Applied Assessments, Inc.
Psychologists Dedicated to Jobs, People & Organizations

Valid Measurements that Deliver the Right People for the Right Job

Reduce Workers' Compensation Costs Through Pre-Employment Screening

Applied Assessments, Inc. verified the results of a predictive validation study for a major toy manufacturer. This measurement study of the physical strength and coordination abilities was undertaken to validate a potential assessment tool in selecting entry level manufacturing personnel. The essential abilities and aptitudes required of production employees were identified by using a thorough job analysis program to ensure compliance with EEOC and ADA legislation. The analysis justified the utilization of job-related work simulation exercises of back, arm and grip strength, vision and eye-hand coordination. These work simulation exercises, along with interviews and background checks, were implemented during the staffing of a new toy manufacturing facility. However, the physical ability and coordination exercise results were not considered in the hiring decisions.

Thirty applicants were tested and hired. Of the 17 employees who failed the exercises, seven sustained work-related injuries during the first year of employment. The average workers' compensation fee incurred by the manufacturer was $18,765 per injury, costing them over $131,000 in total compensation fees. Of the 13 employees who passed the work simulation exercises, only one suffered an injury on the job. The workers' compensation fee associated with that injury was $139.

The manufacturer projected that by using work simulation exercises in the screening of 5,000 applicants, the company could potentially save more than $20 million dollars! The direct correlation that job-related work simulation exercises have on reducing employee injuries and controlling workers' compensation costs is clear. The results of this study demonstrate how job-related and validated assessment programs can impact a company's profitability and employee health and safety.