Using Pre-Employment Physicals To Control Workers Comp Costs

Workers’ compensation insurance is a requirement for most businesses. It helps protect you against unexpected costs if an employee is injured at work while also providing a portion of that employee’s wages until they are able to return. However, depending on your industry and claim history, the costs of workers comp can make up a large portion of your overall HR expenses.

There are several strategies that can help keep those costs under control. Some of the most commonly-used methods include implementing safety training and workplace accident prevention programs. Another option that many employers overlook is using pre-employment physicals.

Why Companies Skip Pre-Hire Physicals

You might shy away from using pre-employment physicals for fear of claims about discrimination or intrusion into privileged medical information. However, a condition that is uncovered on a physical does not have to translate into a rescinded job offer. Instead, you can require treatment to be completed for a condition before a new hire begins work.

Benefits of Conducting Pre-Employment Physicals

In many cases, post-offer employment physical benefits far outweigh the risks and costs associated with conducting them. These include documentation about preexisting conditions that might contribute to additional injury or get funneled into a new workers comp claim. As a result, the company’s claim rate may decrease, resulting in lower premiums for renewals.

Conducting post-hire pre-employment physicals may help you control workers’ comp costs. There are few risks associated with them, and they can result in significant premium savings for many employers.