achieving roi through the integration of job descriptions and performance reviews: the olathe health...
Post on 20-Oct-2014
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DESCRIPTION
Darcy Pugh, Compensation Analyst at Olathe Health System will share the Olathe Health System story and how, after identifying their needs and implementing an agile online solution, Olathe was able to achieve operational improvements and reach a positive ROI.TRANSCRIPT
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Achieving ROI with Integrated Job Descriptions
and Performance ReviewsImproving HR Operations through Agile Software:
The Olathe Health System StoryNovember 3, 2011
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Olathe Health System, Inc.
• Located in the Kansas City Metro Area• Two Acute Care Hospitals• Over 30 Primary Care and Specialty Clinics• Over 2,500 Employees• Over 600 Job Descriptions
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Business Problems
• Word Documents• Scoring Methodology• Inconsistency • Compliance• Historical Versions• No Reporting Capabilities
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Identifying Needs and Areas for Improvement at Olathe
• We believed we could benefit by integrating Performance Reviews with Job Descriptions and bringing them online
• Formed a steering committee to evaluate the situation and research solutions
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Steering Committee Research/Solutions
• Designed a new job description & performance review template and created an enhanced scoring system
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New Job Description/Review Template
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Steering Committee Research/Solutions
• Researched options for moving to an online tool– Cost savings and increased efficiencies were key
to investing in an online system– Created a justification case
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Steering Committee Research/Solutions
• Identified– Short term opportunities for improvement– Long term objectives
*Management had concerns about employees that didn’t have routine access to a computer (e.g. Nutritional Care, etc.)
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Short-term Opportunities
Job Descriptions• Difficult to update –
Changing Company Objectives would result in editing over 600 Word documents
• Too long – Some jobs had over 23 measures
• Inconsistent language• No historical versions
Performance Reviews• Paper process• Incomplete reviews• 90-day Review different
from Annual Review• No ability to track
employee acknowledgements, e.g. confidentiality statements, etc.
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Long-term ObjectivesJob Descriptions
• Better able to meet Joint Commission recommendations and internal quality through online integration
• Create and sustain a high quality JD database– Thorough– Consistent– Consolidated
Performance Reviews• Increase Performance
Review timeliness and thoroughness by making the process easier
• Drive a consistent scoring process throughout the organization
• Improve tracking of corporate and position-specific requirements such as JD sign-off, certifications, etc.
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The Search for a Solution
• Initial results of our research into Talent Management products on the market– Inflexible – unable to easily adopt our newly-
developed templates and processes– Overpriced – costs were out of bounds for our
foreseeable budgets
• Found HR TMS and proceeded to pursue implementing our solution
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Solution
• A cost analysis was completed to determine the ROI
*Soft and hard costs were both considered in predicting the total cost savings
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ROI Calculations - Assumptions
Number of employees 2,475 Number Assigned Dir’s & up 1,819
Number Assigned to Mgr’s 584
Total 2,475 Total 2,475
Copies (Mgr, Employee, HR) 3 Pages per 561 Evaluations 6
Average pages per evaluation 8 # Hospital employees 1,989
Minutes to complete current evaluation 60 Minutes to complete new
evaluation 40
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ROI Calculation – Current Annual CostItem Ea. Amount
Paper – 1 sheet $0.035 $2,079.00
Toner – 1 print $0.035 $2,079.00
Hard Costs Total $4,158.00
Dir’s and up cost to complete per minute $0.99 $112,854.88
Mgr’s cost to complete per minute $0.59 $20,807.92
Entering per minute $0.48 $1,188.00
Filing per minute $0.34 $841.50
561 Validation printing $0.07 $835.38
561 Validation Filing $0.34 $676.26
Soft Costs Total $137,203.94
Total Current Annual Cost $141,361.94
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ROI Calculation – New Annual CostItem Ea. Amount
Paper – 1 sheet $0.0 $0
Toner – 1 print $0.0 $0
Software Subscription $36,000 $36,000
Hard Costs Total $36,000.00
Dir’s and up cost to complete per minute $0.99 $75,236.59
Mgr’s cost to complete per minute $0.59 $13,782.40
Entering per minute $0 $0
Filing per minute $0 $0
561 Validation printing $0 $0
561 Validation Filing $0 $0
Soft Costs Total $89,018.99
Total New Annual Cost $125,018.99
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ROI CalculationItem Amount
Current Annual Costs $141,361.94
New Annual Costs $125,018.99
Expected Annual Savings (with added capabilities) $14,831.31
ROI Calculation - $14,831.31 annual total cost reductions multiplied by the term then divided by a $35,000 implementation fee (no discounting for net present value)
Payback period 28 months3-year ROI 127%5-year ROI 212%
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Non-quantifiable Benefits
• Zero inter-office mail• Managers time regarding followup of signatures
& additional copies• Ability to set personal goals and work toward
career-pathing
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Non-quantifiable Benefits
• Easy anytime access to historical information• Easily reports non-completions of performance
reviews and 561 evaluations• Unlimited ability to create new forms to
streamline any tracking process
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Solution
• Based on estimated cost savings, management made the decision to purchase both Job Description Management and Performance Review software to meet our business needs
*They also like the fact this solution would benefit all employees, not just clinical or admin
• The final phase will be to add Compensation software in the near future
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Implementing the Solution
• With one HR person working consistently on the implementation, it took approximately 3 months to design and configure the system and migrate our 600+ job descriptions
• We did meet our June 1, 2011 go-live date• IT resource requirements were minimal
(about 20 hours total time)
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Implementing the Solution
• Prior to go-live, HR conducted four 45-minute “Lunch & Learn” training sessions for supervisors and above
• HR also developed short instructional videos and placed them on the company intranet
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Implementing the Solution – Lessons Learned
• Had to field lots of questions from Managers who did not attend training or watch videos
*Would suggest these to have been mandatory!
*Would allocate at least two additional weeks to have fine-tuned the training and offered additional sessions
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System Benefits – Job Descriptions
• Consistent language– Position and physical requirements
• Organization-wide and Departmental Duties/Competencies
• Position/Unit Specific Duties/Competencies
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Reusable Reference Job DescriptionsSystem Benefits – Job Descriptions
Ability to create reference (re-usable) job descriptions that apply to many jobs:
Registered Nurse in Surgery vs. ER
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Accurate Up to Date Job Descriptions System Benefits – Job Descriptions
Enlist Managers to collaborate, see/approve all changed items
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Flexible Tracking of QualificationsSystem Benefits – Job Descriptions
Enlist Managers to collaborate, see/approve all changed items
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Online/Printed JDs Matched our TemplateSystem Benefits – Job Descriptions
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System Benefits – Performance Reviews
• No paper• Consistent scoring• Auto-calculation of scores• Access from home• HR’s ability to track status of all reviews
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Job Descriptions Automatically “Ripple Through”to the Performance Review
System Benefits – Performance Reviews
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Compliance – View/Sign off on Job Description/AcknowledgementsSystem Benefits – Performance Reviews
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ReportingSystem Benefits – Performance Reviews
Reporting tools that allow you to see all aspects at a glance. Aids in assuring Joint Commission requirements are being met
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Easy-to-follow “To Do” listsSystem Benefits – Performance Reviews
Graphs that show progress and average scores
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Results
• 1st Annual Review Cycle – 6/5/11 to 8/19/11• 43% of employees performed self reviews• Surveyed Directors about what they liked best– The paperless process– Automatic calculation of scores– The manager approval process
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Results
• Management’s embrace of online system• Managers have quick and easy access to their
job descriptions• Easy upload of scores into our Lawson HRIS
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Future Enhancements for OHSI
• With the flexibility to create additional forms, we plan on adding– progress notes so employees and managers can
track progress through the year– along with our basic employment contracts
• We plan to add the Compensation Planning Module to allow more flexibility and – reduce the time between manager reviews and
annual increases in paychecks
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Questions for the Panelists?
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Contact the Presenters
Darcy [email protected]
Bill [email protected]
763/249-8050www.hrtms.com
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Thank You