With dramatic changes in the workforce, healthcare laws, and compliance, the role and responsibility of Human Resources in a hospital is shifting dramatically from "administrative data provider" to a "strategic partner.” The key driver of this transformation is emerging technology that enables HR leaders impact strategy that drives effectiveness and helps achieve organizational results.

1. HR’s Strategic Shift
How to Leverage HR
Technology to Drive Results
For Your Healthcare
Organization
Guest Presenter: Marc Miller
President and Founder
Marc S Miller Associates
Webinar & Podcast Series

2. AGENDAThe Series
HealthcareSoftwareHub
webinar & podcast series
Healthcare Software Series

3. AGENDAWebinar Info
✓ We are informal (and fun)
✓ Ask Questions!
✓ Q&A Session at end
✓ HRCI Credit
✓ Slides will be available after
Healthcare Software Series

4. AGENDAAGENDA
Talent Management for Healthcare
✓ Recruiting
✓ Compensation & Total Rewards
✓ HR Service Delivery
The Sponsor
Thank You to our Webinar Sponsor!
Healthcare Software Series
HealthStream.com

5. Marc S. Miller
www.marcsmillerassociates.com
MARC S. MILLER as a thought leader, consultant,
speaker and author, is a nationally respected authority
on Human Resource Information Systems with over 35
years experience with all aspects of technology
solutions for Human Resources. His nationwide
consulting firm, a sole proprietorship, together with his
industry visibility, has made Marc S. Miller one of the HR
Technology industry's most recognized voices. He uses
his thought leadership, significant industry experience
and contacts to provide insight into the important
trends surrounding HR Technology. In great demand,
Marc has been a featured speaker and presenter at
numerous HR and HCM technology meetings both
industry focused and at many HRMS providers User
Conferences. His blogs and webinars are always well
viewed and attended. His recently published book,
"HeroicHR", now in its Second Edition, is in high
demand.

6. “VALUE” is gained by
leveraging technology to help
HR move from “Data
Management to Information
Craftsmanship”
EFFECTIVE “BUSINESS RESULTS”
MEANS GENERATING PROVEN AND
ACCEPTABLE “VALUE” – IN ALL ITS
FORMS…

7. POLL Question #1
Do you have a CHRO in your organization?
YES or NO

8. THE 3 TOP CHALLENGES TO HR IN HEALTHCARE IN 2017
AS A RESULT… HR HAS TO BE IN A POSITION TO ADD VALUE
 STAFFING APPROACHES / ENGAGEMENT
 TRAINING AND CERTIFICATION COMPLIANCE
 PAYROLL PROCESSING FLEXIBILITY
 LEGISLATIVE AND TRANSPARANCY DRIVEN CHALLENGES
MOST DRIVEN BY HCAHPS
 PATIENT SAFETY, EXPERIENCE AND SATISFACTION – RESULTS
 STAFFING FOR EXPECTED SHORTAGES
 RESPONDING TO CHANGING REGULATIONS

9. THE NEEDED ROLE OF HUMAN RESOURCES IN HEALTHCARE
HCAHPS PATIENT EXPERIENCE AND SATISFACTION SCORE
HOSPITAL CONSUMER ASSESSMENT OF HEALTHCARE PROVIDERS AND SYSTEMS
The Centers for Medicare & Medicaid Services (CMS), along with the Agency for
Healthcare Research and Quality (AHRQ), developed the HCAHPS Survey, also known
as Hospital CAHPS®, to provide a standardized survey instrument and data collection
methodology for measuring patients' perspectives on hospital care. The HCAHPS Survey
is administered to a random sample of patients continuously throughout the year. CMS
cleans, adjusts and analyzes the data, then publicly reports the results.

10. "HCAHPS will go a long way in changing attitudes. Now there is transparency. Now
there is so much more focus on patient satisfaction and quality outcomes. Patient
satisfaction is directly impacted by the competencies and behaviors of employees.
That is a key driver. As CEOs get more pressure to improve HCAHPS scores, there are
certain things you can do on the clinical side, but they are going to turn to the VP of HR
and say 'you need to help solve this.'"
Michael DiPietro - HealthcareSource
"HR needs to understand what the CEO needs, where the organization is headed to
better prepare itself, I know we talk about workforce shortages, but many of our
hospitals haven't seen it yet and if they aren't paying attention. Five years down the
road they are going to hit a wall where they don't have enough nurses or physicians.
People will be retiring at an astronomical rate and maybe HR hasn't done enough to
prepare or even to understand that this is coming down the pike."
Stephanie Drake Exec Dir ASHHRA -
American Society for Healthcare Human
Resources Administration
THE NEEDED ROLE OF HUMAN RESOURCES IN HEALTHCARE

11. PATIENT SAFETY
PATIENT SATISFACTION
COST CONTAINMENT
TALENT PIPELINE
RETENTION…. AND MORE
HR EXECUTIVES ASKED WHAT
THEY ARE DOING AND WHAT TECHNOLOGIES
THEY ARE USING…..
?
THE NEEDED ROLE OF HUMAN RESOURCES IN HEALTHCARE

12. POLL Question #2
What percentage of the work that you do in HR is
Administrative vs. Strategic?
• More than 75 % is Administrative
• More than 50 % is Administrative
• About a 50/50 split
• Greater than 50 % is Strategic

13. ASHHRA SURVEY: 2016 - Influences for Retaining Top Talent
at Health Care Organizations
Having a clear career path is one of the most powerful influences for retention and
is highly valued by millennial and older workers alike. “Opportunities to advance”
is the most important influence on retention, a 2016 ASHHRA survey[iv] found
(see Figure 1). Compensation was third. Compensation also ranked third among
millennials when asked what they cared about most when applying for a job,
behind benefits and flexible working hours.

14. Top 10 HR Challenges Through 2017
1. Managing talent
2. Improving leadership development
3. Managing demographics (MILLENIALS)
4. Delivering on employee ENGAGEMENT
5. Managing change and cultural transformation
6. Enhancing the USER (LET’S ADD “PATIENT”)
EXPERIENCE
7. Transforming HR into a strategic partner
8. Improving performance management/rewards
9. Managing globalization
10. Managing work/life balance
MUCH OVERLAP BETWEEN THESE TWO SURVEYS

15. STAFFING CHALLENGES IN HEALTHCARE
 HIRE THE BEST PEOPLE – behavior based interviewing
 Build stronger engagement programs
 Conduct ongoing employee surveys – attitude surveys etc.
 Seek and train on “specialty” and patient “soft skills”: look for best
applicants and internal employees who FIT CULTURE
 Implement Assessment performance programs
 Implement Mentoring, Leadership development and Coaching programs
 Formalize COLLABORATION efforts with Marketing, IT and Finance
TO MEET THESE STAFFING CHALLENGES – HR MUST:
 Projected shortage at all levels of HC – MD’s, Nurses, and
administrators.
 Retirements due to: age, burnout/stress: and movement to smaller
Medical practices
 Increased and unmet demand for “specialty” skills and “soft” skills
 Labor pool of well trained HC workers who are experienced is
diminishing

16. TRAINING AND CERTIFICATION CHALLENGES IN HEALTHCARE
 Track All required Training and Certifications for all HC staff, at all required
levels
 Maintain current CEUs – know which Licenses and Certifications are near
expiration.
 Provide training on specialty skills and procedures
 Provide training on Patient contact/soft skills – listening, empathy,
emotion control
 Strive to attract younger workers into your organization by showing them
a meaningful career path
TO MEET THESE STAFFING CHALLENGES – HR MUST:
 Collaborate with marketing
 Collaborate with IT for education and training on Medical Records and Cyber
security awareness
 Maintain an HRMS for all Job, performance, time and Attendance and training.
 Utilize a LMS if needed.
 Understand the current staffing situation and needs of the overall organization.
 Generate INFORMATION AND METRICS – reports and charts. – IDENTIFYING SKILL
GAPS AND TURNOVER TRENDS.

17. PAYROLL CHALLENGES IN HEALTHCARE
 Administer an integrated HR/Payroll / Benefits HRMS
 Provide Employee and Manager Self Service workflows
 Provide access on multiple devices
 Utilize the services of a third payroll – outsourced- Payroll
provider
TO MEET THESE STAFFING CHALLENGES – HR MUST:
 Accomplish payroll processing for multiple RATES of Pay, and
Multiple work schedules for ALL EMPLOYEES – EXEMPT AND
NON-EXEMPT
 Address Union requirements affecting work schedules and
payroll
 Be able to handle job sharing, part time and seasonal /
temporary staff.

18. LEGISLATIVE AND TRANSPARANCY DRIVEN CHALLENGES
 Update all appropriate systems on ICD – 10 CODES
 STAY CURRENT ON AFFORDABLE CARE ACT requirements
 Keep appropriate staff well versed in HIPAA and other Medicare and
Medicaid Patient protections.
 Understand and implement any new DOL regulation for White Collar
exemptions for overtime pay.
 ASSESS THE IMPACT OF YOUR ORGANIZATIONS HCAHPS survey results
and score
IN GENERAL….RECOGNIZE THE SHIFT:
“from VOLUME TO VALUE-BASED CARE – COLLABORATION BETWEEN
HUMAN RESOURCES AND ALL OTHER DEPARTMENTS OF THE HEALTHCARE
ORGANIZATION WILL BE CRITICAL” (source: The Health Career Center, 2016)

19. “Information responsibility… begins with correctly
identifying the information you need to effectively
carry out your job … extends to insuring that the
information flows to people who stand to benefit from
it, and in a form those people will readily understand.
“Increasingly, the measure of the executive will not
be his ability to interpret data, but his ability to define
and exploit information.”
Peter Drucker
“Across the Board”
December 1991
SO, WHERE DOES VALUE COME FROM?

20. Basic
Personnel
Services
Control and
Compliance
Strategic
Expertise
A very long
time ago
A while ago Recently – last
5-10 years
Bureaucratic and
administrative
aspects of dealing
with employees -
PERSONNEL
Aspects of dealing
with unions (1930s
and 1940s in U.S.)
Dealing with
discrimination and
other US Federal
Legislations - (1960s
till present day)
Take a business
perspective in
compensation, benefits,
recruiting and staffing,
succession planning
Organizational
effectiveness,
business planning,
workflow, best practices
Apply behavioral science
knowledge for recruiting,
evaluating, compensation,
Training, change
management and DO
workforce modeling and
forecasts
Administrator
Enforcer
EXPERT
Onboarding,
Engagement,
Workforce
Analytics /
Metrics /
predictive
analytics
Strategic
Workforce /
Talent
Management
IMPORTANCETOTHEORGHR’s Evolving Role
HR TECH

21.  Employee & Manager Self-Service (ESS/MSS)
 Forecasts & Trends via Dashboards
 Web-Delivered:
 Time Capture & Reporting
 Performance & Career Development
 Job Posting, Recruiting, Hiring & On-
boarding
 Web-based:
 Work Group Collaboration
 Workflow and best practices
 Remote Location 24/7 Access via Mobile
 Some interaction with Social Media sites
“Value” is Achieved with HR Technology…
 Cost Reduction
 Cycle Time Reduction –
Processing Efficiencies
 Improved Information
 Full Compliance at all
levels
 Increased Capabilities &
Functionality
 Enhanced Employee
Engagement
 Data Quality Near 100%
 “Big Picture” – Business
Metrics Easily Available

22. HR’s Hierarchy of INFLUENCE/Value
Analytics
Evaluation
Engagement
IT & Telecom /
Facilities & Security /
Workforce Mgmt & Planning /
Labor Allocation / Procurement
Government Compliance:
Environmental Mgmt & OSHA /
Social Media Policy and Procedures
Recruitment / Employment /
Compensation / Benefits / Learning Mgmt
/ Performance / Workforce Development /
Time & Attendance / Payroll /
Regulatory Requirements
TACTICAL
ENTERPRISE SUPPORT
“GAME CHANGING”
STRATEGIC INFLUENCE
Getting to
“Policy and
Planning”

23. IMPACT OF BUSINESS ALIGNMENT
Aligning HR
to impact . . .
. . . Key organization
success drivers to build . . .
. . . Organization
capabilities that address
business challenges to
create . . .
. . . Improved
business performance
and increased value
The 5 “success drivers”
must be aligned from top
to bottom: PEOPLE, PROCESS
TECHNOLOGY, STRUCTURE and
CULTURE

24. Admin
Policy/
Planning
20%
50%
30%
Outsourced
activities to
third party
Outsourced
activities to
employees
Business
Partnering
HRT
SaaS
HR Admin, Payroll,
Benefits Admin,
Recruitment
60%
30%
10%
Administration
Business
Partnering
Policy/
Planning
ESS/MSS
Workflow
Best Practices
Email Alerts
Transforming HR:
Classical View to “Diamond” view

25. “The Portal”
A Personalized
“My
WORK/LIFE”
Gateway
Work/Life Web Site
An employee or enterprise “portal” will improve the quality
of HR service delivery by providing:
 Single point of access
 intuitive user experience
 Consistency of information, procedures,
and transactions
 Faster transactions via built in workflow
 Increased employee productivity and morale
 A channel to facilitate change management and culture
alignment
Resulting in:
 Reduced costs
 Re-enforcing a “high tech” culture, appealing to new
generation workers – Gen X, Y and Millennial
 “The Sticky Workplace,” which retains quality people
An effective EMPLOYEE SELF SERVICE STRATEGY (ESS) as well as MANAGER SELF
SERVICE (MSS) results in lower costs, increased value to the business, and
improved work/life balance for employees.
THE VISION

26. THE VISION
Internal /
External
Users
Business
partners
Applicants Employees Managers Retirees
Knowledge
Based
Systems
Core HRMS
Systems
Foreign
Local
Payroll
Systems
HR
ADMINISTRATION
AND
POLICIES
Access Technologies
Desktop
Web
Social media
“The Portal”
A Personalized “My
WORK/LIFE” Gateway
Laptop Tablet
Smartphone

27. THE VISION – AVAILABLE TODAY from any number
of effective and proven HRMS VENDORS!
 ONE “SYSTEM OF RECORD”
 SINGLE SIGNON
 IMMEDIATE ACCESS BASED ON
ROLES AND RULES
 IMMEDIATE REPORTING
 HISTORY VIEWED
 WORKFLOW EMBEDDED
 “BEST PRACTICES”
 ESS AND MSS
 INTUITIVE NAVIGATION
 INTERGRATED FUNCTIONALITY
 DASHBOARDS AND METRICS

28.  Administrative efficiencies resulting in cost reduction
 Leadership development
 Overall alignment with the organizations’ strategies, mission,
goal and vision.
 High service quality to all customers (stakeholders)
 Responsiveness
 Risk Management
 Talent management, identification and acquisition, and a
pipeline
 Effective leveraging of technology to all appropriate functions
within the realm of HR, Payroll and Benefits
“VALUE CREATION”!
HEALTHCARE CEOs, Boards & Stakeholders
expect…

29. HR portal – Employee/Manager Self-Service
Taking advantage of SaaS, Web based Employee
Portals
 Entry/modification of personal data
 System driven processing of a majority of HR
transactions
 Personalized – Role based
 Interactive – Manager ‘in box”
 Work-flow driven
 Tablet and/or Smartphone enabled
 Direct access by employees to Benefits
providers websites
 Integration to company’s web portal
 Performance Management, Employee Goals
 Succession Planning, Competencies
 Version of software always current
Technology and outsourcing enable this shift to
the mindset of “value” creation…..

30.  Economic indicators
 Organizational financials
 HEALTHCARE
PERFORMANCE (HCAHPS
Scores) – patient
experience etc.
 The workforce and its
utilization – TURNOVER and
Pipeline,
 RETENTION STRATEGIES
 ENGAGMENT PROGRAMS
 The marketplace
 Competitors
 Acquisitions and mergers
 Technology development
 Human resource programs
and measurement
HR should try to
provide this……..
HEALTHCARE CEO’s and Senior Level
Executives want actionable INFORMATION
that assesses and reacts to……

31. 1. How do we retain our best nurses? Do we even know who they
are? What do we have that keeps them from leaving us to join
the hospital less than 10 miles away?
2. Why are our patients complaining about the attitude of our
care providers
3. How do we attract the Millennials entering the HC profession?
4. Is our pay structure for our first line HC nurses in line with other
HC entities?
Reasonable questions? How much information
can you provide? How long will it take you?
Healthcare Executives ask HR executives…

32. What COUNTRY do we go into next?... And WHAT
do we do there????
AND how was it responded to… who did what
to get the answer??????…. Let me tell you
about it…
One of the most Strategic question EVER asked by
a CEO ……(in my opinion)
Cargill Corporation - CEO
HR must see the BIG PICTURE AND KNOW THE ORGANIZATION AS A WHOLE

33. “Information Craftsmanship”Data Management
Data Analysis
C-Level Stakeholders Want Information NOT
Data
Data Analysis
 Static, aging, past, reactive,
transaction-based
 Evaluate costs already
spent
 Analyzing/presenting
 How many? Which?
 What groups?
 Based on past transactions
Data
Costs
Analysis
Strategic Support
 Forward view, projections,
forecast, proactive, model-
based
 Future costs estimated
 Future value estimated
 Estimating future total and
formulating scenarios
based on historical trends
and other influences
From
Static to
Strategic

34. METRICS….. ALWAYS BEEN AROUND!
SINNERS
BELIEVERS

35. What is overall condition of the company? Business Unit? HR?
The Performance Metrics (aka - KPI’S) that HR should
measure MUST address the “Business”
 Are we meeting Strategic Needs?
 Are we helping to deliver on corporate
strategy and direction?
 Are we meeting our Customers’ Needs?
 Are we optimizing our Service Delivery
Process
 Are we contributing to the company’s
financial goals and overall well being?
In HEALTCARE – CUSTOMERS = BOTH PATIENTS AND STAFF

36. Strategy
Internal Business
Perspective: What
are we doing well?
Financial Perspective:
How do we look to
shareholders?
Growth & Learning
Perspective: Can we
continue to improve
& create value?
Customer
Perspective: How do
customers see us?
Goals & Measures
✓Market Share
✓Brand Strength
✓Sales Trends
✓Customer
Satisfaction
✓Customer Loyalty
Goals & Measures
✓Earnings per Share
✓Price Earnings Ratio
✓Budget Accuracy
✓Growth Revenue
✓Gross Margin
✓Company stock price
versus competition
✓Profit-Employee
Ratio
What C-Level Executives Are CONCERNED ABOUT:
Goals & Measures
✓Design to Market
Cycle
✓First to Market %
✓New Product Ratio
✓Competency
Change Rate
✓Development
Activities Exist to
Meet Business Needs
✓% Ready Successors
Goals & Measures
✓Delivery Performance
✓Workforce Productivity
✓Process/ workflows
efficiencies / Quality
✓Compliance
✓Business Strategies
✓Talent pipeline
✓Workforce
competencies
✓Turnover Rate
✓Job Fill Rate

37. Metrics must be provided in support of the roles, responsibilities of different
constituencies that require INFORMATION.
Specific Performance Metrics for HEALTHCARE
OPERATIONAL METRICS HUMAN RESOURCES/WORKFORCE
A/R DAYS DUE TO CODING TURNOVER – projections
OUTLIER AVE LENGTH OF STAY ENGAGEMENT
INVENTORY TURNS FOR HIGH
COST ITEMS
SUCCESSION PLANNING
INVENTORY LOSS DUE TO
EXPIRATION
CERTIFICATION STATUS
REGISTRATION/ADMISSION
ERROR RATE
SKILLS AND COMPETENCIES
IT METRICS TRAINING TAKEN/NEEDED
TICKET RESOLUTION SPEED
USER ADAPTION
SERVICE REQUESTS

38.  Human Capital Revenue Factor (HCRF)
 Total Revenue / Full Time Equivalent (FTE)
 Human Economic Value Added (HEVA)
 (Net Operating Margin – Cost of Capital) / Full Time
Equivalent (FTE)
 Human Capital Cost Factor (HCCF)
 W2 Pay + Cost of Contingent Labor + Cost of
Absenteeism + Cost of Turnover
 Human Capital Value Added (HCVA)
 Operating Revenue – (Operating Expenses – Pay and
Benefits) / FTEs
 Human Capital Return on Investment (HCROI)
 Operating Revenue – (Operating Expenses – Pay and
Benefits) / Pay and Benefits
HR Operations & Performance Metrics

39. ONE OF THE FIRST LISTINGS OF
VALUABLE HR METRICS:
 Benefit Factor (% of total salary)
 Cost per Hire
 Employee Cost Factor
 Human Capital ROI
 HR Headcount Ratio
 Income Factor
 Management Ratio
 Revenue Factor
 Training Cost Factor
 Voluntary Separation Rate

40. Using Workforce Analytics to manage TALENT
Make Smarter
Hiring Decisions
Retain Key Talent Connect People
Performance to
Business
Performance
Quality of Hire
Recruiting Channel
Effectiveness
Attract & Source
First Year Effectiveness
First Year Turnover
Compa-/Market Ratios
Retirement &
Succession Planning
Turnover by
Performance / other trends
Value Creator Profiles
Engagement: HR Prog &
Bus Outcome
Return on Talent
Acquisition
Investment
Cost of Days Lost Per
Employee
Value Created (Quotas,
Productivity, Margin...)
Predictive Analytics

41. Acquisition
 Cost per hire
 Time to fill jobs
 Total Number of New Hires
 Total number of replacement staff
 Quality of new hires
Financial
 Average Total labor cost as a percentage of
operating expense
 Pay per employee
 Benefits cost as a percent of pay
 Average performance score as compared
to revenue per FTE
 Human Economic Value Added (HEVA)
Retention
 Total separation rate
 Percentage of voluntary
separation to total separations
 Separations by length of service
 Percentage of separations among
“key” performers
 Cost of turnover
Development
 Training cost as a percentage of payroll
 Total training hours provided
 Average number of hours of training/FTE
 Training hours by functions
 Training ROI
TALENT ANALYTICS

42. The Logic Chain: Why Metrics & Workforce
Analytics Are Critical… and create VALUE!!!!
 HR metrics and analytics emerge from an information system
 Managers make different and better decisions as a result of
information
 Decisions have impact on company’s strategy and goals
 Goals and Strategies aim for Value Creation
 Value Creation leads to efficiencies
 Efficiencies usually lead to improved company performance
(Revenues, Sales, Stock) ….. MEANING “VALUE”
Thus the demand for more INFORMATION, METRICS AND
WORKFORCE ANALYTICS!!

44.  Web delivered – SaaS – “Software as a Service”
 Employee Self-Service and Manager Self-Service (ESS/MSS) – web
delivered – “MyPortal”, Manager’s “in box”
 Best practices and workflow built in, with templates provided
 Email triggers and notification for action alerts and process steps
 Functionality encompassing most functions within HR including Payroll
and Benefits
 A comprehensive “library of standard reports”
 Ad hoc Report Writer (user oriented)
 Metrics and “Dashboard” graphical presentation
 “Drill down” capability – underlying data at a “click”
 Tables - changeable/manageable by end user or by a trained “power user”
 Effective date processing – future and retroactive
 Security based on rules and end user roles
Features and Functions within HR Technology delivery

45.  Leverage HR Technology to reduce drastically time spent on administrative
tasks
 Shift responsibilities to employees, managers and other HR team members
so you can shift focus to strategic planning
 Require high performance and service from existing vendors and service
providers
 Redefine your mission to include only those functions that really matter
 Find ways to outsource important functions that are critical, but not core,
to the corporate mission
 Find service providers that can deliver a number of these functions more
efficiently while supporting the mission of the company
 Deliver Dashboards displaying Metrics that show trends over time
Grab new roles such as Workforce Cyber Awareness that might not be
considered an HR issue, but should be.
HR and HR Technologists: your “To Do” list…

46. SUMMARY : KEY WORDS….. AND CONCEPTS
VALUE DRIVEN : do everything within HR that OTHERS will
see generates ACCEPTABLE BUSINESS IMPACT.
 GET THE DATA, MAKE SURE IT IS “GOOD” DATA
 BE PROACTIVE …. KNOW YOUR ORGANIZATION, NOT JUST
YOUR FUNCTION
 USE TECHNOLOGY: DEMAND EXPERT SERVICE FROM
PROVIDERS
 SEEK METRICS, THEN SEEK THE UNDERLYING
“INFORMATION” BY UTILIZING “ANALYTICS”
 DON’T WAIT TO BE ASKED, PUSH YOUR CAPABILITIES,
MARKET THE IMPORTANCE OF HR

47. AGENDAQ & A
Live Q&A
Healthcare Software Series

48. AGENDAAGENDA
Resources & Support
✓ Resource Library
✓ Vendor & Product Info
✓ Upcoming Events
Healthcare Software Series

49. “Heroic HR”
You can purchase a copy
for $19.95 at:
www.marcsmillerassociates.com
www.Ihrimpublications.com
www.Futurapublishing.com
SECOND EDITION
47