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Building from Within

By Steven Lichtenstein Director, SFRA Cedars Sinai

Medical CenterKeith Graff Director of Advisory Services PWC

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 Learning Objectives:The learning objectives for this session are to receive methods and practices that can help you at your own organizations to retain staff, motivate them and advance their professional careers in research administration.

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We need to move from a “reactive” to “anticipatory” talent management approach

Busin

ess I

mpa

ct

Approach to Talent Management

Anticipatory

Reactive

Adaptive

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So that we may reduce Voluntary Separation Rates

Voluntary Separation Rate Industry Bottom Quartile Top Quartile Difference

Public Sector 4.50% 11.70% 160% Engineering/ Manufacturing 5.70% 12.70% 123% Services 8.40% 18.40% 119%

IT & Electronics 7.30% 15.00% 105% Pharmaceutical 6.20% 12.60% 103% Other Finance 10.70% 21.40% 100% Telecommunications 7.60% 14.90% 96% Utilities 3.60% 6.70% 86% Insurance 8.00% 13.50% 69% Banking 16.40% 25.50% 55% Healthcare 9.10% 13.60% 49%

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This shift requires Leadership engagement to:

• Disrupt traditional staffing hierarchy if this will improve agility

• Communicate vision and research needs to staff in a consistent manner

• Assess current talent management efforts and metrics

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Talent management should be assessed across these 4 areas

DevelopmentAcquisition Reward Retention

•Are we hiring the right skill sets for the tasks needed?

•Where are we hiring from?

•Are we getting our first choice hires?

• Are we investing in our top performers?

• Are we investing in “pivotal” staff that could become top performers?

• Are we motivating staff by rewarding success?

• Are we rewarding success in a meaningful and cost-efficient way?

• Are we retaining our most valuable staff?

• If not: where are they going and why?

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Potential metrics and US cross-industry benchmarks

DevelopmentAcquisition Reward Retention

Rehire %7.7% (3.7% - 13.7%)

Referral hiring %20.4% (11.5% - 27.5%)

Internal management hiring %50.0% (40.7% - 79.1%)

Offer acceptance rate91% (87.6% - 95.6%)

Improved performance rating index 21.2% (14.1% - 40.6%)

Executive stability ratio82.2% (65.2% - 90%)

Average tenure in current management 4.5 yrs (2.6 - 9.9 yrs)

One or more candidate succession planning depth61.3% (45.8% - 85.7%)

Average time to promotion36 mos (21 – 50 mos)

Career path ratio52.9% (35.6% - 66.7%)

Variable compensation %15.6% (9% - 22%)

One to three years of service voluntary separation rate15.1% (9.9% - 22%)

Cost of voluntary turnover$42,830 ($26,290-$58,195)

High performer separation rate5.7% (3.7% - 9.4%)

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Turnover rate is a key performance indicator

According to PwC’s 2012-2013 US Human Capital Effectiveness Report:

Turnover rates have increased across the US. As unemployment rates decrease, so have voluntary turnover rates, particularly among high performing staff

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Combined, these turnover-related costs can represent 12% - 40% of pre-tax income

High turnover is damaging and costly due to:• Lost productivity during a vacancy• Diminished productivity of the team and managers who are covering for a

vacant position• Diminished productivity of the team and managers who are training the new

hire• Increased labor costs due to overtime or contractors needs• Hiring and onboarding costs• More difficult to quantify impacts may include- decreased customer

satisfaction, increased future turnover and loss of institutional knowledge.

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But there is hopeAccording to PwC’s 2012-2013 US Human Capital Effectiveness Report:• Quality of new hires has improved over the past five years• Investment in Human Resources has increased

If we hone the acquisition process and invest in employee development and reward programs, this can reduce the money and time lost to turnover

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How did this work at Cedars Sinai Medical Center?

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• Background• Recruiting environment– Making the right hire

• Once you find them how do you keep them– Career Paths– Investments– Incentives– Programs

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Cedars Sinai Medical Center ResearchBackground

• Research has dramatically increased over the past 5 years with resources staying the same

• Major recruiting of new PI and Research areas as targets

• Department outsources for 5 years from 07 to 12 (BearingPoint/Attain)

• New management team 1 Director and 5 managers

• Staff turnover: Of original 40 people only 6 remain from that staff.

• Employee survey scores (1-5, 5 being best) on how management is doing went from 3.19 to 4.5 in last 4 years FY 07 FY 08 FY 09 FY 10 FY 11 FY 12

$-

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

Research Per Year/to support team

Mill

ions

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Recruiting Environment• Small pool of potential

candidates (Define locally)– (UCLA, USC, John Wayne, Childrens,

Loyola Marymount Caltech, City of Hope, Kaiser SC, CS Long Beach)

• Average time to hire single employee 4-6 months– Can’t afford mistakes

• Applicants don’t have all the skill sets of institution

• Require training large investment

LA Traffic (Commutes over an 1hr each way)

This is why Retention is so important !

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DevelopmentAcquisition Reward Retention

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Finding a good Fit• Better assessment of talent

– Question prepared in advance– Team interviewing approach– Temp to Hire options– Candidates meet with various

teams and levels to derive fit

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DevelopmentAcquisition Reward Retention

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Demonstrating career development opportunities is an important way to improve quality while motivating staff

• A 2008 PwC survey found that lack of career development was a more important factor in turnover among pivotal employees than compensation.

• When resources are limited, career development initiatives help to groom current staff and can help to offset high external hiring costs

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Career Development• Established clear job ladders• Provide opportunities to develop new

skills:– Presentations– Training– Projects( Re-Engineering, Manuals,

Automation)– System enhancement– Analytics

• Programs – Hired junior staff in as admin staff then

placed them in various roles• Grant Officer• PeopleSoft Trainer• PeopleSoft Setup team

– Look for self motivated individuals

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Team-Based Learning (TBL) is an invaluable training approach• TBL is an efficient, cost-effective learning approach used by leading

teaching hospitals as a critical learning tool. • 70 % of learning occurs in the course of day-to-day work, with the balance

achieved through informal learning and coaching (20 %) and formal instruction (10 %).• Research supports the power of teams, which can cut staff turnover while

enhancing production cycles, quality, individual performance, and attendance

TBL facilitates improved collaboration and can replace some individual formal instruction to strengthen training while reducing costs

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Training Investments• Systems

– PeopleSoft (9.1, latest features)– Oracle OBIEE

• Career– Supervisor 101– Professional seminars (NCURA, SRA)– Toastmasters offered– Internal training

• Orientation – Online courses– Detailed training manuals – Group orientation– Mentor assigned

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DevelopmentAcquisition Reward Retention

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Rewards should be customized to your employees

• To figure out the right mix of incentives, executives need to first determine what motivates their top performers and other key employees.• Well-designed employee engagement surveys can help to

determine this• Numerous studies have found a correlation between high levels

of employee engagement and corporate performance, especially in the area of customer satisfaction.

Not all rewards must be monetary in order to be meaningful

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Once you have them treat them with respect• Work life balance

– Flex ( 9/80)– Work from home

• Management Philosophy– Open door– Mentoring

• Team Building– Fund raising together

• Pick 2 charities a year (Xmas and other to support)

– Retreats– Manager meetings– Team meetings– Pot lucks

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Compensation Incentives• We have completed a

market assessment on positions to keep jobs in line

• Utilize Spot Bonus program up to $1,300 a year

• Standing Ovations, President award nominations

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Programs• Regional and National Lead

Me involvement• Management Supervisor

101 training• Mentoring• New Employee partnering• Goal setting

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DevelopmentAcquisition Reward Retention

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Summary• Employee satisfaction scores show dramatic improvement 3.19

to 4.5– People didn’t want to be here– Cost us large investment $– Management philosophy needed to change

• Employees have a say in their future and get help getting there• Turnover has become a non- issue• Making better hiring decision matching positions to careers• Provide opportunities for everyone to grow and stay fresh

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• Final Thoughts–Move a way from traditional staffing models– Constantly be assessing your current talent– Invest in not only your top performers but rising stars

– Are you motivating and rewarding in a planned way

– Are you retaining key players  

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Questions/Comments