BTE's Post Offer of Employment Testing (POET) Program Saves Koch Foods, Inc. Significant Dollars by Reducing Injury Rates in New Hires
Program Benchmark Period: January 1, 2011 – December 31, 2011
Program Overview: This employer experienced a significant number of musculoskeletal related injuries in the 3-year period prior to implementing the BTE Post Offer of Employment Testing (POET) program. This poultry processing plant experiences an annual turnover rate of approximately 60%. The employer anticipated hiring a significant number of employees due to new positions and attrition. BTE was contracted to develop and validate employer specific test protocols to correspond to the targeted jobs. The POET program was implemented in December 2010.
POET Program Evaluation: During the 12-month period following implementation of the POET program 279 new hires passed the test. Twelve percent of the new-hire candidates did not meet the required job demands so their conditional job offers were revoked. In addition to the documented savings listed below, 100% of the claims in the POET tested group are closed compared to an 81% closure rate of the claims in the existing employee (non-POET tested) group.
Recordable MSD Injuries January 2011 – December 2011 |
|||
# MSD Cases |
Injury Rate |
Cost Per Claim |
|
Existing Employees (not POET-tested) |
22 |
6.5% |
$7,479 |
POET Tested New Hires |
5 |
1.8% |
$661 |
Total Savings and Costs Avoided |
|
Claims at 4.7% Existing Employee Injury Rate (current existing employee injury rate less POET tested new hire injury rate) |
13 |
Claims Cost Savings |
$97,227 |
Injuries Avoided at 50% of failed POET (new hires) |
19.5 |
Claims Costs Applied = Costs Avoided From Not Hiring Failed Candidates |
$145,840 |
Total Savings + Costs Avoided + Turnover Reduction (hiring/training savings) |
$249,175 |
12-Month Net Return-on-Investment (net of all program costs) |
205% |