Overview
Employers continue to look for ways to reduce injury risk and related cost while improving placement decisions. A recent study on post-offer employment testing (POET) adds evidence that objective, job-related screening can reduce workers' compensation costs, especially during the first year of employment.
What the study evaluated
The study focused on POET and its potential impact on employer health and wellness costs across multiple categories, including:
- Healthcare costs
- Short- and long-term disability
- Workers' compensation
Researchers analyzed data from 5 million individuals and 480 million claims, comparing outcomes for groups who received POET versus those who did not. The study reported meaningful reductions in injury rates and integrated benefits cost savings in the group screened by POET.
Why first-year cost matters
Employers in the U.S. face rising costs tied to employee health and wellness. The original article noted examples such as growth in employer-sponsored healthcare costs and ongoing increases in workers' compensation costs, which can include both direct expenses and indirect impacts like:
- Wage costs for time lost to work stoppage
- Supervisor time and administrative burden after injuries
- Training and replacement costs
The practical takeaway is that preventing avoidable mismatch and early injuries can have outsized impact, because the first year sets a pattern for claim volume, cost, and workforce stability.
POET in plain terms
POET is a tool that helps employers determine whether an individual can perform the essential duties of a job without undue risk to themselves or others. In this study, researchers compared outcomes between people who completed POET and those who did not.
One key finding reported in the article was that the group who passed a POET prior to placement had 50% lower workers' compensation-related costs in the first year of employment.
How to use POET responsibly
Post-offer testing has the most value when it is clearly tied to job demands and implemented consistently. For employers and providers, that usually means:
- Using testing that reflects actual essential functions and critical physical demands
- Documenting the job demands and the rationale for the test components
- Avoiding generic screening that is not job-related
- Using results to support safe placement decisions and targeted conditioning when appropriate
Read the full research
The peer-reviewed article referenced in the original post is available here: Post-Offer Employment Testing and Its Impact on Integrated Benefits and Workers' Compensation Claims.
Plugging into Job Function Matching
If you want POET decisions to be more consistent, easier to communicate, and easier to defend, start with job clarity. The more accurately you define essential functions and physical demands, the better you can align testing and placement decisions to real work.
Learn more about DSI's job-based workflow on our Job Function Matching page.
