HFMA Magazine: 5 Ways to Decrease Recruitment Costs

Pinstripe Healthcare’s Senior Vice President, Mike Soisson, shared 6 Ways to Decrease Recruitment Costs, an article for the June edition of HFMA Magazine.

Excerpts from the article:

There are six recruitment metrics that all hospitals and health systems should track to identify where costs can be reduced and where improvements can be made to improve efficiency and protect revenue.

  1. Time-to-Fill. Tracking how long it takes to fill a position, from the day a requisition is opened until the first accepted offer, yields an important indicator of how your recruitment marketing efforts are working and how confident your managers are in making hiring decisions.
  2. Interview-to-Offer Ratio. The interview-to-offer ratio reveals the total number of candidates that the hiring manager needed to see before he was comfortable making the final decision to hire.
  3. Retention Rate. Depending on the size of the organization and the type of work the organization performs, a 1% increase in the organization’s overall retention rate can save as much as $1 million.
  4. Hiring Manager Satisfaction. By tracking and reporting hiring manager satisfaction on a quarterly basis, it is possible to regularly reference performance against the benchmark and maximize lessons learned from the data.
  5. New-Hire Satisfaction. Engaged new hires reach productivity faster and remain more productive over their tenure with an organization—which also leads to greater employee loyalty and longer retention.
  6. Cost-per-Vacancy vs. Cost-per-Hire. Traditionally, when organizations talk about the overall cost-per-hire, they include direct recruitment costs, such as marketing dollars, staff costs and technology. But it is also critical to consider the cost of a vacancy, as the position remains unfilled.

To be an employer of choice and a trusted caregiver, healthcare organizations must find ways to reduce expenses while attracting and retaining a motivated, engaged and productive workforce. An intelligent approach to talent acquisition and analytics is key to both goals.

For addition description of each metric, please visit:
http://www.hfma.org/Publications/hfm-Magazine/Archives/2012/June/6-Ways-to-Decrease-Recruitment-Costs/