Self Assessment Tool
Hidden Cost of Performance
Labor accounts for 70% of the cost of hospital care[i]. In today's operating environment with shrinking budgets and constant pressures to cut costs, healthcare organizations simply cannot afford to have employees that underperform. Do you know the specific value one employee brings to your organization? This tool will help you think about that question across your total employee base. Once you know the losses or gains associated with your employees' performance, you can better assess the investment and changes needed to drive optimal performance.
- Begin by identifying a target employee group's salary, size, and level of accountability.
- Next, assess the group on its ability to perform. Then, Click on "Calculate."
- In Step 2, assume you make an investment or a change that will alter the performance of the target employee group. Click on "Enter Desired State."
- Based on the outcome you expect from your change, assess the group on its new and improved ability to perform. Then, Click on "View Updated Results."
Now that you have uncovered the net impact associated with employee performance across your system, you can consider how even small investments or changes in your performance management practices may yield significant advancements in organizational value.
iSg2. Smart Sizing Health Care Membership Meeting Proceedings, 2009.
iiR.W. Griffeth, L. A. Witt, C. Polk, et al. Assessing the Cost of Underperformance: A Computer Programmer Example. The Industrial-Organizational Psychologist. 2011. 48(4):13-19.
iiiBozionelos N. The value of an employee: the cost of not knowing. The HRDIRECTOR. 2008. 44:36-38.