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Code 50: an orientation matrix to track orientation cost

P R Messmer, A Abelleira, P S Erb

    Journal of Nursing Staff Development : JNSD
    |September 1, 1995
    PubMed
    Summary
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    Implementing a new orientation matrix significantly reduced staff orientation costs and overtime. This system improved efficiency, cutting overtime by 83% and leading to a more cost-effective onboarding process for new hires.

    Area of Science:

    • Healthcare Management
    • Nursing Education
    • Financial Analysis in Healthcare

    Background:

    • High staff orientation costs ($20,000-50,000 per person) and inconsistent processes due to varying approaches by head nurses and educators.
    • New orientees required 3-9 months to reach full productivity despite using competency-based tools.

    Purpose of the Study:

    • To develop and implement a system for tracking staff orientation costs.
    • To standardize the orientation process and reduce associated expenses.
    • To determine the actual financial impact of staff orientation.

    Main Methods:

    • Development of an orientation matrix system by the Director of Finance and Director of Nursing Education and Research.
    • Assignment of a unique pay class (code 50) for all new orientees.

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  • Implementation of a computer program to track orientation costs and overtime hours.

    • Main Results:

    • A significant reduction in overtime hours for new orientees, dropping from 941 to 159 (an 83% decrease).
    • Creation of a more consistent and cost-effective orientation process through the orientation matrix.
    • Improved tracking of actual orientation expenses.

    Conclusions:

    • The orientation matrix system provides a more cost-effective approach to staff onboarding.
    • Standardization and improved tracking lead to substantial reductions in orientation-related overtime.
    • Financial and operational efficiencies can be achieved through systematic process improvement in nursing education.