Background

This healthcare organization serves over 40 communities within the USA. Its workforce exceeds 7,500 people including 1,000 physicians. The adoption of Visier was driven by a need to progress the HR group to a culture of analyses and trend-based insights rather than reactive manual reporting. HR wanted to provide leadership with a strategic view into the future versus an ongoing analysis of the past. Read the detailed case study.

The following Cost of Turnover Analysis was developed using Visier and was a key tool in the business case the HR team presented to leadership in support of their request for additional investment in retention programs.

Turnover Analysis – Methodology

The objective of the analysis was to understand the cost of turnover to the business and more importantly, to quantify the savings associated with any reduction in turnover. Using this analysis, the HR team were able to talk about their retention initiatives in financial terms that were meaningful to their leadership team. The model included three types of costs:

  • Transactional Direct Costs: Easily tracked with a direct relationship to turnover volume. For example, background checks or drug screen feeds.
  • Dedicated Direct Costs: Easily tracked with an indirect relationship to turnover volume. Difficult to realize associated savings. For example, dedicated salaries within recruiting.
  • Indirect Costs: Difficult to track with a complex relationship to business operations. For example, patient diversions or reduced worker productivity due to new hires.

To see the breakdown of costs and savings, please download the full case study.