Physical Abilities Testing: Claims Cost Saving Summary

Post Offer of Employment Testing – Report Metrics:

Foster Farms
Industry: Food Processing Company

Program Benchmark Period: 2008 through 2010

Program Overview: Foster Farms operations process about 1.2 million chickens and turkeys daily. Long considered an upper extremity injury challenge, the poultry processing industry has worked diligently to impact the frequency and costs of these injuries. In 2007, Foster Farms decided to step out of the box and look at injury prevention in a way that was new to the industry – through Post Offer of Employment Testing. After months of assessment and program design, Foster Farms began post offer, pre hire testing with BTE. The initial implementation was in the primary Livingston complex, but soon the program moved to all primary poultry processing plants.

The first year results won recognition for Ernie Machado of Foster Farms as the 2009 Risk Innovator in Manufacturing and the Award Designation of Responsibility Leader by Risk & Insurance. Highlights of the two year results are outlined below.

Direct Savings:

Decrease in New Hires (New Hire Turnover)

$915,975

Reduced Claims Cost (Two Year Comparison)

$954,109

Total Gross Direct Estimated Savings

$1,870,084

Program Costs (Two Years)

$692,028

Net Direct Savings

$934,231

 

Estimated Indirect Savings

 

Reduced Indirect Impact (productivity, presenteeism, absenteeism, ongoing training and development cost)

$2,862,327

Other Indirect Health Savings

$1,079,844

 

 

Internal Survey of Leadership and Front Line Management

Do you think POET testing has made an impact on the physical readiness of new hires?

Pie Chart

91% felt the program had impact and 72.8% believed it had moderate or 'big' impact on the physical readiness of new hires.