Your Guide to Reducing Injuries and Improving Retention with POET

The Three Challenges Facing Canadian Employers

Across Canada, employers in industries from manufacturing to warehousing to logistics face a triple threat: high employee turnover, musculoskeletal disorders (MSDs), and difficulty finding qualified candidates. These challenges are not new, but they are increasing in urgency and complexity as labour markets tighten and workplace demands evolve.

High Turnover

High turnover disrupts operations, reduces team cohesion, and puts more pressure on remaining employees. Canadian companies invest heavily in recruiting, onboarding, and training only to lose employees within the first year. This cycle results in lost institutional knowledge, hampers long-term planning, and makes it harder to scale operations or meet production targets.

Musculoskeletal Disorders (MSDs)

MSDs are one of the most common workplace injuries in Canada, representing a large share of workers’ compensation claims reported to provincial and territorial boards like WorkSafeBC, Workers’ Compensation Board (Alberta), WSIB (Ontario), and CNESST (Quebec).

These injuries typically affect two employee groups:

• Early-tenure employees – New hires without sufficient physical conditioning or training often suffer sprain and strain injuries within their first few months.

• Long-tenured employees – Workers who have spent years in physically demanding jobs may experience chronic conditions from repetitive strain, awkward postures, or manual material handling.

The result? Lost productivity, higher workers’ compensation premiums, extended absences, and in severe cases, permanent disability. These injuries affect both the health of the employee and the financial health of the organization.

Lack of Qualified Employees

Canada’s skilled labour shortage is a growing concern. As experienced workers retire, employers are finding it harder to recruit physically capable candidates who can meet job demands safely. In many cases, companies hire individuals who may not be fully able to perform essential duties, increasing the risk of injury and turnover.

Why Action is Urgent

If these issues are not addressed, Canadian employers can expect:

• Higher injury rates

• Rising workers’ compensation premiums

• Greater lost-time claims

• More turnover and difficulty retaining skilled workers

• Difficulty meeting production targets

  
  

By the numbers: According to the Association of Workers’ Compensation Boards of Canada (AWCBC), MSDs account for roughly 30% of all lost-time claims across the country. The financial impact is significant, with more than $2 billion in claims costs over the last five years.

Average Direct Claim Costs (varies by province):

• Knee injury: ~$30,000

• Low back injury: ~$35,000

• Arm/Shoulder injury: ~$45,000

• Neck injury: ~$60,000+

These figures do not include indirect costs such as productivity loss, overtime coverage, re-training, and recruitment expenses.

The Solution: Functional Testing with POET

One of the most effective ways to reduce injury risk and improve retention is through Post Offer Employment Testing (POET).

What is Functional POET Testing?

Functional employment testing evaluates whether a candidate can safely meet the essential physical demands of a specific job. It’s a proven strategy for reducing MSD claims, improving hiring decisions, and building a healthier, more productive workforce.

POET in Canada

• Timing: Conducted after a conditional job offer and before placement. This feature ensures legal defensibility in hiring as well.

• Scope: May include job-specific physical tasks (e.g., lifting, carrying, climbing, pushing/pulling) linked to validated job demands.

• Compliance: Testing must follow Canadian human rights legislation (e.g., the Canadian Human Rights Act and relevant provincial/territorial human rights codes) to ensure it is bona fide occupational requirement (BFOR) compliant.

• Validation: Requires job analysis and validation studies to demonstrate that the test is necessary, relevant, and non-discriminatory.

Benefits of POET for Canadian Employers

1. Better Hiring Decisions

   Prevent hiring individuals who cannot safely perform critical job tasks — avoiding your “next injury” before it happens.

   
   

2. Fewer Injury Claims

   Employers using POET programs see reductions of 30–35% in injury frequency and 40–45% in injury severity.

   
   

3. Objective Baseline Data

   Establishes a pre-employment benchmark to help distinguish pre-existing conditions from work-related injuries, streamlining claim adjudication with workers’ compensation boards.

   
   

4. Lower Workers’ Compensation Costs

   Healthier employees mean fewer claims, reduced claim duration, and lower premium rates.

   
   

5. Return-to-Work Support

   Functional testing can also be applied to determine when an injured worker is ready to resume their job duties safely, reducing re-injury risk.

   
   

6. Improved Retention

   Matching physical capabilities to job demands leads to longer tenure, better performance, and improved morale.

Best Practices for POET in Canada

Avoid these common pitfalls:

• Using generic, non-job-specific testing (won’t meet legal BFOR standards)

• Inconsistent administration or documentation

• Untrained testers without proper certification

• Outdated protocols that no longer match job requirements

Recommended POET Workflow:

1. Job Posting & Description – Includes validated physical demands.

2. Conditional Job Offer – Provided after candidate selection, contingent on passing the functional test.

3. Testing Appointment – Conducted by a certified provider familiar with Canadian legal requirements.

4. Testing Process – Job simulations, cardiovascular monitoring (if required), and lifting/movement assessments tied to actual duties.

5. Decision – Pass = proceed with onboarding; Fail = consider alternative job placement or allow re-application at a later date.

Key Takeaways for Canadian Employers

• High turnover, MSDs, and a shrinking qualified labour pool are pressing issues in Canada.

• Functional testing, when legally validated and well-administered, can significantly reduce injuries, improve retention, and lower compensation costs.

• POET must comply with Canadian human rights legislation and be based on validated job demands.

• A well-run POET program is a strategic investment that strengthens both safety and workforce stability.