Using Lean Manufacturing Principles in Recruiting

September 2014

Carmen Hern, Vice President of Talent AcquisitionOchsner Health System

New Orleans, LA

What is LEAN?

• The core idea is to maximize customer value while minimizing waste

• Simply, Lean means creating more value for customers with fewer resources

Why is LEAN important?• Virginia Mason

– Went from near bankruptcy to 8% operating margin while achieving best in class employee engagement and patient outcomes

• Barnes Jewish Hospital– Improved operating margins, employee turn over rate, and

patient satisfaction linked to lean transformation

Objectives

Online hiring process

Onboarding programs

Measurement and

analytics tools

#1 Transplant Of Liver#2 Overall Hospital Care# 2Transplant Of Kidney

#2 Trauma Care#4 Heart Attack Treatment

#6 Overall Surgical Care#9 Gastrointestinal Care

#9 Interventional Carotid Care#9 Neurologic Care

6

PatientExperience

Quality and Safety

Growth and Capacity

Workplace Optimization

Affordable Care

Employee, Physician and Leadership Engagement

• If you are looking for the quick weight loss gimmick, get rich quick scheme or a six pack in six minutes . . . you are in the wrong session.

 

What LEAN isn’t…

What LEAN is…

• LEAN works – It is not a fad– Been around for 50 years

• It is discipline, common sense, hard work, rigor, etc.

Objectives

Online hiring process

Onboarding programs

Measurement and

analytics tools

Candidate Experience SurveyRespondents: 1,334 (out of 8,001)

Response Rate: 16.7%Highlights• Overall Satisfaction Score: 79.6%

Action Plan:• Deep dive focus group• Review use of social media tools• Publish results

Annual Cycle

Surveyed all candidates- not just hired

Led to:•Enhanced communication•Dedicated TA phone line•More social media presence•Mobile application

Ochsner wins CandE Award

Ochsner Talent Acquisition is proud to have received a 2013 CandE Award, which recognizes all corporations that meet the standard of candidate experience excellence.

The award is sponsored by HR staffing, consulting, and human capital organizations, including Kenexa, HireRight, HireVue, Monster, and Jobs2web.

Applications/Candidates

Disqualification Questions

Minimum Requirement Questions

HR Pre-Qualification & Screening

Applications Sent to Manager

Interviews

Offers

Hires

Selection Process – The Right Tool at the Right Time

139, 700

11, 560 (8%) disqualified

128, 14027:1 position filled

41,2289:1 position filled

13,1403:1 position filled

5444

3,254 – External1442 - Internal

• Due to changes made to Match, numbers reflect annualized 4th quarter actuals.• Intern/External hire numbers based on ratio of 2013 internal/external hire ratio•**Per LEAN Human Capital benchmarking studies

Best practice

5:1**

Best practice 16:1**

Time To Fill Goal: 47Time To Fill Q2 2014: 48

“Best Practice” - 47 days to fill**

  2012 2013 2014  

Dashboard

  Q1 Q2

Post Go Live Q3 Q4 Q1 Q2

Goal

Time to Approve - - - 3.6 3.2 2.9 2.8 14 days

Time to Post 14.2 14.1 7.9 3.3 3.2 3.2 3.5 2 days

Time to Fill 48.0 47.4 44.1 50.8 55.8 45.8 48.4 47 days

Candidate Survey - 80% - 70% - - - 80% Satisfaction

Client Survey - 64% 73% 66.1% 86.7% 80.3% - 90% Satisfaction

Offer to Start 20.4 19.4 21.6 19.7 32.0 31.7 21.0 17 days

Objectives

Online hiring process

Onboarding programs

Measurement and

analytics tools

Voice of the CustomerOur Facility Leaders Want:

• Floor-Ready Employees . . . Sooner• Ensure Quality & Compliance • Reduce New Hire Turnover• Customized - yet Consistent On-boarding • Enhance New Hire Experience• Hiring Manager/HR Role Clarity & Expectations

Redesign – Phase 1Pre-Hire Gains 2013

Redesign – Phase 2E-Optimization 2013-14

Why change orientation and onboarding?

Business Drivers• Industry Experiencing Significant Change• Geographically Dispersed Workforce• Rapid Increase of Hiring Volume• Compliance Gaps • Rising Turnover• Improve Time to Productivity• Level-set on Manager’s Role in Retention• Shift to 365-day mindset• Inconsistent Experiences – Facility Variations• Enhance New Hire Experience• Leverage Pre-boarding Excitement

Why change orientation and onboarding?

Redesign – Phase 1Pre-Hire Gains 2013

Redesign – Phase 2E-Optimization 2013-14

2012 … Our Retention ChallengeVoluntary

Turnover < 1 year

• Reduction from 12.3 % to 8%

Turnover Cost

• ~50,000/1x/salary FTE

Potential Savings

• $5, 150,000

The facts The impact

2012 Hires

2012Vol

Turnover<1 yr

2364

292

45% Turnover within first 18 months Gave us a

$22 millionOpportunity

2012 . . . Compliance-related Gap8% Compliance paperwork never collected

If 1.5% of 3,000 new hires (45) result in litigation-related costs at average of $5000 per event . . .

Potential savings: $225,000

19% of our Clinical & 30% of our Non-clinical new hires fail to complete

assigned regulatory training

Connections: New Hire Onboarding Logistics! • No more weekly system NEO• Blended Model

• Pre-board• 1 hr cultural and benefits orientation online (videos)• http://app.guidespark.com/ochsner/curriculum/416

• Post-start • 4-6 hours online

• Non-technical & regulatory training• Monthly Culture Orientation

• ½-day System Orientation• Live in New Orleans - ,Video-conferenced to 5 locations

• ½-day Leader Orientation (NLO)• Live in NO

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Key Onboarding Changes

½ day Connections

NEO/NLO

OLN Modules

Buddy/ Co-

Workers

Pre-BoardVideos

Hiring Manager

• Start Date Floor-Readiness 50% Reduction• Efficiency• Waste-Out• Improved Experience – 98% Satisfaction Rate• Quality Assurance

YTD 2013 New Hire Onboarding ScorecardMeasure SYSTEM

YTD OMC-NO NO Clinics Corporate Baptist OMC-BRBR

Clinics Kenner WestBank OMC-NS NS Clinics St. Anne

EFC & BrentHous

eNew Hire Retention March 18, 2013-June 30, 2013 96% 97% 93% 97% 96% 89% 90% 100% 96% 100% 100% 100%NEO ENGAGEMENT

Online NH Curriculum Completion Rate 98% 91% 99% 93% 96% 99% 89% 96% 84% 96% 97% 99% 46%

DAY 14 SURVEY--# of responses 332 159 6 31 16 26 25 16 24 14 9 6Manager contacted me before my first day of work 94% 95% 100% 94% 100% 96.15% 88% 100% 88% 92% 100% 83%

Pre-boarding Videos Helped with Onboarding 92% 88% 100% 97% 81% 96% 100% 88% 100% 92% 89% 83%I have been assigned a departmental buddy 84% 76% 100% 84% 87% 73% 88% 94% 92% 95% 89% 50%All in all, I am satisfied with my job 92% 93% 100% 100% 87% 88% 100% 100% 88% 92% 75% 100%My Job is what I expected when Hired 95% 87% 100% 93% 93% 92% 100% 100% 92% 95% 100% 100%

20

21

NPS SCORES--Survey Response % TotalOMC-Jefferson Hwy

Benson Tower St. Anne Chabert Baton Rouge

NHO Connections

August 12th NPS 9.04 9.2 9 9.5 8.8 8.7

Session DateOMC-Jefferson Hwy Benson Tower NorthShore St. Anne Baton Rouge Total

April 15th 109 0 28 0 21 158

May 6th 135 0 0 2 20 157

June 3rd 139 35 0 5 38 217

July 8th 138 49 0 11 24 222

August 12th 169 63 0 3 22 72

System Total 112492% Fill Rate

Great Retention Story Since Implementation: +7% from 2012

Objectives

Online hiring process

Onboarding programs

Measurement and

analytics tools

Metrics Journey

• Built dashboards- quarterly, monthly• By recruiter and by department• Trained recruiters on LEAN process

methodology• Reviews with recruiters quarterly and sets

goals

Metrics, metrics and more metricsHonor Roll - Key Metrics Q2 - 2013 Q3 - 2013 Q4 - 2013 Q1 - 2014 Q2 - 2014 Low 25% Median Top 25%

Productivity                

Total HIRES/Recruitment Staff FTE 266 240 186 297 325 160 191 239

Responsiveness                

OVERALL - Ave Time-to-Fill (TTF) 44 51 56 46 48 60 53 47

OVERALL - % of Positions Filled in 60 Days or More 23% 27% 48% 28% 28% 33% 29% 27%

OVERALL - Average TTF for Positions Filled in 60 Days or More 117 129 124 98 105 129 122 106

RNs - Ave Time-to-Fill (TTF) 41 47 60 51 54 56 51 44

RNs - % of Positions Filled in 60 Days or More 20% 26% 57% 28% 33% 35% 28% 23%

RNs - Average TTF for Positions Filled in 60 Days or More 124 120 137 99 109 135 111 98

We continue to strive to be best in class and use the LEAN Human Capital Benchmarks as goals.

Metrics, metrics and more metricsMonthly Team Dashboard Goal Nov Dec Jan Feb March April May June

Productivity                

# of positions Approved  

# of positions Filled  

Average # positions per Recruiter  

Status of Current Applications  % of applications that are in prequal's status  

% of applications reviewed by Recruiter  

% of candidates to be reviewed by HM  

% of candidates to be set up for Department IVs  

% of Pending Offers  

% of applications currently rejected  

% of applications declined  

% hired but not started  

Responsiveness  OVERALL - Average Time-to-Fill (TTF) 47

OVERALL - % Positions Open 60 Days or More 27%

RNs - Average Time-to-Fill 41

RNs - % Positions Open 60 Days or More 23%

• In conclusion, using LEAN practices is a rigorous, disciplined process.

• There are so many positives to using this process, training your staff in the practice and breeding an environment of continuous improvement.