www.pwc.com/saratoga
PwC Saratoga
Healthcare HR Metrics Trends &
Taking Action on Data
PwC
Agenda for today
•
Overview of the analytics measurement curve
•
HR Metrics Tool trends
•
Ensuring the successful assimilation and retention of new hires
The Workforce Intelligence Maturity Curve
Measurement Maturity Ad hoc metrics and reports 1 2 3 4Linkage models & advanced survey analytics
Predictive solutions
What happened?
What happened and how do we compare on a defined set of metrics?
Why did it happen and how/where can we improve?
What is likely to happen and how can we be better prepared?
Low High
Low High
Utilization of Workforce Data
Descriptive benchmarking & dashboards Metrics/ Benchmarking Executive Dashboards Workforce Planning Predictive Analytics Workforce Surveys Automate and Globalize
Build Process and Governance
PwC
2013 ASHHRA HR Metrics Tool Survey
About the HR Metrics Tool:
• PwC Saratoga and ASHHRA have partnered to offer the HR Metrics Tool to enable ASHHRA members to benefit
from PwC 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; PwC 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
ASHHRA HR Metrics Tool Members
• 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
PwC
State of the workforce – CEO perspective
Based on results from PwC’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
Key Trends
ASHHRA HR Metrics Tool Trends
Pivotal role retention is fast becoming a challenge for a number of organizations
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
Labor costs are steadily increasing over time
Though lower than the All Industry levels, Average Labor and Benefits Costs per Employee has been steadily increasing within ASHHRA HR Metrics Tool members
Healthcare costs continue to play a lead role in increasing benefit costs
Similar to the broader market - as employers, ASHHRA HR Metrics Tool participants experienced an increase in Healthcare Investments
Hiring process quality has improved in comparison to prior years, but still continues to be a challenge for the sector
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.
Internal Hires percent is on par with the industry
ASHHRA HR Metrics Tool participants experienced an increase in their Internal Hire Rates over time, suggesting an emphasis on internal pipeline development
Diversity rates have dropped and are significantly lower than overall industry
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
Investment in HR has continued to increase, rising by over 30% per person in 2012
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
PwC
Highlights from the 2013 ASHHRA
HR Metrics Tool 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
Interpreting Results
All Industry Medians
where applicable
1
Where available, facility level data were used; otherwise, system level data were used to represent individual facilities.
8.7% 8.9% 9.5%
7.0%
8.0%
9.0%
10.0%
2010
2011
2012
Voluntary Separation Rate
PwC 11.0% 10.7% 10.1% 10.4% 11.2% 9% 10% 11% 12% 13% 14% 2010 2011 2012
Voluntary Separation Rate Nurse Voluntary Separation Rate
Turnover
Voluntary Separations
10 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.
Employee Engagement
Measuring vs. Taking Action
Yes
86.0%
No
14.0%
Does your organization measure
employee engagement?
Yes
40.2%
No
59.8%
Are directors/managers required to develop
an action plan for engagement of employees
that report to them?
•
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
PwC
Labor Costs
12 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. $69,218 $75,531 $76,998 $11,124 $12,404 $13,306
$40,000
$80,000
$120,000
2010
2011
2012
Labor Cost per FTE Average Benefits per Employee
All Industry: $101,566
Healthcare Costs
$8,462 $7,925 $9,472$6,000
$7,000
$8,000
$9,000
$10,000
2010
2011
2012
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.
PwC
Quality of Hire
First Year of Service Turnover
14 28.8% 29.1% 26.4% 20.8% 23.4% 19.6%
15%
20%
25%
30%
35%
2010
2011
2012
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.
PwC
Quality of Hire - First Year of Service Turnover
Summary
16
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.
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
PwC
Quality of Hire - First Year of Service Turnover
Case Study (cont.)
18
After implementing a few quick wins, they wanted to gather additional evidence on
the new hire experience to determine the programmatic interventions
PwC 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
PwC
Labor Investment – Labor Costs per FTE
Summary
20
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.
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.
PwC
Labor Investment – Labor Costs per FTE
Case Study (cont.)
22
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
PwC
For more information, please contact:
Nik Shah, Principal
nik.shah@us.pwc.com
703-918-1208
Chris Dustin, Director
chris.a.dustin@us.pwc.com
312-298-4186
PwC Saratoga
The Evolution of What We Do…
Metrics, Benchmarking & Training • 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
www.meetpwc.com/saratogaworkshops
Dashboards/Scorecards • HR/Workforce dashboard
content
• Dashboard prototypes & mock-ups
• Roadmaps and technology planning
• Data assessments
• Roll out and communication planning
• Integration with business intelligence systems
Employee Engagement
•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
Exit Survey/Turnover Analysis • 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
www.pwc.com/saratoga
© 2014 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
