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Truck driving
companies across the nation are saving substantial money (many in the
millions of dollars range) every year by using our driver exams. There are several key ways our system saves you money:
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Reductions in Insurance Premiums
- Fewer Accidents
-
Reductions in Turnover Ratios
Reductions in Insurance Premiums
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Our exam system can provide insurance companies with a basis for identifying companies
with high-quality drivers, for the purpose of providing reduced premiums. The
test has been
endorsed by Great West Casualty Company of South Sioux City, Nebraska since
1991.
The test provides information on
intelligence and personality factors relevant to success in heavy truck driving.
Those with average or higher scores are expected to succeed in truck driving
school and in a trucking career more frequently than those with lower scores.
Knowing this, our test can be used to identify risk level with insurance
companies. Hiring policies of allowing only average or better drivers to
work for your company will assist the insurance company in determining a
favorable risk level and thus a more favorable premium.
Research Study:
A study completed in 1993 at a large petroleum products carrier in the Southwest
revealed a dramatic reduction in the number and severity of worker comp
incidents and preventable accidents as a result of screening driver applicants
with our exam. Before instituting new selection and screening
procedures in the fall of 1991, this 300 truck carrier had worker comp incidents
averaging $21,600 per claim, including medical costs. With new procedures not
yet including our exam, the per-claim average dropped to
$11,600 over the next 8 months. When our exam screening was
added, the average cost per claim for the next 12 months dropped to $4,300.
During this period 421 applicants were screened and 158 were hired.
Of 12 drivers screened with our
exam who had 15 comp incidents,
the average claim was only $2,180. Of the 4 drivers who had all 10 exam section
scores in the Average range or higher, none had a work comp incident. The
company anticipates receiving premium rebates of approximately $500,000 for each
of 1992 and 1993 because of the dramatic reduction in claim payouts, which
dropped from 204% of premium in 1991 to 17% in 1992, and a further drop to 4%
for 1993. They received in work comp dividends $83.00 for each $1.00 spent on
our tests.
Fewer Accidents
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When
our exam is used as
recommended, companies typically see significant, prompt savings that more than
cover the cost of using our tests.
Field Study:
A 150 truck carrier in the Southwest received worker compensation premium
rebates of about $500,000 per year for two years while using our exams due to dramatic reductions in worker comp incidents. They tested 421
applicants and during this time
their worker comp payouts for claims dropped from 204% of premium in 1991 to 4%
of premium for 1993. Their reportable accidents dropped from 1.1 per million to
0.22 in 1993. Their number of lost time injuries dropped from 73 to 7 per year
and driver retention dropped from 100% to 21%, for additional significant dollar
savings.
The following chart shows this carrier's reductions in accident costs over time,
after hiring a new Safety Director and then implementing our exams to screen new-hires. Notice in particular the fourth column:
|
|
Before
new
Safety
Director |
After
Safety Director,
Before
Our Exams |
After both
Safety Director and
Our Exams |
|
12 drivers screened with
our exams who had 15
worker comp incidents |
4 drivers who scored Average range
or better on all 10 exam sections |
|
Time Period: |
7 months |
8 months |
12 months |
|
12 months |
12 months |
|
#
of Claims: |
58
(8.3 per month) |
43
(5.4 per month) |
55
(4.6 per month) |
|
15
(1.25 per month) |
0 |
|
Average W.C. Cost: |
$12,800
per claim |
$6,800
per claim |
$2,000
per claim |
|
$1,500
per claim |
0 |
|
Average Medical Cost: |
$8,800
per claim |
$4,800
per claim |
$2,300
per claim |
|
$2,180
per claim |
0 |
|
Total Costs per Claim: |
$21,600 |
$11,600 |
$4,300 |
|
$3,680 |
0 |
Reductions in Turnover Ratios
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Our exam system helps companies hire and maintain more qualified drivers resulting in increased performance and
reduced turnover ratios. The key to success in doing this is our
multi-area exam structure testing not only how well a driver knows the
regulations, but also how intelligent (able to learn) and how personally viable
the driver is to the company. Testing only for regulations does not
address the potential problems that may occur in the future resulting from
personal issues or an inability to understand and react on the job. Our
exam covers those areas that are lacking in other truck driver tests.
Research Study:
Our exam system helps trucking firms differentiate
between high and low quality driver applicants. The system may also be used to
aid in selecting dispatchers, trainers and management personnel who must have
basic understanding of heavy trucking and varying levels of intelligence.
Drivers with lower intelligence need more patient instructions and training.
Drivers with higher intelligence can be given more responsibility and groomed
for jobs such as trainer, school instructor, safety supervisor and other middle
management jobs. Drivers with low factual knowledge scores need training in such
areas as federal regulations, load-handling and hazardous materials.
Our research at three truck driving schools around the
country reveals that only 1 out of 3 students have average or better scores on
Intelligence and Personality traits. Thus, using hiring criteria based on
average or higher scores, only 33% of students would make it to the interview
stage.
The research further revealed that intelligence and trucker personality as
measured by the test do not increase dramatically by training, while factual
knowledge does increase from the Low range up to the Average range. Therefore,
if a truck driving school wants to turn out high-quality students, it should
screen for students who have Average or higher scores on intelligence and
trucker personality before admission.
It is true that some students with below-average Intelligence and Personality
scores are able to find and hold driving jobs. And today's job market is so
tight that virtually all school graduates, even those with low intelligence and
personality, find placements. How long they keep their jobs is another matter.
In a study conducted by the author of one class of truck driving school
students, very few were driving a truck a few months after graduating from school.
It is also important to spare the company and driver the burden of failure, and
guard them and the public against potentially fatal accidents.
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if you would like to get an
idea of how our assessments work or what we can do for your company, please view
our free online demo:
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