Session 4 Brownspeed Health Care
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Questions and Answers

What is a primary consequence of high turnover rates in the health care sector?

  • Enhanced health outcomes for patients
  • Increased recruitment efforts
  • Rising health care costs (correct)
  • Improvement in employee satisfaction

Which factor was identified as a quicker addressable issue in employee retention strategy?

  • Inadequate compensation (correct)
  • Job dissatisfaction
  • Work-life balance
  • Growth opportunities

What does COL stand for in the context of employee compensation?

  • Compensation of Leadership
  • Cost of Living (correct)
  • Criteria of Loyalty
  • Condition of Labor

Which state has a COL that is significantly higher than the national average?

<p>California (A)</p> Signup and view all the answers

What are key factors contributing to employee retention challenges in the health care sector?

<p>Inadequate compensation and job dissatisfaction (D)</p> Signup and view all the answers

What is one strategy Stonebrook aims to use to forecast COL for each BHC client?

<p>Consumer price index forecasting (C)</p> Signup and view all the answers

Which issue related to employee retention requires a longer-term organizational solution?

<p>Improving job satisfaction (D)</p> Signup and view all the answers

Why is retaining good employees more cost-effective than recruiting new ones?

<p>Replacement processes are time-consuming and expensive. (C)</p> Signup and view all the answers

What is a primary reason for healthcare organizations to focus on employee retention?

<p>It is more cost-effective than recruiting new employees. (C)</p> Signup and view all the answers

Which factor is contributing to the high rates of turnover in the healthcare industry?

<p>Rising costs associated with healthcare provision. (B)</p> Signup and view all the answers

What was identified as the first priority for most HR managers in healthcare?

<p>Solving employee turnover issues. (A)</p> Signup and view all the answers

What is projected to happen to domestic spending in the US healthcare industry within the next five years?

<p>It will reach over 19 percent of the country’s GDP. (A)</p> Signup and view all the answers

How much is global spending on healthcare expected to rise annually over the next five years?

<p>By 5 percent. (D)</p> Signup and view all the answers

What challenge is indicated by the projected growth in the demand for healthcare workers?

<p>Existing slots in healthcare facilities are going unfilled. (D)</p> Signup and view all the answers

According to projections, what will be the growth rate of registered nurses through the middle of the next decade?

<p>15 percent. (C)</p> Signup and view all the answers

Which organization is responsible for providing statistics on the demand for healthcare workers?

<p>The US Bureau of Labor Statistics. (C)</p> Signup and view all the answers

What is a characteristic of time series forecasting models?

<p>Group events generally have greater accuracy than individual events. (A)</p> Signup and view all the answers

Which component is NOT part of the three-parameter version of exponential smoothing?

<p>Random error adjustment (C)</p> Signup and view all the answers

What does the FORECAST.EST function primarily aim to optimize?

<p>The smoothing coefficients based on historical data (C)</p> Signup and view all the answers

What is mean square error primarily used for in forecasting models?

<p>To minimize the difference between actual and forecasted values (B)</p> Signup and view all the answers

Which retention strategy is specifically mentioned as effective during low unemployment rates?

<p>Compensation increases (B)</p> Signup and view all the answers

Which of the following is not a method for applying compensation increases?

<p>Equity distribution (C)</p> Signup and view all the answers

What is the primary factor that influences an organization’s decision to offer salary increases or bonuses?

<p>Local market conditions (D)</p> Signup and view all the answers

Which forecasting technique is available in Microsoft Excel as mentioned in the document?

<p>Exponential smoothing (D)</p> Signup and view all the answers

What was the CPI-W value for March 2019?

<p>247.768 (C)</p> Signup and view all the answers

Which month experienced the highest CPI-W value in 2019?

<p>October (C)</p> Signup and view all the answers

How did the CPI-W change from April to May 2019?

<p>Increased slightly (C)</p> Signup and view all the answers

What is indicated by the CPI-W value remaining above 245 throughout 2019?

<p>Retail prices were stable or increasing. (D)</p> Signup and view all the answers

Which of the following months had a CPI-W value lower than 250?

<p>June (D)</p> Signup and view all the answers

What was the change in CPI-W from November to December 2019?

<p>Decrease of 0.192 (C)</p> Signup and view all the answers

Which two months had identical CPI-W values?

<p>June and August (C)</p> Signup and view all the answers

Based on the CPI-W data, which conclusion can be drawn regarding trends in urban wage earners' costs?

<p>Costs were consistently rising with minor fluctuations. (D)</p> Signup and view all the answers

What is the role of the smoothing coefficient (a) in Holt's two-parameter smoothing model?

<p>It determines the influence of the actual values on the forecasts. (C)</p> Signup and view all the answers

Which equation correctly represents how forecasts are generated using the trend value?

<p>Ft + p = Ft + P × Tt (D)</p> Signup and view all the answers

What is the range of values for the smoothing coefficient (a) and trend coefficient (b) used in Holt's model?

<p>0 &lt; a, b &lt; 1 (C)</p> Signup and view all the answers

In the two-parameter model, how is the trend value (Tt) calculated?

<p>Tt = b × (Ft - Ft - 1) + (1 - b) × Tt - 1 (A)</p> Signup and view all the answers

What is the significance of using the mean squared error in Holt's two-parameter model?

<p>It helps determine the optimal values of a and b. (D)</p> Signup and view all the answers

How do forecasts beyond the range of the database are generated in Holt's model?

<p>By adding the last smoothed value to the last trend value. (D)</p> Signup and view all the answers

What does the variable P represent in the forecasting equation Ft + p = Ft + P × Tt?

<p>The number of future periods to forecast. (D)</p> Signup and view all the answers

Which statement about Holt's two-parameter model is true?

<p>It incorporates both the trend and the level of the series in forecasts. (C)</p> Signup and view all the answers

What does the smoothing coefficient 'a' in the Holt-Winters model determine?

<p>The influence of actual values on forecasts (C)</p> Signup and view all the answers

In the Holt-Winters multiplicative model, which component is adjusted for seasonal variations?

<p>Seasonal value (B)</p> Signup and view all the answers

Which equation in the Holt-Winters model calculates the trend value?

<p>Tt = b × (Ft – Ft – 1) + (1 – b) × Tt – 1 (A)</p> Signup and view all the answers

What is the role of the parameter 's' in the Holt-Winters model?

<p>It defines the length of the seasonal cycle (D)</p> Signup and view all the answers

Which of these components does NOT directly contribute to the forecast value for the next period?

<p>Smoothing coefficient (C)</p> Signup and view all the answers

In the forecast equation $Ft + p = Ft + P × Tt + St + p – s$, what does 'P' represent?

<p>The specific forecast period to be predicted (D)</p> Signup and view all the answers

Which condition is true for the coefficients a, b, and c in the Holt-Winters model?

<p>They must be between 0 and 1 (A)</p> Signup and view all the answers

Which of the following statements regarding the Holt-Winters model is incorrect?

<p>The additive form is always preferred over the multiplicative form (D)</p> Signup and view all the answers

Flashcards

Employee Retention vs. Recruitment

The cost of finding, hiring, and training new employees is significantly higher than keeping existing ones.

Healthcare Worker Shortage

A growing shortage of healthcare workers is causing difficulty filling open positions.

Challenges in the Healthcare Industry

The healthcare industry faces challenges such as rising costs, an aging population, and high rates of employee turnover.

Growth of the Healthcare Industry

The US health care sector is expected to become a larger part of the economy in the next five years.

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Projected Growth in Healthcare Jobs

The demand for healthcare workers, particularly registered nurses, is expected to grow significantly in the next decade.

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BHC's Services

BHC provides consulting services to healthcare clients, helping them address issues like rising costs and employee turnover.

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Employee Turnover as a Top Priority

Many healthcare organizations prioritize solving employee turnover issues.

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BHC: Founding and Location

BHC was founded in 2010 and is headquartered in Orlando, Florida.

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Cost of Employee Turnover

The cost of replacing employees (recruiting, hiring, and training) is much higher than keeping existing staff.

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Causes of Employee Turnover in Healthcare

Factors like inadequate pay, dissatisfaction with work, and a lack of opportunities for advancement contribute to employees leaving their jobs.

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Cost of Living (COL)

Cost of Living (COL) is a measure of how much it costs to live in a particular area, considering expenses like food, housing, and transportation.

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Compensation Based on COL

Adjusting compensation based on cost of living helps ensure fairness across different geographic locations.

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Consumer Price Index (CPI)

The Consumer Price Index (CPI) is a national measure of inflation that tracks changes in the prices of goods and services.

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Forecasting the CPI

Forecasting the CPI helps predict future inflation and its impact on the cost of living.

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CPI Forecasting Framework

A framework for forecasting the CPI helps predict future inflation rates.

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Specific COL Forecasts

Creating specific cost-of-living forecasts for each BHC client helps tailor compensation strategies to individual locations.

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What is the CPI-W?

A measure of the average change in prices paid by urban wage earners and clerical workers for a basket of consumer goods and services.

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What does the CPI-W track?

The CPI-W tracks price changes for a basket of goods and services commonly purchased by urban wage earners and clerical workers.

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Who compiles the CPI-W?

The US Bureau of Labor Statistics.

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How is the CPI-W related to the CPI?

The CPI-W is a variation of the Consumer Price Index (CPI).

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What do the CPI-W values represent?

The CPI-W values represent the relative change in prices compared to a base year.

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In which month did the CPI-W have a value of 245.133?

January 2019.

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What is the CPI-W used for?

The CPI-W is used to adjust wages and benefits for inflation.

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How often is the CPI-W updated?

The index is updated monthly to reflect changes in the prices of goods and services.

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Time series forecasting

A statistical method that uses past data to predict future events. It assumes that patterns in historical data can indicate future trends.

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Exponential Smoothing

A common time series forecasting model that uses historical data to update forecasts continuously. It comes in three versions: one-parameter, two-parameter (with trend), and three-parameter (with trend and seasonality).

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Mean Square Error (MSE)

A measure of the difference between actual values and forecasted values. It is calculated by squaring the difference between each actual and forecasted value, then averaging the squared differences.

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FORECAST.EST

A forecasting model designed to automatically determine the best values for smoothing coefficients in exponential smoothing. It aims to minimize the MSE for a better forecast.

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Cost of Living Adjustment (COL Adjustment)

Adjusting salaries of employees based on changes in the cost of living in a specific area. This ensures that salaries stay competitive and reflect the local economic situation.

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Salary Adjustment

Raising salaries to retain employees, especially in times of low unemployment. This strategy aims to make an employee's current job more desirable.

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Salary Bonus

A one-time payment to employees as a reward or incentive. This strategy can be used to recognize performance or to encourage employees to stay during crucial periods.

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Retention Strategies

Strategies that organizations use to keep their employees satisfied and prevent them from leaving for other job opportunities.

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Holt-Winters Exponential Smoothing

A forecasting method that captures seasonal patterns in data.

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Multi-period forecasting

The model's ability to forecast multiple periods into the future.

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Additive and Multiplicative models

Two ways to handle seasonal variations: additive and multiplicative.

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Smoothing coefficient (a)

A coefficient that controls how much the model relies on the most recent data point to smooth out the trend.

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Trend coefficient (b)

A coefficient that controls how much the model relies on the most recent trend.

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Seasonal coefficient (c)

A coefficient that controls how much the model relies on the most recent seasonal pattern.

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Forecast value (Ft)

The predicted value in a future period.

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Periods to be forecast (P)

The number of periods out into the future that the forecast covers.

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Double Exponential Smoothing Model

A statistical model used to predict future values by combining the last smoothed value with the last trend value, adjusted for the number of periods into the future.

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Forecast for Period t + 1 (Ft+1)

The predicted value for the next period (t + 1), calculated by adding the current forecast (Ft) to the current trend (Tt).

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Forecast for Period t + p (Ft+p)

The predicted value for any future period (t + p), calculated by adding the current forecast (Ft) to the trend (Tt) multiplied by the number of periods into the future (P).

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Double Exponential Smoothing Equation

The mathematical equation that represents the double exponential smoothing model.

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Forecasting Beyond the Database

A way to use the double exponential smoothing model for forecasting values beyond the known data range.

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Study Notes

Brownspeed Health Care: Employee Retention Using Predictive Analytics

  • Brownspeed Health Care (BHC) faced a pressing employee turnover issue impacting US healthcare industry clients.
  • High employee turnover was a significant contributor to rising healthcare costs.
  • Employee turnover rates in the US healthcare sector were significantly high, almost 20% per year, reaching record levels in 2018.
  • In 2018, hospitals experienced the highest turnover rate in over a decade, averaging a 90% workforce replacement since 2014.
  • The key factors driving employee turnover included inadequate compensation, job dissatisfaction, and limited growth opportunities.
  • Employee burnout (overwork and stress) due to staff shortages was a major contributing factor.
  • Health care spending in the US was projected to reach over 19% of GDP within five years and global spending to 10 trillion USD with over 5% growth annually.
  • Domestic projections indicated over 10 trillion USD in global spend with over 5% annual growth rate.
  • To combat the problem, BHC's CRO (chief analytical officer), Stonebrook, was tasked with developing an employee retention strategy within two weeks.
  • Stonebrook suggested analyzing rising cost-of-living (COL) as a starting point for a comprehensive retention plan.
  • COL varies considerably across US states, ranging from 20% below the national average to 41% higher in California.
  • Stonebrook planned to introduce a COL adjustment to compensation as an initial step, with the potential for comprehensive forecasting services and retention strategies.

Health Care Industry Retention

  • Domestic spending on US healthcare was projected to account for over 19% of US GDP in the next five years, alongside a 5% annual growth rate in global spending reaching nearly $10 trillion over the same period.
  • The projected growth of healthcare jobs outpaces general job growth by roughly three times over the next decade.
  • The rise in both domestic and global spending was expected to drive considerable demand for healthcare professionals, with a high number of vacancies predicted across numerous specialized fields.
  • High turnover rates, including a replacement of nearly 90% of hospital workforces since 2014, significantly increased healthcare costs due to increased recruiting and training expenses.
  • The US health care system faced several concurrent challenges, including rising costs, aging populations, and high rates of employee turnover.

Predictive Analytics Techniques

  • Time series forecasting methods, such as simple exponential smoothing and double exponential smoothing (Holt's method), were identified for predicting future trends and forecasting compensation adjustments.
  • There were three variants: one-parameter, two-parameter, and three-parameter exponential models, each with varying levels of complexity and forecasting capabilities.
  • Microsoft Excel contained various forecasting models (including FORECAST.EST).
  • Exponential smoothing models are capable of quickly adjusting to new data, particularly for trends, or cyclical patterns in a time series.
  • Holt-Winters exponential smoothing is a type of forecasting technique, useful to forecast multiple periods and suitable for identifying both trend and seasonal patterns in time series data.
  • The models' accuracy decreases over time, and group events demonstrate higher forecasting accuracy than individual events.

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Brownspeed Health Care Employee Retention PDF

Description

This quiz explores the primary challenges and strategies related to employee retention in the healthcare sector. You will learn about factors contributing to high turnover rates, the significance of cost of living adjustments, and effective retention strategies aimed at improving employee satisfaction. Test your knowledge on current trends and priorities faced by HR managers in healthcare organizations.

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