Monetizing Civility in the U.S. Department of Veterans Affairs Presented by: Cynthia Cominsky, MEd MBA2 Kelley A. Carameli, DrPH1, Andrew B. Brown2, Stacie Furst-Holloway, PhD MBA2, Cynthia Cominsky, MEd MBA2, Scott C. Moore, PhD1, Adam C. Carle, PhD3, Steven R. Howe, PhD2, Katerine Osatuke, PhD1, & Sue R. Dyrenforth, PhD1 1 Veterans Health Administration (VHA), National Center for Organization Development (NCOD) 2 University of Cincinnati, McMicken College of Arts & Sciences, Department of Psychology 3 University of Cincinnati, School of Medicine and Cincinnati Children's Hospital Medical Center Background Workplace Civility Civility: A workplace issue characterized by coworkers’ personal interest in and respect for each other, their cooperation and teamwork, fair resolution of disputes and complaints, and valuing individual difference. Civility in the healthcare environment predicts organizational performance and positively influences patient satisfaction and employee job satisfaction, and reduces employee burnout. Osatuke et al., 2009 Managers, supervisors, and senior leadership are key assets in shaping workplace culture and employee attitudes, particularly on issues of workplace wellness, diversity, and civility. Powell & Yalcin, 2010; Moore, 2010 Still, to motivate healthcare leaders to invest in organizational civility initiatives, financial and strategic business case models are needed. 2 Study Purpose To explore the impact of workplace civility on the healthcare environment, and monetize this impact as a business case model. Civil work environments are associated with improved clinical teamwork, greater patient safety practices, and reduced staff burnout. Simons, 2008 Workplace human capital initiatives can facilitate these outcomes through skill-building, educational training, and systems support designed to improve workplace civility. 3 Method Study Design Cross-section research design using archival, survey data VA All Employee Survey VA datasets tracking employee sick leave usage, EEO complaint activity, patient care experiences, and compensation and pension claims processing Population Studied U.S. Department of Veterans Affairs (VA) staff, facilities, and clients. Data years: 2010 VA employee perceptions: Job satisfaction, Civility (annual N ≈ 200,000 VA 4 employees, 68% response rate) VA performance outcomes: Sick leave usage, EEO complaints, Claims processing time (annual N ≈ 300,000 VA employees) Veteran client perceptions: Healthcare satisfaction, Patient loyalty (annual N ≈ 140,000 Veteran inpatients, 53% response rate) Method Key Measures VA All Employee Survey Cooperation: (a) People treat each other with respect in my work group. (b) A spirit of cooperation and teamwork exists in my work group. Civility Measured as a composite factor from 8 items Employee Job Satisfaction Satisfaction with Direct Supervisors and Senior Managers Turnover Intentions Conflict Resolution: Disputes or conflicts are resolved fairly in my work group Coworker Support: (a) The people I work with take a personal interest in me. (b) The people I work with can be relied on when I need help. Diversity Acceptance: (a) This organization does not tolerate discrimination. (b) Differences among individuals are respected and valued in my work group. (c) Managers work well with employees of different backgrounds in my work group. • Compared with what you think it should be, what is your current overall level of satisfaction with your job? • Compared with what you think it should be, how satisfied are you with the quality of direction supervision you receive? • Compared with what you think it should be, how satisfied are you with the quality of senior managers at your facility? • If I were able, I would leave my current job because I am dissatisfied. Scale: 1 Strongly Disagree/Not At All Satisfied to 5 Strongly Agree/Very Satisfied 5 Method Key Measures VA Datasets EEO Complaints Number of formal and informal Equal Employment Opportunity (EEO) complaints. Sick Leave Usage Average number of sick leave hours per 1,000 employees. Claims Processing Time Total processing time in days once a claim enters the system (Day 1) to the time of its closing day or resolution (Day XX). VHA Consumer Assessment of Healthcare Providers and Systems (CAHPS) Inpatient Care Using any number from 0 to 10, where 0 is the worst hospital possible and 10 is the best hospital possible, what number would you use to rate this hospital during your stay? (Percent of respondents answering 9 or 10 Best Hospital Possible) Inpatient Loyalty Would you recommend this hospital to your fiends and family? (Percent of respondents answering 3 Probably yes or 4 Definitely yes) Analytic Techniques Civility mean scores (facility-level, N = 57 to 152) were segmented into low-moderate-high quartiles, then matched to secondary VA datasets. Analyses included bivariate correlations. 6 Results Impact of Civility on Workplace Culture In VA, greater civility is linked to positive organizational changes: Civility perceptions have remained stable across the organization, where, on average, employees report moderate workplace civility . Greater employee job satisfaction, satisfaction with supervisors/leaders, patient satisfaction with quality of care, and faster claims processing times. Lower sick leave usage, turnover intentions, and EEO complaints. Table 1: Civility and Key Outcomes Outcome Metric Average workgroup civility (VA employees) Average EEO complaints (formal, informal) at the VHA level (per 1,000 employees) (128 facilities) Average per capita sick leave hours used by VHA employees (128 facilities) Average number of processing days for VBA claims Average employee overall job satisfaction Average employee satisfaction with direct supervisors Average employee satisfaction with senior managers Average employee intent to stay with VA 7 Percent favorable inpatient satisfaction score Percent of inpatients who recommend VHA services Outcome Average 2010 CIVILITY (Quartile) Low High 2011 Low High Moderate 3.72 < 3.11 3.12 3.87 >4.50 2009 2010 3.74 3.71 13.1 10.1 6.4 10.7 9.9 7.8 6.7 80.8 80.3 69.3 83.4 82.2 77.8 77.0 167 3.89 3.83 3.41 3.54 63% 66% 164 3.82 3.78 3.33 3.47 64% 68% 153 3.80 3.79 3.34 3.43 64% 68% 200 2.86 2.56 2.22 2.55 61% 65% 161 3.66 3.57 3.07 3.24 63% 67% 151 4.12 4.18 3.70 3.72 66% 70% 137 4.54 4.67 4.22 4.24 68% 73% Results Impact of Civility on Workplace Culture – EEO Complaint Cost Savings In VA, civility exerts a stronger influence on reducing formal EEO complaints (r = -.34 to -.45) compared to informal ones (r = -.21 to -.27). Reducing EEO complaints incurs substantial cost savings ($17K per complaint). Investment: Human capital initiatives addressing Alternative Dispute Resolution (ADR), conflict management, and diversity and inclusion training/support for management, employees, and union leaders. In financial terms… 2010 Quartile Average of Informal EEO Complaints per capita If VA facilities shifted their informal EEO complaint activity to the next lower quartile, the potential annual cost savings would be $17.8 M (FY10). Informal EEO Complaints per capita Grouped by Lowest to Highest Complaint Facilities (N = 232) 30 22.7 25 17.7 20 15 10 6.1 5 0 Lowest 8 24.1 Low-Moderate High-Moderate Highest Informal EEO Complaints per capita (Quartiles) Results Impact of Civility on Workplace Culture – Turnover Cost Savings Veterans Health Administration (VHA) facilities with greater civility also had lower turnover intentions among physicians and nurses (r = .46). Employee replacement costs (i.e., recruitment, hiring, training) are estimated at 93% to 200% of an employee’s annual salary. Investment: Human capital initiatives addressing conflict management and diversity and inclusion training/support, VA’s CREW Initiative (Civility, Respect, and Engagement in the Workplace – a Joint Commission “Best Practice”). In financial terms… 9 Quartile Average of Quit Rate Percentage If VHA facilities shifted their quit rate average (all staff) to the next lower quartile, the potential annual cost savings would be $572.6 M (FY10). VA Quit Rate Percentages Grouped by Lowest to Highest Loss Facilities (N = 265) 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 2010 7.7% 4.8% 3.6% 1.7% Lowest Low-Moderate High-Moderate Quit Rate Percentage (Quartiles) Highest Results Impact of Civility on Workplace Culture – Claims Processing Savings Veterans Benefits Administration (VBA) facilities with greater employee satisfaction and workplace attitudes (e.g., civility) experience improved claims processing accuracy (r = .30 to .51) and reduced claims processing time (r = -.34 to -.61). Investment: Human capital initiatives addressing conflict management and Quartile Average of C&P Claims Processing Days diversity and inclusion training/support, VA’s CREW Initiative (Civility, Respect, and Engagement in the Workplace – a Joint Commission “Best Practice”). In financial terms… Claims Processing Time Grouped by Lowest to Highest Efficiency Facilities (N = 57) If VBA facilities in the highest 2010 2015 Goal (125 days) claims processing quartiles 250 214.4 achieved VA’s FY15 claims 200 176.5 153.1 processing benchmark (125 114.0 150 days) today, Veterans at 100 these facilities could receive 50 their claim 58.1 days sooner 0 Lowest Low-Moderate High-Moderate Highest (FY10). 10 Processing Time (Quartiles) Conclusions Workplace Civility and the Workplace Environment In VA, civility is tracked as a key performance indicator of organizational excellence. Our VA research found that greater workplace civility is linked to improved employee, patient, and organizational outcomes that when monetized can incur substantial cost savings. These findings suggest that the cost of workplace incivility is high. For example, VA facilities in the lowest civility quartile were observed as spending $4.1 to $14.7 million more on formal EEO complaints and $20.3 million more in sick leave usage compared to VA facilities in the highest civility quartile (FY10). These findings also provide an initial “business case” model for investing in human capital initiatives that foster civil work environments. 11 Implications for Policy, Delivery or Practice Policy: Workplace civility is dependent upon leadership endorsement of a civil work environment. Across VA, “civility” is recognized in facilityand organization-level strategic goals, mission, and core values. NOTE: Civility is more than “being nice” in the workplace, it is a workplace culture shift toward a climate that is positive, healthy, and high-performing. Delivery: Human capital initiatives designed to improve workplace civility may be strategically targeted to specific audiences (i.e., facilities, workgroups, occupational groups) experiencing lower civility. This strategic delivery may minimize the costs incurred by training all employees regardless of need to improve workplace civility. Practice: Workplace environment → Employees → Clients 12 In VHA medical centers, Veteran inpatients report more civil treatment from their care providers when physicians and nurses at those facilities also report greater workplace civility. For more information, please contact VHA National Center for Organization Development (NCOD) Telephone: Email: Website: (513) 247-4680 VHANCOD@va.gov http://www.va.gov/NCOD