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Mangalam Global Institute of Management has given us an opportunity to showour intellectual ability through an integrated project and allow us to decide the service sector onwhich we want to make our project.For this we have chosen the KFC food chain. KFC is the growing brand in the world for foodindustry. KFC basically deals in chicken recipes whose main focus in crispy and deep friedchickens. To know the market response of KFC we visited various chains of KFC and we also had survey onthe public (who are the basic consumers of the KFC).We visited KFC chain of Noida Sector18, Lajpat Nagar, Center Stage Mall, Noida, and Ghaziabad.We concluded that according to the areas the demand keeps on fluctuating, like there is moredemand in Sector 18 market chain of Noida in comparison to Center Stage Mall and we have themaximum demand in Lajpat Nagar.After the survey on chains we had a survey on the public of city through a feed back form. We alsohad a survey on the people working in the KFC through the human recourse feed back from.We found that they are totally satisfied by the human resource strategies of KFC. By people weconcluded that they are also satisfied by the service provided by KFC, and the product what theyprovide are up to the mark. They find KFC food a best quality food. But then also KFC have towork hard to earn the goodwill in market in comparison to other fast food chains. ACKNOWLEDGEMENT To complete this project, there have been many people who graciously gave their time andexpertise in reviewing the manuscript. Their experience and direction has significantly helps us tocomplete this project. We would like to thank the following: 1. Dr. Athar Ali (Dean of KGIM) 2. Prof. S.S.Khullar (Programme director, MBA) And all the faculty members and all of our fellow mates who help us to complet It is widely believed that employees are a company¶s most valuable assets. Yet in the course of meeting customer demands and managing unpredictable daily operations, many businesses overlook the importance of having a thoughtful workplace safety program in place to protect their most valuable assets. At its core, workplace safety is about employers caring about their people and employees caring about their own safety and the safety of others. It¶s about doing the right thing and protecting the people who are integral to the long-term success of an organization. Successful workplace safety programs target prevention as the primary means of reducing injury frequency and severity of any potential accidents. Taking a strategic approach to workplace safety not only helps make the workplace safer for employees, it also results in operational and cost benefits for the business. As a result, workers¶ compensation costs decrease, fewer overtime costs or economic sanctions accrue, productivity increases, and improvements are made in regulatory compliance, employee retention, and employee/management relations. Consider that studies from the Occupational Safety and Health Administration (OSHA) indicate that for every $1 invested in effective safety programs, $4±$6 may be saved as illnesses, injuries, and fatalities decline. By creating a culture of safety in the workplace, everyone benefits. An effective occupational safety and health program will include the following five elements. The level of detail and complexity with which a program addresses each
element varies from employer to employer, but all programs should include every one of these elements. 1. Commitment from Management and Employee Involvement The most effective workplace safety programs start with an authentic commitment from management that makes safety a strategic imperative across the organization. Effective, comprehensive safety programs start with a management culture that keeps everyone accountable. Without leadership involvement and a commitment from the top, none of it works. This level of commitment requires management to provide visible leadership in collaboration with employees to develop, implement, and continuously improve the company¶s workplace safety initiatives. In an effective program, management pursues worker safety and health with as much vigor as its other organization goals. Employee involvement provides the means through which workers develop and express their own commitment to safety and health protection, for themselves and for their fellow workers. A program that is developed and implemented without employee involvement is less likely to have the employee commitment that is essential to its success. An effective safety and health program must meet the needs of both the company and its employees. 2. Worksite Inspection and Analysis A variety of worksite examinations are required in this aspect of the program. The purpose of these analyses is to identify not only existing hazards, but also conditions and operations where changes might occur that would create hazards. Lack of awareness of a hazard that stems from failure to examine the worksite is a sure sign that safety and health policies or practices are ineffective. Effective management actively analyzes the work and worksite to anticipate and prevent harmful occurrences, and encourages employees to point out hazardous situations as they occur. 3. Hazard Prevention and Control Once hazards or potential hazards have been identified as part of the worksite analysis, the company must consider prevention and control measures. Where feasible, hazards should be prevented by effective design of the job site or job. Where it is not feasible to eliminate hazards, they must be controlled to prevent unsafe and unhealthful exposures. Elimination or control should be accomplished promptly after a hazard or potential hazard is recognized. Taking a strategic approach to workplace safety not only helps make the workplace safer for employees, it also results in operational and cost benefits for the business. 4. Safety and Health Training
The safety and health responsibilities of all personnel are addressed through training. Safety and health training is most often effective when incorporated into other training about performance requirements and job practices. This prevents safety and health responsibilities from being viewed as separate, less-important requirements. The complexity of the training depends on the size and complexity of the worksite, and the nature of the hazards and potential hazards that exist. 5. Long-Term Commitment The employer must make a long-term commitment to a safety and health program for it to be effective. Employees must understand that unsafe acts are unacceptable. Management must use a series of progressive actions that reflects the company¶s continuing concern. These actions might begin with verbal warnings and culminate in termination of the employee for continuous failure to comply with company safety rules. Management must make it clear that it takes safety seriously and is willing to back up its policies; otherwise, the program is just another piece of paper. It is important to develop a program that will meet the needs of both management and employees. An elegant safety and health program manual that describes protective measures that are seldom put into practice serves no useful function. This is why management is encouraged to involve employee representatives in the development of the safety and health program and to encourage their continued participation in company safety and health efforts. Managers and supervisors should demonstrate their responsibility for safety and health by becoming familiar with the safety responsibilities and activities of all personnel reporting to them and providing support in any way required; providing maximum support to all programs and committees whose function is to further the cause of safety and health in the workplace; assisting all personnel to develop safety skills and knowledge, providing rules and procedures to guide the safe conduct of employees, and personally following the safety rules; and providing a system of recognition for successful safety performance. Ultimately, through a proactive and thoughtful approach to workplace safety, businesses can simultaneously keep their most important assets²their employees²safe. Abstract This paper defines the human resource management and I will try to throw light on the concept of human resource management strategies and human resource activities of KFC restaurant limited. The main objective of this paper is examine the models of HR strategies and to find out which model KFC is following and summarising human resource activities of KFC like human resource planning, training, performance management, motivation and reward schemes for the employees. To discuss HR strategies at KFC, I will employ best practice and best-fit model and explain the human resource activities of KFC. The paper also includes appropriate conclusions and recommendations as how to improve the HRM strategy, HR activities and role of HR function at KFC.
History of KFC (Kentucky Fried Chicken) Corporation KFC (Kentucky Fried Chicken) is a fast food restaurant chain based in Louisville, Kentucky, United States. Colonel Sanders founded the company in 1955. In 1957...
KFC Corporation (KFC), founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky, in the United States. KFC has been a brand and operating segment, termed a concept of Yum! Brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc. KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of grilled and roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, though the idea of KFC's fried chicken actually goes back to 1930. Although Sanders died in 1980, he remains an important part of the company's branding and advertisements, and "Colonel Sanders" or "The Colonel" is a metonym for the company itself. The company adopted KFC, an abbreviated form of its name, in 1991. Starting in April 2007, the company began using its original name, Kentucky Fried Chicken, for its signage, packaging and advertisements in the U.S. as part of a new corporate re-branding program; newer and remodeled restaurants will have the new logo and name while older stores will continue to use the 1980s signage. Additionally, Yum! continues to use the abbreviated name freely in its advertising.
Kentucky Fried Chicken could be considered a global organization because from the point of global perspective , it is defined as having built productive cross-cultural teams that maximizes effectiveness of existing training , increases retention , and adapts to any culture , anywhere in the world (globalperspective .info . Kentucky Fried Chicken culture believes in effective operation centered on quality customer service despite differences of culture or language . The principle established by the founder of the fast food remains the significant factor in the success of the restaurant . Expatriate policy of KFC Company KFC Company employs the expatriate policy as one of their strategy in order to establish restaurants that are suited to the culture of a given country because the expatriate 's familiarity with the culture is seen as an advantage to penetrate the country more effectively . Briscoe
and Schuler (2004 ) cited that KFC employed a first generation Chinese American to return to China to establish its chicken restaurants (p . 219 . As part of KFC policy employees undergo several trainings at different levels before they get promotion . In the same way , the general managers they employ on their branches must have acquired appropriate training and experience from the company . Likewise , all franchisers as part of the agreement have to undertake courses at Yum ! University to obtain familiarity with the culture of the Kentucky . In this way , both emigrants and immigrants will have the opportunity to incorporate the culture of KFC and their own culture to suit to the taste of their clientele . Training and Orientation of the Company
Christ Mendel , director of global risk management of Tricon Global Restaurant (an arm of Yum ! Brand ) stated that the company focuses on training and education for all their employees and managers for their 30 ,000 restaurants in ninety countries (cited in Morris . He further explains that the company has developed substantial training programs for all front line people . The training according to him has been integrated into the company 's broader management trainings that deal with issues as sexual harassment , hiring and firing practices , interpersonal relationships , and conflict resolution . Largely , the training practices as he further described are on a global basis with the assumption that ``people need to treat people with respect (Morris . The training employed for both franchise and non-franchise managers are on the same basis that everyone is required to attend trainings held at the company 's headquarter at Louisville . Likewise , these front line people will take the responsibility in providing trainings for their employees using training manuals and product guides . In that way , the top management is assured that the KFC culture penetrates another culture effectively . Benefits the Company Derived KFC has developed a support structure that trains and motivates general managers ``with generous reward programs ' as they lead teams in different branches across nations . Once becomes a franchise manager , the company assures him of support from advertising to training employees for a successful career with the company . The internationalization of human resource management has increased the scope of traditional HRM. Today, HR practitioners not only manage people from their home country, but one that involve managing many diverse nationalities, with which the culture of staff and employees are already well-known or predicted. Companies start business within their country of origin and staff are hired from within that country. However, with the arrival of globalization and the shift from industrial to information technology, a new problem for HR practitioners emerged as employees become more diversified and hard to manage. Companies expand to other countries, or moreover participate in joint ventures or mergers and acquisitions. This move has many implications including the limited choice of hiring employees from the country which the company expanded. Basically, this gives HR practitioners a new
challenge as they are faced with a diverse cross-cultural workforce that they are not yet familiar with. For instance, a UK or an American company expanded or having joint ventures in China would have to integrate their own HR practice in that country. However, the Chinese and Western managers have different beliefs and practices in terms of managing employees. Thus, a cross-cultural conflict might arise, which could affect the productivity and culture of the company as a whole, most especially in the branch they invested in China. Western expatriates might not be able to adapt with the Chinese way of working or any Asian way of working for that matter if they don¶t have proper training or knowledge about them. This gives the HR team a huge responsibility in making sure that cross-cultural relationship within the company is going well. An HRM expatriate might have problems having the best local staff when they do not have enough knowledge about the foreign culture. Furthermore, productivity might also be affected if their way of human management is not compatible with the working nature of the local staff.
The workforce is ever changing. In order to stay ahead of the game, one must know how to be effective in human resource management. Human resource management is defined as ³the utilization of individuals to achieve organizational objectives.´ (Mondy, 2) The following pages will explain the importance of human resources by focusing on the 5 aspects of the framework for the human resource management system. Also discussed will by the external factors that affect the human resource branch of business. One of the most important functions in the human resource management system is staffing. An organization must always have the proper number of employees with the appropriate skills to do a certain job at a certain time. This is where staffing comes into play. Job analysis, planning, recruitment, and selection are all important features that must be met for companies to ensure that their firms are always productive. Every position in a company should be analyzed and its skills posted. Anyone wanting to apply for a job should know up front what skills and duties he or she are responsible for. Without this knowledge, the company will not be productive due to the fact that the person hired would not have a specific job descripti
The human resource management system itself is part of the firm¶s internal environment. A firm¶s internal environment can be defined as ³factors inside a firm¶s boundaries that affect its human resources.´ (Mondy, 36) Every firm has an external environment as well. External environments contain factors which firms have little, or no, control over. These factors are ³outside its [a firm¶s] boundaries that affect a firm¶s human resources.´ (Mondy, 31) Included in the external environment are legal considerations, the labor force, society, unions, shareholders, competition, customers, technology, and the economy. Human resources are very important when it comes to hiring and maintaining employees with a high level of ethics and productivity as well as keeping the organization out of legal suits. There are many aspects that, if not handled correctly, can result in lawsuits. For example, not hiring someone because they are a single parent could be cause for a discrimination lawsuit. To accommodate this person, the company may want to explore the need for a company provided day care on site. A company must also always know that they have the required number of employees with the proper skills on hand when needed. To ensure the company does indeed have an adequate number of employees needed, the firm must systematically review human resource requirement. Failure to do so may result in a shortage of employees with the proper skills needed in a pinch. Firms must know how to recruit the appropriate individuals with the required skills needed for their business. Organizations that do not go out and recruit individuals risk settling for an employe
About KFC Based in Louisville, KY, KFC Corporation is the world¶s most popular chicken franchise specializing in Original Recipe®, Kentucky Grilled Chicken and The Colonel¶s Crispy Strips with home-style sides, Honey BBQ Wings and freshly made chicken sandwiches. KFC has been serving customers complete, freshly prepared, family meals since Colonel Harland Sanders founded the concept in 1952.
Famous for its Original Recipe® fried chicken, which is made with the same secret blend of 11 herbs and spices Colonel Sanders perfected more than a half century ago, it is estimated that, on average, more than 185 million people see a KFC commercial at least once a week ± that¶s more than half the U.S. population. At the end of 2008, KFC was the leader in the U.S. chicken quick serve restaurant (QSR) segment among companies featuring chicken on the bone as their primary product offering, with a 42 percent market share ± more than three times the market share of the closest national competitor. KFC serves more than 12 million customers each day in 109 countries and territories around the world. KFC operates 5,200 restaurants in the Unites States and more than 15,000 restaurants internationally. KFC¶s parent company is Yum! Brands, Inc., the world's largest restaurant company in terms of system restaurants, with more than 37,000 locations in more than 120 countries and territories and employing more than one million associates. Yum! is ranked number 239 on the Fortune 500 List, with revenues exceeding $11 billion in 2008 Latest news
MAKING SOCIAL MEDIA W ORK IN RECRUITING ± FREE W EBINAR 3/30/11
Posted by Jennifer on March 28, 2011 | No Comments »
March appears to be the month of the FREE webinar here at Unbridled Talent and I¶d like to make you aware of another opportunity to listen in! The March 30th webinar ± Making Social Media Work in Recruiting ± is sponsored by Recruiting Trends® and is part of their Best Practice Webinar Series 2011. I¶m excited to be a co-presenter along with the lovely and talented Carmen Hudson ± Engagement Manager, Sourcing & Social Media Strategy at Recruiting Toolbox and CEO/Founder of tweetajob.com. Carmen is someone that I have learned from and admired through her experiences in Recruiting and Sourcing at Yahoo!, Starbucks and now Recruiting Toolbox and she has also been an inspiration to me as a female entrepreneur ± founding tweetajob in 2009.
There should be plenty of time for Q&A as part of this webinar, so please join us, ask a question and contribute to the conversation! Webinar details and Carmen¶s bio from the Recruiting Trends® website are listed below.
Join us on Wednesday, March 30 1 PM ± 2 PM EDT for this insightful webinar Register Now ± at no charge to you! As a recruiter, you¶re all about finding the right person for the right job at the right time and the quality of your talent pipeline is what makes you successful! You depend on access to several mediums to find the best candidates, and for many this includes social media. But how do you decide which of the many social media platforms and sites are right for you and your organization? And how do you stay current? Twitter, LinkedIn, Facebook, YouTube to name a few are all great resources for sourcing and recruiting. Each platform has its own unique demographic and you¶ll want to consider each audience when making the decision as to which application(s) will give you the best results in your sourcing and recruiting efforts. Join Carmen Hudson Engagement Manager, Sourcing and Social Media Strategy at Recruiting Toolbox and Jennifer McClure President of Unbridled Talent as they share with you some of the most common considerations and elements when using social media to recruit top talent. During this 60 min event they will address:
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How to Create an Online Presence ± Reflecting Who You Are How to Make the Most of Your µSocial¶ Time Why it is important to Individualize Your Approach The importance of staying Authentic And much more
You will receive expert advice on proven success and failures using today¶s Social Media platforms! Register now to listen to this insightful fast-paced webinar, yours to enjoy at no cost. *
DO YOU HAVE A W ORKFORCE MANAGEMENT STRATEGY FOR RETIREMENTS?
By Susan M. Heathfield, About.com Guide April 13, 2011
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My Bio Headlines Forum RSS
Strategic HR ManagementFive-day executive course for HR professionals.executive-education.nus.edu Human Resource ManagementFree software evaluation tool. Compare top HR /HRIS software!HR.SoftwareResearchTools.com/HRIS 1 year Mgmt course-IIMIIM-Lucknow offers General Mgmt. Prog for 6+exp working prof. Apply!program.niitimperia.com/BusStrategy Are you interested in learning about the issue of retirement and its impact on your workforce planning? The announcement says: "As the baby boomers reach retirement age, the concept of retirement is being redefined. Employees are reassessing their options to take advantage of a more flexible approach to transitioning from work to retirement, driven in part by rising life expectancy and concerns around securing sustainable retirement income. "For employers, there is a clear need to rethink the role of retirement plans in developing more effective workforce management strategies while minimizing the cost and risk impact on the business. Getting this balance among people, risk and finance requires an integrated retirement management approach that connects the main policy levers that drive retirement plan performance design, investment, contribution and governance - with an ROI-focused workforce management strategy that drives employee engagement and productivity."
THE EMERGENCE OF THE ELECTRONIC EMPLOYEE RECORD
OPTIMIZING YOUR W ORKFORCE TO CUT COSTS AND IMPROVE PATIENT OUTCOMES
by J.P. Fingado API Healthcare¶s President and Chief Executive Officer
With electronic health records (EHRs) and healthcare reform dominating industry news, healthcare executives have been swept into a whirlwind of dynamic decision making and changing priorities. Yet, the primary business of healthcare providers - high quality patient care - remains unchanged. In the ongoing battle to confront profitability issues while improving the quality of patient care, healthcare providers are searching for ways to reduce the costs of doing business and improve bottom-line performance. Considering the single biggest operating expense for health systems is the cost of labor, it makes good financial sense to optimize your most valuable resource - your employees. But, it¶s making the connection between workforce management best practices and improvement in patient quality of care metrics that moves a healthcare provider from acceptable patient outcomes to outstanding patient outcomes. It is the quality of the caregivers, especially the nursing staff, and how that professional staff is utilized, that has a significant impact on patient outcomes. As healthcare reform shines the spotlight on both quality and cost, many healthcare providers are making workforce optimization a priority. That¶s leading to a new strategy surrounding employee data - the electronic employee record (EER), which entails storing, managing and maintaining all employee information in a single, fully integrated suite of solutions. The electronic employee record replaces disparate systems and incomplete information with a more complete organizational workforce management picture. Employee-related information from throughout the enterprise - and even from supplemental and contingent staffing sources - can be used to review, identify, manage and maintain processes more effectively for the entire workforce. This strategy makes it possible to eliminate duplicate data maintenance, manual processes and costly interfaces while increasing information accuracy and efficiency. Integrating employee information into a seamless data flow makes it possible to track trends and create forecasts that improve human resource utilization. It¶s an approach that will have far reaching benefits, affecting every level of the enterprise. With this enterprise-wide employee data management strategy, the end result will be heightened efficiency and an improved bottom line. But, the true benefit of a fully integrated electronic employee record is talent optimization - knowing exactly what staff resources are available and utilizing them in the best way possible, which leads to better patient outcomes.
THE ELECTRONIC EMPLOYEE RECORD IMPROVES HEALTHCARE BUSINESS STRATEGIES
At the core of every healthcare business strategy is the basic yet constant effort to improve patient care while maintaining an edge in an increasingly demanding and competitive field. To that end, many organizations are searching for ways to reduce operating costs and boost
shrinking profit margins, all while working to improve the quality of care they provide. Providing exceptional patient care in today¶s accelerated environment is dependent in large part on the management of staff resources and tremendous amounts of employee-related information. The process includes accessing, tracking, managing and analyzing labor data on-demand to enhance the decision-making process. With the single largest expense most healthcare operations face being human resources/payroll-related - up to 65 percent of operating costs(1) - it makes sense to consider implementing strategies that have an impact on this area. Redesigning inefficient employee processes and increasing productivity have a significant impact on reducing costs and improving the bottom line. Additionally, streamlining the flow of employee data can improve employee satisfaction and increase morale, especially important as the industry experiences cyclical availability of nursing staff throughout the country. But, the real payoff comes when implementing workforce management best practices leads to talent optimization, empowering clinical staff to deliver improved patient outcomes.
CONSIDER THESE FACTS:
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The likelihood of a nurse making an error is three times higher after working a shift lasting more than 12½ hours (2) More hours of RN time spent on direct patient care results in shorter length of stays and fewer failures to rescue (3) For each full-time equivalent (FTE) nurse per patient day,the absolute risk of mortality decreases by .25% (4)
CONNECTING FINANCIAL AND CLINICAL SYSTEMS
Healthcare organizations have three key areas to invest their technology dollars: clinical, financial and workforce management systems. Yet, those core systems should not operate as information silos. Instead, a robust fully integrated workforce management solution can provide the link between the clinical and financial systems, providing healthcare organizations with the information needed to align clinical and financial outcomes.
With a fully integrated workforce management solution linking the financial and clinical sides of the hospital, the organization achieves a balance between high quality patient care and cost-effective delivery of that care.
Hospitals have a single core mission - providing patient care. However, the long-term success of the entire organization is based on two very different measures: the quality of the patient outcomes and the cost of providing the care. When more information is accessible regarding patient care needs and the optimal way to deliver that care, the financial realities of healthcare can be balanced with high quality patient care. That alignment of clinical and financial goals requires a fully integrated workforce management system that provides a strong link between the clinical and financial sides of the business as shown in the diagram above. Within that model, clinical documentation is used to determine true patient care needs for the upcoming shift. That information is used to empower organizations to use predictive scheduling, where the actual patient care needs determine the number and skill mix of the staff needed to meet those patient care needs. Then the staffing & scheduling solution shows which staff members are available to provide the necessary care and the time & attendance, payroll and human resource systems show the cost of those caregivers. With this strong clinical-financial connection, productivity measures are more accurate and include cost-of-shift data - not only is the organization measuring if the right amount and mix of clinicians are scheduled, but the cost of that staff is part of the equation. With all of that information available and evaluated before the start of the shift, projected overtime and excessive use of contingent labor can be avoided while patient care needs are met. And, with real-time productivity information, discrepancies between budget and actual staffing numbers and labor costs are explained with clinically-based justification and actual patient need data. With this complete, multi-dimensional picture of actual patient care needs and the clinical workforce that will meet those needs, organizations can make solid staffing decisions that optimize patient care and minimize labor costs. That means the CFO and the CNO are able to align their goals, delivering patient care that achieves both positive clinical outcomes and a healthier bottom line.
THE ELECTRONIC EMPLOYEE RECORD IN ACTION
The electronic employee record can streamline workflows that are used each and every day throughout the health system. That streamlining equates to a more satisfied, cost-effective workforce that is empowered to provide high quality patient care. Here are some examples of how the electronic employee record can improve workforce management processes - both in terms of the cost and quality of care delivered.
Excessive amounts of overtime can carry a heavy cost - both in terms of the bottom line and patient outcomes. According to Ann E. Rogers, PhD, RN, FAAN, lead author in a study regarding the effects of long nursing shifts, "It is hazardous for patients when nurses work overtime - and they do that almost every day they work. So we need to pay closer attention to the hours they work and try to reduce overtime and long shifts."(5) Another area of concern regarding overtime is Fair Labor Standards Act (FLSA) compliance. Tracking, managing and paying employees for overtime worked can be complicated and must be accurate to avoid litigation. And, that litigation can be costly. For example, Partners Healthcare in Boston had to pay more than $2.7 million in overtime back wages.(6) Even with all of the potential pitfalls of overusing overtime, many organizations still rely on overtime to meet their staffing needs. Yet, full integration between staffing & scheduling and time & attendance solutions provides organizations with the information they need to both predict and drastically reduce overtime. Here¶s how that happens:
Projected overtime - Rather than a reactive approach, prospective data is available when critical decisions need to be made. By providing access to real-time information about the hours that an employee has already worked and the hours they are still scheduled to work, healthcare providers can project potential overtime and take the appropriate measures to avoid it before it occurs. And, because all pay policies and overtime calculations are applied accurately to both worked and scheduled-to-work time,the organization can project and proactively address all instances of overtime, even those surrounding more complicated overtime rules. Incidental overtime - When employees arrive a few minutes early, skip their lunch or stay late, they slowly but steadily accumulate overtime. Those minutes and hours can add up to thousands of dollars worth of overtime costs per pay period.
Here¶s an example:
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1.67 hours of overtime every two weeks = One employee arriving 10 minutes early each day 1,666.67 hours of overtime every two weeks = 1,000 employees arriving 10 minutes early each day That costs the organization $80,031.48 every pay period.
Putting rounding rules into play can lead to the even higher unexpected overtime costs.
Here¶s a look at how quickly incidental overtime can add up to be anything but incidental:
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2.5 hours of overtime every two weeks = One employee arriving 10 minutes early each day, but being paid for 15 minutes based on quarter hour rounding rules 2,500 hours of overtime every two weeks = 1,000 employees arriving early each day, but being paid for 15 minutes based on quarter hour rounding rules. That costs the organization $119,975.00 every pay period.
By using data from an integrated labor resource management system to analyze patterns of incidental overtime, managers can develop policies, such as improved shift change procedures or lunch coverage, that eliminate the unexpected and unnecessary instances of incidental overtime without violating the state and federal labor laws.
Often times, employees are committed to working a certain number of hours during a pay period. For example, a .8 FTE nurse would expect to work 32 hours each week. With a fully integrated system, it¶s easy to determine who has not yet fulfilled their commitment - and who¶s not scheduled to work the expected number of hours. With that information readily available, department managers and staffing coordinators can make better decisions about the best nursing resource to fill a staffing vacancy. When nurses are staffed at their required hours rather than always being under or over their FTE commitment, that¶s a staff satisfier. And, looking at the aggregate information provides insight about whether the organization has enough resources overall to meeting their staffing and patient care needs.
STAFFING BASED ON TRUE PATIENT CARE NEEDS
Bridging the gap between patient care needs and the staffing plan is essential to affordable, high quality patient care. In an ideal scenario, 80% of the staffing plan is based on projections and census numbers. Then, clinical documentation, patient classification information, and admit/discharge/transfer (ADT) data is used to complete and fine-tune the remaining 20% of the staffing plan. When census numbers, acuity data, ADT information and clinical documentation is synthesized to provide comprehensive patient classification profiles, and that information is then linked with staffing and scheduling information in real time, staffing adjustments can be made before the shift begins to ensure optimal patient care. Patient care needs can be matched with staff skill sets so that each patient¶s unique care needs can be met in the most effective and efficient manner - even during more challenging transitions, such as patient admissions, transfers and discharges. With the right technology, matching the right caregiver with the right patient becomes more than a theory - it¶s the way patient care happens day in and day out.
Staffing based on patient care needs is more than a philosophy - in many states, it¶s a law. Nearly half of the states in the U.S. have either enacted or proposed legislation regarding safe staffing guidelines (see map below for specifics). And, in July, 2010, the Registered Nurse Safe Staffing Act of 2010 was introduced at the federal level. With patient outcomes, labor cost controls and legislation requirements all dependent on optimizing the workforce, it¶s critical to have a strong, real-time link between patient care needs and staffing plans. Staffing that is data-driven and based on actual patient care needs leads to optimal outcomes for patients and the bottom line while meeting legislative mandates.
MANAGING SUPPLEMENTAL AND CONTINGENCY STAFF
As the economy begins to show signs of rebounding, many healthcare providers may be utilizing more temporary workers to fill staffing vacancies. Whether they¶re hoping to avoid permanent hires or they need additional resources to meet patient care needs, it will be critical for healthcare providers to find effective methods to efficiently manage their contingency staff. When both the agency and the provider use a single integrated system to track, post and fill open shifts on the staffing plan, healthcare providers can be sure the temporary staff they utilize have the right credentials and skills to provide the high quality patient care they expect while minimizing the financial impact of that agency labor. Furthermore, the logistics of tracking the hours worked and processing invoices are streamlined and accurate, saving countless hours of manual invoice reconciliation and eliminating instances of over-billing.
SYNCHRONIZING PRODUCTIVITY AND BUDGET NUMBERS
Optimal staffing goes beyond simply having the right number of nurses staffed for each shift. With a fully integrated workforce management system, managers and staffing coordinators can find the nurse with the right qualifications to most cost-effectively staff each shift. With easy access to information about staff skills sets, credentials, education, experience and costs, decisions can be data-driven to find the best balance of meeting patient care needs and controlling labor costs. The diagram below shows how changing the mix of 15 nurses - all qualified to meet patient care needs - can reduce the shift cost from $7,338.12 to $6,552.96. That equates to almost $800 in savings each shift and over a ½ million dollars in savings over the course of a year.
By making just a few staffing adjustments to utilize more cost-effective staff resources, a single unit was able to save $573,166.80 in one year. That¶s how data-driven staffing decisions have a strong impact on the bottom line without jeopardizing patient care.
THE POWER OF INTEGRATION
Often times, healthcare providers are utilizing more systems and databases to manage employee data than they realize. Consider that many organizations manage productivity, staffing, payroll, badges, health testing, state agency reporting, employee licensing, badge information and more with different systems, spreadsheets and databases. That makes data maintenance, synchronization and utilization extremely cumbersome. With an electronic
employee record, five, ten or more databases and systems can be integrated into a single solution, making information easier to manage and access. With a fully integrated electronic employee record, your organization has easy access to accurate information such as turnover numbers and FTE count, as well as the ability to synthesize information to analyze trends and understand the complete workforce management picture. Bottom line - your organization can access the right information and make better decisions.
ELECTRONIC EMPLOYEE RECORD PROVIDES BENEFITS ENTERPRISE-WIDE
By turning information into a valuable commodity, every level of an organization can benefit from its use and make the decisions necessary for high quality patient care to occur.
By providing tools and strategies to optimize the extremely valuable workforce, the electronic employee record quickly delivers a solid ROI. With quick and easy access to usable workforce management data, hospital executives can analyze, track and manage trends to increase organizational efficiency. Staffing policies can be data-driven, based on those practices that are both cost-effective and have a positive impact on patient care.
Information about employees within their department is readily accessible, enabling managers to make well-informed, up-to-date decisions. Tasks that were time-consuming under the old methodology are simplified and streamlined, saving valuable time. For example, diverse information for an annual employee performance evaluation, such as number of absenteeisms/tardies, educational history, pay rate, number of extra shifts worked and complexity of patients cared for, can be accessed quickly and easily.
By having access to a database that includes the pertinent data, nurse managers are able to schedule the right person at the right time, keep current on the educational status of employees and have more control over balancing patient care needs with resource management. Staff workloads are more equitable, enhancing employee satisfaction and improving patient care.
INFORMATION TECHNOLOGY DEPARTMENT
Integrating workforce management systems reduces the problem-solving and system maintenance burden placed on IT so they can focus more attention on other projects. According to Howard Larkin of Hospitals & Health Networks, "Over the next five years, hospitals face a triple whammy of major IT changes [EHR implementations to achieve meaningful use, tougher HIPAA standards and ICD-10] that will produce acute shortages of skilled IT workers."(9) Clearly, hospitals will need to make the most of their IT staff. Health systems may also turn to managed services from their workforce management vendor to
completely eliminate system maintenance and troubleshooting tasks from their IT staff¶s workload.
Employees all want to be treated fairly. With integrated workforce management solutions, staff workloads can be more equitable and balanced, which is good for employees and patients. Scheduling and pay policies are also more consistent so employees are also treated the same across departments and throughout the entire organization. In addition, employees can access their own information online to review benefit balances, paid time off, scheduled shifts and other pertinent data. Employees can easily self-schedule and trade shifts. This empowers employees so they become part of the staffing process, which in turn reduces absenteeism and turnover. These kinds of employee empowerment initiatives can contribute to the achievement of Magnet status, which positively impacts recruitment and retention efforts.
By utilizing integrated employee-based information, hospitals can help employees manage their personal and professional time better without the need for numerous databases. For instance, the HR department may rely on five, ten or even more different systems and databases for employee-related information, which can be integrated into a single solution, greatly streamlining HR processes and increasing the accuracy of the data for better decision making. And, for those institutions with multiple facilities, it becomes much easier to manage employee data across the different facilities and apply policies consistently.
With so many demands for time and resources, healthcare providers will continue to find it necessary to focus their attention on the solutions and processes that can have the biggest impact on their organization. Employees are the lifeblood of a healthcare organization, and the tracking and managing of employee labor data is critical to the optimization of the organization¶s most valuable resource. Healthcare providers are embracing solutions that help their organization run more efficiently while decreasing the burden on IT staff. The electronic employee record utilizes the same basic premise as the electronic health record easily accessible information to improve care and save money. With an electronic employee record, all relative employee information can be found in a single database. That integration means that labor costs are minimized, employee satisfaction increases, and most importantly, patient care is optimized.
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