Labor Productivity includes: Daily Tools, Workflow and Operations Improvement, Productivity Targets, and Labor Budgets

Defining the Problem:

  • Healthcare organizations are more likely than in previous years to have invested resources in the provision of some level of management reporting for labor productivity
  • However, mobilizing the organization into a culture of continuous productivity improvement is often encumbered by organizational inertia, status quo thinking, and managers ill-equipped to identify and make the changes required to achieve productivity targets that result in labor expense reduction   

What You Should Know and Consider:

  • Consistent rigor and accountability to the achievement of productivity targets are required in times of financial success as well as when the financial state of the business is not sustainable
  • Ensuring that staffing tools are fully deployed and that there is buy-in of each manager to his or her staffing targets requires focused resources and organizational commitment to establishing and maintaining an effective and comprehensive labor management program


By establishing a productivity governance structure either within existing organizational constructs (when appropriate) or by creating new processes for labor management, organizations can elevate productivity target achievement to the appropriate level within the organization.

In addition, providing time and resources (including subject matter experts) for improvement planning and execution is necessary such that managers are empowered to be successful.

GE Value Statement:

GE’s approach to Labor Productivity addresses required solution dynamics to drive the following improvements:

  • GE works with clients to build a comprehensive labor management program with realistic targets that are informed by external benchmarks and the experience of industry experts
  • GE helps drive a culture of accountability and improvement by adapting proven tools and processes to meet our clients where they are – while building upon a proven framework for labor management

[Click here for full-sized Human Capital Value Chain Image]

Human Capital Value Chain Quicklinks:

Overall Human Capital Value Chain Model

Talent Acquisition

Total Rewards

Performance Management

Talent Development

Demand-Based Staffing

Daily Shift Management

Labor Productivity

Management Enablers

Want to know more about how we can help with Labor Productivity? Contact Us