Articles by: MaryJane Craig

Data Integration Models for Pay-for-Performance: A CFO Perspective

Human services organizations are currently working on strategies to manage the changing landscape of value-based purchasing and pay-for-performance. As this new era continues to evolve, many C-Suites are challenged with preparing their organizations to meet the demands of new payment models. The first, and most crucial, step to managing these changes is to ensure that the organization has the right tools in place. Next, executive teams need to develop ways to combine data from multiple sources in order to produce the reports needed to meet payer-mandated performance requirements and manage value-based contracts.

Across many organizations, the surprising champion for these new initiatives is the CFO.  The CFO position has been historically diverse, wearing hats in accounting and strategy. However, in recent years they have seen an unprecedented surge in time spent within the HR and IT departments. According to Robert Half Management Resources, CFOs have reported a 21% increase in time spent in HR and a 19% increase in time spent in IT. This is due largely to the fact that the complexity of the financial environment is growing rapidly between healthcare reform, new payment models, and difficult cost allocations, driving the need for increased collaboration between departments to streamline data collection and reporting.

The CFO is now responsible for collecting information from multiple systems to compile robust reports on the productivity of employees, and programs as a whole, for the analysis of costs and revenues at a granular level. This requires the organization to have highly capable systems in place, such as General Ledger, HR & Payroll, and EHR software solutions. However, the biggest challenge comes from finding ways to cohesively combine data from these systems using efficient integrations.

Efficient integration can be the biggest hurdle for CFOs, particularly if the core systems that they are using are already “pieced-together”. The average organization uses 3-4 systems to manage HR & Payroll, with only 13% using one, unified system. This can prove to be problematic, especially when considering that salaries and benefits are the highest expenses that organizations face. Those expenses are significant in the productivity, cost, and revenue calculations needed for a pay-for-performance model.

In order to fuel data collection and innovative integrations, a stable structure needs to be developed. One way to approach this is by automating multi-dimensional labor distribution through the use of organizational levels such as Job Code, Funding Source, Location, Program, Cost Center, and more. Organizational levels can then be assigned to positions and inherited by employees. By mapping GL codes throughout different organizational levels, you will be able to generate a GL file from your HR system into your Financial system, that will include the robust labor distribution data required to meet payer requirements.

Additionally, integrating your EHR with your HR & Payroll enables the transfer of service delivery units into the HR system. This will allow your organization to automatically allocate hours worked to the proper programs or, organizational levels. This helps organizations break down their labor costs by program in order to analyze the breakdown of costs and revenues at a granular level. Your organization will be able to produce reports that show the service level delivery of each employee. This information is critical to maintaining accurate staffing levels and ensuring that you are providing the highest quality care.

Maintaining multi-system integration between EHR, HR & Payroll, and GL systems allows organizations to measure the productivity and effectiveness of programs at a level of granularity that would have been otherwise unachievable. Not only is your organization able to track costs across organizational levels, you will also be able to understand the costs needed to achieve outcomes and deliver higher quality care. Combining this comprehensive data for costs, revenues, and service-level performance, allows CFOs to position their organization for efficient and manageable value-based contracts.

This DATIS Blog was written by MJ Craig, DATIS, on January 27th, 2016 and may not be re-posted without permission.

HR Software as a Decision Support Tool

Many organizations falsely identify HR Software as a tool for Document Management, Time & Attendance, Payroll, and numerous other simple automated tasks. The often-used term HRIS, or Human Resources Information System, is in itself a misnomer. In reality, technology available for HR can be a robust resource for organization-wide analytics that spans far beyond the HR department and acts as a decision support tool for executive management.

A decision support system, by definition, transforms raw data into information that can aid in decision-making to identify and solve business problems. HR handles all the information for the organization’s human capital, which is evidently their largest asset and highest expense. Therefore, information on productivity, labor costs, turnover, recruiting, and compliance, is central to an organization’s success. Unfortunately, most HR software reporting only scratches the surface of the heaps of data stored within the system. In fact, when Bersin interviewed HR leaders, many complained that their reports and dashboards were fairly useless.

Three characteristics of HR software that move from simple data systems to decision support tools include:

• Real-Time Results

Delivering relevant reports in real-time is crucial for strategic decision-making. Many standard reports provided by basic HR software are backward-looking, forcing executives to make critical business decisions with incomplete information. Access to real-time, organization-wide information enables executives to make proactive choices to ensure success within the organization.

• Unified Data

On average, organizations are using 3-4 different HR applications to complete organizational processes. This silo approach forces you to piece together information, trying to get a full picture, but always feeling like you are missing a piece. Furthermore, the process of gathering information is time-consuming and by the time you think you have it right, the report is probably outdated.

• Industry Expertise

To get the most from your HR software, it's important to choose a vendor that understands the inner workings of your industry. Often times, standard reports do not address the unique needs of your organization when it comes to workforce planning. In order for your HR software to act as a decision support tool, you need to free your data from the cookie cutter restraints of a standard system that doesn’t understand your business. Configurable reporting capabilities allow your organization to produce innovative insights that fit your needs and solve your business problems.

HR software that contains these characteristics goes beyond the traditional definition of a decision support tool because it is not only an informational tool, it is an operational tool as well. This means that it not only collects and stores the data, but also actively analyzes information and presents it in relevant ways. To unleash the power of data using a true decision support tool, you need to go beyond the traditional, out-of-the-box HR systems. This will allow your organization to achieve complete transparency with a unified system, so you can make the right decisions, right now.

This DATIS Blog was written by MJ Craig, DATIS, on February 24th, 2016 and may not be re-posted without permission.

The Juniorization of Organizations

Many organizations are aware that younger generations are entering the workforce at a rapid rate. This diversification in the workplace is causing fundamental shifts in just about every aspect of business. One of the greatest evolutions has taken place in organizational culture, as many executives work tirelessly to cater to the unique values and preferences of a multigenerational workforce. However, the underlying trend is what some experts have dubbed as, “Juniorization”.

Juniorization is the general replacement of experienced senior executives with fresh young talent. In other words, it’s the reason that the median age at your organization might be lowering at a staggering pace. Recently, the focus on Juniorization has increased as Wall Street banks began implementing it as a risky strategy to lower operating costs. However, Juniorization is much more than a way to shave away high salaries.

This new trend has the potential to become a catalyst for widespread organizational shifts in workplace culture, technology, and talent management.

Workplace Culture
As the workplace continues to become increasingly diverse, company cultures must begin to reflect that change.  Many modern organizations have become flatter, decreasing hierarchy and bureaucracy as a way to increase engagement and productivity. Additionally, as Millennials begin taking over the workforce and bringing with them higher expectations, Baby Boomers are shifting into new roles as mentors and coaches to managers that are increasingly their junior. Leaders must learn to leverage their respective talents by understanding and identifying complimentary, cross-generational teams that engage all members and optimize contribution.

Technology
Wall Street has cited technology as one of the ways that they have been able to adopt Juniorization as a strategy, even in a complex and high-stakes industry. These organizations are learning that they may not need to pay a senior executive a staggering salary for 20 years of experience and market knowledge if they can find technology that can enable junior colleagues to have access to the same data and information. As technological tools become more advanced, the collaboration of man and machine has become more heavily weighted on the quality of the machine, rather than the experience of the man. New systems are able to turn raw data into information that can aid in strategic decision-making that solves core business problems.

Talent Management
The Millennial generation’s common traits present themselves at work through the need for challenge and variety, as well as a craving for continual feedback and skill development. This is revolutionizing the way that organizations handle Talent Management initiatives. For example, the familiar annual review process is now archaic. New Talent Management models foster a continuous feedback loop throughout the year, keeping employees and managers on track with goals and development plans. Additionally, top-down evaluations are also a thing of the past. 360 peer reviews now offer entire teams the opportunity to provide feedback on their colleagues and work environment to create a more holistic picture of performance.

Although Juniorization may be viewed negatively by some, it is important for executives (of all ages) to acknowledge the trend and develop strategies to meet it head on. Organizations that are able to embrace the change have the potential to harness the power of this new diversification as a strategic advantage for increasing productivity, fostering innovation, and recruiting top talent.

This DATIS Blog was written by MJ Craig, DATIS, on March 30th, 2016 and may not be re-posted without permission.

HR vs Finance: Why Can’t We Be Friends?

Redsox vs Yankees, Microsoft vs Apple, Dunkin Donuts vs Starbucks - all of these rivalries have long, colorful histories behind them. However, rivalries are not confined to sports teams or corporate competitors. A grueling and long-fought rivalry takes place everyday at your organization; HR vs Finance.

HR is mainly viewed as a department that deals with the people at an organization, while Finance is seen as dealing with the money of the organization. In other words, HR represents a qualitative mindset, while Finance represents the quantitative. In this sense, HR and Finance have been separated and pitted against each other based on HR’s perceived objective to serve the people vs. finances’ money aspect of the business. However, many organizations continue to neglect how interrelated these two functions are and how critical it is that they work together.

When HR and Finance work together, they can help identify and analyze organizational trends and strategies to drive positive, measurable outcomes. Below are three strategies for bridging the gap between HR and Finance at your organization:

Share Systems to Streamline Communication

With so many interrelated responsibilities, it is only common sense that the data gathered by Finance is necessary for HR to make the best decisions, and vice versa. However, many HR and Finance departments operate using different systems. In fact, the average organization uses 3-4 separate systems to manage core HR and finance processes. These disparate systems often “speak different languages” and make it hard to share data between the two departments, increasing the gap between HR and Finance. When using disparate systems, everyone is working separately off of different information. Each department only sees a fraction of what’s going on at the organization, and no one can make well-informed decisions. Implementing a unified system is vital to create a single source of truth for your organization and increase organizational visibility.

Remove Functional Silos

Finance and HR are becoming increasing interrelated. HR is taking on more in terms of talent management, employee retention, credentialing, payroll, and compliance with new regulations, while the role of Finance is also constantly evolving. According to Robert Half, CFOs have reported a 21% increase in time spent in HR to assist with compliance, compensation, benefits plans, and recruiting. With this increasing overlap in responsibilities, it is crucial for HR and Finance to eliminate their silos and begin to form a culture of collaboration in order to increase productivity holistically. 

Identify and Form Cross-Departmental Teams

Forming collaborations between HR and Finance is easier said than done. The deep-rooted rivalry and perceived conflicts of interest may make it difficult for everyone to get on the same page. The best way to get the ball rolling is to identify specific objectives, and form a project team made up of key Finance and HR personnel that can complement and amplify each others strengths. One objective to tackle first is recruiting. Katherine Jones, VP of HCM Technology Research at Bersin by Deloitte at Deloitte, states that, “the business imperative for the link between Finance and HR comes down to making intelligent hiring decisions based on intelligent economic decisions.” This initiative, along with others like it, can bring to light numerous advantages of a better relationship between HR and Finance, leading to a sustainable structure of cohesiveness.

At the end of the day, no organization is as good as the sum of its departments. Both HR and Finance are critical cogs that power a much larger machine. When HR and Finance learn to work together, your organization will be able to view cross-departmental data in new ways, create more collaborative culture, and increase efficiency and productivity.

This DATIS Blog was written by MJ Craig, DATIS, on May 4th, 2016 and may not be re-posted without permission.

The Department of Health and Human Services recently awarded $22.9 Million in Planning Grants to 24 states to be used to develop Certified Community Behavioral Health Clinics (CCBHCs). A CCBHC can be described as a behavioral health specialty center of excellence. This center partners with a wide array of health and social service entities to provide high-value, whole-health care to people with complex conditions.

During a two-year “planning period” that will begin in January 2017, these states will need to work to certify clinics, expand or develop services, establish a Prospective Payment System (PPS), enhance their reporting capabilities, and prepare for a national evaluation. Many organizations will have significant hurdles to overcome to reach the level of excellence required to become a CCBHC. One of the biggest obstacles that organizations may face is establishing a Prospective Payment System (PPS).

PPS will affect every aspect of how CCBHCs do business – from organizational structure to payment models and service delivery. PPS requires that CCBHC’s calculate and receive Medicaid reimbursement for their anticipated cost of delivering allowable services and support. This means that organizations will be able to establish a payment rate that reflects your anticipated costs and is inclusive of many activities that have not been reimbursable in the past, such as care coordination or services delivered.

However, this reimbursement rate is based on an estimated cost. Organizations who are able to accurately calculate their costs of providing services during the planning year will have the potential to be very successful. On the other hand, organizations that are unable to correctly measure and project costs will face financial struggles. The rates must consider budgeting for growth, staffing levels, documentation requirements, and more.

Imagine a system that helps you break down labor expenditures by program so you can analyze costs and revenues at a granular level. This would act as a single solution that can centralize data from multiple systems to measure the productivity and effectiveness of your programs, produce robust data to meet new reporting and collection requirements, and effectively manage your financial efficiencies. Since employee salaries are the largest expenditure for most organizations, calculating PPS rates will mean breaking down the silos of EHR, HRIS, and GL systems to gather essential data.

Utilizing a fully unified Human Capital Management system can enable organizations to centralize data from multiple systems including EHR, HRIS, and GL, in order to identify and optimize the financial efficiencies of each and every program. This can provide organizations with a level of reporting granularity that would be otherwise unachievable.

Whether or not your organization is working to become a CCBHC, this simple and modern approach can gather the robust and innovative data needed to transform your organization into a center of excellence.

This DATIS Blog was written by MJ Craig, DATIS, on May 26th, 2016 and may not be re-posted without permission.

Three Reasons Social Media Increases Donor Participation

Are you using social media but not exactly sure how you can use it to benefit your organization? Does your organization find itself posting candid pictures of the staff’s daily activities, tweeting random quotes and thoughts for the day, or advertising what current positions are available? Do you often ask yourself if there are tangible results to this sporadic activity and hope that it is helping drive revenue? You are not alone when questioning the time and effort devoted to maintaining your organization’s multiple social media sites. You may find yourself just trying to keep pace with the crowd but not exactly sure how to get the most out of it.

As mentioned in one of our recent blog posts, social media has become an active way to deepen relationships with potential candidates, but it is also a critical and valuable tool when seeking donors. Although there are many benefits to utilizing social media, this post focuses on how to reach donors (aka voluntary revenue boosters).

The following provides three reasons why keeping your donors engaged and informed can help increase donor participation at your non-profit.

1. Your donors are engaged
   • • Social media is the newest and most popular way for humans to interact and be connected
     • Donors want to feel included and informed about any initiatives the organization is involved with
     • If they notice other “friends” and “followers” are giving donations and time, they want to contribute as well and feel part of the community
     • Share any type of collateral, testimonials, press releases, etc. that will make donors aware of what the organization is doing
     • Give them the opportunity to provide feedback, give reviews, and rate any social events or fundraisers.
2. Stand out to donors
   • People weigh options and make choices, make sure you are in the forefront when they are in their decision-making process
   • Utilize social media to be creative and reward your donors for giving by showing them where their donation went with pictures or
     letters
3. People are always looking for new connections
   • They want to be part of a community that they share a bond with
   • Engaging them with social media shows that you are willing to make the initial first connection

a. They want to be part of a community that they share a bond with
b. Engaging them with social media shows that you are willing to make the initial first connection

CFOs Face New Frontiers

Historically, CFOs perform operational initiatives that center around the financial aspect of a business. This has often consisted of mainly back-office tasks. However, new studies show a growing need for CFOs to expand beyond the operational aspect of a business to participate in more strategic decisions regarding the organization as a whole.

CFOs are increasingly called upon to partner with the CEO and other executives to help analyze business situations and drive transformation. Unfortunately, due to the rapidly changing expectations of the CFO’s role, many current CFOs are ill-equipped to go beyond the numbers to make strategic decisions regarding organizational innovation and growth. Deloitte recently released a report making the case for “finance business partnering” as a strategy for ensuring that CFOs are effectively supporting and influencing change within their organization.

In order for CFOs to achieve their full potential as a strategic business partner, there are a few prerequisites:

Re-prioritize Activities
Although the pressure is on the CFO to integrate more closely with the rest of the business, many are too consumed with operational tasks to commit to becoming a true business partner within other areas of the organization. Two-of-three CFOs spend less than 30% of their time partnering with other areas of the business. To make a significant impact as a business partner, CFOs will need to re-prioritize their departments by carefully aligning goals and activities to center around collaboration.

Support Strategic Decisions
The ability to support strategic decision-making is the key to succeeding in a complex, and quickly growing industry. Deloitte’s study shows that while business controllers spend 75% of their time preparing reports, only 25% of the audience finds those reports useful when managing the business. In order for CFOs to effectively assist with better decision-making, they need to provide innovative insights into the organization’s challenges and opportunities.

Break Down System Barriers
62% of organizations identify inadequate data systems as a barrier to business partnering. On average, organizations are using 3-4 different systems for core HR, Finance, and Talent Management functions. With each department working with a different system, everyone ends up working off of separate information. In order to become true partners, departments need to combine cross-departmental information within a unified system that presents a single source of truth for information and analytics.

The modern CFO is an increasingly evolving position that is expected to act within a wide range of roles for the organization. Deloitte’s study concludes that, “CFOs need to address issues related to talent management, business analytics, pricing, and service delivery models.” Transitioning focus from back-office operations to front-office strategy is no easy task and must be executed in an intentional and organized way. An uncoordinated approach to business partnering can lead to employees feeling confused, overworked, and ineffective. However, if successfully achieved, true business partnering can enable all executives to become cross-functional contributors that provide relevant, real-time decision support.

This DATIS Blog was written by MJ Craig, DATIS, on July 13th, 2016 and may not be re-posted without permission.

Managing Labor Costs in a Multi-Dimensional Environment

Labor costs often represent the largest expense in the budget for the Health & Human Services industry. For this reason, effectively managing labor distribution is imperative for maintaining budget compliance, evaluating programs and services, and meeting the complex reporting requirements of funders. However, managing and reporting on labor costs and allocations is often easier said than done.

As the industry landscape continues to evolve, many organizations are transitioning to complex and comprehensive business strategies, including robust care coordination and integrated service delivery models. These changes create a multi-dimensional environment where labor costs are especially difficult to track and even harder to analyze. While HR & Payroll systems are typically the origin for this critical data, most systems are not equipped to support the specialized tracking and unique analysis that this industry demands.

In order to succeed in managing labor costs in a multi-dimensional environment, organizations need to adopt modern solutions and strategies that follow these 3 guidelines:

Harness the Power of Position Control
Position Control is a unique feature that ensures your organization is budgeted by position, not employee. Through Position Control, labor dimensions can be tied to positions as inheritable attributes, without having to code individual employees. When an employee records time worked within their position, their labor will be allocated based on the labor dimensions defined by their position. This eliminates the need for manual coding and provides actionable data that can be used to create detailed labor allocation reports.

Adopt Innovative Costing Strategies
With hundreds of employees within an organization working across multiple labor dimensions and ranging from Full-Time, to Part-Time, to PRN status, the strategies for labor costing must be dynamic, while maintaining data integrity. Additionally, each organization has different needs and processes for aligning staffing needs with costs while simultaneously evaluating program performance. Therefore, multiple costing methods may be necessary for different groups of employees. Most HR & Payroll software will not be able to accommodate this. However, a software solution with Position Control can provide several methods for costing payroll data, including:

• Costing via Timesheets
• Costing via Time Clock Transfers
• Effort Report Costing
• Automated Costing via Standard Percentages
• Automated Costing Based on Revenue/Production

To learn more about various costing methods, and how to apply them, download our Labor Costing Strategies eBook.

Unify Your Data
The automation of multi-dimensional labor distribution is best achieved through the use of unified data. Unifying data from multiple systems provides greater organizational visibility and accuracy. Thus, creating a single source of truth for information and analytics that can act as a decision support tool for executive management. For example, costing strategies based on revenue and production are generated by pulling service level delivery data from the Electronic Health Record (EHR) into your HR & Payroll system. Additionally, detailed file feeds can be sent to the General Ledger (GL) to translate labor allocation and distribution data into accurate and relevant costs.

In order to manage these labor costs, maintain quality programming and services, and meet funders’ complex reporting requirements, it is imperative that providers have access to systems that streamline information-sharing, increase transparency, and eliminate compliance risk. Effectively managing labor costs in a multi-dimensional environment enables organizations to distribute labor across programs to analyze the summary of costs and revenues at a level of granularity that would be otherwise unachievable. This data helps to identify the financial efficiency of each program and, in turn, enable precise budgeting and costing strategies to maximize revenues.

This DATIS Blog was written by MJ Craig, DATIS, on August 17th, 2016 and may not be re-posted without permission.

The Drive Towards Digital

New technological advances in the workplace are transforming organizations in terms of their systems, processes, and people. The digital age has arrived and organizations are now working to develop strategies to keep pace with the evolution of their industry. Success in the digital landscape will require a combination of many factors including innovative processes, engaged talent, and new business models. Unfortunately, while 90% of business leaders expect their industries to be disrupted by digital trends, only 44% think their businesses are adequately prepared for the changes ahead.

In order for organizations to initiate and maintain an organization-wide drive towards digital, they will need to have the right people, in the right roles, with the right tools to make a difference.

The Right People
Recruiting top talent is no easy feat in today’s job market. The talent shortage is a significant factor, especially in the technology sector. Many organizations are struggling to find qualified candidates that can help drive future innovation. These candidates must be, not only tech-savvy, but also adaptable, collaborative, and forward-thinking. This combination is difficult to find in many industries. However, 71% of organizations that are already “digitally mature” find that they are able to attract new talent as a direct result of their use of digital technologies. If companies are able to plan their digital initiatives ahead of time, they will be able to proactively identify talent needs and begin recruiting new employees or developing their current employees.

The Right Roles
As processes and systems for organizations evolve, so do the roles that are responsible for managing them. New positions centered around digital functions have emerged, including: Chief Digital Officers, Digital Engagement Managers, Digital Finance Managers, and more. Even if a positions title remains the same, the requirements of the position are likely to be vastly different than they were 10 years ago. Virtually every position must now have some degree of tech literacy that enables them to use the modern tools available for increased efficiency. For example, an HR Manager’s job description in today’s market would include mention of HRIS management, Online Benefits Enrollment experience, and Workforce Analytics.

The Right Tools
Data from MIT and Deloitte’s recent study suggests that organizations that arm their leaders with the digital tools and training they need to succeed will be more likely to retain their talent. On the other hand, 30% of leaders that were not offered the same tools and training were planning to find new jobs in less than one year. Organizations that do not see the value in investing in their talent may experience retention issues and will often turn to contractors to accomplish their more technical initiatives. This can create a disjointed digital infrastructure with disengaged employees. Heavy investment in technological tools and talent development is the key to succeeding in the digital business environment.

The digital transformation can result in process improvement, talent acquisition and retention, as well as the overall strategic differentiation of an organization. However, the evolution into a digitally mature business is no easy feat. In order to truly advance and keep pace with digital technologies, organizations will need to align digital goals with overall organizational goals. Aligning goals will enable leaders to proactively map out priorities and establish a roadmap for the drive towards digital. With a solid plan in place, organizations can overcome the challenges of a constantly changing digital landscape by developing talent, restructuring positions, and investing in technological tools that redefine their business.

Is your organization ready for “the digital future”?

This DATIS Blog was written by MJ Craig, DATIS, on September 20th, 2016 and may not be re-posted without permission.

Employees are High-Risk Assets: Protect Your Investment

Employees are most commonly referred to, in financial terms, as an organization’s largest expense.  While it is true that employee-related costs often account for 50-80% of operational expenses, this categorization ignores the true value of employees. In fact, human capital is an organization’s most valuable asset. Without employees, an organization lacks strategy, productivity, and ultimately, revenue. Executives that treat their employees as assets, not liabilities or expenses, will be able to attract and retain top talent in today’s volatile market.

Viewing employees as assets vs. expenses is by no means a novel concept. As early as 2004, the HBR released a paper arguing the case for employees to be treated as intangible assets. The article cited that intangible assets cannot be replicated by the competition which makes them “a powerful source of sustainable competitive advantage.” We take great care to protect our financial assets. We hire trusted advisors, study patterns, create strategies, and even run threat assessments to plug holes and strengthen areas of weakness. We work hard to both preserve our assets and accelerate their growth in value. So, why do we not put the same time and effort into attracting, retaining, and developing our employees?

Preserving your employee investment is especially prudent when considering that they are not risk-free assets. Quite contrarily, they are assets with high investment costs and high risk. NASDAQ defines a high-risk asset as, “an asset whose future return is uncertain”. Employees certainly fit this definition. Considering that the initial investment of hiring a new employee is estimated at more than 50% of their salary, the return on that investment is extremely unpredictable and depends on a variety of factors including productivity, development, and, of course, retention.

To put this into context, consider arriving to work to find a key employee’s computer missing along with all of their files. In this case, the authorities would be notified, an investigation would be launched, and strategies would be put in place to tighten security and ensure a similar incident does not occur in the future. However, when a key employee quits, few organizations even spend time identifying the root cause, let alone creating and maintaining strategies to increase retention. Why does the loss of a key employee valued at $50,000-$100,000+ not illicit the same response as missing equipment?

While employee retention remains an enigma to most executive teams, recruiting has recently come to the forefront of business initiatives. As the talent war wages on and turnover rates approach 17%, or higher in some industries, organizations are recognizing the need to “pay to play” in the recruiting market. Many companies have been forced to invest in high-cost recruiting services just to maintain sufficient staffing levels, let alone increase them. Furthermore, this strategy leaves organizations spiraling through a vicious cycle- investing far too much in acquiring assets and not doing nearly enough to protect their investment.

This is becoming a critical to address at organizations around the world. As Baby Boomers continue to exit the workforce, the demand for skilled workers is at an all-time high and competition for top talent is fierce. Your employees have many choices for a place to work and recruiters are lurking around every corner. To position your organization as an employer of choice, you can’t afford to think of employees as expenses.

Take a look at your organization; are your hard earned assets at risk? Have you studied the trends in the market? Are you investing in strategies to strengthen areas of weakness? It is essential to take time and evaluate why employees are leaving your organization by performing thorough exit surveys. However, it is far more effective, and less costly, to stay ahead of the curve by investing in professional development, promoting from within, and using consistent communication to create a championship culture.

This DATIS Blog was written by MJ Craig, DATIS, originally published on October 14th, 2015 and updated on September 1st, 2016. This blog may not be re-posted without permission.