Change Your Hiring Philosophy and Reduce Workers’ Compensation Claims

It is true that no company will be completely free of Workers’ Compensation claims. Accidents do happen, and that is why you have Workers’ Compensation Insurance. The goal should be to develop a pattern of reduced claim numbers and claims costs from year to year. One effective way to manage these costs is to change the way you hire. We have noticed that when companies change their hiring paradigm, good things happen. You can’t keep doing the same thing over and over and expect different results. We are not talking about doing away with safety programs, interviews, or reference checks, but changing some of the methods used in the hiring process. Here is what we mean:

Using personality tests

To help with the hiring process, many companies use personality and ability tests or assessments. These tests can identify personality traits and answer questions like, “Who will perform well?”  “Who will stay?”  “Who can be trained to do the job?”  These tests can enhance the predictive nature of placing the right people in the right job.

The Caliper Profile is an example of a commercial assessment that measures 25 personality traits related to job performance. This instrument is used for hiring, performance improvement, and team building and is designed to provide information on an individual’s strengths, limitations, motivation, and potential.

Create job descriptions that include safety, mental, and physical skills

HR managers responsible for establishing or administering HR programs must understand the purposes of job descriptions that include physical standards. Not only will you see reduced claims, but production will be increased, because you have the right people doing the jobs they are best suited for.

Complete Risk Analysis

We recommend using the traditional reference checking procedures, but also include the following:

  • Check MRV’s
  • Check prior WC claims
  • Complete a pre-employment physical and drug test. Make sure the doctor has the written job description to evaluate any physical limitations.

Create a multi-step application process

A good way to assess someone’s abilities and skills in the workplace, as well as their commitment, is to set up an interview/training during the application process. This might include a supervisor and head of the safety committee being present, asking for work samples, or having someone perform a task live during the interview.  Getting a concrete idea of how someone goes about their work is just as valuable as hearing about how they perceive their abilities to be. If you want to create a safer more productive workplace, developing new hiring methods is a place to start.

When you buy insurance, whether it’s for your home, your car or your business, you want an advocate who will properly assess the risks you face and give you an objective analysis of the market place; it’s up to you to make the final choice.

April 16th, 2014 by Partners Risk Services