Achieving ROI Through the Integration of Job Descriptions and Performance Reviews: The Olathe Health...

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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 of Achieving ROI Through the Integration of Job Descriptions and Performance Reviews: The Olathe Health...

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2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

Achieving ROI with Integrated Job Descriptions and Performance ReviewsImproving HR Operations through Agile Software:The Olathe Health System StoryNovember 3, 2011

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

Olathe Health System, Inc.Located in the Kansas City Metro AreaTwo Acute Care HospitalsOver 30 Primary Care and Specialty ClinicsOver 2,500 EmployeesOver 600 Job Descriptions

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

Business ProblemsWord DocumentsScoring MethodologyInconsistency ComplianceHistorical VersionsNo Reporting Capabilities

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

Identifying Needs and Areas for Improvement at OlatheWe 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/SolutionsDesigned 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/SolutionsResearched options for moving to an online toolCost savings and increased efficiencies were key to investing in an online systemCreated a justification case

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

Steering Committee Research/SolutionsIdentifiedShort term opportunities for improvementLong term objectives

*Management had concerns about employees that didnt have routine access to a computer (e.g. Nutritional Care, etc.)

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Short-term OpportunitiesJob DescriptionsDifficult to update Changing Company Objectives would result in editing over 600 Word documentsToo long Some jobs had over 23 measuresInconsistent languageNo historical versions

Performance ReviewsPaper processIncomplete reviews90-day Review different from Annual ReviewNo ability to track employee acknowledgements, e.g. confidentiality statements, etc.

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

Long-term ObjectivesJob DescriptionsBetter able to meet Joint Commission recommendations and internal quality through online integrationCreate and sustain a high quality JD databaseThoroughConsistentConsolidated

Performance ReviewsIncrease Performance Review timeliness and thoroughness by making the process easierDrive a consistent scoring process throughout the organizationImprove tracking of corporate and position-specific requirements such as JD sign-off, certifications, etc.

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The Search for a SolutionInitial results of our research into Talent Management products on the marketInflexible unable to easily adopt our newly-developed templates and processesOverpriced costs were out of bounds for our foreseeable budgetsFound HR TMS and proceeded to pursue implementing our solution

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

SolutionA 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 employees2,475Number Assigned Dirs & up1,819Number Assigned to Mgrs584Total2,475Total2,475Copies (Mgr, Employee, HR)3Pages per 561 Evaluations6Average pages per evaluation8# Hospital employees1,989Minutes to complete current evaluation60Minutes to complete new evaluation40

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

ROI Calculation Current Annual Cost

ItemEa.AmountPaper 1 sheet$0.035$2,079.00Toner 1 print$0.035$2,079.00Hard Costs Total$4,158.00Dirs and up cost to complete per minute$0.99$112,854.88Mgrs cost to complete per minute$0.59$20,807.92Entering per minute$0.48$1,188.00Filing per minute$0.34$841.50561 Validation printing$0.07$835.38561 Validation Filing$0.34$676.26Soft Costs Total$137,203.94Total Current Annual Cost$141,361.94

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

ROI Calculation New Annual Cost

ItemEa.AmountPaper 1 sheet$0.0$0Toner 1 print$0.0$0Software Subscription$36,000$36,000Hard Costs Total$36,000.00Dirs and up cost to complete per minute$0.99$75,236.59Mgrs cost to complete per minute$0.59$13,782.40Entering per minute$0$0Filing per minute$0$0561 Validation printing$0$0561 Validation Filing$0$0Soft Costs Total$89,018.99Total New Annual Cost$125,018.99

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

ROI Calculation

ItemAmountCurrent Annual Costs$141,361.94New Annual Costs$125,018.99Expected Annual Savings (with added capabilities)$14,831.31ROI 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 period28 months3-year ROI127%5-year ROI212%

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

Non-quantifiable BenefitsZero inter-office mailManagers time regarding followup of signatures & additional copiesAbility to set personal goals and work toward career-pathing

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

Non-quantifiable BenefitsEasy anytime access to historical informationEasily reports non-completions of performance reviews and 561 evaluationsUnlimited ability to create new forms to streamline any tracking process

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

SolutionBased 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 SolutionWith one HR person working consistently on the implementation, it took approximately 3 months to design and configure the system and migrate our 600+ job descriptionsWe did meet our June 1, 2011 go-live dateIT resource requirements were minimal (about 20 hours total time)

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

Implementing the SolutionPrior to go-live, HR conducted four 45-minute Lunch & Learn training sessions for supervisors and aboveHR 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 LearnedHad 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 DescriptionsConsistent languagePosition and physical requirementsOrganization-wide and Departmental Duties/CompetenciesPosition/Unit Specific Duties/Competencies

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

Reusable Reference Job DescriptionsSystem Benefits Job DescriptionsAbility 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

Accurate Up to Date Job Descriptions System Benefits Job DescriptionsEnlist Managers to collaborate, see/approve all changed items

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Flexible Tracking of QualificationsSystem Benefits Job DescriptionsEnlist Managers to collaborate, see/approve all changed items

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Online/Printed JDs Matched our TemplateSystem Benefits Job Descriptions

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

System Benefits Performance ReviewsNo paperConsistent scoringAuto-calculation of scoresAccess from homeHRs ability to track status of all reviews

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

Job Descriptions Automatically Ripple Throughto the Performance ReviewSystem Benefits Performance Reviews

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

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

ReportingSystem Benefits Performance ReviewsReporting 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 ReviewsGraphs that show progress and average scores

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Results1st Annual Review Cycle 6/5/11 to 8/19/1143% of employees performed self reviewsSurveyed Directors about what they liked bestThe paperless processAutomatic calculation of scoresThe manager approval process

2011 HR TMS, Inc. All Rights Reserved www.hrtms.com

ResultsManagements embrace of online systemManagers have quick and easy access to their job descriptionsEasy upload of scores into our Lawson HRIS

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