This document discusses how a hospital system used big data analytics to reduce staff turnover rates and the associated costs of replacing employees. It provides data on turnover rates and replacement costs for nurses and non-nurses from 2009 to 2012. For nurses, the turnover rate decreased from 22.91% in 2009 to 24.01% in 2012, and the estimated replacement cost was over $14 million. For non-nurses, the turnover rate decreased from 21.49% to 24.53% over the same period, with a replacement cost of over $13 million in 2012. The total estimated cost of turnover for 2012 was over $27 million. The document also outlines best practices for using big data, including clearly defining objectives

1. On the “Moneyball” –
Building the Team, Product,
and Service to Rival

2. Breaking Biases
http://www.youtube.com/watch?v=yGf6LNWY9AI

3. Evolution of an Idea
The White House Harvard Technology Healthcare
• Reduce
Turnover 45% -
75%
• Improve Quality
of Care and
Patient
Experience
1996 2001 20142010

4. Big Data and Preferences

5. How to Get a Job at Google
FEB. 22, 2014
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6. Big Data and Software Development

7. Big Data and Hiring in Hospitals
By year, all facilities combined (non-RNs only)
Year Number of employees Numer of terminations Turnover rate Cost to replace
2009 5217 1121 21.49% $ 13,452,000.00
2010 4616 1020 22.10% $ 12,240,000.00
2011 4557 1040 22.82% $ 12,480,000.00
2012 4497 1103 24.53% $ 13,236,000.00
By year, all facilities combined (RNs only)
Year Number of employees Numer of terminations Turnover rate Cost to replace
2009 2326 533 22.91% $ 15,457,000.00
2010 2210 468 21.18% $ 13,572,000.00
2011 2102 389 18.51% $ 11,281,000.00
2012 2070 497 24.01% $ 14,413,000.00
Note: The Joint Commission estimates the cost to replace for
RNs to range between $46,000 and $64,000. For purposes of
this analysis, we have estimated conservatively at $29,000.
Along the same lines, our conservative estimate for the average
cost to replace non-RN positions is $12,000. These costs to
replace include lost productivity due to ramp-up time for a
replacement hire as well as recruiting costs and hiring costs.
Total 2012 Estimated Cost
of Turnover: $27,649,000
2

8. Sample Success
60 days 90 days 180 days 360 days
Rate Rate Rate Rate
Pegged Recommended Hires 5.7% 8.6% 8.6% 25.7%
Pre-Pegged Period 25.0% 27.3% 35.2% 48.9%
Pegged Improvement 77.1% 68.6% 75.7% 47.4%
Turnover Reduction Achieved

9. Keys to Big Data
• Set Clear Objectives
• Prediction?
• Segmentation?
• What is the Business Goal?
• Define success and figure out how to measure
it accurately
• Understand the difference between intended
and unintended consequences

10. Keys to Big Data (Cont’d)
• Carefully map out the work flow for data
collection
• Be cautious in presenting results – assume your
conclusions are wrong until you know they
aren’t
• Define success and figure out how to measure
it accurately!!!!

11. Q&A
Questions?