Convenient truths : empowering employees, empowering energy choices

Abstract

Journey Health is an industry leader in medical testing, touching a large portion of Americans each year. To maintain this position, the company makes strategic investments in R&D, business development, and continuous operations improvement. The company faces dual challenges in resource allocation nationwide due to high rates of turnover among first-year employees, specifically in Specimen Processing, as well as electric utility bills that, across the company, cost tens of millions of dollars per year and continue to increase as business grows. Each turn of an employee costs an estimated $7,500, accounting for recruiting, training, and productivity losses. The aim of this research is twofold: 1) to examine the causes of employee turnover and leverage the Good Jobs Strategy to develop a solution and 2) to examine the viability of on-site solar generation as a means of cost improvements and other ancillary benefits including the safety and convenience of covered parking. Nationwide first-year turnover among Specimen Processing Technicians (SPTs) at Journey laboratories averages 50%. Primary reasons for employee attrition included lack of engagement and competing opportunities. The Good Jobs Strategy is a combination of investment in people with four operational choices that leverage that investment by increasing productivity, contribution and motivation of employees and by driving continuous improvement. These choices are: standardize and empower, cross-train, operate with slack, and focus and simplify. I conducted phone interviews and in-person observations with ten Journey locations. Within the framework of the Good Jobs Strategy, I developed a set of recommendations that includes clearly defining job descriptions, increasing opportunities for employees to build rewarding careers, empowering employees to feel engaged and motivated on the job, and aligning interests across both Specimen Management and Logistics in frontline operations. I also find that the current state of knowledge-sharing across Journey locations can be improved, and that changes to management perceptions of frontline employees is critical for the Good Jobs Strategy to succeed in the long-term. As an additional initiative, I evaluated the potential for on-site solar generation to be a value-added opportunity at Journey in Westborough, Massachusetts. I estimated that solar production can offset approximately 40-50% of utility consumption and find broad support among employees due to the benefits of having covered parking where the solar panels are installed in the form of carport solar, elevated panels above the parking lots I also estimate that the project has a net present value (NPV) up to $4.9M in Westborough with the internal rate of return (IRR) up to of 12%. I conducted a sensitivity analysis on the input parameters and found a significant influence of precipitation on system output, with less influence by variation in vegetation height and performance of the solar modules themselves. I find that NPV and IRR may vary significantly, from $3.5-$8.0M and 6% to 19%, depending on installation costs and system output. Critically, I find that a regulatory framework is necessary to require utilities to allow grid connections from distributed solar generation. Also, I find non-technical and nonfinancial factors that drive decision-making, including willingness to make capital investments, leased-versus-owned status of property, and familiarity with solar electricity and utility markets. I found that a clear reframing the discussion in terms more understandable to the client is particularly useful, such as considering the project separate from solar energy, but more as constructing covered parking for employees, yet being paid to do so. I conclude that on-site solar generation has significant financial benefits for Journey. Although the estimated payback period of four to ten years is longer than Journey's typical capital investment payback, solar offers a low-risk form of investment. Alternate installation models may be investigated, including a leased model, which would require no upfront capital investment by Journey.