Achieving ROI with Integrated Job Descriptions and Performance
Achieving ROI with Integrated Job Descriptions and Performance Reviews Improving HR Operations through Agile Software: The Olathe Health System Story November 3, 2011 © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
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 © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
Business Problems • • • Word Documents Scoring Methodology Inconsistency Compliance Historical Versions No Reporting Capabilities © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
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 © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
Steering Committee Research/Solutions • Designed a new job description & performance review template and created an enhanced scoring system © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
New Job Description/Review Template © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
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 © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
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. ) © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
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. © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
Long-term Objectives Job 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 positionspecific requirements such as JD sign-off, certifications, etc. © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
The Search for a Solution • Initial results of our research into Talent Management products on the market – Inflexible – unable to easily adopt our newlydeveloped templates and processes – Overpriced – costs were out of bounds for our foreseeable budgets • Found HR TMS and proceeded to pursue implementing our solution © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
Solution • A cost analysis was completed to determine the ROI *Soft and hard costs were both considered in predicting the total cost savings © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
ROI Calculations - Assumptions Number of employees 2, 475 Number Assigned Dir’s & up Number Assigned to Mgr’s Total 2, 475 Total Copies (Mgr, Employee, HR) 3 Pages per 561 Evaluations Average pages per evaluation 8 # Hospital employees Minutes to complete current evaluation 60 Minutes to complete new evaluation © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com 1, 819 584 2, 475 6 1, 989 40
ROI Calculation – Current Annual Cost Item 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 Current Annual Cost $137, 203. 94 $141, 361. 94 © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
ROI Calculation – New Annual Cost Item Ea. Amount Paper – 1 sheet $0. 0 $0 Toner – 1 print $0. 0 $0 $36, 000 Software Subscription 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 New Annual Cost $89, 018. 99 $125, 018. 99 © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
ROI Calculation Item 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 3 -year ROI 5 -year ROI 28 months 127% 212% © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
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 © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
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 © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
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 © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
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) © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
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 © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
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 © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
System Benefits – Job Descriptions • Consistent language – Position and physical requirements • Organization-wide and Departmental Duties/Competencies • Position/Unit Specific Duties/Competencies © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
System Benefits – Job Descriptions Reusable Reference Job Descriptions Ability to create reference (re-usable) job descriptions that apply to many jobs: Registered Nurse in Surgery vs. ER © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
System Benefits – Job Descriptions Accurate Up to Date Job Descriptions Enlist Managers to collaborate, see/approve all changed items © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
System Benefits – Job Descriptions Flexible Tracking of Qualifications Enlist Managers to collaborate, see/approve all changed items © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
System Benefits – Job Descriptions Online/Printed JDs Matched our Template © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
System Benefits – Performance Reviews • • • No paper Consistent scoring Auto-calculation of scores Access from home HR’s ability to track status of all reviews © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
System Benefits – Performance Reviews Job Descriptions Automatically “Ripple Through” to the Performance Review © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
System Benefits – Performance Reviews Compliance – View/Sign off on Job Description/Acknowledgements © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
System Benefits – Performance Reviews Reporting tools that allow you to see all aspects at a glance. Aids in assuring Joint Commission requirements are being met © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
System Benefits – Performance Reviews Easy-to-follow “To Do” lists Graphs that show progress and average scores © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
Results • 1 st 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 © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
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 © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
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 © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
Questions for the Panelists? © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
Contact the Presenters Darcy Pugh darcy. pugh@olathehealth. org Don Berman dberman@hrtms. com Bill Rost brost@hrtms. com 763/249 -8050 www. hrtms. com © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
Thank You © 2011 HR TMS, Inc. All Rights Reserved www. hrtms. com
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