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You are here: Home / Work Injury Prevention / Hiring Practices / From Integrity Tests to Physical Exams: A 6-Step Hiring System to Reduce Workers’ Comp Claims

From Integrity Tests to Physical Exams: A 6-Step Hiring System to Reduce Workers’ Comp Claims

May 6, 2025 By //  by Michael B. Stack

Hiring is more than finding the right resume or filling a seat—it’s the first and most important line of defense in preventing workplace injuries and reducing workers’ comp costs.

Employers struggling with first-year injuries, high turnover, or repeat claims often have something in common: a reactive hiring process. They’re moving fast, skipping steps, and taking on avoidable risk. But what if hiring was treated like risk management?

The 6-step hiring system gives employers a practical, proactive framework to screen, test, and place the right people—before the first shift even starts.

Here’s how it works.

Step 1: Integrity Testing – Start with Values, Not Skills

Before you consider a candidate’s experience or interview answers, you need to know who they are at their core. That’s what integrity testing reveals.

An overt integrity test uses direct questions to screen for:

  • Substance use

  • Hostility

  • Dishonesty

  • Theft

  • Likelihood of absenteeism

Click Link to Access Free PDF Download

“4-Step Sequence For Effective Employee Screening, Hiring, & Placement”

Why does it matter? Because up to 25% of candidates fail these tests, exposing values misalignment that can lead to immediate problems on the job. These are the individuals most likely to contribute to workplace friction, safety violations, or early-stage injuries.

Integrity tests filter these high-risk candidates before you invest time in interviews. And the results are telling: applicants who pass are 10x more likely to also pass background and drug screenings, saving time and money down the line.

Step 2: Structured Interview – Validate Skill and Fit

Once you’ve filtered based on values, it’s time to evaluate skill sets and communication abilities. Interviews remain a crucial step—but too often, they rely on gut feelings and unstructured dialogue.

Instead, use a structured approach that links:

  • Past experience to essential job duties

  • Problem-solving scenarios to real-world situations

  • Communication style to company culture

At this point, you’ve narrowed your applicant pool significantly and are selecting candidates worthy of a conditional offer.

Step 3: Conditional Offer of Employment – The Gate to Risk Mitigation

A conditional job offer makes it clear that employment depends on successfully completing job-specific testing. This step is especially important for compliance with the ADA and EEOC.

You’re not selecting who gets tested based on individual traits—that would be discriminatory. Instead, you’re applying the same testing process to everyone applying for a specific job title or function.

With this step in place, you now have legal protection and a process that objectively determines whether someone can safely perform the role.

Step 4: Post-Offer Testing – Physical and Background Screening

Here’s where the rubber meets the road. After the conditional offer, candidates undergo a series of objective assessments:

  • Background checks (criminal history, driving records, etc.)

  • Drug tests

  • Physical ability tests matched to the job’s essential functions

This isn’t about discrimination—it’s about safety. If the job requires lifting 75 pounds or repetitive twisting, your testing should reflect those demands.

With accurate, validated job descriptions in place, employers can safely assess whether a candidate is physically and mentally able to perform. This also ensures compliance and reduces liability for wrongful injury claims.

Step 5: Baseline Testing – Protect Your Claims and Documentation

One often-overlooked opportunity in hiring is establishing a baseline health record. Without it, every new hire is assumed to be at 100% health, and if they get injured, your workers’ comp program is on the hook for a full recovery—even if pre-existing issues were present.

Baseline testing allows employers to:

  • Identify pre-existing conditions

  • Document physical capacity at the time of hire

  • Limit liability and treatment costs if an injury occurs

For example, if a new employee enters with a 20% shoulder impairment but there’s no baseline record, you may unknowingly pay for treatment to restore them to 100%—instead of their original 80% capacity.

Step 6: Onboarding – Reduce First-Year Injuries with Gradual Exposure

Even the best hire needs training and support. Onboarding is your final line of defense, especially considering that first-year employees account for 35% of workplace injuries.

To prevent early claims:

  • Provide gradual exposure to hazardous tasks

  • Assign mentors or trainers for shadowing

  • Reinforce job-specific safety procedures

A well-structured onboarding process reduces confusion, builds engagement, and gives new hires time to adjust before they face peak job demands.

FREE DOWNLOAD: “4-Step Sequence For Effective Employee Screening, Hiring, & Placement”

Start Small: Apply the System Where It Matters Most

You don’t need to roll this system out company-wide on day one. In fact, the most effective approach is to start with job titles or departments that generate the highest number of injuries.

Begin with integrity testing and job-specific physical assessments for those roles, then build out your system as you track results. Over time, this structured approach becomes a predictive hiring model that reduces claims, lowers turnover, and improves workforce quality.

Hiring Isn’t Just HR—It’s Risk Management

This 6-step hiring system isn’t just a recruitment strategy—it’s a workers’ comp prevention tool. It transforms hiring into a proactive, protective process that aligns the right people with the right roles—and avoids the wrong hires before they become costly claims.

When you treat hiring as your first safety strategy, you don’t just reduce risk—you build a better, stronger workforce.

Michael Stack, CEO of Amaxx LLC, is an expert in workers’ compensation cost containment systems and provides education, training, and consulting to help employers reduce their workers’ compensation costs by 20% to 50%. He is co-author of the #1 selling comprehensive training guide “Your Ultimate Guide to Mastering Workers’ Comp Costs: Reduce Costs 20% to 50%.” Stack is the creator of Injury Management Results (IMR) software and founder of Amaxx Workers’ Comp Training Center. WC Mastery Training teaching injury management best practices such as return to work, communication, claims best practices, medical management, and working with vendors. IMR software simplifies the implementation of these best practices for employers and ties results to a Critical Metrics Dashboard.

Contact: [email protected].

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

Injury Management Results (IMR) Software: https://imrsoftware.com/

©2025 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.

FREE DOWNLOAD: “4-Step Sequence For Effective Employee Screening, Hiring, & Placement”

Filed Under: Hiring Practices

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