Download White Paper: Lean in Human Resources – Streamlining the Hiring Process
Abstract
As more organizations embrace Lean as part of a culture of continuous improvement they realize the broad applications it has. All parts of the business can benefit from streamlining. This white-paper will case-study the application of Lean in the Human Resource department. Specifically, we will look at how Lean dramatically improved the responsiveness of this Hospital Human Resource department in hiring Nurses.
Background
In hospitals, one of the key performance issues is recruiting and retaining nurses. There is a national nurse shortage. The Human Resource Department at this VA Medical Center was not meeting it’s goals in recruiting timeliness. In the past they blamed their problems on the government bureaucracy and internal customers not providing complete information.
Instead of looking outside, we re-focused on the HR department’s own inefficiencies. Lean is the identification and elimination of Non-Value-Added steps in a process. We used the following Lean / Process Improvement tools to improve HR performance:
- Performance Scorecards
- 5S Visual Workplace
- Process Flow Mapping
At the end of this white-paper we will show you the results of our efforts.
The HR Performance Scorecard
The first step of a Lean implementation is to make sure we are linking the project to improving measureable performance. Lean should not be done to “make the workplace better”, “improve customer satisfaction” or any other number of un-measured slogans. Therefore, our first step is to make sure the area we are streamlining has a working Performance Measurement System.
At Supply Velocity, we use a variation of the Balance Scorecard, called Performance Scorecards. Performance Scorecards tend to be simpler than Balanced Scorecards and use fewer measures. They keep score of a few (always less than 10) non-financial leading performance indicators.
To create your scorecard, start with the purpose, or mission, of the department. This HR department brainstormed the very elegant statement, “Assure an Effective Workforce.” Then they came-up with 5 measures that describe if they are achieving that mission.
| Purpose: Assure an effective workforce | 0% | 100% | 200% | |
|---|---|---|---|---|
| Measure of Success Description | Below | Expected | Exceed | Weighting |
| % of vacancies that are filled within 90 days. | 70 | 80 | 90 | 35% |
| Achieve % retention rate for employees that were new hires in the previous 36 months | 75 | 80 | 85 | 30% |
| % of supervisors that have completed 20 hours of supervisory training | 85 | 90 | 95 | 20% |
| % of disciplinary and adverse actions issued within 3 weeks of the infraction | 85 | 90 | 95 | 10% |
| % of employees who obtain at least 16 hours of non-mandatory training in the FY | 65 | 75 | 85 | 10% |
Perhaps the most important part of the Performance Measurement System is the Action Plan. This is a list of projects that are happening in the department. This action plan has action item owners and expected completion dates. We try to limit the number of action items/projects to 5 or fewer. The fewer actions the department is working on at one time, the more likely they are to get them done. Below is HR’s Action Item List. Note, that all action items are linked to specific performance measures.
By having an action item list, you will make the scorecard more than a communication tool. It will tell associates in the department how they are doing, but more importantly, what the department is doing to improve performance.
Human Resource Department – Performance Action Item List
| Performance | # | ACTION ITEM | ACTION ITEM | START | TARGET |
|---|---|---|---|---|---|
| Measure | OWNER | DATE | DATE | ||
| Vacancies Disciplines | 1 | 5S HR Offices | Lynn | Oct-07 | Oct-08 |
| Vacancies Retention | 2 | Nurse Recruiting Project | Lynn | when goal is met | |
| Retention | 3 | Nurse Salary Survey | Arlene | Jun-08 | |
| Vacancies | 4 | Lean of Recruiting Process | Lynn | Mar-08 | Mar-09 |
| Vacancies Disciplines Training | 5 | Adding 3 new HR Staff | Lynn | Feb-08 | May-08 |
When one action item is complete, they can add another, so at all times they are working on 5 “performance-improving” projects.
Scorecard results are reviewed with all HR employees monthly at a 15 minute performance review meeting. This meeting is quick and effective. It reviews actual performance and an update on action items. It gives the entire HR department status and performance update. No one is in the Dark!
The HR staff enjoys knowing what is going on and how the department is doing. Initially, all measures were in the Red. This grounded everyone in the reality that they weren’t meeting their goals. This created the foundation for us to begin using Lean.
5S Visual Workplace
Lean is the identification and elimination of Non-Value-Added steps in processes. 5S Visual Workplace is used to eliminate non-value-added looking around for information, product or supplies. It seeks to create a standardized workplace where there is “A Place for Everything, and Everything is in its Place.”
5S got its name because it is a five step process. The five steps are:
- Sort – remove the clutter
- Set-In-Order – label or mark where everything belongs
- Shine – regular housekeeping
- Standardize – different people doing the same work, the same way, with the same results
- Sustain – continuously improve, never backslide
We used 5S to make sure every HR associates’ desk was organized so anyone could sit down and work at another associates’ desk. When someone is travelling, on vacation or out sick a 5S workplace doesn’t stop functioning. While there is room for individuality, the critical files and information needed to keep the department running is organized per specific standards.
Below are pictures of the before and after of one HR Specialist’s office.
5S Before Picture of an HR Specialist’s Desk
5S After Picture of HR Specialist’s Desk
Note how the desk is personalized, but everything is labeled and a file-holder on the left side of the desk contains quick-lookup files.
File Color Standardization
To make finding files easier, they created a standard for file colors. All HR employees (Secretaries, Specialists, Managers and the Director) follow this standard.
Current State Process Flow Mapping
Process Flow Mapping is the application of Lean to business processes. It seeks to identify and eliminate unnecessary or redundant steps. By mapping the process we enable employees to “see” the non-value-added steps that they perform every day.
The HR Lean Team mapped the process, sorted it into:
- Green – Value added to internal customers
- Yellow – Non Value Added but required by government regulations
- Red – Non Value Added and should be eliminated
Non Value Added Steps
We identified 22 non-value-added steps in the hiring process, that could be easily eliminated. Note, we not only created action items to eliminate these steps, but we quantified the savings.
| # | Red Tag Task | Issue | Idea | Area Affected | Labor Benefit (Hrs/Yr) | Cost to Imp. | Action Item Owner | Start Date |
|---|---|---|---|---|---|---|---|---|
| 1 | SF52 routed to HR Director to assign | Why is Lynn touching this? | Secretary provided with rules of assignment. | HRD and Admin | 4.1 | Low | Arleen, Kim and Stephanie | 05/22/08 |
| 2 | Update Position Status | Already entered this info into HR Tracking | Build on the access database (HR Tracking) so that reports (like the Position Status) can be qued as needed | HR Spec and Admin | 48.8 | Med | Amy, Arleen | 05/22/08 |
| 3 | HR Requests checklist | Internal customer doesn’t always submit the checklist | Amy screens recruit SF52s on receipt for attached checklist – Returns if not included. | HR Spec | 10.2 | Medium | Amy, Stephanie | 05/22/08 |
| 4 | Internal customers visit HR to review applications | They have to walk to HR | Use USAStaffing as a way to get electronic applications | Internal Customer | 26.0 | High | Stephanie | 05/22/08 |
| 5 | HR posts hard-copy announcement on basement bulletin board | Unnecessary walking when technology will do the job | Create vacancy announcement web-site on the HR page | Admin | 40.7 | Med | Arleen | 05/22/08 |
| 6 | Nurese Exec contacts HR for seniority date for applicants | Nurse Exec doesn’t have access to seniority dates | Compile a list of RN seniority dates for work area/location | HR Spec | 20.3 | Low | Kim | 05/22/08 |
| 7 | HR Director decides whether to place the ad | It sits on the HROs desk and waits for approval | Have FCP clerk verify availability of funds | HR Spec | 2.0 | Low | Lynn | 05/22/08 |
| 8 | Amy logs in application on paper and in database | Duplication of effort | Stop using the paper | Admin | 2.0 | Low | Amy | now |
| 9 | Secretary passes LPN/RN app to HR Asst; HR Asst verifies license and school accreditation; passes to HR Spec; HR Spec performs quality check | Don’t need to verify license and accreditation for all applicants – only selectee | Stop verification until selection is received; Pass RN directly to Specialist | HRA and HR Spec | 60.0 | Low | Lynn | 05/22/08 |
| 10 | Documents referral on applicant log | More data entry | See #4 above | HR Spec | 8.3 | |||
| 11 | Send applications | Manual delivery when electronic available; losing track of where applications are; not available to many at one time | See #4 above | Admin | 20.3 | |||
| 12 | PSB needs more info on RN applicant and calls HR | Why don’t they have all the info they need the first time | All RNs submit application in VetPro to ensure all appropriate information is submitted | HR Spec | 13.0 | Med | HRO | TBD |
| 13 | Sends copy of the offer letter to the service | Printing, mailing and handling of paper | Send electronic copy via e-mail | HRA , Mail Clerk and Unit Admin | 12.2 | Easy So Easy | HRO | 05/22/08 |
| 14 | Chief of Staff receives DT results | COS is too busy to do this | Change MRO designation to another qualified staff member | HR Spec | 2.0 | Low | HRO/ MCD | TBD |
| 15 | Kim checks to see if the DT results are in | Why can’t she be notified when results are in? | MRO notifies Kim when results are rec’d | HR Spec | 2.0 | Low | Kim | TBD |
| 16 | HR Assistant prepares Forms, letters, labels, etc. | Applicant personal data is entered 19 times after the first time (10 of the 19 can be eliminated easily) | All data entered into a merge form | HRA/ HRS | 113.9 | Med High | Debby | 05/22/08 |
| 17 | HR Director gets SAC | Why does Lynn need to touch this? | Amy distributes all SACs directly | HRO | 8.1 | Low | Lynn | now |
| 18 | Spec returns unclassifiable SAC to Amy | Why are unclassifiable SACs being passed on to the Specs | Educate Amy | HR Spec | 1.8 | Low | Lynn | now |
| 19 | Debby prints VetPro summary page | Extra paper | Stop doing it | HR admin | 2.5 | Low | Debby | now |
| 20 | Give the reference to the HR Spec for review if there are issues with it | Handoff unnecessary | Educate credential in dealing with VetPro issues | HR admin | 2.5 | Low | Debby | now |
| 21 | Copy VetPro appt letter and put in the board action folder | Extra paper | Stop doing it | VetPro Coord | 5.2 | Really Low | Amy | 05/22/08 |
| 22 | Print appt screen and put in VetPro folder | Extra paper | Stop doing it | VetPro Coord | 5.2 | Really Low | Amy | 05/22/08 |
Lessons Learned
When we initiated this process we focused on HR. While internal customers can cause delays, we wanted to focus on what HR could do to improve performance before talking to other departments. However, in retrospect, it would have been better to include representatives from internal customers, such as Nursing. We did not make the team cross-functional. As improvements were rolled out, we realized that we were too HR focused and should have included “internal customers” of the process on the team.
All Lean Teams should be cross functional in departments and management levels (individual contributors to executives).
Impact on People
It was difficult for some of the HR staff to make the transition. Many had been doing it the “old way” for decades. For these people, it took more work for the HR Director to sell the improvements we made. Her consistency, in applying these tools, eventually brought everyone on-board.
Results
We improved the “Recruiting completed within 90 days of application” measure from 33% to 56%… still below our minimum expectation of performance, but definitely better. The Process Flow Mapping portion of the project eliminated 411 hours per year of wasted time in the HR department.
This department has undergone dramatic changes, from being chaotic, to being an example of discipline in business processes.
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