Using Lean Strategies
to Transform Your
Recruitment Process
Deb Vargovick
Lean Human Capital
March 19, 2015
Presented by Lean Human Capital
Sponsored by HealthcareSource
➜ Leader in healthcare talent management software partners with
leader in talent acquisition training and consulting to deliver advisory,
analytics and educational services
LHC services now exclusively available
through HealthcareSource
About Deb Vargovick
• A Lean, Sig Sigma certified Green Belt,
•
•
•
•
Recruitment professional.
Most of her career, led large, operational teams
for Fortune 500 organizations such as The Walt
Disney Company, The Gap, Borders Group Inc.
and Best Buy .
Most recently, led the Henry Ford Health
System’s Talent Acquisition team through a
centralization restructure and the introduction
of a new sourcing model.
Helped define the new organizational structure,
trained 30 recruiters on new processes, and
implemented a Lean program to continuously
assess and eliminate waste in the recruitment
process.
Result: Her team cut Time-to-Fill in half within
two years!
© 1997-2015, Lean Human Capital, LLC.
Today’s Labor Market
Market Conditions
Aging Population
65+ year old
population will
increase 50% by
20202
Sick Population
66.5% of adults in the
U.S. are overweight
and obese2
Decreased Supply of
Healthcare Professionals
The U.S. will
require 10-12
million new &
replacement
direct care
workers in 10
years1
New Population
32 million previously
uninsured patients
added by 20191
U.S. Population
demand for
Nurses will
exceed supply
by 1 million in
20203
Increased Demand for
Healthcare Professionals
By 2025, the
physician
shortage could
be as much as
25%1
Employment in
Healthcare is
projected to
grow 23% thru
20184
By 2020, 1 in 9
jobs in the U.S.
will be in
Healthcare5
➜ When Demand for Labor Drastically Exceeds Supply, you are at Financial Risk!
• Medicare Reimbursement—Not being able to hire Top Talent/quality people.
• Cost of Vacancy—Related to Turnover and use of agency/OT to cover shifts and fill positions.
Today’s Labor Market
34%
NOT LOOKING!
14% Seriously/Actively looking
20% Casually Looking
32 % “Listeners”/
Passively looking
➜ 14% are seriously/actively seeking a new position.
Top Talent:
➜ 20% are casually looking (a few hours now and then).
➜
Virtually zero unemployment rate.
➜ 32% are passively looking (if something comes along,
I’ll take a look at it). We call them Listeners!
➜
If they are unemployed, they will
quickly find employment.
➜
Everyone wants them.
➜
They need to be ‘recruited’
(even the top college grad’s).
➜ 34% are not looking.
➜ Source—Staffing.org, Bureau of Labor
A Proactive Talent Acquisition Strategy will
arguably be the most critical function within
your Health Care Organization during the
next decade!
Topics for Discussion
➜ Define/Measure
• Starts with Voice of the Customer
• Baseline Performance
➜ Analyze/Improve/Control
• Key Elements of Elite Recruitment
Organizations
➜ Developing a Management by Fact
Culture Passionate about Continuous
Improvement and Lifelong learning
➜ Quantify Return on Investment
What Is Lean/Six Sigma?



The core idea is to maximize customer
value while minimizing waste.
Simply, lean means creating more value
for customers with fewer resources.
A lean organization understands customer
value and focuses its key processes to
continuously increase it.




Six Sigma is about stopping defects
before they happen
Focus is on pleasing the customer and
eliminating defects most important to the
customer
Decisions made based on statistical
analysis of data
Dramatic, breakthrough improvement
Topics for Discussion
➜ Define/Measure
• Starts with Voice of the Customer
• Baseline Performance
➜ Analyze/Improve/Control
• Key Elements of Elite Recruitment Organizations
➜ Developing a Management by Fact Culture
Passionate about Continuous Improvement
and Lifelong Learning
➜ Quantify Return on Investment
Lean Journey starts with Voice of the Customer
What do Hiring Manager
and key stakeholders
expect from you?
Baseline Performance—
Can’t Manage What You Don’t Measure
VOC—“I want a cost effective recruitment solution
that provides high quality candidates as quickly and
efficiently as possible.”
Responsiveness
and Speed
Cost
Quality of Service
Efficiency and
Productivity
Quality of Hire
6 Key VOC Dimensions
➜ Responsiveness and Speed
➜ Process Efficiency
➜ Quality of Hire
➜ Cost
➜ Quality Service
➜ Staff Productivity
Foundation of Our Research
Lean Human Capital
Healthcare Community |
Recruitment Metrics Benchmark Study
350+ hospitals have participated in our Recruitment Metrics
Benchmark Study over the last 5 years.
Community | Benchmark Study Participants:
2010 - 2015
Responsiveness
Why Is Speed So Important?
Reduce TTF | CDV Positions
Why?
➜ Reduce Cost of Vacancy!
➜ Improve Customer Satisfaction
(hiring manager, new hire, non-hired).
➜ Reduce Turnover
(and cost associated with it)
➜ Patient Safety/Satisfaction
➜ Employee Morale/Engagement
Story Behind the #’s
Overall Healthcare Benchmark
75% < 60 Days
25 days
Ave TTF
25% ≥ 60 Days
47 days
Disconnect?
“Perception versus Reality”
Organizations underestimate time
required to pipeline and source
candidates for difficult to fill positions.
117 days
Process Efficiency
Why Is It So Important?
Staffing Process Efficiency
Supply Chain Management
Why is a Lean Staffing Process so important?
➜ Thousands of hours are wasted on non-value
added, non-revenue producing staffing activities.
➜ The time, money and resources deployed to
handle ‘waste’ strangles your ability to work on
value added activities like identifying qualified
candidates for critical/difficult/visible (CDV)
positions to reduce Cost of Vacancy and improve
patient safety & satisfaction
Process Efficiency
Overall BM—2014
Unqualified
Candidates!
WASTE!
NUMBER OF APPLICATIONS
CANDIDATES ROUTED
FOR CONSIDERATION
45,312
24 to 1
11,517
6.1 to 1
Wait Time!
OFFERS
HIRES
90%
2098
1,888
Reducing Cost (Wait/Waste) Process
Efficiency
Case Study
Baseline
Median BM
Current
35/9.3/0.87
24/6.1/0.9
20/5/0.94
# of applications received (dispositioned)
66,080
45,312
37,760
# of candidates routed to Hiring Mgr. for consideration
17,558
11,517
9,440
# of offers extended to Candidates
2,170
2,098
2,009
Hires
1,888
1,888
1,888
Efficiency Analysis
Recruiter Time Savings
Compared to Low
25%
# Hours Saved by Recruiters dispositioning unqualified applicants
(assuming review 75% of resumes @ 2 minutes per resume).
708
Hiring Manager Time Savings
# Hours Saved by Hiring Managers Reviewing Resumes
(assuming 3 minutes per resume)
# Hours Saved by Hiring Managers Interviewing Candidates
(assuming 50% are interviewed and each interview takes 1 hour)
Compared to Low 25%: Takes 5163 LESS hours to fill the same amount of
positions (1888).
➜ Hiring Managers: 4465 LESS hours
➜ Recruiters: 708 LESS hours
406
4059
Cost Metrics
Being Fiscally Responsible
Being Fiscally Responsible
Why is it important?
➜ Show how you are contributing to one
of the top 3 initiatives of your health
system
➜ Cost savings will allow you to invest $
in value added resources (training,
sourcing tools, etc.)
Story Behind the #’s
➜ Cost of Hire:
➜ Other Recommendations:
• Top 25%: $496
• Calculate Cost Savings:
• Mean—$991
• By improving process efficiency
• Low 25%: $1123
• Reducing TTF for CDV positions
➜ Recruitment Cost Ratio:
• Reducing turnover
• Mean: 3.5% (compare this to RPO
of search firm %)
Definitions
• Cost of Hire—Total Internal and External Recruitment Costs associated with sourcing,
recruiting and staffing activities to fill open positions DIVIDED BY the Total Hires.
• Recruitment Cost Ratio—Total Internal and External Recruitment Costs associated with
sourcing, recruiting and staffing activities to fill open positions DIVIDED BY the anticipated
first-year (or annualized) financial compensation offered to and accepted by new calendar
year non-physician hires.
Reducing Direct Costs — Turnover
Case Study
Lean Human Capital—Turnover Calculator
Assumptions
# of employees in the position
Turnover %
Total number of replacement employees
Average annual compensation
Average tax and benefit cost as % of salary (25% is average)
Average loaded hourly admin labor costs
Average loaded hourly HR/recruiter labor costs
Average loaded hourly hiring manager labor costs
Average time spent by HR manager for exit interviews
Average time spent by admin for termination processing
Separation pay (# of weeks offered)
Average # of applications received to fill 1 position
Average time spent dispositioning applicants
Average # of candidates Pre-screened by Recruiting/HR
Average time spent by HR Phone/Interview candidates
Cost pre pre-assessment test (manpower)
Average # of candidates interviewed by hiring manager to fill 1
position
Average time spent by hiring manager interviewing candidates
Average time spent by HR to creating/deliver/processing offers
Cost per source of hire (media, posting, agency, etc.)
Background check/drug/medical exam costs per hire
Average candidate travel costs per hire
Moving expenses
Post offer onboarding admin expenses
Average sign on bonus per hire
# of hours spent in formal training/onboarding per new hire.
Learning curve—# of months to full ramp up
Lost productivity % during learning curve period
Cost of 1 RN
Separation Costs
Total labor costs for exit interviewer's time $
Total admin labor costs for termination processing $
Total separation pay $
Total separation costs across all replaced employees $
38
38
Recruitment Replacement Costs
Total costs—source of hire $
Total labor costs to disposition all applicants $
Total labor cost for pre-screening candidates $
Total pre-assessment testing costs $
Total labor cost for hiring manager interviews $
Total labor cost for HR/recruiter to create/deliver offer $
Total recruitment replacement costs $
750
17
165
79
284
25
1,320
Onboarding Replacement Costs
Background check/drug/medical exam costs per hire $
Average candidate travel costs per hire $
Moving expenses $
Post offer onboarding admin expenses $
Average sign on bonus per hire $
Total Onboarding Costs $
530
38
568
Total Training Costs
New hire labor costs during Training/onboarding $
Total learning curve costs $
Total Training Costs $
1,302
5,640
6,942
TOTAL TURNOVER COSTS $
8,867
Reducing Cost — TTF
Case Study
➜ LHC—Cost of Vacancy Analysis
Daily Cost of Vacancy (EXAMPLE DATA)
Hard Cost
Producti
vity Lost
Overall
Cost
Direct Care RN—OT
$274
$0
$274
Direct Care RN—Agency
$219
$131
$350
Direct Care RN—PD
$9
$0
$9
Blended Daily Cost of Vacancy ($274 + $350 + $9) = $211
$211
# of Direct Care RN positions filled in MORE than 60 days
(2013)
240
Average TTF for positions filled in MORE than 60 days (2013)
136
Total COV (assuming vacancy)
$6,887,040
Average TTF Reduced by
25%
New Average TTF moving forward
102
Total COV
$5,165,280
Cost Savings!!!
$1,721,760
Quality of Service
Are Our Customers
Raving Fans?
Voice of the Customer
➜ HMARTsm
➜ New Hire Experience
➜ Non-Hired Applicant Experience
Dr. Jeffery Sanchez-Burks, Associate Professor from
the University of Michigan Ross School of Business,
and Partner at LHC, developed this statistically
validated assessment survey methodology.
HMARTsm
Understanding
5
Communication
statistically
validated
dimensions of
customer
performance
Care
Satisfaction
Quality of Hire
1
Completely
Disagree
2
Strongly
Disagree
3
Somewhat
Disagree
4
Neither Agree
nor Disagree
5
Somewhat
Agree
6
Strongly Agree
7
Completely
Agree
Topics for Discussion
➜ Define/Measure
• Starts with Voice of the Customer
• Baseline Performance
➜ Analyze/Improve/Control
• Key Elements of Elite Recruitment Organizations
➜ Developing a Management by Fact Culture
Passionate about Continuous Improvement
and Lifelong Learning
➜ Quantify Return on Investment
Key Elements of Top Performing
Recruitment Organizations
Insights/Observations
➜ Four Key Elements for Success:
1.
Technology, Tools & Scalable, Lean Process(s)
2.
Competency/Skills of the Recruitment Staff
3.
Adequate # of Resources (and optimized organizational structure) to meet
Hiring Demand
4.
Commitment to Management by Fact/Continuous Improvement Culture
While most organizations invest 75% of their time, money and resources on
technology, tools and scalable processes, our research indicates the primary
drivers of success are related to elements #2, #3, and #4 noted above.
Technology
Establishing a Strong Technical Foundation!
➜ Great companies use technology to
accelerate growth, productivity, etc..
➜ Technology itself does not make them
a great organization (or recruiter).
Establishing a Strong Technical Foundation!
➜ Are you using all the functionality of
your ATS/HRIS systems?
➜ Is the staff accurately using systems
to capture key data to measure
performance?
➜ Are you leveraging technology for
pre-assessment? Reference
checking? Onboarding, Talent
Management, etc.?
Lean, Customer-Centric Process
Process Improvement
Value Stream Mapping to Reduce Waste and Wait Time
➜ Definition of a Value Stream Map
• A value stream can be defined as all the steps—both value added and non value
added—required from customer request to successful delivery of product or service.
Value Stream
Process
Customer Request
Process
Process
Process
Customer Receipt
Value Stream Mapping
Total Lead Time
Process Time
Process
Process
Process
Process
Delay Time(s)
Customer Request
Total Lead Time
Customer Receipt
Value Stream Mapping Exercise
The Goal
➜ Ask which activities within each
process/step are waste and which
ones truly create value.
• ‘Value-Added’ Activities.
• ‘Non-Value Added’ Activities.
➜ To improve process & shrink Lead
Time—focus on developing solutions
to remove:
• ‘Non-Value Added’ Tasks.
• Reduce Delay Time.
Value Stream Mapping
Value Stream
Customer Request
Customer Receipt
Lean Staffing Process
Case Study
Baseline—Time-to-Fill
Total Process Time: 5.5 hours
TTF: 24 days (75% of time)
TTF: 120 days (25% of time)
Total Delay Time: 23-119 days
Current State
TTF: 17 days (83% of time)
Total Process Time: 4.7 hours
TTF: 98 days (17% of time)
Total Delay Time: 16-97 days
People
Competencies and Skills of Elite Recruiters?
Competency and Skills Gap Analysis
Recruiter Responses
Manager Responses
Questions
Questions
Customer/Client Focus: Maintains unwavering focus on
delighting the customer/client.
5.00
Self-Direction: Establishes goals, deliverables,
timelines, and budgets with little or no motivation
from superiors. Assembles and leads teams to
achieve established goals within deadlines set.
4.00
Customer/Client Focus: Maintains unwavering focus
on delighting the customer/client.
4.00
Self-Direction: Establishes goals, deliverables,
timelines, and budgets with little or no
motivation from superiors. Assembles and
leads teams to achieve established goals within
deadlines set.
4.00
Drives for Results: Exhibits strong drive for results and
success.
4.00
Flexibility: Willingness to change to meet
organizational needs. Adapts to stressful
situations.
4.00
Drives for Results: Exhibits strong drive for results
and success.
4.00
Flexibility: Willingness to change to meet
organizational needs. Adapts to stressful
situations.
4.00
Judgment: Makes sound decision tempered by
practicality and common sense.
4.00
Urgency: Consistently responds promptly and
efficiently to problems and tasks. Rarely late for
meeting project deadlines and is punctual.
4.00
Judgment: Makes sound decision tempered by
practicality and common sense.
4.00
Urgency: Consistently responds promptly and
efficiently to problems and tasks. Rarely late for
meeting project deadlines and is punctual.
3.00
Communication: Expresses oneself effectively both orally
and in written form. Actively listens to others.
4.00
Influence: Convinces other to embrace a position
or take a specific course of action.
4.00
Communication: Expresses oneself effectively both
orally and in written form. Actively listens to others.
4.00
Influence: Convinces other to embrace a
position or take a specific course of action.
3.00
Creative Problem Solving: Identifies and collects
information relevant to the problem. Uses brainstorming
techniques to create a variety of choices. Selects the
best course of action.
4.00
Leveraging Networks: Draws upon a wide range of
professional and business relationships for help
and support in achieving individual and
organizational goals.
4.00
Creative Problem Solving: Identifies and collects
information relevant to the problem. Uses
brainstorming techniques to create a variety of
choices. Selects the best course of action.
4.00
Leveraging Networks: Draws upon a wide range
of professional and business relationships for
help and support in achieving individual and
organizational goals.
2.00
Interpersonal Skills: Treats others with respect and
dignity. Promotes a productive culture by valuing
individuals and their contributions.
3.00
Negotiation: Skillfully uses argument and
persuasion to reach a favorable position without
causing hostility or hard feelings.
3.00
Interpersonal Skills: Treats others with respect and
dignity. Promotes a productive culture by valuing
individuals and their contributions.
5.00
Negotiation: Skillfully uses argument and
persuasion to reach a favorable position without
causing hostility or hard feelings.
3.00
Organization and Time Management: Is organized and
plans ahead in completing work tasks. Productive,
efficient and able to simultaneously juggle multiple
demands and get things accomplished.
4.00
Financial: Does not waste resources. Looks for
methods to improve processes that have a positive
impact on the bottom line.
4.00
Organization and Time Management: Is organized
and plans ahead in completing work tasks.
Productive, efficient and able to simultaneously juggle
multiple demands and get things accomplished.
3.00
Financial: Does not waste resources. Looks for
methods to improve processes that have a
positive impact on the bottom line.
3.00
Business Acumen: Understands how the lines of
business supported develop strategies, services
customers, and generates profits.
3.00
Attitude: Positive about work; is cooperative and
follows through on commitments. Manages stress
well.
4.00
Business Acumen: Understands how the lines of
business supported develop strategies, services
customers, and generates profits.
3.00
Attitude: Positive about work; is cooperative and
follows through on commitments. Manages
stress well.
4.00
Evaluating Candidates: Evaluates, selects and hires top
talent by objectively comparing a candidate's
qualifications to identified business needs, job
specifications, and competencies.
3.00
Professionalism: Sets examples. Stays current in
terms of professional development.
4.00
Evaluating Candidates: Evaluates, selects and hires
top talent by objectively comparing a candidate's
qualifications to identified business needs, job
specifications, and competencies.
3.00
Professionalism: Sets examples. Stays current
in terms of professional development.
4.00
Staffing Lifecycle Management: Plans and successfully
executes a recruiting, selection and hiring process that
results in top talent for the organization.
4.00
Idea Generation and Innovation: Embodies
creativity and innovation in identifying talent
through multiple sources; networking, on-line, in
person, job fairs, advertisements, etc.
4.00
Staffing Lifecycle Management: Plans and
successfully executes a recruiting, selection and
hiring process that results in top talent for the
organization.
2.00
Idea Generation and Innovation: Embodies
creativity and innovation in identifying talent
through multiple sources; networking, on-line, in
person, job fairs, advertisements, etc.
2.00
Builds Appropriate Relationships: Develops strong
interpersonal alliances at appropriate levels, both within
and outside the organization; builds solid relationships
characterized by mutual respect
4.00
Sales Orientation: Ability to be the face of the
organization for recruitment—Providing candidates
with information highlighting the organization as an
employer service.
4.00
Builds Appropriate Relationships: Develops strong
interpersonal alliances at appropriate levels, both
within and outside the organization; builds solid
relationships characterized by mutual respect
4.00
Sales Orientation: Ability to be the face of the
organization for recruitment - Providing
candidates with information highlighting the
organization as an employer service.
3.00
Teamwork: Uses appropriate interpersonal style to steer
members towards the goal. Organizes resources to
accomplish tasks with maximum efficiency.
4.00
Teamwork: Uses appropriate interpersonal style to
steer members towards the goal. Organizes
resources to accomplish tasks with maximum
efficiency.
4.00
Overall Ratings
3.43
Overall Ratings
3.96
Right Person in the Right Seat on the BUS!
Right Person
Right Seat
Your BUS!
- Jim Collins—Good to Great
Defining the Resources Required to Meet
Hiring Demand
Demand-Based (MRP) Resource
Allocation Methodology
Case Study
Staffing Optimization Model
Recruitment Resource Planning/Allocation
Total # of Hires
# of Sourcing/Pre-qualification Hours Required
# of Recruitment Process Hours Required
Total Recruitment & Resource Process Hours
# of FTE Recruiters Required to Meet Hiring Objectives
# of Interview/Hire Process Hours Required by Admin
BAU
CDV
2,440
12,200
3,796
15,996
10.4
5,733
815
8,150
1,721
9,871
6.4
1,915
4
1.2
# of FTE Admins Personnel Required to Meet Hiring
Objectives
Current
Leaders
Recruiters
Administrative
Total FTE
AA
Recommended (based on Staffing Optimization Methodology)
AA
0.5
7.5
1.5
9.5
Totals
3,255
20,350
5,516
25,866
17
5.0
Livonia
0.0
0.8
0
0.8
Oakland
0.0
3.4
0
3.4
Chelsea
0.0
0.5
0.7
1.2
Overall
0.5
10.7
2.2
14.9
Livonia
Oakland
Chelsea
Overall
Leaders
1.0
0.3
0.3
0.3
2.0
Recruiters
9.0
2.5
4.5
1.0
17
2.5
12.5
0.8
3.7
1.2
6.0
0.5
1.8
5.0
24.0
-0.5
-2.5
-1.0
Livonia
-0.3
-1.7
-0.8
Oakland
-0.3
-1.1
-1.2
-4.0
-2.8
-2.5
Administrative
Total FTE
Plus/Minus - FTE Headcount
Leaders
Recruiters
Administrative
Total FTE
AA
© 1997-2015, Lean Human Capital, LLC.
Chelsea
Overall
-0.3
-0.5
0.2
-1.5
-6.3
-2.8
-1.0
-10.6
Topics for Discussion
➜ Define/Measure
• Starts with Voice of the Customer
• Baseline Performance
➜ Analyze/Improve/Control
• Key Elements of Elite Recruitment Organizations
➜ Developing a Management by Fact
Culture Passionate about Continuous
Improvement and Lifelong Learning
➜ Quantify Return on Investment
© 1997-2015, Lean Human Capital, LLC.
Management by Fact
Developing a Balanced Performance Scorecard*
*Based on what is important to the customer(s).
© 1997-2015, Lean Human Capital, LLC.
Align Recruitment Scorecard with
Organizations
Strategic Objectives
Health System
HCAHPS
Recruitment
Voice of Customer
(Hiring Manager, New Hire, Non-hired)
Clinical Outcomes
Performance Outcomes
(Speed/Efficiency/Quality/Productivity/Cost)
Alignment and Presentation is Priceless !
2013 Recruitment Scorecard—XYZ Health System
Quality—Voice of Customer—Experience
Hiring Manager Assessment of Recruitment Team (HMART)
Overall Score
Understanding
Communication
Care
Satisfaction
Quality of Hire
New Hire Experience
Non-Hired Candidate Experience
Performance Outcomes
Quality—Hire
2012
Q1—2013
Q2—2013
Q3—2013
Q4—2013
Benchmark
Benchmark
Benchmark
Goal
6.00
6.00
6.00
6.00
6.00
6.00
Actual
5.7
6.1
5.5
6.2
6.0
5.9
Actual
Actual
Actual
Actual
6.0
4.5
6.2
4.7
Low 25%
NA
NA
NA
NA
NA
NA
NA
NA
Median
NA
NA
NA
NA
NA
NA
NA
NA
Top 25%
NA
NA
NA
NA
NA
NA
NA
NA
Goal
Actual
12.0%
8.0%
3.3%
9.3%
1.1%
Actual
Actual
Actual
Actual
Low 25%
NA
NA
4.9%
14.8%
4.9%
Median
NA
NA
4.9%
14.8%
4.9%
Top 25%
NA
NA
4.2%
11.2%
4.2%
14.8%
14.8%
11.2%
Goal
Actual
3.5%
2.7%
185
13.2%
61
Actual
36
7.4
88.5%
23
6.0
96.6%
Actual
49
65
73%
17
27%
130
34%
43
62
78%
16
22%
136
41%
Actual
$577
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Low 25%
5.9%
7.6%
160
9%
55
Low 25%
50
7.5
88.5%
26
5.4
79.6%
Low 25%
60
77
67%
28
33%
129
42%
56
72
65%
29
35%
135
47%
Low 25%
$715
Median
4.0%
4.4%
191
14%
40
Median
33
6.6
92.0%
21
4.0
91.8%
Median
53
67
71%
25
29%
122
34%
51
67
72%
25
28%
111
37%
Median
$
665
Top 25%
3.4%
3.1%
239
27%
25
Top 25%
18
4.7
93.5%
14
2.4
93.9%
Top 25%
47
62
73%
23
27%
106
31%
44
60
77%
22
23%
98
24%
Top 25%
$
576
Annual Turnover Rate—Overall
Annual Turnover Rate—RN's
Average 90 Day Separation/Turnover Rate—Overall
Average First Year of Service Turnover Rate—Overall
Average 90 Day Separation/Turnover Rate—RN's
Average First Year of Service Turnover Rate—RN,s
Productivity
4.7%
Overall Vacancy Rate
Direct Care RN Vacancy Rate
Staff Productivity (XX FTE)
Employee Referral %
Average Req's Per Recruitment Resource
Delivery—Efficiency
Applicants to Positions Filled Ratio
Applicants Routed to Positions Filled Ratio
Percentage of Positions Filled from Extended Offers
RN Applicants to Positions Filled Ratio
RN Applicants Routed to Positions Filled Ratio
Percentage of RN Positions Filled from Extended Offers
Delivery—Responsiveness
Average Time-to-Fill—Overall
Average Time-to-Start—Overall
% of Positions Filled in LESS Than 60 Days
Average TTF for Positions Filled in LESS Than 60 Days
% of Positions Filled in 60 Days or MORE
Average TTF for Positions Filled in 60 Days or MORE
% of Current Positions Currently Open over 60 Days
Average Time-to-Fill—RN's
Average Time-to-Fill—RN's
RN—% of Positions Filled in LESS Than 60 Days
RN—Average TTF for Positions Filled in LESS Than 60 Days
RN—% of Positions Filled in 60 Days or MORE
RN—Average TTF for Positions Filled in 60 Days or MORE
% of Current RN Positions Currently Open over 60 Days
Cost
Cost Per Hire
Goal
Goal
Goal
Performance Management
To migrate to a Management by Fact Culture passionate about Continuous Improvement and
to ensure you have the right people in the right chairs, we recommend:
• Develop and maintain quarterly scorecards for overall team, site and individual
recruiters/sourcers.
• Review 90 day/First Year Turnover and Extended Offers that are
declined/rejected/rescinded quarterly.
• Develop and utilize Aging Reports bi-weekly to manage requisitions and proactively
manage workload.
• Utilize this data on quarterly basis to:
• Celebrate Success (against goal).
• Develop/implement performance improvement solutions.
• Quantify ROI to key stakeholders (COV, process efficiency, quality of hire, customer satisfaction,
etc.).
➜ It is very difficult to identify if your staff has the right competencies and skills to
perform their job if you do NOT have individual performance metrics to evaluate
performance.
➜ Critical to the success of your recruitment team is their coach/mentor who can use
data/fact to show them HOW to improve, not preach WHAT they need to do.
Management by Data/Fact
Case Study
➜ Organization that has been on a Recruitment Transformation Journey
for the last 18 months.
➜ FY2014 Annual Review to CHRO and key executives
➜ Share how they performed:
• Interesting Observations/Analysis
• Celebrate Achievements
• Opportunities for Improvements
Management by Data/Fact
Case Study
FY14
Performance Outcomes
Delivery—Responsiveness
Average Time-to-Fill—Overall
% of Positions Filled in LESS Than 60 Days
Average TTF for Positions Filled in LESS Than 60 Days
% of Positions Filled in 60 Days or MORE
Average TTF for Positions Filled in 60 Days or MORE
% of Current Positions Currently Open over 60 Days
Goal
Q1
Actual
Actual
62
63%
26
37%
124
Q2
Actual
67
60%
26
40%
128
Q3
Actual
73
57%
24
43%
137
Q4
Actual
71
60%
26
40%
139
Benchmark
Average FY 14
68
60%
25
40%
132
Interesting Observations/Analysis:
Low 25%
55
65%
25
35%
123
30%
Benchmark
Benchmark
Median
51
72%
24
28%
118
25%
Top 25%
39
77%
22
23%
113
18%
G- Good/Great
Y- Average/Adequate
NA- Needs Attention
➜ Average Time-to-Fill Overall = Average/Adequate with an average of 68
• While the average TTF is not within benchmark, we focused on closing positions opened greater than 200 days.
• Out of 1717 positions filled in FY14, 94(18%) of the positions were opened over 200 days thus effecting the
TTF average.
• Top closed difficult CDVs positions: ANM’s (7), Case Managers (6), CNIII(11), CNIV(6), Career Floats(14),
Pharmacist(3), Wound Care Nurse(1), PA’s(2), Speech Pathologist (1)
• Union jobs remain open until position is filled, impacting the TTF.
➜ % of Positions Filled in LESS than 60 Days = Average/Adequate with an average of 60%
• Although the % of positions filled in less than 60 days is not at the desired benchmark, it was because we focused
on filling the backlog of aging requisition. We are confident this will dramatically improve in FY2015.
Management by Data/Fact
Case Study
Goal: Time to Fill should be BELOW ↓ median benchmark of 53 Days.
Goal: % of Reqs Filled ≤ 60 Days should be ABOVE ↑ median benchmark of 71%.
Goal: Both counts should be BELOW ↓ median benchmarks.
Successes:
• TTF, From FY 13 and FY 14, we filled 160 more positions.
• The average TTF from FY13 (69) to FY14 (68) remained flat despite an increase
in the number of positions by 160 with same staff + focus on filling positions open
over 60 days.
• The efforts from FY13/FY14 have resulted in FY15 having a 25% average
reduction in TTF (54).
• Concentrated efforts on filling evergreen positions/CDV’s, impacted the number
of positions filled over 60 days.
• Those efforts are seen in FY15 with an approximate 7% reduction in reqs. filled
more than 60 days .
• Efforts for FY13/FY14, short term effect may appear negative but the long term
benefit of our efforts have been out weighed thus far, in FY15.
• The # of routed applicants per filled reqs. remains consistent or slightly below
bench for FY13/FY14 and going into FY15.
• We are now seeing the positive results of our “growing pains” of FY13/FY14
going into FY15 in all categories.
Opportunities:
• Continue to review “Value-Added” activities & “Non Value Added” activities for
continued process improvement and productivity.
• Continue to educate our clients on LEAN process.
• Incorporate HMART survey results in our LEAN process to better enhance
communication, quality of hires, understanding of our job requirement, etc. with
our clients.
• Incorporate Newly Hired survey results in our LEAN process to improve
communication with our applicants/candidates.
• Move forward with obtaining Exit Interview information.
Quantifying ROI
Results to Date!
Case Study
Quality of Hire
90 Day Turnover—FT/PT
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
(as rated by Hiring Managers)
7.70%
7
6.6
6.2
5.3
6
Target (6.0)
5
4.2%
4
3.0%
3
2
1
0
2012
2013
2012
2014
2013
Hiring Manager Satisfaction—HMART
(7pt. Scale)
7
6
6.2
6.5
6.2 6.4
5.9
5.3
6.1 6.3
5.9
5.4
6.3 6.5
5.7
6.3
6
6.6
5.9
5.4
5.1
5
4
3
2
1
0
Overall
Understanding Communication
2012
2013
2014
Care
Benchmark
© 1997-2015, Lean Human Capital, LLC.
Satisfaction
2014
Results to Date!
Case Study
RN—TTF
Overall Time To Fill
54
53
52
51
50
49
48
47
46
45
44
60
53
50
49
49
40
Target (44)
40
50
30
47
47
20
10
Target (45)
0
2011
2012
2013
2012
2014
Position Filled
2013
2014
Staff Productivity
(external and internal candidates)
3000
2500
2639
2834
250
206
202
200
2064
Target (175)
159
2000
150
1500
100
1000
50
500
0
0
2012
2013
2014
© 1997-2015, Lean Human Capital, LLC.
2012
2013
204
Transformation Journey - Commitment to
Continuous Improvement!
“A continuous improvement process never stops. It wasn’t
implemented just once. It’s constant improvement,
constant innovation and constant elimination of extra
steps. The most important principle is that this is not a
four-month project. You will see benefits, but you must
do it continually.”
Source: http://knowledge.wharton.upenn.edu
Topics for Discussion
➜ Define/Measure
• Starts with Voice of the Customer
• Baseline Performance
➜ Analyze/Improve/Control
• Key Elements of Elite Recruitment
Organizations
➜ Developing a Management by Fact
Culture Passionate about Continuous
Improvement and Lifelong learning
➜ Quantify Return on Investment
Questions?
To receive a copy of this presentation, please send an email
to student@leanhumancapital.com; or call
Deb Vargovick at 248-918-8799