achieving roi through the integration of job descriptions and performance reviews: the olathe health...

Achieving ROI with Integrated Job Descriptions

and Performance ReviewsImproving HR Operations through Agile Software:

The Olathe Health System StoryNovember 3, 2011

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

Business Problems

• Word Documents• Scoring Methodology• Inconsistency • Compliance• Historical Versions• No Reporting Capabilities

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

Steering Committee Research/Solutions

• Designed a new job description & performance review template and created an enhanced scoring system

New Job Description/Review Template

• 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

• 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.)

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.

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.

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

Solution

• A cost analysis was completed to determine the ROI

*Soft and hard costs were both considered in predicting the total cost savings

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

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

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

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%

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

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

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

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)

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

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

System Benefits – Job Descriptions

• Consistent language– Position and physical requirements

• Organization-wide and Departmental Duties/Competencies

• Position/Unit Specific Duties/Competencies

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

Accurate Up to Date Job Descriptions System Benefits – Job Descriptions

Enlist Managers to collaborate, see/approve all changed items

Flexible Tracking of QualificationsSystem Benefits – Job Descriptions

Enlist Managers to collaborate, see/approve all changed items

Online/Printed JDs Matched our TemplateSystem Benefits – Job Descriptions

System Benefits – Performance Reviews

• No paper• Consistent scoring• Auto-calculation of scores• Access from home• HR’s ability to track status of all reviews

Job Descriptions Automatically “Ripple Through”to the Performance Review

System Benefits – Performance Reviews

Compliance – View/Sign off on Job Description/AcknowledgementsSystem Benefits – Performance Reviews

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

Easy-to-follow “To Do” listsSystem Benefits – Performance Reviews

Graphs that show progress and average scores

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

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

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

Questions for the Panelists?

Contact the Presenters

Darcy Pughdarcy.pugh@olathehealth.org

Don Bermandberman@hrtms.com

Bill Rostbrost@hrtms.com

763/249-8050www.hrtms.com

Thank You

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