TURNING NUMBERS INTO SAFETY:
70.5% Reduction in Incident Rate
79.5% Total Costs
38.5% Average Costs
69.7% Musculoskeletal injury costs
Learn how DataFit's Physical Capability Assessment led to dramatic reductions in frequency and severity of injuries as measured by incident rate, total cost of injuries and average cost of injury for a national network of 7 retail distribution centers with compelling data.
ROI of $4 for every $1 spent on the program.
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 within material handler job classes in a national network of retail distribution centers.
The number of new hires for the Not DataFit Assessed Group was estimated to be 1,300 individuals over 16 months. The number of new hires for the DataFit Assessed Group that met the essential functions for hire over 16 months was 1,258.
INTRODUCTION
Workplace injuries were more than just numbers; they were affecting the lives of employees and taking a toll on operational efficiency. The retailer faced a critical challenge: high rates of injuries among distribution center staff. 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 material handler roles within the distribution centers. Key metrics such as incident rates, total costs and average claim costs were chosen to evaluate the program's effectiveness.
The graph below illustrates the total number of injuries that occurred for the DataFit Assessed Group versus the Not DataFit Assessed Group for the same period – less than 16-months of employment. The number of injuries is also shown for exertion only. The absolute numbers show that the number of injuries for DataFit Assessed Group was dramatically less in comparison to the Not DataFit Assessed Group for all injuries and exertion injuries.
Challenges
The retailer was grappling with alarmingly high rates of workplace injuries. 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 Incurred Costs for the Not DataFit Assessed Group were nearly 5 times greater than the DataFit Assessed Group for all injuries. The Incurred Cost for overexertion injuries was nearly 10 times greater for the Not DataFit Assessed Group compared to the DataFit Assessed Group.
IMPLEMENTATION
The process of integrating DataFit’s PCA program into the hiring mechanism was meticulous and well-planned. Full integration was achieved within three months, followed by a 16-month 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:
3-fold reduction
Drastic Reduction in Incident Rates: Material Handlers experienced a 3-fold reduction.
The frequency of injury (incident rate) for each group. The incident rate of injury for the DataFit Assessed Group was about 3-times less than the Not DataFit Assessed Group for all injuries and exertion injuries.
Significant Average Claim Cost Savings:
Material Handlers benefited from a 38% reduction for all injuries and a 70% reduction in overexertion injuries.
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.
To calculate the projected savings for the 16-month time frame identified, the average cost per injury for all injuries with the DataFit group ($2,989) was multiplied times the incident rate of injury for the DataFit group (4.6%), which equaled the Projected Costs. Thus, the Projected Costs show what the cost should have been if the DataFit program was in place during the 16-month period prior to DataFit program implementation.
The Estimated Cost of the DataFit program for the Not DataFit Assessed Group was calculated by multiplying the estimated new hires for the Not DataFit Assessed Group (1,300) plus 20% to account for those that did not meet the essential functions, times the cost of the DataFit PCA.
Conclusion
The analysis of the injury data provided by the customer demonstrates that 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 Not DataFit Assessed Group for all injuries and exertion injuries. The combination of reducing the frequency of injury and the average cost per injury resulted in greater savings and ROI for the Company utilizing the DataFit program. If the DataFit services had been in place during the previous 16-month period, the net savings minus the cost of the program would have been:
$512,973 or a 62% reduction in the actual Incurred Costs and an ROI of $4 for every $1 spent on the program.
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