Reduce Workers' Claims By Better Controlling the Hiring Process

New evidence suggests that tenure, even more than age, is an important variable driving workers’ compensation claims. Loss-time frequency may be driven by an influx of new workers and the return of older workers.
 
And the difference is more significant in the current economic recovery. A recent study found that injury rates were 4-6 times higher for workers during their first month on the job.1
 

Where’s The Greatest Risk?

  • Tenure of less than one year was the single most significant predictor
  • Inexperienced workers have 2-4 times the loss cost relativity
  • Workers with tenure of less than a year have a much higher claims frequency – regardless of age
  • Workers tenured for 2+ years have relatively low claims frequency and loss costs
  • Severity is higher in older workers, regardless of experience
With effective candidate selection, hiring and training, you can help offset the impact of inexperience.
 
Putting these new-hire controls into practice can help.
 

Pre-Employment Controls Post-Employment Controls

  • Background checks (criminal, motor vehicle registration, financial
  • Verification of employment, education, licensing, credentials
  • Behavioral assessments (culture fit, risk potential, job skills, cognitive abilities, critical thinking, abstract reasoning)
  • Drug testing

Limit Risks That Can Impact New Hires & Short-Tenured Employees

Every employer has a legal obligation under the Occupational Safety and Health Act of 1970 to provide and maintain a safe and healthful workplace for employees. A comprehensive safety and health program will address exposure associated with new hires and all employees.
 

Persistent Risk Management Can Help Curb Work-Related Injuries

By understanding the link between workers’ compensation claims and employee selection, placement and safety on-boarding, you’ll be in better position to help reduce frequency and severity of claims and retain the more highly skilled, experienced, and productive workers
 
Remember that risk management for work-related injuries doesn’t end at hire. A persistent effort works best. While special attention and safety training should be provided to newly hired workers, the benefits can extend to all employees and company operations in general.
 
 
Breslin FC, Smith P. Trial by fire: a multivariate examination of the relation between job tenure and work injuries. Occup Environ Med. 2006;13:27–32.