To maintain its commitment to innovation and emphasis on quality, Indiana University (IU) Health Bloomington needed to reduce staff turnover, which was 20.3 percent at the end of 2006. At that time, it also had more than 200 staff openings.
The financial toll was enormous. For every percentage point of employee turnover, the hospital estimated that it lost $1 million, given the considerable costs associated with replacing and retraining staff. The impact was driven not only by advertising and recruitment costs, but also by the resources needed to fully train an employee in IU Health Bloomington’s demanding clinical environment.
IU Health Bloomington engaged DDI to redesign its staff selection system to incorporate a highly structured, step-by-step process that combines multiple elements, including an online application that requires candidates to answer prequalifying questions and pre-employment assessments to test a candidate’s abilities relative to the position for which he or she is applying. Those identified as the best candidates are then screened by telephone to determine if they should be scheduled for on-site interviews.
For those on-site interviews, IU Health Bloomington implemented DDI’s Targeted Selection® behavioral interviewing system. Targeted Selection provides a structured, consistent interviewing process targeting the most important competencies needed for success in the job. Everyone who interviews a candidate works from an interview guide to ensure they ask job-relevant questions and gather the data needed to make highly accurate hiring decisions.
Currently, there are 170 hiring managers who are trained in Targeted Selection. Sessions are held twice a year to train and certify newly hired or promoted managers. Targeted Selection is the only approved interviewing approach within IU Health Bloomington.
Having partnered with DDI to redesign its selection system, IU Health Bloomington has realized the following results:
Estimated cost savings of $9 million per year by reducing the need to replace departed staff.
Reduced turnover from more than 20 percent to just 11.5 percent.
Senior leaders and hiring managers laud the new system’s consistency and the improved ability to identify those individuals who are the best fit with the job and the organization’s culture.