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Reducing Workers’ Compensation Claims Through Better Hiring Practices

Outsource HR Services

It is true that no company will be free of workers’ compensation claims completely. Unfortunately, accidents do happen, and that is why it is important to invest in Workers’ Compensation Insurance. As a business owner or CEO, you should aim to develop a pattern of reduced claim numbers and claims costs from year to year.

Having good job descriptions, safety guidelines, and claims management programs are a sure way to help your company improve its workers’ compensation experience. Why is this important? According to data from sources such as the U.S. Bureau of Labor Statistics as well as the NCCI, inexperienced and untrained workers account for a disproportionately large portion of lost-time claims.

Developing hiring practices that are focused on workers’ compensation claims reduction can be another way to reduce costs. Hiring the best-qualified candidates can have a direct impact on your workers’ compensation costs. Fortunately, there are specific steps you can take to recruit and hire more effectively. In doing so, you will reduce potential Workers’ Compensation and Employment Practices Liability claims.

1. Hire High-Quality Candidates

Don’t rely on a newspaper ad to recruit for your business! Develop a network of contacts, utilize professional recruiters, current employees, and even social media to find the best quality candidates. In some cases, recruiters can ask questions that you can’t (or won’t think to) ask! Because of this, you can weed out candidates that may increase your workers’ compensation costs through their lack of experience.

2. Screen, Screen, and Screen Again

The value of pre-employment screening can not be overlooked! Drug screening is one of the most common tools employers use to screen candidates. Drug use and workplace injuries are tied together. 

In addition to drug screening, it is also important to conduct complete background checks. Remember to notify and get written permission from the candidate to conduct the background screening. Criminal background checks may also reveal useful information. If you get permission you can also check on past work-related injuries.

Finally, conduct pre-employment physicals and testing if the position entails physical labor. Can the candidate complete the job requirements without possibly injury?

3. Emphasize Workplace Safety

Inform and train employees on workplace safety. This should be a large part of the interview and job offer process. Be sure you have a safety program in place that will educate and train your employees on safety precautions. 

If you do extend a job offer, make it conditional. It should be contingent upon the candidate’s ability to perform the functions of the job. Always have a 90-day probation period for all new employees as an added layer of protection for your business! By implementing these hiring practices, you can reduce your workers’ compensation claims, thus benefiting your organization as a whole!

LUXA Enterprises specializes in HR services, outsource accounting, bookkeeping, and payroll services. We match up with ideal candidates for services by allowing small to midsize businesses to increase focus on their growth through outsourcing. If you want to know how we can help you, contact us today!

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