most up-to-date, compliant, and complete AAP. According to Berkshire Associates Inc.’s VP of Product Development, Manoj Tiwari, “The growing popularity of web-based systems among human resources is influenced by several factors; web-based systems install and run from any webbrowser, and when users login, they always get the most recent version. No longer is there a need to manage licenses or compatibility issues with different operating systems.” During these economic times, web-based systems are a sound financial choice. The varying functionality of numerous systems allows you to include the tools you need at a reasonable cost. Also, web-based AAP

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230 applications can typically include unlimited users—making it a costeffective option.

When shopping for a web-based

Automation through web-based programs allows professionals to Work Faster and Share Data.

For companies required to complete an AAP, entering into this new era of web-based innovation means access to a host of automated functionality including enhanced data security, online distribution of plans, and collaboration with different locations. Some other benefits of web-based AAP technology: • • • • •

No upgrade interruptions Latest regulations Unlimited users Safe and secure Data is stored, accessible, and can be viewed (with permission) throughout the organization • Make the most out of compliance—use the data to begin shaping a balanced workforce • Continuous monitoring and management • Deployment across your organization

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Don’t be Fooled

AAP solution, it’s important to know the difference between a web-based application and clientserver software. Client-server software runs on your computer network, giving you the responsibility of licenses, upgrades, maintenance, and application conflicts. Be sure to ask specifically if the application is web-based or in a client-server environment. Asking upfront could save you time, money, and frustration. Focus on What Matters Automation through web-based programs allows professionals to work faster by sharing data. Companies can focus more on objectives and less on crashes, slow performance, and incompatibility issues. AAP webbased systems provide seamless distribution of information throughout an

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balanceaapweb.com or call 800.882.8904.

Plan for Your Plan Remember, an affirmative action plan is greater than just following compliance protocol. Plan for your plan, embrace the latest technology, and use it to help shape your ideal, balanced workforce. About Berkshire Berkshire Associates is a human resources consulting and technology firm, specializing in helping companies build the ideal, balanced workforce. As an industry leader, Berkshire provides the latest tools and services for applicant management, compensation management, affirmative action, workforce planning, diversity, and professional training. Along with developing the first affirmative action software, Berkshire developed the first web-based affirmative action planning solution, BALANCEaap Web, a secure, web-based application that gives users more than traditional software. It allows professionals to create, monitor, and manage a complete OFCCP compliant planâ&#x20AC;&#x201D;right from the web. To find out more about BALANCEaap Web visit www.

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HR Automation—Moving from

Software to Web-based Systems

By: Berkshire Associates

The World Wide Web continues to grow rapidly, and the horizon of technology is expanding in every creative direction. After development of richer features, responsive animation, and realtime control, a new breed of Web-based systems are starting to appear. Unlike traditional systems, these Web-based systems can help every aspect of a business, especially in human resources. The growing popularity of Webbased systems among human resources is influenced by several factors; Web-based systems

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application. No longer is there a need to manage licensure or compatibility issues with different operating systems. This saves companies time and money. During these economic times, Web-based systems are a sound financial choice. The varying functionality of numerous systems allows the user to encompass more exactly the tools they need at reasonable costs. On average, a business owner today can find a Webbased system that works without having to spend a lot of money. Often businesses will invest in

Unlike traditional systems, these Web-based systems can help every aspect of a business, especially in

install and run client applications from any Web-browser, and when users login, they always get the most recent version of an

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human resources.

software and buy a tool they think will help accomplish their goals, when in actuality it falls short. Web-based systems allow

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for businesses to buy technology that provides functionality they need to enable good use of time, focus, and management. Automation is allowing professionals to work fast and seamlessly with other applications by allowing applications to share data. The companies are able to focus more on what they need to do than on having to make sure the processes for their software are correct. Collaboration is essential for businesses to succeed, and having a platform allowing users to easily access an application, use it, and get out, has grown exponentially via the Web. Web-based systems allow for a seamless transition of information throughout an organization without unnecessary difficulty and cost. If you have questions about how Web-based applications can increase productivity, efficiency, and cost-savings, please contact Berkshire at 800.882.8904 or bai@berkshireassociates.com.

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Communicating with Technology By: Candace Snyder

Email is a fast and simple

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sent through email can be misinterpreted. Recipients will typically read email using their own voice and tone. Therefore, in addition to the lack of nonverbal cues, inflection is also difficult to detect. Even with these shortcomings, email is still a powerful, useful, and necessary communications tool. For successful email communication, remember these handy tips:

Seventy percent of all

communication is non-verbal.

way of communicating with co-workers to share ideas and information. With a click of a button, company-wide announcements, such as staff meeting reminders, additions to the workforce, promotions, and policy changes can be sent to all employees. Seventy percent of all communication is nonverbal. Without non-verbal cues, (e.g. body language), messages

“

Communication within a company is vital to its success. Technology, such as computers, the Internet, and phone systems, has become essential in the work environment. It is used more often than not in everyday communication between employees. A company’s internal computer network allows employees to send email, browse an intranet site, and share files.

• Keep your messages simple and concise. • Take care when using CAPS, exclamation points, bold and italic lettering. • Spell check before you send a message. • Regard your email system as an office and networking

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tool and be professional when sending messages. An intranet site provides a central place to access files, forms, schedules, and reports. Employees can access the employee handbook, inclement weather policy, and other company documents at any time. Implementing an intranet site reduces dependency on paper documents that often need frequent updates. Providing similar benefits as email, a phone system is an important part of the work environment. Employees can talk to one another without leaving their desks, saving time when a simple answer is needed to continue working. Itâ&#x20AC;&#x2122;s also an alternative to email, especially if a co-worker needs to be contacted immediately. The Internet opens a line of communication to employees in different locations, who work from home or telecommute from a remote location. Web conferencing allows employees who are out of the office to fully participate in meetings and benefit from the visual aspects, such as a presentation. Being out of the office is no longer an excuse for skipping out on a meeting. Table of Contents

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Do You See What I See? Examining the Key Features in a Good Applicant Tracking System

By: Candace Snyder

In the busy and hectic world we live in, everyone appreciates technology and how it makes our lives easier by automating dayto-day activities. From paying monthly bills online to meeting reminders at the office, we rely on automation every day. The HR professional can benefit from automation when looking for qualified candidates to fill their open positions. An applicant tracking system (ATS) is one way to make life easier for an HR professional. A system that allows job seekers to apply for open positions online is the first step to reducing paperwork, keeping information organized, and simplifying the process it takes to hire qualified workers.

If you are in the market for an ATS, look for features that will reduce the mundane tasks in your hiring process, such as scoring job seekers, sending response letters, and creating requisition numbers. Scoring a job seeker based on their answers to specific questions allows the hiring manager to easily compare each individual to the ideal candidate. The hiring manager can also focus on a smaller group of job seekers by only reviewing the individuals who scored the highestâ&#x20AC;&#x201D;reducing the time it takes to find the most qualified individuals. Any automated process, no matter how small, is an improvement over manually processing information.

â&#x20AC;&#x153;

An applicant tracking system (ATS) is one way to make life easier for an HR professional.

â&#x20AC;&#x153;

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Automatically generating requisition numbers may seem like something small, but it has a huge impact on day-to-day activities for HR professionals. You no longer have to look up the last number used or remember how a job’s information is combined to make up a requisition number; a well equipped ATS can do it for you. Other activities, such as sending acknowledgment and rejection letters to candidates who have applied for positions with your organization, may seem to require little effort when looking at just a few candidates. However, when reviewing a few hundred candidates this can quickly become cumbersome—and automation is essential to your operational efficiency. Berkshire Associates’ applicant tracking system, BALANCEtrak, has all of these automated features and so much more! Any HR professional would benefit from utilizing a system that keeps information organized and reduces the time it takes to find a qualified candidate. See what I see by visiting www. balancetrak.com. Or contact Berkshire at 800.882.8904 and bai@berkshireassociates.com to find out more.

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Berkshire Perspective—We’re an HR Automation Nation By: Lauren Collinson

Compliance and technology— in today’s HR market the two go hand-in-hand. But it wasn’t always that way, and for some companies it still isn’t. When Berkshire Associates opened its doors over 28 years ago, HR automation was a fleeting thought. In fact, when Berkshire introduced the first automated affirmative action software, it took the industry by surprise— which quickly turned into delight. Since then, HR technology and automation has grown immensely, and continues to be one of the leading trends in the industry. In fact, if you want a sneak-peek at one of the leading trends for 2012, here you go: HR Automation. In today’s business environment, no matter the industry, technology has a significant impact on how operations are managed and delivered. According to HROToday, “In an effort to reduce spending on administration to improve their bottom line, companies are exploring how to automate much of their information and process management, especially in areas

such as human resources.” The human resource industry has become an automation nation of sorts, with access to products that can simplify the majority of tasks. From affirmative action planning and compensation management to applicant tracking and onboarding—HR technology is streamlining the most complicated processes saving companies across the globe time and money. Technology has been leaving its mark on the HR industry for years, and like everything else it’s evolving. What was once considered robust can now be viewed as outdated. In 2012, thousands of HR professionals will join the ranks of technology users and begin automating their processes. It’s not hard to understand why. With companies cutting back and working to save resources, HR professionals are being asked to do more with less. One of the best ways to accomplish this is by automating time-consuming and often overwhelming tasks. According to HR.com, “In 2012 technology

www.berkshireassociates.com increases and the need to be efficient will drive small businesses toward automated processes. Companies will switch out their manual processes for new HR technology, increasing productivity while saving time and money in costly mistakes.” Let’s look at an often overwhelming HR task— affirmative action planning (AAP). The time spent on managing company data, developing reports, and keeping up with the latest Office of Federal Contract Compliance Programs (OFCCP) regulation changes

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ahead of the HR automation curve—providing clients with the latest solutions to meet their needs. For example, when Berkshire first introduced AAP software, GREAT AAP, to the marketplace it was a huge relief for compliance professionals because they could now use a tool to interpret their data. Berkshire took its software a step farther and introduced a do-ityourself software application— BALANCEaap Desktop—that allowed users to complete their plans following a guided desktop program. Berkshire didn’t stop there.

“

Technology has been leaving its mark on the HR industry for years, and like everything else it’s evolving.

Berkshire Associates gets the importance of technology, which is why it strives to always be

“

and requirements can make creating a compliant AAP a difficult project. With the use of HR technology, the AAP process can be completely streamlined giving professionals more time to manage their to-do lists.

With Internet capabilities growing and the need for 24/7 access and updates, the logical next step in AAP automation was creating a truly web-based technology. In 2009 BALANCEaap Web became available to the HR community. Utilizing technology and understanding the needs of Table of Contents

240 its clients, Berkshire created a secure, web-based application that surpassed traditional software. BALANCEaap Web doesn’t sit on your desktop and require maintenance updates or IT support—it is a true representation of today’s technology, giving professionals the freedom, flexibility, and power to create compliant AAPs right from the web. And there are never any cumbersome updates, downloads, or computer crashes to fix. This software is living—constantly being updated to reflect OFCCP changes so HR professionals will meet the latest compliance guidelines. That is HR automation at its finest. With the HR automation nation era upon us, don’t just take a peek at what the latest technology has to offer—take advantage of it and experience HR in a whole new light. To learn how automated HR solutions for not only AAP, but applicant management and compensation management, can streamline your processes, visit www.berkshireassociates.com or call 800.882.8904 to speak with one of our experts. Also, be sure to check out one of Berkshire’s latest white papers, “The Wonder of the Web:

Why Web-Based Applications are Necessary for Effective Affirmative Action Compliance.” This white paper examines the differences between desktop and web-based AAP technology solutions, and what HR professionals should be aware when making a decision. To access this informative white paper, visit http://www. berkshireassociates.com/ infocenter/whitepapers.aspx.

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The Wonder of the Web: Why Web-Based

Applications are Necessary for Effective Affirmative Action Compliance 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 11246 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. For those reasons, HR requires agile and flexible applications. Desktop software is defined and self-contained by design. If you are responsible for AAP

www.berkshireassociates.com 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 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. Today innovation is moving at an accelerated speed. In fact, businesses notoriously known for adopting new technology

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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 Table of Contents

244 Desktop vs. Web Characteristics Desktop Software

Web Applications

Needs to be installed separately on each individual computer

There is no installation necessary; users log in to gain access to application

Runs locally from computer

Requires Internet connectivity

IT support is needed for installation and maintenance

Virtually no IT resources or support needed

Has to be upgraded on every single computer

Seamless upgrades from one location

Confined to a physical computer and has mobility constraints

Users can access web applications from anywhere with an Internet connection

Tends to have richer and complex user Tends to have “lighter” and more interfaces simplistic user interfaces Rarely works with mobile devices

Can easily be adapted for mobile access

Minimum hardware requirements that usually include memory size and speed

Only hardware requirement is an Internet connection

Data is stored on a network or individual machine

Data is hosted on the “cloud”

Functionality is difficult, so it is usually reserved for new versions of the software

Other web applications can be integrated for added functionality

Stand-alone functionality makes it difficult to collaborate in real-time

Enables the possibility of sharing work and collaborating in real-time

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

www.berkshireassociates.com 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. 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. Webbased 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

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licenses for everyone involved in 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

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246 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. Security and Connectivity There are some companies who are still hesitant about choosing to use a web-based 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. Connectivity and speed go handin-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.

www.berkshireassociates.com 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

are all real concerns for those choosing to transition to webbased affirmative action planning. Advances in both technology and processes have significantly reduced the possibility that speed, connectivity, or security will hinder a companyâ&#x20AC;&#x2122;s ability to effectively comply with affirmative action regulations.

Businesses notoriously known for adopting new technology late, can no longer afford to delay transitioning.

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. Speed, connectivity, and security

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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 2012. Most notable are the changes to the rules for analyzing compensation, Veteran AAPs, and the impending use of the 2010 census data.

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248 These changes are significant and require substantial system updates. Employers preparing their 2012 plans using a webbased 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

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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

Even if a company decides to

outsource, it can still take advantage

“

of the benefits of web technology.

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. 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

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

www.berkshireassociates.com 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. 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 webbased applications.

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processes and communication that contribute to making our jobs more efficient. Web technology will continue to expand and deliver functionality we havenâ&#x20AC;&#x2122;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. To learn more about the next generation in affirmative action planning web technology, please contact Berkshire Associates at 800.882.8904 or email bai@ berkshireassociates.com. You can also visit www.balanceaapweb. com.

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 couldnâ&#x20AC;&#x2122;t fathom years agoâ&#x20AC;&#x201D; including advances in business

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Communicating Employee Performance: Tips for the Feedback Averse Manager By: Michele Whitehead, SPHR

Communication is one of the key ingredients to a positive, strong, and effective relationship between managers and employees. By far one of the most stress-inducing aspects of being a manager is having the dreaded performance review meeting. No one wants to tell an employee that they’re performing poorly or not meeting expectations. In fact, in lieu of providing negative feedback, managers tend to artificially inflate performance ratings just to avoid having to be the bad guy. On the flip side, even positive feedback isn’t always delivered effectively to motivate above average performers. The bottom line is the performance management process is often not used properly as a tool to either improve poor performance or further reinforce good performance. Not only does this weaken the validity of the performance management system itself, but it poses a number of potential problems and liabilities, not the least of which is underperforming or

unmotivated employees. Here we offer some tips on how to best prepare for and deliver performance feedback, a critical communication tool. Prepare for the performance meeting: •

Consider the entire appraisal period in your review, not just one significant event or the most recent performance

•

Base the review on accurate and factual information; if a formal review is done only annually, consider keeping a critical incidents log to refresh your memory at year end

•

Be objective, specific, and descriptive; the core message you wish to communicate should be clear

• •

Be aware of rater biases that may influence your ratings and feelings Design a plan for corrective

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action and/or development; remember you will need to gain the employee’s commitment so be prepared to modify this plan

•

Address the good, the bad, and the ugly; be prepared to discuss accomplishments, strengths, areas needing improvement, and competencies that need to be developed

•

Practice delivering the core message or the feedback that will be more difficult to say

Include these discussion objectives to ensure the core message is clear: For employees who meet or exceed expectations, recognize

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opportunities and/or additional responsibilities. Clarify goals and state what the employee needs to do to sustain or further improve his/her performance. For employees performing below expectations, recognizing strengths and accomplishments will make negative feedback easier to swallow, so be sure to include both in your core message. Present the performance improvement plan and/or development needs and the timeframe in which improvements must be demonstrated. State the potential consequences of continued unsatisfactory performance. Get a commitment to the plan. Anticipate a successful performance review meeting. Remember:

The bottom line is the performance management process is often not used

properly as a tool to either improve poor

performance.

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performance or further reinforce good

accomplishments and the possibility of advancement

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• Employees want to meet your expectations • Employees want to improve their performance

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•

Have the employee read your review while you read his/her self-review and discuss gaps or similarities between them

A regimen of continuous feedback results in desirable performance being reinforced or undesirable performance being

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identified and redirected immediately.

• Employees want to receive timely, non-threatening feedback

• Highlight the employees accomplishments and strengths

•

You can more effectively direct changing organizational / departmental goals

• Deliver your core message

•

Your feedback results in less anxiety, increased productivity, and reduced turnover

Have an agenda for your performance meeting: • Welcome the employee and explain the importance of the meeting

• Listen! Give the employee an opportunity to share his/ her feedback • Discuss goals, opportunities, performance improvement plan, and development needs •

Obtain a commitment to mutually agreed upon goals, opportunities, performance improvement plan, and/or development needs

www.berkshireassociates.com â&#x20AC;˘ Schedule a follow-up meeting to exchange interim feedback on the above Most importantly, make a concerted effort to deliver continuous feedback between the formal performance review periods. A regimen of continuous feedback results in desirable performance being reinforced or undesirable performance being identified and redirected immediately. Like most things in life, we will only get better at delivering feedback through practice. The more often we give performance feedback, the more natural it becomes. And the more natural it becomes, the more often we give it, which means that 1.) Our employees arenâ&#x20AC;&#x2122;t blindsided by negative feedback, and 2.) Our star performers get the positive reinforcement needed to sustain or further enhance their performance. To our delight, we might actually see an increase in morale, productivity, and overall job satisfaction.

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Revenue Per Employeeâ&#x20AC;&#x201D;How

Productive Are Your Employees? By Carla A. Pittman

Revenue per Employee (RPE) is a key ratio used to monitor business efficiency. Calculating RPE can help companies measure whether or not their business is generating adequate sales relative to its assets and sales people. Low RPE rates, compared to similar companies, are often a sign of possible failure. Monitoring RPE can assist in correcting deficiencies negatively effecting sales. Revenue Per Employee is calculated as:

Revenue = # of Employees

Tip: Companies should seek to have the highest revenue per employee possible. This signifies high productivity. As a general rule, companies generating profitable sales are typically efficient in use of labor. This results in a high RPE. A company could also calculate dollars from sales less marketing expenses. The remaining

dollars should cover other nonmarketing expenses, production costs and provide a profit. Subtracting the average pay per employee from Revenue per Employee will give companies an indication of how many dollars per employee contribute to other non-personnel expenses. Sales per salesperson is also a way to measure sales efficiency. In Working With Emotional Intelligence, Daniel Goleman references a study conducted of Fortune 500 companies. The study revealed that the top ten percent of sales people had $6.7 million in sales compared to $3 million for the average sales person. The best sales people were more than twice as effective. The per salesperson ratio was used to pinpoint weaknesses that are not often quantifiable. Goleman attributed top sales performance to superior emotional intelligence. Based on this data, a tactical move may be to hire salespeople with a higher level of emotional intelligence in order to acquire a higher percentage of superstars.

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www.berkshireassociates.com A company may have a low RPE if it is a service company. Service companies are typically labor intensive and revenue is limited to some extent. For example, at a consulting company, the

Service Industries can have an advantage over pure product businesses in that the ability to grow and diversify is easier, and the need for capital investment is less.

number of hours a consultant can work may be limited to 2,000 hours annually. At $125 per hour, revenue per employee is limited to $250,000 per year. A company would need to decide whether this is sufficient revenue to sustain the business. A company may opt to develop their own unique software to offset the potential cap in service revenue. Service Industries can have an advantage over pure product businesses in that the ability to grow and diversify is easier, and the need for capital investment is less. Whether your company has a service or product focus, Revenue per Employee is key to measuring sales performance

â&#x20AC;&#x153;

compared to other companies in the industry. RPE is, by definition a company level metric.

258

Inside the Sessions—How to Benefit from Conference Presenters By Nicole Yeldell, SPHR

“

attending a big show there are so many topics and sessions to choose from, it can become overwhelming. One thing I do to make things easier to process is create a plan of attack. For instance, when attending the Industry Liaison Group National Conference in 2010, I knew I wanted to find out more about the OFCCP’s plans for the upcoming year, as well as the latest trends in affirmative action planning. So, I highlighted those

Don’t just look at the titles and the time slots that are most appealing, read more about the session and find out if you’re really going to be learning

the questions people want to know, and showing them how to execute a result. Not only have I spoken at tradeshows in the industry, including the SHRM Conference this past year, but I attend shows to learn more myself. When

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about the same thing advertised.

topics that met my needs, and then read through the presenter’s session descriptions. These descriptions are a great way to find out more about what the presenter has in store. Don’t just look at the titles and the time slots that are most appealing, read more about the session

www.berkshireassociates.com and find out if you’re really going to be learning about the same thing advertised. Another tip when looking to attend sessions is to try and take part in those that offer execution techniques, and not just an overview. Yes, overviews are sometimes necessary, but it is those presentations that offer best-practices techniques and strategies for application that will make the most impact. As a presenter, I am determined to always provide attendees with a great experience, giving them something to walk out the door with to apply to their profession. That’s what you want in a presenter, not someone who is going to throw their products or services at you, but who is genuinely excited to help you better your profession by providing information you can use. If you attend a presentation that leaves you empty, make sure you fill out the evaluations and share your feedback. Also, don’t be afraid to approach the presenter after the session to ask more detailed questions. Many times presenters can’t get into too many specifics based on time restrictions. Most speakers would be happy to sit down with you and discuss the presentation in more detail pertaining specifically to your needs.

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Take advantage of the knowledge and expertise waiting to be shared with you at these industry conferences, and do so strategically, mapping out the best sessions for your needs. That’s what we are here for as speakers, to help you grow. And the best part of speaking to such great professionals is as speakers we always walk away learning something new as well.

260

Inside the Booth—How Berkshire Works to Serve You By Berkshire Associates

Is what you are being told true? If it sounds too good to be true, it almost always is. Look for a demonstrable track record of successfully serving companies like yours.

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way. Which exhibitors are worth spending time with? How can you know you are getting good and accurate information? How do you determine if you are being educated or merely sold to? Let me offer a few suggestions.

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Conclusion Now that you’ve flipped through all the pages of Just a Good Read for HR, don’t stop there! It’s time to make sure you have access to future versions of this book, and the many other free HR resources available through Berkshire Associates. To make sure you get your copy of the next issue, please request it here. Also, pass along Just a Good Read. Share this with a colleague by clicking here. In addition to our dedication to keeping HR professionals informed, Berkshire also provides expert guidance on an array of human resources regulatory requirements. Since 1983, Berkshire has helped thousands of companies navigate the complexities of HR processes and procedures. Our consultants are renowned industry experts who are available to help you in the areas of affirmative action, applicant management, compensation management, workforce planning, diversity, and professional training. Find out where Berkshire can help by calling us at 800.882.8904 or email bai@berkshireassociates.com.

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8924 McGaw Court Columbia, MD 21045 P. 410.995.1195 F. 410.995.1198 bai@berkshireassociates.com www.berkshireassociates.com

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