TURNING NUMBERS INTO SAFETY:
The combination of reducing the frequency of injury and reducing the average cost per injury resulted in greater savings and ROI for The Company with the DataFit program than with the FCE program.
ROI of $4.83 for every $1 spent.
This comprehensive case study presents an in-depth data analysis on how DataFit's PCA program drastically reduced both the frequency and costs of injuries for drivers and warehouse employees for a large national food distribution company with 14 locations.
INTRODUCTION
Workplace injuries were more than just numbers; they were affecting the lives of employees and taking a toll on operational efficiency. The company faced a critical challenge: high rates of injuries among truck drivers and warehouse staff. The company was utilizing a competing FCE vendor with limited results. This problem led to rising healthcare and operational costs. The objective was clear: significant reduction in both the incidence rates and financial burden of these injuries.
METHODOLOGY
DataFit's PCA program was specifically tailored to meet the unique demands of the truck driver and warehouse roles within the company. Key metrics such as incident rates, average claim costs, and total costs were chosen to evaluate the program's effectiveness.
The comparative study was performed to evaluate the impact of the DataFit new hire PCA evaluation program on reducing both the frequency and severity of injuries.
- The analysis included injury data from 14 food distribution locations across the United States.
- Both the FCE and DataFit group were analyzed over a 35-month period.
- The FCE group underwent a functional capacity evaluation with a cardiovascular component (step test) as their physical capability evaluation program. The DataFit group underwent an isokinetic knee & shoulder evaluation as their physical capability assessment.
- 3,400 individuals met the essential functions of the DataFit PCA. The FCE group evaluated and recommended 3,039 individuals.
- All individuals included in the analysis worked no more than 1,050 days. This number represents the 35-month period for each group and provides a means to equalize the two groups based on the same length of employment.
Challenges
The company was grappling with alarmingly high rates of workplace injuries among specific job classes. These injuries were not only affecting employee well-being but also causing a significant financial drain.
Initial Incident Rates: Disturbingly high, affecting both employee well-being and operational efficiency.
Financial Burden: Skyrocketing claim costs were a growing concern. The following shows the total Experience Costs (including reserves) and Net Paid for all injuries for the DataFit Group to the FCE Group. The Total Experience Costs for the FCE Group were nearly 3.4 times greater than the DataFit Group. The Total Net Paid costs were nearly 4.0 times greater for the FCE Group in comparison to the DataFit Group.
IMPLEMENTATION
The process of integrating DataFit’s PCA program into the hiring mechanism was meticulous and well-planned. Full integration was achieved within 6 months, followed by a 3-year assessment period to gather data and insights. The Company hired a third party to conduct detailed Job Task Analysis (JTA) for the positions eligible for the DataFit PCA. From the JTA information, the standards were established for the positions that were assessed.
RESULTS
The impact of DataFit’s PCA program was transformative:
40% less
Drastic Reduction in Incident Rates: The incident rate of injury for the DataFit group was about 40% less than the FCE group.
Significant Average Claim Cost Savings:
The FCE Group average Total Experience cost per injury was nearly 2.6 times greater than the DataFit Group. For Net Paid, the FCE Group average cost was nearly 3 times greater than the DataFit group.
ROI Analysis
The cost-benefit analysis revealed that the upfront cost of implementing DataFit's PCA program was far outweighed by the long-term financial savings and enhanced workplace safety. The DataFit PCA had a dramatic impact on reducing both the frequency and severity of injury as measured by incident rate, total cost of injuries and average cost per injury in comparison to the FCE group.
The 35-month savings if the DataFit PCA had been implemented was $1,891,117. The ROI was $4.83 for every $1 spent.
Conclusion
This case study goes beyond mere numbers to substantiate the high ROI and effectiveness of DataFit’s PCA program, contributing to both a safer workplace and significant financial savings.
For organizations facing similar challenges, DataFit offers customized solutions that deliver tangible benefits.
To reap similar benefits and ROI for your organization,