Staff Impact on Budget
Staff can acutely affect the organization’s finances. Misuse of sick time, excessive overtime or turnover, and wasteful use of resources can result in negative variance. The manager plays a key role in explaining the unit’s goals, the organization’s financial goals, and how each individual is responsible for helping the organization meet those goals.
Improving Performance Organizations have implemented a number of different programs and incentives for increasing employee awareness and minimizing costs. Techniques to decrease absenteeism and turnover may be instituted (see Chapter 20). Displaying equipment costs on supply stickers or requisitions and indicating medication costs on medication sheets increase staff awareness of costs. Participa- tion in quality improvement and action teams also serves to inform staff of cost factors. Bonuses based on net gains have been shared with employees, in addition to cost-of-living raises.
When one staff member wants to take time off, the shift still must be covered. Nurse man- agers must hire enough staff to cover the unit even when people are on vacation without using excessive overtime. Float pool or PRN staff (staff scheduled on an as-needed basis) are often used to cover staff time off. Managers must plan how to cover each employee’s nonproductive time (vacation, sick, education, etc.) in the least expensive way.