Healthcare HR Metrics Trends & Taking Action on Data

Transcription

1 Saratoga Healthcare HR Metrics Trends & Taking Action on Data June 18, 2014

2 Agenda for today Overview of the analytics measurement curve HR Metrics Tool trends Ensuring the successful assimilation and retention of new hires 2

3 The Workforce Intelligence Maturity Curve Build Process and Governance Pilot Automate and Globalize High What is likely to happen and how can we be better prepared? 4 Predictive solutions Predictive Analytics Workforce Planning Measurement Maturity Why did it happen and how/where can we improve? 3 Linkage models & advanced survey analytics Workforce Surveys Low What happened? 1 What happened and how do we compare on a defined set of metrics? Ad hoc metrics and reports 2 Descriptive benchmarking & dashboards Executive Dashboards Metrics/ Benchmarking Low Utilization of Workforce Data High 3

4 2013 ASHHRA HR Metrics Tool Survey About the HR Metrics Tool: Saratoga and ASHHRA have partnered to offer the HR Metrics Tool to enable ASHHRA members to benefit from Saratoga's expertise in workforce, HR measurement, and knowledge of the healthcare industry and obtain relevant benchmarks for critical metrics Data collection ran from January to April, 2013, and all data reflect calendar year 2012 Every participating organization has access to their individual performance report detailing their responses for all metrics against aggregate benchmarks via the online site Organization-specific results are confidential; Saratoga does not share individual performance reports with other HR Metrics Tool participants Participants have access to benchmarks online for 21 metrics across multiple regions, sizes, scope of submission and teaching/ non teaching facility classifications Benchmarks represent data from 115 organizations The ASHHRA HR Metrics Tool benchmark database represents: Over 300,000 employees Organizations from all US geographical regions 4

5 ASHHRA HR Metrics Tool Members Current participating members include: Agnesian Healthcare Akron Childrens Hospital Beaufort Memorial Hospital Berger Health System Blessing Health System Boone County Hospital Capital Region Medical Center Cedars Sinai Medical Center Children's Hospital of Wisconsin Childrens Medical Center - Dallas Children s of Alabama Civista Medical Center Covenant HealthCare Crozer Keystone Health System CKHS - Crozer Chester Medical Center CKHS - Delaware County Memorial Hospital CKHS - Taylor Hospital CKHS - Springfield Hospital Driscoll Children s Hospital and Health System East Alabama Medical Center Fairfield Medical Center FHN Memorial Hospital Floyd Memorial Hospital Fremont Area Medical Center Georgetown Hospital System Golden Valley Memorial Healthcare Good Samaritan Hospital Great River Health Systems, Inc. Guadalupe Regional Medical Center Guthrie Health Hannibal Regional Healthcare System Harnett Health System Health First Holy Spirit Health System HSHS - St. Johns Hospital HSHS - St. Marys Hospital - Decatur Huntington Hospital Indiana Regional Medical Center Kadlec Regional Medical Center Kootenai Health Lakeland Regional Health System Licking Memorial Health Systems Lutheran Healthcare Martin Health System Mary Greeley Medical Center Mary Lanning Healthcare Maury Regional Medical Center Mercy Health System Meritus Health, Inc. Minnesota Gastroenterology Mountain States Health Alliance Mt. Graham Regional Medical Center MUSC Physicians Nanticoke Health Services Northeast Georgia Health System Northern Westchester Hospital Ozarks Medical Center Port Huron Hospital Princeton Community Hospital Rady Children s Hospital San Diego Rapid City Regional Hospital Regina Medical Center Regions Hospital Ridgeview Medical Center RML Specialty Hospital Sarah Bush Lincoln Health Center Sauk Prairie Memorial Hospital & Clinics Schneck Medical Center Seattle Cancer Care Alliance Signature Healthcare St. Francis Hospital St. Mary's Good Samaritan, Inc. Stormont-Vail Healthcare Tallahassee Memorial HealthCare, Inc. Texas Children's Hospital The Childrens Medical Center Thibodaux Regional Medical Center UMass Memorial Medical Center Union Hospital Clinton Union Hospital Inc. Unity Health System University of Missouri Health Care UT Southwestern Medical Center West Virginia University Hospitals Western Maryland Health System Weston County Health Services Wheaton Franciscan Healthcare White County Medical Center Wilson Memorial Hospital Yuma Regional Medical Center * Only organizations that indicated they are willing to release their names are included in this list 5

6 State of the workforce CEO perspective Based on results from s 16 th Annual Global CEO Survey: 70% of CEOs have plans to further cut costs in 2013; however, only 23% plan to cut back on headcount 58% are concerned about the availability of key skills as a threat to their business 69% felt they need to match pay of peers in order to retain top talent 50% are increasing their focus on workforce diversity and inclusion CEO Survey results indicate that organizations need to build a stronger employer brand, and rebuild trust with employees that has eroded over the past few years, by creating the right culture and behaviors 6

7 Key Trends ASHHRA HR Metrics Tool Trends Pivotal role retention is fast becoming a challenge for a number of organizations Labor costs are steadily increasing over time Healthcare costs continue to play a lead role in increasing benefit costs Hiring process quality has improved in comparison to prior years, but still continues to be a challenge for the sector Internal Hires percent is on par with the industry Diversity rates have dropped and are significantly lower than overall industry Investment in HR has continued to increase, rising by over 30% per person in 2012 While Voluntary Separation Rates overall slightly decreased for ASHHRA HR Metrics Tool participants, Separation Rate for the pivotal role (Nurses) is increasing over time - this could have significant impacts on long-term productivity Though lower than the All Industry levels, Average Labor and Benefits Costs per Employee has been steadily increasing within ASHHRA HR Metrics Tool members Similar to the broader market - as employers, ASHHRA HR Metrics Tool participants experienced an increase in Healthcare Investments HR Metrics tool participants observed a decrease in first year Turnover Rates, but are still higher than when compared to cross industry results, suggesting there is still room for improvement as it relates to hiring and onboarding practices. Interestingly, Time to Accept remained relatively stable from the prior year. ASHHRA HR Metrics Tool participants experienced an increase in their Internal Hire Rates over time, suggesting an emphasis on internal pipeline development ASHHRA HR Metrics Tool participants experienced a dip in the Diversity Rates in 2012, a pattern that is trending in the opposite direction from a number of other sectors HR Metrics Tool particpants have improved their HR Investments by over 30% per Employee in the last year, however Investments per Employee is still less than half the dollar amount, at the overall industry level 7

8 Highlights from the 2013 ASHHRA HR Metrics Tool Results

9 Interpreting Results Most graphs show: o 2010, 2011, and 2012 ASHHRA HR Metrics Tool medians o All Industry Saratoga National Database 2012 median represents benchmarks for data collected from over 300 organizations across 12 industries in the US The following graphic provides a quick guide on how to read the benchmarks contained in this report 10.0% All Industry Medians where applicable 9.0% 8.7% 8.9% 9.5% All Industry: 8.4% 8.0% 7.0% Voluntary Separation Rate 1 Where available, facility level data were used; otherwise, system level data were used to represent individual facilities. 9

10 Turnover Voluntary Separations 14% 13% 12% 11% 10% 9% 11.0% 11.2% 10.7% 10.1% 10.4% All Industry: 8.4% Voluntary Separation Rate Nurse Voluntary Separation Rate Voluntary Separation Rate = Total Voluntary Separations/ Regular Headcount Nurse Voluntary Separation Rate = Total Nurse Voluntary Separations/ Total Nurse Headcount Total Voluntary Separations The total number of non-contingent employees who voluntarily terminated from the organization during the survey period. Include regular retirements and employees taking early retirement packages. Exclude college interns who left the organization. Total Nurse Voluntary Separations The total number of Bedside Nurses who voluntarily terminated employment during the survey period. Bedside Nurses include: Direct Care RNs whose primary responsibility is direct patient care, including Bedside Nurses in an outpatient environment. Include Nurse Supervisors that have bedside care responsibilities. Exclude LPNs, nursing assistants CRNAs, nurse practitioners, head nurses, and nurse management. 10

11 Employee Engagement Measuring vs. Taking Action While the majority of organizations measure employee engagement, fewer follow through on taking action based on results Organizations will rely on HR to make investments to drive these talent initiatives in order to engage and retain employees Does your organization measure employee engagement? Are directors/managers required to develop an action plan for engagement of employees that report to them? No 14.0% Yes 86.0% No 59.8% Yes 40.2% 11

12 Labor Costs $120,000 $80,000 $69,218 $75,531 $76,998 All Industry: $101,566 $40,000 $11,124 $12,404 $13,306 All Industry: $17,176 $ Labor Cost per FTE Average Benefits per Employee Labor Cost per FTE = (Total Benefit Costs + Regular Compensation Cost) / Regular FTE Average Benefits per Employee = Total Benefit Costs / Regular Headcount Regular Compensation Cost The total compensation costs incurred during the survey period for non-contingent employees. Include base and overtime pay, pay premiums, commissions, cash performance related bonuses, sign-on and referral bonuses, profit sharing, payments for time not worked, and severance pay. Exclude any stock or employee stock purchase plan (ESPP) payouts and deferred compensation. Total Benefit Costs The total employer amount paid during the survey period for non-contingent employees for legally required payments, retirement and savings plan payments, life insurance and death benefit payments, healthcare benefit payments, and miscellaneous benefits. 12

13 Healthcare Costs $10,000 $9,000 $9,472 All Industry: $9,350 $8,000 $7,000 $8,462 $7,925 $6, Healthcare Costs per Active Employee Healthcare Costs per Active Employee = Employer Contribution Towards Healthcare Coverage for Active Employees / Employees Participating in Healthcare Plan Employer Contribution Towards Healthcare Coverage for Active Employees The total employer premiums paid during the reporting period for the following plans: insured medical, prescription drug, dental, flexible spending, vision, employee assistance programs (EAPs), and employee wellness, also include any administrative costs. For self-insured plans, include the cost of claims paid out, stop-loss premiums and administration fees. Subtract any stop-loss claims that were reimbursed to the employer. Employees Participating in Healthcare Plan The total number of employees, excluding dependents, participating in employer sponsored medical plans at the end of the survey period. If your participation rate is 100%, this number should equal your "Regular Headcount" data entry element. Exclude dependents and employees receiving COBRA. 13

14 Quality of Hire First Year of Service Turnover 35% 30% 28.8% 29.1% 26.4% 25% 23.4% All Industry: 22.6% 20% 20.8% 19.6% 15% First Year of Service Turnover Rate Nurse First Year of Service Voluntary Separation Rate First Year Turnover Rate = Total Turnover with 0 to 1 Year of Service / Regular Headcount with 0 to 1 Year of Service Nurse First Year of Service Voluntary Separation Rate = Total Nurse Voluntary Separations with 0 to 1 year of service / Nurse Headcount with 0 to 1 Year of Service Total Turnover with 0 to 1 Year of Service The total number of non-contingent employees with less than one year of service who voluntarily or involuntarily terminated employment during the survey period. Exclude college interns who left the organization. Total Nurse Voluntary Separations with 0 to 1 Year of Service The total number of Bedside Nurses with up to one year of service who voluntarily terminated employment during the survey period. Bedside Nurses include: Direct Care RNs whose primary responsibility is direct patient care, including Bedside Nurses in an outpatient environment. Include Nurse Supervisors that have bedside care responsibilities. Exclude LPNs, nursing assistants CRNAs, nurse practitioners, head nurses, and nurse management. 14

15 Taking Action: First Year Turnover

16 Quality of Hire - First Year of Service Turnover Summary Purpose: Captures the quality produced by the talent acquisition function and helps assess quality of hire Assesses the return on investment in the recruiting, orientation, and initial training investments being made, as well as any relative insights on the desirability of the organization as an employer Employees that leave in the first year - either voluntarily or via dismissal - represent a breakdown of one part of the staffing and on-boarding process to either find the right candidate, establish the right fit, onboard properly, etc. First Year Turnover is typically considered a more pertinent measure than 90 Day Turnover for the hospital industry due to the lengthy training and on-boarding for nurses Formula & Definitions: Formula - First Year Turnover Rate = Total Turnover with 0 to 1 Year of Service / Regular Headcount with 0 to 1 Year of Service Total Turnover with 0 to 1 Year of Service - The total number of non-contingent employees with less than one year of service who voluntarily or involuntarily terminated employment during the survey period. Exclude college interns who left the organization. 16

17 Quality of Hire - First Year of Service Turnover Case Study Hospital System XYZ noticed that their first year turnover was higher than the industry benchmark, losing almost one third of new hires each year HR Analysts investigated the data further and found that: Most facilities had high first year turnover, but 2 had rates in excess of 40% Nurses were more likely to leave in the first year than other employees They decided to re-evaluate their onboarding process and heard anecdotal feedback that: The orientation program was not very effective Nurses were having trouble navigating the first days on the job, and assimilating into the organization over the first 6 months 17

18 Quality of Hire - First Year of Service Turnover Case Study (cont.) After implementing a few quick wins, they wanted to gather additional evidence on the new hire experience to determine the programmatic interventions Saratoga helped the system: Develop a 30-day and 6-month survey questionnaire for new hires Administer the survey via the web Identify the top drivers of turnover within the first year based on survey results Based on the survey results, they implemented a buddy program to help new hires through the onboarding process The following year, first year turnover had decreased by 25%, saving the organization recruiting, orientation, and training costs Significant savings experienced through focus on one metric 18

19 Taking Action: Labor Costs per FTE

20 Labor Investment Labor Costs per FTE Summary Purpose: Provides insight into the competitiveness and cost effectiveness of an organization's compensation and benefit package Evaluates both level of compensation per individual as well as workforce structure/leverage model. HR has influence over the metric by looking at strategy of compensation/rewards, staffing, performance management, etc. Formula & Definitions: Formula - Labor Cost per FTE = (Total Benefit Costs + Regular Compensation Cost) / Regular FTE Regular Compensation Cost - The total compensation costs incurred during the survey period for non-contingent employees. Include base and overtime pay, pay premiums, commissions, cash performance related bonuses, sign-on and referral bonuses, profit sharing, payments for time not worked, and severance pay. Exclude any stock or employee stock purchase plan (ESPP) payouts and deferred compensation. Total Benefit Costs - The total employer amount paid during the survey period for non-contingent employees for legally required payments, retirement and savings plan payments, life insurance and death benefit payments, healthcare benefit payments, and miscellaneous benefits. 20

21 Labor Investment Labor Costs per FTE Case Study Hospital 123 noticed that their labor costs were over budget. They reviewed the industry trends and also found that they were much higher than benchmark. HR Analysts partnered with Finance and did a deeper dive into the data. They found that facilities had a great dependence on overtime. In fact, each facility could afford to hire approximately ~10 full time permanent employees based on the amount of overtime they had spent over the last six months. 21

22 Labor Investment Labor Costs per FTE Case Study (cont.) The organization leveraged contract workers which significantly helped reduce the cost of labor. In addition, this had a positive impact on employee morale/burn out rate. After 8 months, they found that the exercise allowed them to save on costs significantly. It also gave HR an opportunity to partner with Finance to improve profitability. Data strengthens the relationship with finance to improve profitability 22

23 Q&A 23

24 For more information, please contact: Nik Shah, Principal Chris Dustin, Director

25 Saratoga The Evolution of What We Do Metrics, Benchmarking & Training Dashboards/Scorecards Employee Engagement Exit Survey/Turnover Analysis Largest global database of metrics Workforce & HR department metrics Approximately 2,000 clients globally Well developed industry consortia across 8 major sectors Measurement programs in the US, Europe, Latin America, and Asia Metrics 101 and Metrics 200 courses Custom training sessions Dates and locations available at HR/Workforce dashboard content Dashboard prototypes & mock-ups Roadmaps and technology planning Data assessments Roll out and communication planning Integration with business intelligence systems Turnkey capability to design, collect and analyze employee engagement survey data Global deployment ranging from 100 to 100,000 employees in any language Robust web-based data collection, reporting and action-planning tools Linkage to workforce and business outcomes Manager level reporting and training to drive change and organizational improvement Turnkey, technology driven process to collect, aggregate and report exit survey data Established processes to collect survey results from employees pre or post departure Establishes re-recruitment opportunities and alumni network Link survey results to turnover metrics/benchmarks to establish size and scope of issues New Joiner/Onboarding Evidence based framework to assess and improve the new joiner experience Unique survey at critical 60 /180 days to gauge orientation and assimilation processes Identify root causes of new joiner turnover Improve the orientation, engagement and productivity of new employees HR Voice of Customer & X- Ray Analysis HR department customer satisfaction survey Full scope activity analysis/time & motion study Integrated HR department analysis - department benchmarking, customer satisfaction and activity analysis Predictive Analytics Statistical modeling of employee, workforce, customer and business data Output helps clients proactively manage human capital initiatives and determine their impact on operations and business performance Delivery of client focused predictive models that assess attributes of high performers, retention risk, quality of hire source, etc. Additional Offerings Financial Fitness Survey Diversity survey/benchmarking Talent assessment Conjoint analysis IFRS surveys Customer engagement Expatriate benchmarking Wide array of custom surveys Ability to provide technology infrastructure as an in-house solution 25

26 PricewaterhouseCoopers LLP. All rights reserved. In this document, refers to PricewaterhouseCoopers LLP, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.