VISIBILITY

CONTROL

IDENTIFYING AND REDUCING

OVERTIME AND AGENCY LABOR COSTS
A PREMIUM LABOR BENCHMARK REPORT

WWW.FILLSHIFT.COM

SAVINGS
WWW.LMINSTITUTE.COM

Overtime and agency expenses

are stop-gap tools to close
predictable holes in a schedule
Vacant
Postions

6%

Planned
Absences
Daily
Call-Offs

13%

SCHEDULES
ARE CRIPPLED EVERY DAY
BY SHIFT SHORTFALLS

4%
FMLA
and LOA

7%

INCREASING LABOR COSTS AND

AFFECTING CLINICAL OUTCOMES

THESE HOLES
OR SHIFT SHORTFALLS
ARE OFTEN RESOLVED AD HOC BY
CHARGE NURSES AND SUPERVISORS
THE RESULT: UNNECESSARY
OVERTIME AND AGENCY EXPENSE

34%
Time Spent
on Staffing
by Nurse
Managers

Nurse managers report

spending more than
a third of their time on
staffing and scheduling*

* 620 U.S. Hospitals included in the 2014 Data from the Labor Management
Institute's 25th PSS Annual Survey of Hours Report. Used with Permission.

Hospitals report using overtime

as their main strategy to
respond to shift shortfalls
AVERAGE

NURSE LABOR RATES

Overtime 74%

RN Hourly $30-$35

2014 PREMIUM RATES

Traveler
15%

Overtime $47.90
Traveler $54.84
Agency $65.72

Agency
11%

Using overtime or agencies to close schedule holes

costs hospitals a 150% to 225% premium
A BLENDED WORKFORCE WITH MORE
PART-TIME AND PER DIEM WORKERS IS ONE
RESOURCE TO ADDRESS SHIFT SHORTFALLS

70%

18%

12%

Full Time

Part Time

Per Diem

2014 Workforce Ratios*

* 620 U.S. Hospitals included in the 2014 Data from the Labor Management
Institute's 25th PSS Annual Survey of Hours Report. Used with Permission.

With labor often over 50% of operating costs, take these

Steps To Control Your Premium Labor Costs

<5%

Overtime
Costs

BENCHMARK YOUR OVERTIME

Your overtime costs should be less than 5%
of total paid labor
Gather the needed data from payroll,
scheduling and vendor invoices or contact
us for a Labor ROI Estimator

GET VISIBILITY AND CONTROL

OF DAILY SHIFT ACTIVITIES
Build an audit trail of hole-filling practices
Stop filling open shifts "offline" via calls
Survey staff and managers on the impact of how
you close the holes in your schedule

>35%

Part-Time
Ratio

REVIEW YOUR
WORKFORCE STRATEGY
Use Part-Time and Per Diem labor as a resource for
workload fluctuations to avoid overtime
Review your Scheduling Policies vs. practice
in a rush, people do what's needed
Contact the Labor Management Institute for a
Workforce Management Assessment

WANT TO LEARN MORE?

BELOW ARE ADDITIONAL RESOURCES TO HELP YOU GAIN VISIBILITY AND
CONTROL OF OVERTIME AND AGENCY COSTS IN YOUR HOSPITAL

LABOR MANAGEMENT INSTITUTE'S 2014

PSS ANNUAL SURVEY OF HOURS REPORT
Hours per Unit of Service
RN/LPN/NA to Patient Ratios
Workforce Management Survey
contact@lminstitute.com
866-404-7544

Order the full LMI report at:

lminstitute.com/products

FILLSHIFT
ROI CALCULATOR
Gain visibility and control of premium labor
Reduce effort and expense filling open shifts
Easily added to most scheduling systems
Don Feige
don@fillshift.com
585-582-5186

See your potential cost savings with

our free ROI calculator at:
go.fillshift.com/roi

Data from the Labor Management Institutes 25th PSS Annual Survey of Hours Report.
Used with Permission. Duplicating this report or its data without the express written permission of the
Labor Management Institute is strictly prohibited as a violation of copyright laws and will be enforced.