MLPCARE Reduces Costs By Changing Labor Allocation
- Claude Werder
- Learning and Development, Talent Management, Human Resources
Leaders at Turkey-based MLPCARE, aware they needed to reduce labor costs and still focus on care quality, developed a system to allocate labor based on demand for service at its 28 hospitals rather than on bed capacity. The new system manages headcount by using monthly trends at each hospital and the needs of its service units. The new model improves productivity, better allocates resources, and minimizes the cost of overtime. Designed and implemented by the HR team within 1.5 months, the employee cost/net income ratio decreased by nearly 2% in 2016. MLPCARE earned a Bronze Award for Best Unique or Innovative Workforce Management Program in the 2017 Brandon Hall Group HCM Excellence Awards.
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