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Good Hiring Practices Reduce Claims and Save Money

Hiring the right employee is crucial in construction, where safety, reliability, and productivity are paramount. Cutting corners on hiring practices can lead to costly claims and increased premiums. ROII consistently finds that poor hiring practices are a major driver of claim costs.

1. Contact Past Employers and Verify Work History
Reach out to previous employers to confirm job history, performance, and safety record. Ask about reliability, attendance, and ability to meet deadlines. Insights from past employers help you avoid hiring individuals who could become costly claim risks.

2. Conduct Pre-Hire Physicals and Drug Screenings
Pre-employment physicals ensure candidates can handle the physical demands of construction work, reducing the risk of injury claims. Pre-hire physicals and drug screens can also serve as deterrents for those who may have pre-existing injuries or choose to engage in drug activity in the workplace.

3. Use Behavior-Based Interview Questions
Ask candidates about real job site experiences. Questions like, “Can you share a time you resolved a safety issue on-site?” assess their problem-solving skills and safety mindset, helping prevent future incidents.

4. Verify Certifications and Background Information
Ensure licenses and safety certifications, such as OSHA or equipment operation credentials, are current. Background checks help identify potential risks, especially for safety-sensitive roles.

5. Watch for Inconsistencies
Look for discrepancies between resumes, interviews, and employment records. Addressing these early can prevent hiring someone who could become a liability.

Effective hiring practices not only reduce turnover but also lower the risk of costly claims. By thoroughly vetting candidates for experience, safety records, and physical capability, you build a reliable workforce that helps you control claim costs and keep premiums low.

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Finding employees for the construction trades has become a real challenge, and even worse, finding skilled employees. Everyone is frustrated with the labor shortage, but cutting corners on sound hiring practices can lead to a worse situation than had you not hired at all. Every year, ROII can trace a large percentage of claim costs back to poor hiring practices.

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