Challenges

Siloed Labor Pools
Unsustainable Labor Cost Increases
Manual Staffing Processes
Misaligned Incentives

Goals

Reduce Skyrocketing Incentive Cost
Decrease Dependency On External Labor
Rightsize Rates And Increase Shift Pickup
Improve Nurse Morale And Retention

Solutions Implemented

✓ Centralized Workforce Management Platform

✓ Automated Staffing And Scheduling Processes

✓ AI-Powered Dynamic Shift And Incentive Pricing

✓ User-Friendly Nurse-Facing Scheduling App

About Deaconess

20+ Hospitals
40+ Clinics
$1.8B Net Patient Revenue
1,200 Staffed Beds

Executive Summary

Indiana-based Deaconess Health System needed a solution to control escalating labor costs and optimize their nurse staffing strategy.

The organization wanted to reduce reliance on external labor, get a handle on premium spend, and improve nurse morale and retention. Key challenges identified included the high burden on frontline managers trying to fill or cover open shifts, Nursing turnover rates approaching 20% annually, and high spend on external agency labor.

Leaders at Deaconess found Works, an AI-powered platform that has allowed Deaconess to manage all open shift filling needs across multiple workforce groups within a single, automated platform. As a result, Deaconess operates today with significantly reduced burden on frontline managers, greatly improved flexibility for their clinical staff, and a data-driven approach to lowering labor rates systematically while simultaneously improving fill rates month over month.

The Works platform has allowed Deaconess to scale a Resource Team, which includes multiple types of flex work that can accommodate employees’ needs, from 140 members to over 350. Each having a direct relationship with Deaconess - reducing cost and supporting quality of care. Since deploying Works, Deaconess has reduced Nursing staff turnover to below 9% annually - key to their financial stability.

This case study showcases how Works has enabled Deaconess to streamline workforce management, manage labor costs down while improving fill rates, improve clinical staff engagement, and be positioned for sustainable growth and operational efficiency.

The Need

Improve Staff Retention and Engagement in Shift Coverage

Post-pandemic, Deaconess sought a creative solution to control staffing costs and reduce dependence on external labor to maintain safe staffing levels. They relied on external agency staff and an internal agency (where they employed staff at a higher contracted rate) to fill shifts. They wanted to encourage their internal core staff to pick up more shifts, but their old incentive system motivated internal nurses to delay shift pick-up to secure higher rates. Across all labor pools, costs were rising.
‍
Deaconess had tried to manage incentives themselves, but the lack of real-time data and tools to manage incentives in an agile manner kept leadership in a reactive mode. With Works, Deaconess saw an opportunity to streamline shift rate and nurse scheduling decisions. Works would also provide the tools to systematically manage costs down over time.

We reached a point where we had to say, what’s our strategy going to be? We wanted to phase out our external agency and convert our internal agency to permanent staff. We wanted to stop feeling held hostage by rates and encourage internal staff to pick up shifts.

Katie Burnett

MBA, PHR, SHRM-CP,
VP Human Resources said

The SOLUTION

An AI-Enabled Workforce Management Platform

Works’ proven track record of reducing contingent labor costs and automating manual processes attracted Deaconess. Now 2+ years into managing multiple workforce layers across Nursing and Allied Health on Works, the data generated from the platform informs real-time decision making by leadership.

Works has been key to Deaconess’ retention and engagement strategy. Clinicians have visibility into available shift options across the health system, including transparent, real-time information on shift incentives that consistently direct staff to the health system’s most acute staffing needs - all without manual intervention.

"Works has allowed us to manage staff appropriately and even the playing field. We want to treat our clinical staff well and do the right thing for them, which includes rewarding them for picking up shifts - but we want to do it in a sustainable and manageable manner. One of the most satisfying results of the project has been seeing over 77% of our clinicians claim and work a shift through Works.” Burnett said.

Key Results

Reduced Frontline Manager Burden

Works fills shifts automatically and reduces last-minute coverage needs.

Optimized Incentive Pricing

Works uses shift demand, eligible clinician supply, and other factors to apply incentives only where they are most needed.

Flexibility Delivered

Preference-driven mobile alerts and intuitive app ensure clinicians own their schedule.

How Works Helped Deaconess Achieve these Wins

1. Process Automation

Works moved arduous manual staffing and scheduling processes to automated workflows that require no manager intervention, reducing admin time.

Key to driving cost savings, Works also sequences shift visibility by workforce group - ensuring that core staff and lower cost flex pool workers can access the shifts prior to higher cost PRN and gig staff.

This system encourages staff to pick up shifts earlier because the prices are higher earlier and our nurse leaders don’t have to worry about missing time with their family to cover open shifts. That has been a major game changer.

Katie Burnett

MBA, PHR, SHRM-CP,
VP Human Resources

2. Dynamic Shift Pricing

Works’ intelligent shift pricing drives staff to pick up open shifts while reducing premium spend. This AI-powered dynamic pricing feature learns employee shift-claiming mannerisms and which shifts are least likely to be claimed. The longer it runs, the smarter it gets. The end result is improved incentive dollar allocation and increased fill rate in areas of greatest need.

3. User-Friendly Nurse-Facing App

Deaconess’ scheduling system did not offer rate transparency or personalized shift notifications. Works easy-to-use mobile app integrates with that system and changes that. In Works, clinicians can easily set their preferences (day shift vs. night shift, shift length, days available, etc.) and be notified about shifts that match their settings. The app empowers nurses to browse open shifts and claim the shifts that fit best with their desired work-life balance.

I’ve implemented other technologies and this one is by far the most user friendly. Nurses can see open shifts versus going through their manager to sign up, so they can pick up shifts much quicker than they used to. And, the way the dollars tier, it drives people to pick up harder to fill shifts. It has really helped filter people to our greatest need.

Emilee Elpers

BSN, RN, CMSRN, CNML,
Central Staffing

Key Results

14%

Reduction in Premium Spend

with AI-powered dynamic pricing that optimized shift rates and incentives

16.2%

Boost in Purchasing Power

with labor cost savings that helped Deaconess’ dollars stretch further

79%

More Incentivized Hours Worked

with smart incentives that improved shift pick up while reducing overall costs

Case Study

How Deaconess Health System Reduced Incentive Spend and Increased Shift Pickup with Works

Challenges

Goals

Solutions Implemented

About Deaconess

Improve Staff Retention and Engagement in Shift Coverage

Katie Burnett

An AI-Enabled Workforce Management Platform

Key Results

How Works Helped Deaconess Achieve these Wins

Katie Burnett

3. User-Friendly Nurse-Facing App

Emilee Elpers

Key Results

Want to learn more?