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The Three Deadly Profit-Killing Mistakes to Avoid When Hiring

What you do NOT do when hiring can cost you thousands… even hundreds of thousands of dollars in direct extra expenses and lost profits.

Especially today as we begin emerging from the 14+ month disruption of business operations due to COVID.

You have projects to complete, orders to fulfill, and customers to serve.

There’s lots of pent-up demand after the lockdowns.

People are ready to get back to some kind of normal.

But right now finding skilled workers for nearly every type of business operation is a huge challenge.

Many potential employees are enjoying the extended unemployment benefits and making more money NOT to work.

Even though you need workers to complete projects, ship orders, and serve customers…

Now is not the time to relax your hiring standards and procedures.

Workplace injuries begin at the time of hire, NOT at the time of injury.

So to avoid a workplace injury that could potentially cost you thousands, even hundreds of thousands in additional Work Comp Insurance costs…

You want to make sure every new hire is physically and mentally capable of doing the essential duties of their job.

NOT making these three mistakes when hiring leads to smart hires… and keeping cash and profits in your business.

Let’s look at how to avoid making the three big hiring mistakes.

 

ONE: Not Requiring a Pre-Employment Physical

Yes, you want to interview and conduct background checks on all job applicants.

And to protect the cash and profits of your business, you want to know applicants are physically and mentally capable of performing the essential duties of their job.

Before you send applicants off to a doctor for a physical, you’ll want to do these steps.

1. Create a detailed Essential Job Duties Description for every job.

The Department of Labor offers a valuable resource.

Also, you may want to check with HR consultants to help guide you.

2. Choose your Directed Medical Provider (Doctor or Clinic) for Workers Comp injury treatment.

It’s important to establish a relationship with your Medical Provider. Make sure they understand your business operations, types of jobs, and physical requirements to perform the duties of the job safely.

3. Document Your Conditional Offer of Employment (Subject to Pre-Employment Physical and Drug Test)

 

Here’s a Conditional Offer of Employment Form to Use.

You’ll also want to have applicants answer a Medical History Questionnaire prior to the pre-employment physical. (No, HIPAA Privacy Regulations do not apply to Workers Comp)

4. Have Your Applicant Complete the Physical. 

Obtain and review the Medical Provider’s Report and determine if any physical limitations apply.

TWO: Not Doing a Pre-Employment Drug Test

A Pre-Employment Drug Screening is also essential as part of the pre-employment physical and Conditional Offer of Employment.

A urine screen will typically test for use of marijuana, cocaine, amphetamines, and methamphetamines, PCP, opiates, with the option for employers to test for many additional substances.

It’s important to keep in mind that even if recreational marijuana use is legal in your state, you still have grounds to not hire an applicant who tests positive for marijuana use.

Many Work Comp Insurance Carriers offer Drug-Free Workplace credits.

In addition to potential premium savings, it’s simply a smart practice to enforce a drug-free workplace to prevent accidents and injuries.

The cost for a pre-employment physical and drug screen will cost between $75- $250.

While investing in pre-employment screening may seem like an unnecessary expense…

Keep in mind: The average lost-time Workers Comp claim is $52,000.

You’ll end up paying for these lost-time claims through an increase in your Experience Modification rating.

And one-third of all lost-time Work Comp claims occur with employees on the job for less than one year.

THREE: Failing to Follow Hiring Regulations and Compliance

Not following Federal, State, and even Local Mandated hiring regulations can result in fines and potentially expensive lawsuits.

Make sure all your hiring practices meet the Americans With Disabilities Act (ADA), Affirmative Action, and OSHA laws and regulations.

COVID has resulted in changes to OSHA and State OSHA workplace safety requirements.

Be sure to check the OSHA Federal COVID Guidelines and State OSHA COVID guidelines in the states where you have employees.

Preventing workplace accidents and injuries from happening is your most effective way to control your Work Comp costs.

Prevention doesn’t start at the time of the accident or injury.

It begins at the time of hire.

Even with the pressure to hire workers, is it a wild idea to conduct pre-employment physicals and drug screening for all your new hires?

Your Next Step:

Schedule a No-Cost, No-Obligation Worker’s Comp Risk Snapshot

Bonus: Schedule and Complete Your Review-
Get The Complete Pre-Employment Medical History Questionnaire (Value: $150)

 

Click Here to Schedule Your Session Now

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