There are multiple things you can do to help lower workers’ compensation costs. One of them is not hiring your next claim. While, accidents or claims can happen to anyone, being proactive in your hiring process is not only good business practice but can also have a significant impact on your operations. Good hiring practices can impact the outcome of future claims against your business.
Here are a few HR best practices to potentially lower your work comp cost.
1. Pre-screening
Screening is the name of the game. From drug screening to background checks, screening is one of the most critical parts of recruiting.
Drug screening
According to the Bureau of Labor and Statistics (BLS), in 2021 unintentional overdoses from nonmedical use of drugs or alcohol accounted for 464 deaths, up from 57.7 percent of this category’s total in 2020
Drug use and workplace injuries are connected with each other, which is why many businesses have enacted a drug testing policy. Pre-employment drug screening is perhaps even more valuable because it saves you time and resources later on.
However, it’s important to be careful with drug screening candidates due to new marijuana laws. In some states, you cannot discriminate against an employee for cannabis use.
Pre-Employment Physicals
Certain jobs are more physically demanding than others. Pre-employment physicals and testing are a good way to prevent your company from hiring a candidate who cannot meet the job requirements.
An example of testing that may be included in a pre-employment physical are:
- A comprehensive physical which tests an employees vitals and overall health
- Alcohol and drug tests if required
- Mental Health Screenings
Background screening
For your company to perform Background screening, you will need written permission from your employee, so be sure to notify them that you’re conducting a background check.
The American with Disabilities Act (ADA) and certain state laws protects employees from being asked the questions about past injuries. The work around would be to ask the potential hire if they are able to perform the requirements of the job with reasonable accommodations. Background checks might be able to uncover useful information about your candidate.
2. Finding the right person
Use proper recruiting tools for the best candidate
In today’s job recruitment landscape, a simple ad in the newspaper doesn’t cut it anymore. Businesses should develop a network and leverage current employees’ contacts to find the best candidates.
Professional recruiters can also help you find the best candidates in a more brutally efficient way, so don’t hesitate to hire one to ask the hard-hitting questions that your own team can’t.
Clearly define the job role
It’s on HR to write an effective and clear job description. The following needs to be included so that you’ll get a higher chance of the right candidates applying:
- Job functions and duties
- Any Physical requirements (e.g. weight that needs to be lifted)
- Necessary qualifications and skills
- Education level
- Work experience
Enact a 3-month probationary period
It’s always advisable to have a 90-day probationary period for new employees. Not only does it help cement the relationship between you and your employee, but it also allows you to see whether the candidate truly is a right fit for the job.
3. Training
During the interview process and when explaining the role, make sure your potential hire knows training is a requirement. A formal new hire training plan will help your business ensure that the new employee receives the education to properly do their duties. Please remind the new hire it is up to them to makes sure they understand the requirements of the job. If they are unsure, they should ask for clarification. Create a culture where training is key and employees are free to ask for clarification. It’s important for the trainer to check for understanding by the new employee.
A good training program will
- Ensure the employee understands the duties and can get up to speed quickly
- Help integrate them into the workforce and make them feel welcome.
- Reduce turnover. Employees who feel thrown into the job with lack of understanding may get frustrated and leave.
New hire orientation
Your new hire orientation should include an onboarding safety program to train your employees on all the relevant safety precautions. Informing your employees of their risks and responsibilities can significantly reduce the number or severity of claims.
Mentorship
A great way to ensure your new hire gets up to speed quickly is to pair them with a key employee who understands the role they are performing. This will help them learn the job duties and create relationships within the company.
Followup
It’s best to keep in constant communication with your new hire for the first 90 days. Ask how they are doing, how they are adjusting to the new role and what support is needed from the company. Many times, taking a new position with a company is stressful. It’s best for everyone to have a healthy start.