Have you ever wondered how finance sets a department's budget each year? While most explanations we've heard sound quite complex, the truth is quite simple.
There are only 3 ways to set a productivity target: Run Rate, Benchmark, and Zero-Base
Leaders struggling with their target often ask this question and most are unable to get a straight answer - perhaps because the person they are asking isn't sure. This common complaint inspired us to share this newsletter and we hope it helps!
Read MoreHow do organizations accurately determine the number of Full-Time Equivalents (FTEs) needed to fill staff schedules without requiring overtime?
If you’ve ever worked on this problem, you know that hiring 30 FTEs does NOT imply 30 FTEs will be worked. This means FTE totals taken from the HRIS system are unreliable (no, we aren’t referencing nonproductive time, although it also must be considered when calculating productive availability)!
To truly understand staffing commitment, we must review historically worked hours for each team member. A team member’s commitment is defined as the weekly hours they have agreed to work. As an example, 0.9 FTE RNs are hired to work 36 hours per week (typically in a 3x12 shift format).
Analyzing FTE availability begins with comparing this agreed-upon FTE commitment with actual worked hours.
Read MoreStaffing grids connect clinical and financial guidelines in a way that effectively supports sustainable operations.
We aren't sure how long they've been around, but we would assume that the first staffing grid is older than anyone reading this, given how beautifully simple and impactful these little pieces of paper can be.
Does your nursing unit's staffing grid align with the budget financially? Are your nursing units staffing in alignment with their grids? How do you know? How do you ensure consistent nursing ratios between units? Across multiple hospitals in a health system?
Read MoreHow does your hospital manage position approvals? We've observed 3 methods: Hiring to budgeted FTEs, approvals based on productivity performance, or customized department FTE hire targets based on total annual projected labor spend. Hire targets provide a specific FTE value for departments to maintain by considering volume-driven monthly FTE needs and total annual labor cost. For best results, start with the most cost effective option and make adjustments from there by carefully considering the operational feasibility of flexing up. Remember: the best way to address chronic vacancies is to hire ahead of turnover!
Read MoreMany healthcare executives are concerned that patient care will suffer when they are challenged to reduce labor costs. However, leaders often overlook opportunities to better align staff with patient workload.
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