The Organization/Management Challenge:
The challenge for many health care organizations is how to reduce overall labor costs, which can account for 50% or more of all annual expenses, with minimal impact on employees and quality of care. These organizations often have very complex pay practices involving a myriad of special premium pays and hours. Given the complexities, unintended errors in pay occur within the hundreds of thousands of transactions performed annually. Regulatory risks may also be present within these transactions. The combination of pay errors and sub-optimal pay practices can be costing these organizations millions of dollars per year and cause unnecessarily high regulatory exposure. The ever increasing complexity of labor hours accounting, pay codes, special pay types and the inter-realtionships of hours and special types of pay formulas result in very basic hidden costs that are often overlooked. This is in part a result of responsibilities for employee pay systems being shared by Human Resources, Finance and Operations and less than adequate management information and use of the timekeeping system.
The CIS Solution:
CIS delivers a Pay Practices Assessment that includes a detailed review of pay policies and procedures as well as in-depth testing at the transactional level of employee time, pay types (such as shift differentials) and pay type rates. The work identifies and documents pay errors along with premium pay related enhancement opportunities. Additional Assessment services include a review of FLSA compliance (overtime, employee status are examples), IT system setups and their use for management information and sustainability purposes, and impacts on benefit costs that are directly driven by employee work time and pay (paid time off programs, for example). The Assessment ultimately documents savings opportunities and recommendations that the client organization may implement.
CIS' effort focuses entirely on the accuracy and integrity of your current pay practices and systems.
CIS is unique in providing clients with this in-depth transaction level analysis of the organization's actual pay.
Better and more closely managed pay practices can result in annual reductions from .5% to 5% of total annual labor costs without impacting staffing. In many cases compensation and benefit programs are also not affected.