Case Study:
Regional Food Store Chain
Compares Two Substance
Abuse Testing Methodologies
Application:Drug Screening:
Lab Based Oral Fluid Screening Versus Instant Urine Device
Problem:A food store chain was experiencing a high rate of employee turnover in excess of 100%, or 6,000 new hires annually. Their workforce tended to be young, with an average age ranging from 18 to 25, relatively inexperienced and typically from a blue-collar background. It was determined through an extensive process of discovery that there existed a number of hiring issues, typically at the store director level and required immediate attention. One area HireCheck could assist with was their ineffective administration of their drug-testing program. The food store chain was using an instant urine device, which was administered, on site, by the hiring manager. In many cases, the urine tests were not administered due to apprehension on the hiring managers to perform the collection and process the urine sample. The HR department was not receiving the results when the test were performed and many non-negative results were reported as negative in order to put the applicant on payroll to reactively fill vacant positions. After extensive discussions, it was determined that modifying the current drug-screening program could positively impact the stores.
Solution:The food store chain agreed to a 90-day pilot program using the lab based oral fluid test in ten stores plus the corporate office. Before implementing the pilot, a benchmark survey was developed to determine the hiring managers position on the current urine-testing program. The survey was sent to all 74 stores and the corporate office and directed to those responsible for the administration of the instant urine device-testing program, in most cases the store directors. After the pilot program was in effect for 30 days, a follow-up survey was sent to the pilot participants. The overall results of the pilot program were extremely positive. Some areas of improvement since the first survey included:
- 23% higher rate in ease of collection
- 26% higher rate of collector satisfaction
- 5% higher rate of donor satisfaction
- time savings of over 6 minutes per test
- 6.24 times higher positive testing rate versus instant urine testing
Benefits:Lab based oral fluid testing:
- drug screening to a higher level versus instant urine testing
- inherent audit capabilities
- ease of collection less invasive
- observed collection eliminates adulteration and dilution
Since implementing the lab based oral fluid drug test storewide the food store chain’s turnover rate of new employees has been reduced by a factor of 20% or 1,200 employees. With an average cost of $1,500.00 per new employee a cost savings of approximately $1.8 million has been recognized. Other factors associated with a reduction in turnover will be measured throughout the coming year to include:
- reduction in shrinkage
- reduction in lost work time
- reduction in absenteeism
- reduction in workers comp claims
The corporate HR team has also been successful in driving a culture change in hiring practices to more proactive and focused on hiring more qualified and reliable talent. They now receive test results before the hiring manger receives them, which allows HR to take action if any non-negative tested applicant is put on the payroll. By taking a comprehensive look at their hiring and employment screening practices, this food store chain has created numerous positive outcomes within their organization.
Retail National Statistics
2001 National Retail Security Survey
Conducted by the University of Florida
- 2001 Retail loss due to shrinkage $33.21 billion
- Supermarket/Grocery shrinkage is 1.42 % of annual sales
- 45.9% of shrinkage is due to employee theft
- 7.4% of shrinkage due to administrative and paperwork errors
- Shrinkage rates are 1.77% when turnover rates are less than 50% and increase to 1.89% when turnover rates are above 50%
- Average dollar loss per employee theft incident was $1,445.86