Hiring and Workers’ Comp Costs

The opportunity to hire new workers can be an exciting time for any company, offering the potential to add someone with new skills or fill a vacated position. But the U.S. Bureau of Labor Statistics reports that workers with only one year of experience, who represent 25% of the workforce, make up 34% of lost-time claims and costs.

It’s critical for companies to use pre-screening tools and pre-employment testing to identify potential candidate liabilities or a likelihood for workers’ compensations claims.

When screening applicants, employers are encouraged to perform:

• A work history check to verify references and employment history.
• A criminal record check. Patterns of fraud or criminal activity could be a red flag.
• A credit check.
• A medical, alcohol or substance abuse test. Most of these screenings can be done only after a contingent job offer has been made.
• A workers’ compensation background check. This can only be done after a contingent job offer has been made and is not available in all states. Check with your background screening company
• for availability or potential restrictions of such a check.

Other evaluations to consider include:

• Aptitude, personality or integrity tests. These can indicate a candidate’s fit within a company’s culture and can detect those who may be inclined to lie or cheat.
• Strength tests. While this is relatively new, this process can eliminate applicants who may be physically unable to perform necessary job duties.