Bold Recruiting Leadership

ERE Department of the Year: DaVita

Tony Blake tony.blake@davita.com tonydblake on Twitter

©2009 DaVita Inc.

My Mission Today…

MAIN GOAL

•  Give you at least one idea you can use/adapt for YOUR organization

STRETCH GOAL

•  Inspire you to be intentional about growing your leadership

What is DaVita? What challenges do you face in your industry?

©2009 DaVita Inc.

©2009 DaVita Inc.

Our Mission…become the greatest dialysis kidney care company the world has ever seen!

•  Second largest provider of dialysis services in the U.S. •  32,000 “teammates” working in a “village” •  114,000 patients in 43 states •  1,500 outpatient facilities;

700+ acute care units in hospitals •  #433 on Fortune 500;

HQ moving to Colorado •  Growth areas:

8 In-Center “Nocturnal” Dialysis 8 Home Self-Care 8 DaVita Rx 8 International Joint Venture

©2009 DaVita Inc.

“In a village, we are a community first and a company second.” - Kent Thiry, Mayor & CEO

©2009 DaVita Inc.

More KT…“Caring for our patients, caring for our teammates, and caring for our world.”

©2009 DaVita Inc.

What Others are Saying: Village Awards and Recognition

©2009 DaVita Inc.

7,000 Hires/Year

7 Managers

50 Recruiters

3 Project

Managers

5 Coordinators

1 International Coordinator

5 Systems/ Analytics

Our Recruiting Engine: 2009 - Invested over $100k in Recruiter Training

©2009 DaVita Inc.

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2000 RN Shortages

Red: >10% shortage

Yellow: 0-10% shortage

Green: No shortage

OK

©2009 DaVita Inc.

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2010 RN Shortages

Red: >10% shortage

Yellow: 0-10% shortage

Green: No shortage

OK

©2009 DaVita Inc.

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2015 RN Shortages

Red: >10% shortage

Yellow: 0-10% shortage

Green: No shortage

OK

©2009 DaVita Inc.

News Flash: Healthcare Recruiting is Going to Get Even More Difficult

•  Total RN vacancies in the U.S. increased to more than 135,000 in the summer of 2008. This translates into a national RN vacancy rate of 8.1%.

•  The shortage of registered nurses (RNs) in the U.S. could reach 500,000 by 2025.

©2009 DaVita Inc.

Recruiting Summit 2009: Tony’s Top Two Takeaways

•  We never, ever use THE SHORTAGE as an excuse

•  We must be “all in” - Continuous Learning - Continuous Improvement -  (Did You Know? video)

EXCUSES

How did a Healthcare company manage to win

ERE Department of the Year?

©2009 DaVita Inc.

Boiling-Down 30 Winning Items into 4 Key Themes

•  Aggressive recruiter management & development

•  Delivering “sourcing and service”

•  Tight alignment with Operations to impact “the business”

•  Building our brand

©2009 DaVita Inc.

Force-Ranking via Recruiter Scorecard: Drives quarterly bonuses

©2009 DaVita Inc.

Measuring Recruiter Production: Our model at Great-West

©2009 DaVita Inc.

Time-to-Find: History & Definition

•  Definition:

The time from when the position is opened to the time the recruiter sends the candidate to the hiring manager who ultimately gets hired

•  Why?

•  But what about Time-to-Fill?

©2009 DaVita Inc.

Core Skills: •  Profile & Plan •  Source & Contact •  Assess •  Present & Close

AIRS Recruiter Competency Model: Sorting out A-B-C-D players

Performance Traits:

•  Drive for Results •  Inquisitiveness •  Sales & Service •  Relationship Builder •  Flexibility •  Passion

Strategic Skills:

•  Market Intelligence •  Business Savvy •  Organization Management •  Candidate Management •  Network Building

©2009 DaVita Inc.

DaVita’s Recruiter Success Profile

Commitment to Continuous

Learning

AIRS Competency

Model

DaVita Mission & Values Fit

+ +

©2009 DaVita Inc.

Semi-Annual Talent Reviews Ensure We Are Building Benchstrength

©2009 DaVita Inc.

There is No Substitute for Talent

“The next killer app in recruiting is the recruiter.”

Michael Foster, Founder & Chairman, Human Capital Institute

©2009 DaVita Inc.

Core Skills: •  Business Acumen •  Metrics Savvy •  Decision Quality •  Directing Others •  Process Management •  Performance Management •  Relationship Builder

DaVita’s Recruiting Leadership Competency Model

Traits: •  Composure under Fire •  Self-Knowledge •  Influencer •  Politically Savvy

Vision & Strategy:

•  Innovation Management •  Strategic Agility •  Managing Vision and Purpose •  Managerial Courage (Command Skills)

©2009 DaVita Inc.

Zoomerang-based Satisfaction Surveys are Quick and Easy

©2009 DaVita Inc.

Hiring Manager Survey Questions: My recruiter…

•  …responded to my request within 24 hours (yes/no) •  …ensured that I understood the hiring process •  …understood my needs and we established clear expectations •  …provided the quantity of candidates we agreed to •  …provided high quality of candidates •  …communicated with me in a timely and professional manner •  I trust my recruiter as a hiring partner and consultant •  …demonstrates DaVita’s core values •  My overall satisfaction with my recruiter is •  In the spirit of continuous improvement, my recruiter could

(text box)

Please note: All answers are on a 1-5 scale unless otherwise noted

©2009 DaVita Inc.

New Hire Survey Questions: My recruiter…

•  …contacted me within ___ days of my application (choose from list)

•  …was knowledgeable about the position and work schedule •  …was knowledgeable about DaVita •  …asked questions to understand my needs and interests •  …explained and reinforced the unique aspects of DaVita’s culture •  …ensured that I understood the hiring process •  …communicated with me in a timely and professional manner •  I trust my recruiter •  My overall satisfaction with my recruiter is •  In the spirit of continuous improvement, my recruiter could

(text box)

Please note: All answers are on a 1-5 scale unless otherwise noted

©2009 DaVita Inc.

Satisfaction Surveys: Inside the Numbers

•  Our response rate is typically 30-35%

•  We have improved our raw scores every quarter since launch

•  Our department force-ranking has improved from “Bottom 5” to “Top 5”

©2009 DaVita Inc.

Alignment with Ops: Linking Recruiting to Patient & Financial Results

•  Reducing RN Time-to-Fill by 8 days… -  Saved a potential $5.5M in O/T & contract labor costs -  Created capacity for 140,000 patient care hours &

300,000 treatments •  Cutting external recruiting fees by 41%...

-  Saved ~ $3.0M •  113 Targeted Strike experienced dialysis hires…

-  Saved $2.8M in training costs -  Poached > 5% of the competitor’s workforce

•  Growing Village RN population 18% over 2 years -  Hired > 3,000 nurses in 2008

•  Key Clinical Outcomes improved for the 9th year in a row •  Recruiting capability…Tony’s Take:

-  We are at least 3 years ahead of our top competitor -  Contract labor differential

©2009 DaVita Inc.

Clinical RN Vacancy Rate: 2006 - Present

1% improvement = $6M annual impact

©2009 DaVita Inc.

Reality Check: What’s it like to be a Clinical Manager?

©2009 DaVita Inc.

Employment Branding: Driving for a World-Class Careers Site

Since launching in March 2008…

•  Site visits UP 88%

•  Unique visitors UP 76%

•  Return visitors UP 128%

•  Applications UP 97%

©2009 DaVita Inc.

Employment Branding: Validating Your Messages

•  Validation Methods -  Internal focus groups -  External focus groups -  Internal validation survey

8 1,200 RNs, Mgrs, Directors

•  Three Key Questions? -  Important? -  Accurate? -  Differentiator?

©2009 DaVita Inc.

Our Strategic Intent

We want to be the greatest recruiting team that healthcare has ever seen!

We create Competitive Advantage through Recruiting Excellence, ultimately reflected in leading patient & financial outcomes.

- Quality of Hire - Speed of Hire - Cost of Hire - Representing a Clear Differential Value Proposition

©2009 DaVita Inc.

Our Recruiting Strategy: Balancing execution, innovation and speed

Alignment with Ops

•  Ops-Driven Org Structure •  Prioritize Openings for High-Risk & High-

Impact Areas

Five Core Principles

Top Players

•  Highly-Competent Recruiters •  Committed to Continuous Learning &

Improvement

Clear Brand Differentiation

•  Brand DaVita & Brand Jobs (segmentation) •  Consistency

Relentless Sourcing

•  Referrals, Grow Our Own, Boomerangs, Max the Web

•  Pipeline vs Reactive – Reduce Time-to-Find

Service Excellence

•  Top 10 on Department Forced-Ranking •  Improve Hiring Mgr & New Hire Surveys

©2009 DaVita Inc.

Our Mid-Year Report Card: Grading our strategic execution

Alignment with Ops B-

Five Core Principles

Top Players

B

Clear Brand Differentiation C+

Relentless Sourcing B-

Service Excellence B+

Geez, Tony, I bet all of those initiatives cost a lot?

©2009 DaVita Inc.

Key Changes: Investments vs. Free/Low Cost Ideas

•  *More Recruiters -  Better ops alignment -  Lower req loads

•  *Project Managers

•  *New Careers Site

•  *DDI Assessments

•  Forced-Rank Scorecard

•  Recruiter Competency Model

•  Talent Reviews

•  Secret Shops

•  Sourcing Checklist

•  Time-to-Find Focus

•  Service Surveys (Zoomerang)

•  Targeted Strikes

•  Pipeline in Korea

•  Deployed Mgrs to Field

*Offset by cuts in job boards, contract recruiters, and recruiting fees

Tell us about your personal DaVita story…has it always been

smooth sailing?

©2009 DaVita Inc.

No.

•  Recruiting listed as a “2008 Victory” during State of the Village address

•  Vacancy Rates, financial impacts, and service scores featured

Nationwide 2008 Washington D.C.

Nationwide 2009 Washington D.C.

My Turning Point…

At DaVita, how have you grown as a leader?

©2009 DaVita Inc.

My Key Lessons from KT, Joe and Dennis…

•  Have a clear VISION – “speak your dream”

•  Take ACTION, move – don’t hesitate – “7 of 10”

•  THINK like OPS

•  Make NO EXCUSES, just own it

•  GROW new LEADERS

•  Welcome executive REVIEWS

•  REFLECT – “what should I have done differently?”

©2009 DaVita Inc.

2008 Do-Over Wish List: My areas of underperformance

•  Not quieting the grumbling around “candidate experience”

•  Communicating change in Job Board strategy

•  Supporting corporate business offices and other business lines

©2009 DaVita Inc.

One of My Favorite Quotes…

“Leadership is not a function of position. It is a function of behavior.”

- Kent Thiry, DaVita Mayor & CEO

©2009 DaVita Inc.

More of KT’s Leadership Philosophy…

•  “If you want to get good at something, you study it, practice it, and seek out people who are good at it.”

•  “Management is a business skill. Leadership is a human skill.”

•  “Leadership is in the eyes of the lead. It doesn’t matter what kind of leader YOU think you are.”

©2009 DaVita Inc.

YouTube Video from UCLA’s Anderson School of Management

Kent Thiry: Energizing a Firm with Mission & Values

http://www.youtube.com/watch?v=JowmBdx4nFw

©2009 DaVita Inc.

“No Brag, Just Fact” Team recognition

Healthcare Advertising Awards Recruitment Recruiting Campaign

Taleo Innovation Award Innovative use of Technology with Satisfaction Surveys

DaVita Rising Star Team Award

ERE Recruiting Excellence Awards Top Recruiting Department / Function of the Year

©2009 DaVita Inc.

Two Closing Thoughts

“We’re not doing this in some sexy, technology industry. We are doing it in healthcare – some of the roughest recruiting terrain on the planet.”

“Great recruiting is not a destination, it is a journey.”

--- DaVita’s ERE Award Nomination

©2009 DaVita Inc.

Did I Accomplish My Mission?

MAIN GOAL

•  Give you at least one idea you can use/adapt for YOUR organization

STRETCH GOAL

•  Inspire you to be intentional about growing your leadership