Implementing Internal Float Pools and Agencies Through Advanced Analytics and Integrated Technology Solutions
As health systems strive to adapt to ever-changing circumstances, they are turning to innovative staffing models and advanced analytics to optimize their operations.
These strategies, coupled with creative workforce solutions such as internal float pools and internal agencies, have enabled health systems to successfully reduce their total labor costs by four to seven percent.
This resource explores these emerging trends and strategies, drawing insights from industry experts Liz Cunningham, Vice President of Digital Solutions, and Holly Holz, Vice President of Strategic Operations at AMN Healthcare. Topics include: the critical technology capabilities required for planning, managing, and implementing a tech-first internal resource pool as well as insights on determining the right mix of core, contingent, and flexible staff.
Listen to the full podcast here.
Trends in Achieving a More Flexible Workforce
What are some of the trends you are seeing right now in the journey to achieving a more flexible workforce?
The demand for flexible workforce solutions is at an all-time high. Health systems are increasingly adopting innovative staffing strategies to meet evolving needs. Key trends include:
- Increased Demand for Flexibility: Workers, particularly in the healthcare sector, are seeking more flexible options than ever before. This demand stems from a generational shift where the workforce values work-life balance and adaptable work arrangements. Health systems are responding by exploring new staffing models that offer this flexibility. This trend necessitates a strategic approach to workforce planning, ensuring that staff have the autonomy they desire while maintaining high standards of patient care.
- Creative Staffing Solutions: Innovative approaches to staffing are becoming more prevalent as health systems strive to meet their staffing needs efficiently. Internal float pools and internal agencies are examples of these creative solutions. By leveraging various sources of staff, health systems can deploy personnel more effectively. These solutions not only address immediate staffing shortages but also provide a framework for long-term workforce sustainability.
- Strategic Mix of Workforce: Health systems are focusing on finding the right balance between core staff, contingent contract labor, and other flexible staffing resources. Achieving this balance involves a careful analysis of the types of staff needed and the best ways to deploy them. The goal is to optimize operations to meet patient needs and organizational objectives. This strategic mix is vital for maintaining operational efficiency and financial health.
Internal Float Pools vs. Internal Agency
Internal Float Pools: A group of staff who are pre-qualified and cleared to work in multiple units or departments within a healthcare organization, typically booked on a shift-by-shift basis. These staff are “floating” or available to be assigned to different areas within a local area (can be single or multiple facilities) based on the staffing needs of the organization.
Internal Agency: A group of staff who are pre-qualified and cleared to work in multiple units, departments, and locations within a healthcare organization. Internal agency staff are deployed on short-term assignments (13 weeks or less) like an external traveler or contractor, only taking assignments within a single health system.
Strategic Workforce Mix in Healthcare Facilities
How can healthcare facilities be more strategic about determining the right workforce mix to maximize flexibility?
Determining the optimal mix of core, contingent, and flexible staff is crucial for healthcare facilities. To be more strategic in this endeavor, facilities can:
- Analyze Workforce Structure: Begin by analyzing three key data buckets: current staff utilization, patient demand fulfillment, and financial impact by staff type. This means examining how current staff are being used, evaluating how well patient needs are being met, and understanding the overall financial picture. This comprehensive analysis provides a foundation for making informed decisions about workforce composition.
- Partner with Experts: Collaborate with partners who can offer robust data and analytics solutions for both initial and ongoing assessments. These partners bring specialized knowledge and tools to help health systems gather and analyze the complex data needed to make informed decisions. Their expertise can guide the development of a workforce strategy that aligns with the health system’s goals.
- Develop Targeted Plans: Create plans that move the resource mix toward the ideal composition to meet patient demand. This involves setting clear goals for the mix of core, contingent, and flexible staff and developing hiring and retention strategies to achieve those goals. By aligning hiring practices with strategic objectives, health systems can ensure they have the right staff in place to meet their needs.
Critical Technology Capabilities for Internal Float Pools and Agencies
What are some critical technology capabilities when it comes to planning, managing and implementing a tech-first internal float pool or agency and how do you effectively plan, acquire, and deploy the staff?
When planning, managing, and implementing a tech-first internal float pool or agency, several critical technology capabilities stand out:
- Data and Analytics Solutions: Leveraging robust data and analytics tools is essential for initial assessments, ongoing evaluations, and predictive analytics to forecast future needs. These tools provide insights into current staffing levels, predict future needs, and enable data-driven decisions about workforce composition. Effective use of data and analytics ensures that health systems can anticipate changes and respond proactively.
- Sourcing Capabilities: Having the right sourcing capabilities is crucial to attract, credential, and deploy the right candidates promptly. This involves utilizing technology to match candidates with the right skills and availability to appropriate positions. Considering geographical locations and specific needs of various healthcare facilities, effective sourcing ensures that health systems can fill positions efficiently.
- Ongoing Assessment Tools: Continuous monitoring and adjustments based on real-time data are essential components of a successful internal resource pool. Utilizing technology for ongoing assessments allows health systems to be agile and responsive to shifting demands. This capability ensures that the workforce strategy remains aligned with operational needs and can adapt to changes swiftly.
Efficiently Embedding Internal Resource Pools and Agencies
What are some key takeaways for health systems to most efficiently embed internal resource pools into their existing workforce ecosystem?
To embed internal resource pools efficiently into an existing workforce ecosystem, health systems should focus on:
- Comprehensive Planning: Develop detailed plans that align with long-term goals and are adaptable to changing circumstances. This involves setting clear objectives for the internal resource pool and creating a roadmap for achieving these objectives. Comprehensive planning ensures that the resource pool supports the overall mission and strategic goals of the health system.
- Strategic Implementation: Integrate the resource pool into the overall staffing strategy, ensuring seamless coordination with existing operations. This includes aligning the resource pool with other staffing initiatives and ensuring that it complements the broader workforce strategy. Effective implementation requires collaboration across departments and a unified approach to workforce management.
- Continuous Improvement: Regular evaluation of the resource pool’s effectiveness is critical for continuous improvement. Using data, forecasting, and feedback to make necessary adjustments enhances performance and efficiency. Continuous improvement efforts ensure that the resource pool remains an asset to the health system, adapting to evolving needs and contributing to overall success.
Cost Savings from a Balanced Workforce
What are the cost savings results health systems are seeing by achieving a more balanced workforce?
By achieving a balanced workforce mix of core, contingent, and flexible staff, health systems can realize significant cost savings. Some of the cost-saving results include:
- Reduction in Overtime: Organizations have seen overtime decrease from 15% to 6% of total hours. This reduction in overtime leads to significant cost savings and improves staff satisfaction by reducing burnout.
- Decrease in Incentive Pay: A notable reduction in incentive pay, amounting to $1 million in the first year, has been observed. Controlling incentive pay helps manage labor costs and contributes to financial stability. These savings can be reinvested in other areas of the health system to further improve patient care and operational efficiency.
- Lower Turnover Rates: A 4% decrease in turnover contributes to overall stability and reduced recruitment costs. Lower turnover rates lead to improved staff morale and job satisfaction, creating a more stable and productive workforce. Reduced recruitment costs free up resources that can be used to enhance training and development programs, further supporting long-term goals.
These outcomes demonstrate the financial benefits of strategically managing workforce composition. By focusing on the right mix of core, contingent, and flexible staff, health systems can control costs, enhance patient care, and improve staff satisfaction, leading to more sustainable and effective healthcare operations.
Ready to optimize your workforce? To learn more or request a consultation, visit our website at amnhealthcare.com/technology/workforce.