Hiring Unqualified People Is Big Worker’s Comp Mistake

Hiring Unqualified People Is Big Worker’s Comp MistakeHiring unqualified people to fill positions within the workforce is by far one of the biggest mistakes made in maintaining low workers’ comp costs.


The trucking industry and bus drivers for school buses, over the road or municipal buses is a perfect example of how applying ability standards as conditions of employment help maintain work comp costs, while maintaining productivity and high safety standards.


The Department of Transportation (DOT) requires medical exams to ensure a driver is physically capable and qualified to operate a big rig truck. Using a variation of these standards in hiring can help companies protect their workers’ comp budgets by making sure they hire an employee who can do the job!



Adapt DOT Approach to Meet Your Company Needs


DOT’s approach can easily be adapted to meet the needs of all companies. Place the emphasis not only in performing background checks and drug screening, but also make sure potential employees are qualified to perform the job they are hired for. If the position calls for someone with above average hand-eye coordination, would it be wise to hire the next candidate who walked through the door without qualifying him/her for the job?


When a company suffers from too many employee accidents, the nature of the accident needs to be examined. Policies need to be put into place to prevent reoccurrences. Accidents do happen and with proactive policies dictating how these events are handled, management personnel has tools to help them fine tune employee training and accident avoidance policies.


Many companies have strict procedures requiring the immediate reporting of all accidents, whether there was injury or not, followed up by detailed documentation of the event. Where there is an injury, these policies ensure the injured employee receives prompt medical treatment, timely filing of required workers’ comp paperwork and claims forms, and the employee’s recovery is monitored to ensure a prompt return to work, even if into modified duty.


Additionally being on top of all work related accidents and injures affords greater control of these situations and provide the means to monitor and evaluate employee qualifications and adherence to workflow procedures.



Cost Savings Are Easy to Calculate


Cost Savings is easy to calculate. Enter the total incurred losses and your profit margin, and when you calculate, it will show the sales to pay for accidents. For example, it will take 11 Million dollars to replace $500,000 in incurred losses if your companies profit margin is 4.5%. So, it’s cost effective to put a program in place to screen new hires and make sure they are physically and psychologically suited to the job.


The focus of administration is on fostering safety within the workflow and encouraging employees to follow procedures and help newer employees do the same. By making employee safety as important as meeting production quotas and timelines, you, the employer, show your employees you care about them. The employer’s sincere concern is then perceived by the employees as their company caring about their welfare.


By establishing qualification testing and standards in the workforce, a company can ensure safety and work procedures are not compromised, keep the workforce safe while maintaining workers’ comp costs and workforce productivity. There are numerous companies that help set up employment screening programs. Interview several, and ask them to come to your facility to meet them and let them see the jobs your company performs.



Michael Stack - AmaxxAuthor Michael Stack, CEO Amaxx LLC. He is an expert in workers compensation cost containment systems and helps employers reduce their work comp costs by 20% to 50%.  He works as a consultant to large and mid-market clients, is co-author of Your Ultimate Guide To Mastering Workers Comp Costs, a comprehensive step-by-step manual of cost containment strategies based on hands-on field experience, and is founder & lead trainer of Amaxx Workers’ Comp Training Center. .


Contact: mstack@reduceyourworkerscomp.com.

Workers’ Comp Roundup Blog: https://blog.reduceyourworkerscomp.com/


©2017 Amaxx LLC. All rights reserved under International Copyright Law.


Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker, attorney, or qualified professional.

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