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Randy Larson | Director, HRIS The Role of Innovative Analytics in Recruiting Turnaround

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Today’s Objectives Innovate: Give you at least one idea you can use/adapt for YOUR organization Enlighten: Inspire BOLD thought about your Talent Analytics

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Agenda <ul><li>Introduction </li></ul><ul><li>Before & After </li></ul><ul><li>Recruiting Results </li></ul><ul><li>How Did We Do This? </li></ul><ul><li>Business Impact </li></ul><ul><li>The Future </li></ul><ul><li>Key Takeaways </li></ul><ul><li>Q & A </li></ul>

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DaVita Introduction

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About DaVita <ul><li>DaVita: “He/She Gives Life” </li></ul><ul><li>Unique culture: We are a “Village” </li></ul><ul><li>Special Language </li></ul><ul><ul><li>“ Mayor”, not CEO </li></ul></ul><ul><ul><li>“ GSD” = Getting Stuff Done </li></ul></ul><ul><ul><li>“ Teammate”, not employee </li></ul></ul><ul><li>We have a Company Song ! </li></ul><ul><li>Largest independent provider of kidney dialysis services in the U.S. </li></ul><ul><li>Best outcomes (our patients live longer) </li></ul><ul><li>Goal: to be the greatest kidney dialysis company the world has ever seen! </li></ul>

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A HealthCare Services Leader <ul><li>116,000 patients in 43 states </li></ul><ul><li>1,500 Clinics Nation-wide </li></ul>

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Fortune 500 Company with Strong Growth <ul><li>Talent Activity: </li></ul><ul><li>Careers site receives 1.2M visits every year </li></ul><ul><li>10,000 jobs filled per year </li></ul><ul><li>25% internal mobility </li></ul><ul><li>15% rehire rate </li></ul>Teammate Growth Fortune 500 Rank Today 355 2005 685

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Before and After

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Recruiting in the Past <ul><li>Before (2006): </li></ul><ul><li>COO: “Recruiting is broken…” </li></ul><ul><li>Metrics used sporadically </li></ul><ul><li>No accountability to metrics </li></ul><ul><li>Avg. Time to Fill for RNs >60 Days </li></ul><ul><li>Ranked as bottom 5 department (out of 70) </li></ul><ul><li>High RN Vacancy Rate (9-10%) </li></ul>

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Recruiting Today <ul><li>Today: </li></ul><ul><li>COO: “Recruiting is broken…” </li></ul><ul><li>Metrics used sporadically </li></ul><ul><li>No accountability to metrics </li></ul><ul><li>Avg. Time to Fill RNs >60 days </li></ul><ul><li>Ranked as bottom 5 department (out of 75) </li></ul><ul><li>High RN Vacancy Rate (9-10%) </li></ul>a “Rising Star” department… consistently Shared ~37 days top 15 Low (4-5%)

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Team Recognition People Services Recruiting Team 2 ERE Recruiting Excellence Awards 2009: Top Recruiting Department / Function of the Year 2010: Best Corporate Careers Website 2 Taleo Innovation Awards Satisfaction Surveys: Innovative use of Technology Scorecards: Innovative use of Analytics Competitive Advantage

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Recruiting Results

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Reduced RN Vacancy Rate by >50%

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RN Time to Fill at Industry-Leading Levels

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Hiring Managers’ Satisfaction with Recruiting Function

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How Did We Do This?

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The Road to Change <ul><li>Leadership Team </li></ul><ul><li>Implemented Taleo! </li></ul><ul><li>Built Analytics Function </li></ul><ul><li>Held Recruiters Accountable </li></ul><ul><li>Focused on Innovative Metrics </li></ul><ul><li>Aligned with Operations </li></ul>

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Bold Accountability Model: Driving Behaviors and Performance Text <ul><li>Business Performance </li></ul><ul><ul><li>Result of Behavior </li></ul></ul><ul><ul><li>Business Outcomes </li></ul></ul>Text <ul><li>Bold Goals </li></ul><ul><ul><li>Establish Unique, Business-Specific Measures </li></ul></ul><ul><ul><li>Forced-Rank Scorecard </li></ul></ul><ul><ul><li>Shoot for “stretch” goals </li></ul></ul>Text <ul><li>Recruiter Behaviors </li></ul><ul><ul><li>Identify Strong / Weak </li></ul></ul><ul><ul><li>Manage Up or Out </li></ul></ul>

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Recruiter Scorecard

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Recruiter Scorecard Drives Behaviors <ul><li>Production: </li></ul><ul><ul><li>42% more fills per recruiter per month </li></ul></ul><ul><li>Service : </li></ul><ul><ul><li>Consistently averaging a 4.5 – 4.75 rating out of 5 for both hiring manager and candidate satisfaction </li></ul></ul><ul><li>Sourcing: </li></ul><ul><ul><li>Focus on Time to Find metric reduces overall cycle time by 1 week for each of the past two years </li></ul></ul><ul><li>RN Vacancy: </li></ul><ul><ul><li>Reduced by >50% </li></ul></ul>

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Innovative Analytics Drive Accountability <ul><li>New Hire and Hiring Manager Satisfaction Surveys </li></ul><ul><ul><li>Automatically sent out by Taleo each time a hire is made and recruiter is scored on a 1 to 5 scale </li></ul></ul><ul><li>24 Hour Recruiter Response </li></ul><ul><ul><li>Tracking of recruiter response time on new candidates </li></ul></ul><ul><li>48 Hour Manager Response </li></ul><ul><ul><li>Tracking of manager response time to recruiters on new resumes </li></ul></ul><ul><li>Time to Find vs. Time to Fill </li></ul><ul><ul><li>Focuses on recruiter impact by measuring the time to find the candidate that we eventually hire </li></ul></ul><ul><ul><li>Different from time to fill which is a measure of the entire process </li></ul></ul>

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“ Time to Find” - A Unique Metric Definition: The time it takes for the recruiter to send the candidate who is eventually hired to the hiring manager Time to Find Requisition Approved Recruiter Sends Candidate to HM Candidate is Hired Overall “Time to Fill” ~3 Weeks ~5 Weeks

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Openly Sharing Results (Good and Bad) With Operations Builds Credibility

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Business Impact

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Cycle Time Matters! So, what does an annual cycle time reduction of 8 days actually mean to our business?

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Overtime / Contractor Avoidance <ul><li>Backfill Options for 8 Days of RN Labor… </li></ul>Hires: 2,200 Salary: $1,700 Standard Teammate Total Cost: $3.7M $1.6M More Hires: 2,200 Salary: $2,400 Over-Time Total Cost: $5.3M $3.6M More Hires: 2,200 Salary: $3,300 Contractor (Travel RN) Total Cost: $7.3M *Using generalized healthcare pay rate estimates - 8 days of RN pay, adjusted for hours in work week

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Providing Operating Capacity <ul><li>Staffing RNs Faster Helps Build Patient Capacity </li></ul>2008: 45 Days to Fill 2009: 37 Days to Fill Vacant Days: 99,000 Vacant Days: 81,000 More Treatments and Better Patient Care Vacant Days Avoided: 18,000

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Future

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Future of DaVita Talent Analytics <ul><li>Functional & User Experience </li></ul><ul><li>A suite of web-based reports, easily accessible through an Intranet web page, allowing easy access by all DaVita teammates </li></ul><ul><li>Visual stories based on interactive graphs </li></ul><ul><li>Increase “open auditing” of HR function </li></ul><ul><li>“ What If” predictive analytics, preparing us to influence outcomes </li></ul><ul><li>Contextually-based metric widgets at the fingertips of system users </li></ul><ul><li>Benchmark with other similar Healthcare organizations </li></ul><ul><li>Integrations & Automation </li></ul><ul><li>Single source of data for full talent lifecycle </li></ul><ul><li>Entire HR Scorecard in a centralized location </li></ul><ul><li>Retention analytics to identify top recruiting behaviors </li></ul><ul><li>Finance analytics tied to Talent analytics </li></ul><ul><li>Automation / interfacing between HRIS, LMS, Recruiting and Social / Alumni networks </li></ul>

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Key Takeaways

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Key Takeaways <ul><li>Be BOLD </li></ul><ul><ul><li>Set “stretch” goals </li></ul></ul><ul><li>Take Accountability </li></ul><ul><ul><li>Constantly measure your team / function </li></ul></ul><ul><li>Align with Operations </li></ul><ul><ul><li>Get the “seat at the table” </li></ul></ul><ul><li>Innovate </li></ul><ul><ul><li>Can you take any of these ideas home? </li></ul></ul>

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Q&A