Transforming HR s Front Door
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1 Transforming HR s Front Door Jim Garman, Executive Vice President/CHRO June 28, 2017
2 Company Snapshot The Market Leader $6.6B Total Assets 1 $4.9B Net Operating Revenue 1 25,000 Employees; 5,000 Physicians MH Service Area 12 County Expanded Greater Houston MSA 12 County Expanded Greater Houston MSA: 11,968 Square Miles 2016 PopulaSon: 6.8M (25% of Texas PopulaSon) 2021 Projected PopulaSon: 7.4M (+8.4%) 1. Audited FYE2016 results Fort Worth AusSn. San Antonio... Dallas. Houston Market Share Ranking 1st: Aggregate Market Share 1st: Burns 1st: Cardiology 1st: ENT 1st: General Medicine 1st: General Surgery 1st: Neurology 1st: Neurosurgery 1st: Ophthalmology 1st: Orthopedics 1st: Spine 1st: Thoracic Surgery 1st: Urology 1st: Vascular 2nd: Gynecology 2nd: Neonatology 2nd: Obstetrics 2nd: Rehab 60,000 40,000 20, % 4.0% 5.3% 6.5% 8.3% Inpa%ent Market Share Managed Care 17.8% 25.9% 4.0% 4.6% 5.0% 5.1% 6.2% 7.0% CHI St. Luke s 20.1% FY12 FY13 FY14 FY15 FY16 Managed Care 15.5% 24.5% Houston Methodist 20.3% 4.4% 4.9% 5.2% 10.2% Medicare HCA 19.7% 26.2% 20.6% Memorial Hermann Other Systems FY12 FY13 FY14 FY15 FY16 Medicare 2
3 Integrated Health System Memorial Hermann s Response to Evolving Landscape Health System 3
4 Getting Business Transforming HR Leader Buy-in 4
5 What We Are Solving For 45% Approximate amount of time line managers spend on HR and payroll processes and employee relations* High degree of variability High degree of optionality Redundancies across the System >50% Average amount of time HR Business Partners spend on employee relations issues, administrative tasks and other transactional activities** Lack of access to information and data The challenge of the urgent over the important * 2014 Memorial Hermann HR Transformation Manager Survey and Interviews ** 2014 Memorial Hermann HR Activity Survey 5
6 What Outcomes Will We Achieve? Make It Easier! Consistent and streamlined HR processes and automated tools providing a better service experience and reduced compliance risks Improve Process Efficiency Focus on Talent Issues that Drive Business Outcomes Attract, Engage and Develop! HR Business Partners will be primarily focused on helping leaders build engagement and manage talent to the needs of the organization Just in Time HR Information and Transactions Through Workday, managers and employees will have convenient access to HR information and enhanced ability to manage tasks and transact online Enable Manager and Employee Productivity Optimize HR Resources Across the System Organized to Serve You Better as One Memorial Hermann New structure provides better leverage of HR resources and expertise across Memorial Hermann to reduce redundancies and provide the right level of expert support 6
7 How Does This Impact The HR Organization? Excellence in Core Delivery; Increased Focus on Consulting & Change Managing Change Coaching & Consulting Personnel Administration FROM Reactive Manual Non-Standard/Optional Processes Tactical Planning Programs/Initiatives TO Proactive/Best Practices Automated Systems Documented/Repeatable/Measured Work Force Planning Integrated People Systems 7
8 HR Structured to Serve Better as One Memorial Hermann C What s Changing Organizationally? Drive Onboarding Excellence Dedicated Employee Relations Team HRBPs will Focus on Talent HR s Front Door Will Change The process of onboarding from offer acceptance through first day will be streamlined and consolidated to provide a high-touch, consistent, new hire and hiring manager experience A group of HR Business Partners will specialize in supporting Employee Relations for the whole system HR Business Partners will focus on partnering with the business to drive the talent agenda. Their customer will be managers and above Employees will have direct access to HR support through online portal and Shared Services C What s Not Changing, But Will Improve Talent Acquisition Talent acquisition will organizationally remain the same, but with improved tools and transparency Partnership HR will continue to partner with the business to provide guidance and support for the most important people issues Customer Service HR is dedicated to providing support to employees and managers, knowing the business and understanding business needs Compliance HR will continue to provide oversight and stewardship for HR Compliance HR Headcount Total HR headcount will not change, the same number of resources will be serving the organization 8
9 HR Service Delivery Model Customers Employees Managers Access General HR/Employee Relations Managers* Shared Services Portal, Case Management, Phone Talent, Engagement, & Retention HR Business Partners Face to Face, Phone Staffing and Recruiting Tier II & III: Advice and Counsel Center (ACC) Employee Relations Scope of Services Investigations Disciplinary Actions Performance Improvement Plan Services Provided Tier I: Shared Services HR and Employee Relations Support: Support for General HR and Employee Relations policy-related questions Support for HR and Employee Relations process related questions HR Business Partner Scope of Services Engagement Retention Talent Review & Succession Planning Performance Management Risk Avoidance Strategies and Trends Immigration Support Unemployment Hearings Leadership Development Compensation Org Design/Re-orgs Escalated ER Issues Extended Team Compensation & Benefits Total Rewards Strategy and Design HRIS HR Technology and Tools Organization Development Employee and Leadership Development, Engagement, & Change Talent Acquisition Talent Acquisition Scope of Services Legal Hiring Managers Face to Face, Phone Staffing Planning Develop and Execute Sourcing Strategies Develop and Execute Recruiting Strategies Candidate Experience Counsel from Legal on Escalated or Sensitive Issues * Managers is defined as Manager and above 9
10 Summary of HR Savings Category YTD FY17 Savings Annualized Unemployment Claims $ 558,372 $ 744,363 Benefit Premiums 592, ,232 Time to Start Improvement 5,076,337 $6,768,449 Time to Fill Increase (843,682) $ (1,124,908) TOTAL $ 5,383,701 $ 7,178,268 Annualized savings were calculated on a straight line basis Unemployment Claims and Benefit Premiums should be consistent throughout the year Time to Fill and Time to Start will shift during the year 10
11 Questions 11
12 12
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