Editor's note: Greg S. Tardy, CPCU, ARM, isvice president & chief underwriting officer at KeyRisk.

Down from a recent peak of 9.6% in 2010, the Bureau of LaborStatistics (BLS) reported an unemployment rate of 6.2% as of July2014. As the unemployment rate decreases, new employees areentering the workplace and people are returning to work in newindustries. During this time of economic growth, it isimportant for employers to remember the fundamentals of hiring andunderstand the impact effective hiring practices can have on theirworkers compensation program and business.

Successful workers' compensation programs focus on accidentprevention. A commitment to accident prevention helps to protectemployees, increase productivity and ultimately manage the totalcost of an employer's workers compensation program.

The Occupational Safety and Health Administration(OSHA) calculates that each year more than 4.1 millionemployees sustain a serious job-related injury or illness. Althoughwe have seen a consistent decline in workplace injuries, theNational Council on Compensation Insurance (NCCI) has historicallyfound that workplace injuries increase during times of economicrecovery. This is a result of the influx of inexperiencedemployees entering the workplace. The BLS projects private industryemployees who have been on the job for less than a year account for30% of all work-related injury and illness cases requiring daysaway from work.

An employer's first step toward injury prevention is to ensurecandidates are an appropriate match for the responsibilities of theopen position. There are several points during the hiring processwhere employers have the opportunity to promote their commitment toa safe workplace environment: the position posting, theinterview and the offer.

The Position Posting, OutlineResponsibilities

Safe work environments are optimized when they are accompaniedby effective hiring practices. Employees who are mentally orphysically unable to do their jobs are a great risk to themselvesand their organizations. Consulting with Human Resources to ensurejob descriptions are detailed and accurately outline all essentialjob functions will play a significant role in preventing workplaceinjuries. It is an employer's obligation to hire qualifiedemployees who are able to fulfill each aspect of their position.This includes outlining the work experience, education and physicalability necessary to perform all job functions.

Written Job Description

An effective job posting identifies all the pertinent positioninformation for both the employer and the applicant. In formulatingthe description, the employer has the opportunity to examine allaspects of the open position and may include the metrics by whichthey will evaluate job applicants. Good job descriptions detail thenecessary qualifications, education level and physical requirementsneeded to perform the outlined job functions.

Essential Functions

If the position posting is effective, the applicant will have aclear idea of the position and its primary and secondary jobfunctions. Including essential job functions in the postingprotects the employer and the employee. Outlining the tasksrequired, and the expertise needed to complete those tasks,provides a record for the Equal Employment Opportunity Commission,the organization and the employee.

Job Qualifications

Employees drive organizations and allow them to operate at theiroptimal capacity. Placing employees in positions where they meet orexceed the indicated job qualifications reduces the risk ofworkplace mishaps. Defining the skill level and work experienceneeded for the open position embeds a level of applicantpre-screening for the employer, and clearly communicates workplaceexpectations to job applicants.

Physical Requirements

If there are physical requirements associated with the openposition, it is the duty of the employer to include thisinformation in the position posting. Physical requirements shouldbe defined in terms of actions the employee will take and thescenarios in which those actions may be completed. Lifting andcarrying weight specifications should also be included.

The Interview, The Offer, EffectiveScreening

A thorough interview process consists of interviews withdifferent team members and a standard set of open-ended andbehavioral questions for all applicants. Standard questionsmake it easier to compare and evaluate applicants. Theinterview is a time to inquire into past employment history anddetermine which applicant will be the best fit for an organization.Once the job offer is made and accepted by the applicant, furtherevaluation takes place through employee screenings.

Post offer employee screening processes must be appliedconsistently. Examples of common screenings include a backgroundand criminal records check, and a review of educational records andprofessional licenses. Integrating third-party post offer,pre-employment testing into the hiring process is also aninvestment that will yield great results, especially for physicallydemanding positions. Condition of hire protocol will need to beconsistently followed and be accompanied by a formal writtenpolicy. Post offer pre-employment opportunities for employersinclude drug and alcohol screenings with written consent from thecandidate, screenings for safety-sensitive positions, and thecompletion of I-9 documentation.

Educational & Professional RecordsReview

Speaking with previous supervisors or professional referencesmay provide insight into the applicant and their ability to performthe job functions of the open position. Reference checks also allowthe hiring organization to gain further insight into the applicantfrom a professional perspective that may not be plausible in theinterview process. If the open position requires a specific levelof education, certification or professional designation tosuccessfully execute the essential functions of the job, it is tothe benefit of the hiring organization to verify that theinformation provided by the job applicant is both current andaccurate.

Background & Criminal RecordsCheck

Incorporating a background and criminal records check into thehiring process provides the employer with a scope of knowledgeabout the job applicant that may not be revealed in the jobapplication. Record checks are most dependable when appliedconsistently and are accompanied with a formal written policy.

Drug & Alcohol Screenings

It is common for employers to make offers contingent upon thecompletion of a drug and alcohol screening. Drug and alcoholscreenings can only be performed with the written consent of thejob applicant. Drug and alcohol screenings must be appliedconsistently to all applicants and be accompanied by a formalwritten policy.

Physical Job Functions Test & Safety SensitiveScreenings

To ensure the applicant is able to perform the physicalrequirements associated with the open position, employers have theability to implement a condition of hire protocol that includes aphysical job functions test. Evaluating if the applicant is capableof performing all physical job functions will reduce risk for boththe employee and the organization. Condition of hire medical examscan also be implemented as part of the hiring process for safetysensitive positions when the job announcement documents physicalrequirements. Medical examinations must be applied consistently toall applicants of the same job function and be accompanied by aformal written policy. If an organization chooses to implement amedical exam policy, they are responsible for all associated costs.

E-Verify & I-9 Documents

The Department of Homeland Security requires all organizationsto complete the I-9 process. All employees under hiringconsideration must be legally eligible to work in the U.S. The I-9form and its specific requirements can be found online. E-Verify isa free web-based program, used in conjunction with the I-9 form,that provides organizations the ability to determine if employeeshave authorization to work in the U.S. Employers can enroll inE-Verify and find out more information on state specificrequirements online.

The Hiring Process

An effective hiring process is a critical component of everyworkers compensation program. A safe work environment, accompaniedby effective hiring practices, demonstrates an employer'scommitment to its employees and prevention of workplace accidents.With decreasing unemployment rates and new employees entering theworkplace, employers who maintain effective hiring practices willbe better equipped to prevent injuries, protect their employees andactively promote a safe workplace.