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If your company is considering incorporating New Hire/Post Offer Physical Capabilities Assessments into your employment process, you're likely to have these four key questions in mind:

 

  1. Is it legally defensible?
  2. Will my organization see a return on investment?
  3. How will it impact our hiring process?
  4. What are the steps for initiating these assessments?

 

  1. Legal Compliance: When it comes to compliance issues, there are a few important things to consider. First, physical capability assessments should only be conducted after a conditional job offer has been made and a job task analysis has been completed to establish the correlation to the specific job task. According to Equal Employment Opportunity Commission (EEOC) guidelines, an employer can conduct examinations after extending a conditional job offer. Additionally, the findings of physical capability assessments need to be objective and comply with the Americans with Disabilities Act (ADA).

 

DataFit's New Hire Physical Capabilities Assessment (PCA) is not only EEOC and ADA-compliant, but it is also the most accurate and objective assessment in the industry, it also has the highest ROI rate. The PCA directly correlates with the essential physical tasks required to perform the job for which a candidate has applied.

 

  1. When it comes to calculating the potential return on investment for New Hire Physical Capabilities Assessments, DataFit has simplified the process. On our website, we provide a free cost savings calculator that delivers key information to help you understand the benefits of adding the New Hire Assessments.

 

Workers Comp Calculator | DataFit (data-fit.net)

To calculate the total costs, first add the loss runs or annual costs of injuries/incidents for the past 1-3 years (direct costs). Then, multiply the direct costs by 1.1 to determine the indirect costs of injury. Next, add the direct and indirect costs to get the total costs. The calculator will automatically include the costs associated with the assessments. After that, include the estimated number of new hires per year. The calculator will then provide the estimated savings in work comp costs that can be achieved through testing (savings realized by testing). This will give you your anticipated net annual savings (savings minus the cost of the testing program).

 

  1. Effect on hiring: The impact of hiring utilizing the PCA depends on your applicant pool and the physical demands of your jobs.

The DataFit job strength requirements scoring is based on the Department of Labor's strength requirements. While suggested pass or fail rates or as we state met or didn’t meet the minimum requirements are provided, and organizations have the flexibility to determine their own risk thresholds. In today’s competitive labor market, even a small fail rate may seem significant to your talent acquisition team. However, it's essential to remember that if no one fails the test, then the purpose of testing is defeated. At DataFit, we have observed that for every 1% fail rate, injury costs decrease by approximately 14%. Therefore, test failures should not be viewed negatively, as these individuals are less likely to remain in the role or may be at a higher risk of sustaining an injury.

 

  1. Steps for implementation: Delivering a legally defensible New-Hire PCA depends on the DataFit Job Task Analysis (JTA), which focuses on the essential physical requirements of the job for which you want to test. Test items and pass/fail points are selected to represent the most difficult aspects of the job. Once the JTA is completed, you can choose from our national provider network, which includes a nearby clinic, and our mobile units, or we can install the technology on your premises. After implementation, you are ready to begin, and our reports are generated with a 24-hour turnaround. After 12 months of testing, we deliver an annual report to demonstrate the quality and effectiveness of the program plus discuss the savings that were generated.

 

The DataFit New-Hire PCA has helped organizations achieve significant cost savings, with some experiencing a 5 to 1 savings ratio and reaching as high as 32 to 1. Additionally, these companies have seen a 67% decrease in workers' compensation costs on average.

About the author

Philip Stotter, MS, CEP

Philip Stotter, MS, CEP has over 25+ years of experience in the medical, health, wellness, and professional sports industries. Clinician turned business developer, Philip is a sought-after industry speaker and professional consultant. His ground-breaking work in injury prevention, paired with the science of human movement, has put him at the forefront of product development with a multidisciplinary approach that integrates physiology, biomechanics, cutting-edge technologies, and data-driven research.