How to hire the right employee

Hire The Right Employee

To hire the right employee, a small business owner must go in to the hiring process with a clear definition of who they are looking for and a plan in place to find the best fit. Finding the best fit is the most important part of hiring successfully. In most scenarios, the right fit is dramatically different from the most qualified candidate. Here are five ways to find the best candidate for the position you need to hire and save money on the hiring process for your small business.

Handshake while a Small Business Owner attempts to hire the right employee.

Know What You’re Looking for Going in

Having a plan for who you are looking for and how you are going to attempt to find them is crucial to the hire the right employee. You cannot just sit back and hire from the resumes you get. There has to be some thought into how you are going to get people to apply who are from groups of people that have a high likelihood of contributing positively to your organization.

Phone Screen Everyone to Hire The Right Employee

It is important to screen everyone via phone prior to a formal interview. This can save an enormous amount of time on the front end by eliminating people who simply are not going to be a fit or are not interested in your organization. They may not be interested because of the distance they will have to travel or the rate of pay for the position. No matter what the reason for the candidate to not choose your organization, it is an easy way to root out candidates who do not fit with a short phone call as opposed to tying up an hour or more of a managers day to a formal interview.

Ask About The Candidate’s 5 Year Goals

It is important to ask about the future plans of your candidates because it will give you an idea of what they are thinking about for themselves and what they might do to make themselves better employees for your organization. Living in a technological age means that successful employees have to adopt the concept that they must be lifetime learners. Asking about a candidates five year plan will give you insight in to how those employees might learn. It might tell you about whether the employees will take it upon themselves to learn or if they expect you to train them on everything that might help them in their role.  The answer to this question may tell you the hiring manager if the candidate is a self starter or if they are simply coming to work to collect a pay check.  Many candidates will embellish their plans, but their response will give you an idea of who they are and how they plan to operate within your organization.

Take Your Time to Hire The Right Employee

Never rush into making a decision about who to hire. Leaving a job post up for a minimum of two weeks is a good idea (A longer time period is even better). You never know who may apply at the last moment. It is equally important to not call the candidates you have interviewed until the candidate you have chosen is on the job for a certain period of time. Many organizations use one week on the job. Some organizations think this is too long of a time period. two full days on the job is usually a good time period to let a person be on the job before you tell the other candidates you have hired someone else. It is important to wait for this time period to elapse because the candidate chosen may not like the job or the organization after their first day on the job.

Go With Your Gut to Hire The Right Employee

Take your time and do everything within your control to make the most informed decision when you are attempting to hire the right employee. In the technological age that we live in today, it is easy to rely on artificial intelligence to tell you who the best employee may or may not be. It is important to use as much data as can be to make your decision, but it is also important to use human interaction to help you make your decision. In many situations, hiring the right fit is more important to hire the most qualified candidate. Do not be afraid to trust your gut when you are trying to hire the right employee.

 

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Risky Business

6 Small Business Practices that Increase Liability Exposure

Risky Business

Taking on Unfamiliar Tasks

Sticking to the bread and butter of what your business does is always the best way to reduce risk as much as possible. In some instances, there is no way to not get out of your comfort zone and take on contracts outside of your employees comfort zone. This does not mean you should never take on a job that has new aspect you do not work with frequently. An example of this would be a landscaping company taking on tree work where some employees may have to work at height. Another example might be a construction company that is doing a remodel of an existing property when they primarily work on new home construction. Neither of these examples are out of the realm of possibility for your employees to take on, but each example brings on some risky business that you need to be aware of in order to eliminate all possible risk. When you do take on something out of your normal business operations, it is a good idea to call your insurance agent to make sure your business is insured properly.  In some instances, these new activities may be excluded from your current policy.

Ignoring Regulations

Ignoring or not knowing regulations is risky business.  It can get a small business in to a lot of hot water in more ways than one. It can cause an increase in the frequency and severity of insurance claims. This commonly results in a negative impact on the experience modification rating of the business, which impacts the rate of premium the business pays for all lines of commercial insurance. Ignoring regulations altogether is illegal and can result in fines or a complete stoppage of business. In some drastic instances it can result in the business license being pulled and the business have to close its doors. Knowing and following regulations is the responsibility of the business owner. Taking regulations seriously is important no matter what industry a business operates in.

Failing to Use Adequate Contracts

Contractual obligations are always the best way to interact with another business when doing work for them. It may be common practices in some areas and in some industries to work on a handshake deal, but without a legal document in place your business can be taking on an enormous amount of risk. Contracts can keep everyone within a business interaction on the same page and it can help resolve any disputes that come up.  If a business owner does not feel comfortable writing up a legal document than they should enlist the help of a legal professional. It is very tempting to skimp on legal fees, (especially for start-ups) but in the legal profession you get what you pay for. Skimp on legal fees on the front end can be risky business. It may create an enormous cost to your business later when a contract does not go the way you intended.

Business Interruption

According to the Federal Emergency Management Agency (FEMA), ’40 percent of small businesses never reopen their doors following a disaster’.  During the five year period from 2006-2010, the average commercial flood claim amounted to just over $85,000.  If your business does not have the financial where with-all to withstand a financial loss than you need to secure adequate commercial insurance for small business. Not securing adequate coverage is risky business for any small business. Most insurance carriers carry specific packages for each industry called a Business Owner’s Package. Included in these packages should be Business Interruption Insurance. This type of insurance will compensate your business for lost income if you are forced to vacate the premises due to disaster-related damage that is covered under your property insurance policy. THe coverage may include the revenue you would have earned, based on your financial records, had the disaster not occurred. Having this policy or not can mean the difference between your business experiencing a bump in the road and the end of your business.

Employment Practices

Hiring and firing without knowing the rules and regulation within your state is a dangerous way to run a business.  Employment Practices Liability Insurance (EPLI) Lawsuits have been on the rise for the better part of a decade. Most successful business owners understand their employees are the heart and soul that drives a company forward. Partnering with both a lawyer and a human resource professional is the best way to develop a process for how your business will hire, train, employ, and fire employees. There should be a plan in place for how to deal with your employees from the pre-employment process all the way through the day the employee leaves the organization.

Not Carrying Insurance

Not carrying enough insurance is a problem in and of itself, as is carrying the wrong insurance.  In most cases not carrying insurance at all is illegal and puts your business in an enormously risky position. Regardless of whether you are a start-up or an existing business, it is risky business to go without some form of small business insurance. In most states and in most industries, it is legally required to carry General Liability and Workers Compensation Insurance. This is just the bare minimum coverage most businesses need. Partnering with an independent insurance agent is the best way to get unbiased information about what policy you definitely do need and what policies you may be able to do without.

 

 

 

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Monopolistic States

North Dakota, Ohio, Washington, Wyoming, Puerto Rico, and the U.S. Virgin Islands.

 

 

 

Workers compensation coverage in monopolistic states does not provide coverage for employers liability insurance. Employers who operate in these states should consider purchasing employers liability coverage under their general liability policies. This coverage is also know as Stop-Gap coverage and is added to general liability coverage by endorsement.

There are four states that operate their own workers compensation Funds:

  • Ohio
  • North Dakota
  • Washington
  • Wyoming

 

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Workers Compensation Vocabulary

Useful vocabulary for injured workers dealing with the Workers Compensation System

 

Alternative Work

In some instances, the treating physician may report that an injured worker will more than likely not be able to return to normal permanent work. When this occurs, the employer has the option to offer the injured worker alternative work. The new position must be offered for 12 months in length and must also be 85 percent of the wage previously earned. Some times this alternative position must be at a new location. The new locations must be within a reasonable commuting distance from where the injured worker lived at the time of the injury.

Average Weekly Wage (AWW)

The Average Weekly Wage (AWW) equals the average amount of money an employer paid an injured employee for the 13 weeks before an injured employee had to miss work because of an injury or illness. Income and death benefit payments are also based on an injured employees AWW.

Cumulative Trauma (CT) Injury

Cumulative Trauma occurs from an injury that develops based on repeated events or repeated exposures at work. Carpal Tunnel is a common example of this type of injury as is hearing loss due to repeated exposure to constant loud noise.

Claim Employer

The Claim employer is the employer for whom the injured employee was working for at the time the injury occurred. This is who the workers compensation claim should be filed through.

Date of Injury (DOI)

The date of injury seems like a fairly straight forward term, but it can be much more complex depending upon the type and severity of the injury. If the injury was caused by one event it is known as a specific injury.  In this case the date of the injury is the date of the specific incident. When an injury is caused by repeated exposures it is referred to as a cumulative injury and the date the worker knew or should have known about the injury was caused by work.

Impairment Rating

The Impairment Rating that is intended to show a percentage of the work-related injury or illness that impacts the body of an injured employee as a whole. This percentage is meant to measure how far away from a persons normal health status and functionality.

Maximum Benefit Amount

The Maximum Benefit Amount is the amount of weekly benefits an employee is allowed within the workers compensation system. The amount cannot be more than the state average weekly wage (SAWW).

Medical Provider Network (MPN):

The Medical Provider Network is an entity or a group of health care providers that are organized by an insurer or a self-insured employer. They are set up to administer managed care for injured employees within the workers compensation system..

Minimum Benefit Amount

The Minimum Benefit Amount is the lowest amount of benefits an employee can get from the workers compensation system. In most states this amount is 15 percent of the state average weekly wage.

Multiple Employment

Multiple Employment occurs when an injured employee has more than one employer at the time of the injury.

Non-Claim Employer

The Non-Claim Employer is the employer an injured worker worked for at thetime of an injury that cause the injured employee to enter the workers compensation system, but this employer is not the claim employer. This is because the injury occurred at the additional employer the injured employee works for. This employer is labeled the claim employer.

Non-Pecuniary Wages

Non-Pecuniary Wages are wages that are not paid in cash. These wages may include health insurance premiums, housing allowance, travel reimbursement, or clothing.

Pecuniary Wages

Pecuniary Wages are wages that are paid in money, such as salary, commissions, and bonuses. Pecuniary wages include the market value of room and board, laundry, fuel, and any other benefit that can be estimated in money.

Permanent Alternate Position

A permanent Alternate Position is an additional job within the same company that may be offered to an injured worker when the treating physician reports that the injured worker will never be able to return to the same position previously held at the time of the injury or illness.  Some people within the industry may refer to this as Alternative Work.

Permanent Disability (PD) Benefits

Permanent Disability Benefits are moneys paid when an injury or illness result in a permanent impairment that prevents the ability of an injured worker to compete in the open market place. The extent of the disability determines the amount an injured employee receives. Additional factors that determine the amount of benefit an injured employee receives include the date of the injury, the age when injured, and the occupation of the injured employee. Permanent Disability benefits are paid every two weeks until the benefit is completely paid or when the employee settles the case and receives a lump sum.

Primary Treating Physician (PTP)

The Primary Treating Physician is the doctor who is primarily responsible for managing the overall care of an injured worker. This is the physician who writes medical reports that impact the worker’s benefits.

Reasonable and Necessary Treatment

Reasonable and Necessary Treatment is the type of medical treatment an injured worker receives when they enter the workers compensation system after an injury or illness caused by their job.  The treatment is in line with the standard of care for a specific condition. This standard of care is determined by the governing body within each individual state with recommendation from experienced medical staff as well as insurance professionals.

State Average Weekly Wage

The State Average Weekly Wage is different for each state. In most states it is equal to 88% of the average weekly wage within the state.  It is best to check with the state governing body in the state the workers compensation claim is filed to make sure an injured worker is receiving the proper benefits.

Temporary Disability (TD)

Temproary disability is a benefit paid to an injured workers that is paid when the primary treating physician verifies that an injured employee is not able to work because of a work related injury or illness. These benefits are not paid for the first three days an employee misses work. The amount the injured employee is paid is equal to two thirds of the employees wages.  The benefits stop when the injured employee returns to work or the treating physician releases the employee for work.

Vocational Rehabilitation (VR) 

Vocational Rehabilitation is administered when the Primary Treating Physician for an injured worker determines that the injury is severe enough to limit work now, but has the possibility to get back to normal with treatment.  When this is recommended, the employer and injured worker jointly select a rehabilitation counselor who will determine whether vocational rehabilitation is feasible, and develop a suitable rehabilitation plan.

Work Restrictions

Work Restrictions are administered by a primary treating physician with clear and precise limits on the job tasks for an injured worker within the workers system. The limitations are designed to prevent further injury and to get the injured worker back to normal health as fast as possible.

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Class Codes

This may be one post or a series/month of posts

 

Workers Comp Codes

Workers comp class codes

Workers Compensation Codes

Workers Compensation Class Codes

 

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Carriers Posts, Will be 9 separate posts

Applied Underwriters                                                                    9                                                              2900

First Comp                                                                                          5                                                              2900

Employers Insurance                                                                      5                                                              2900

Guarantee Insurance Company                                                 5                                                              1600

Travelers Workers Comp                                                               9                                                              1600

The Hartford Workers Comp                                                       5                                                              1300

Missouri Employers Mutual                                                         20                                                           1300

UBIC                                                                                                      5                                                              1000

Travelers Insurance Workers Comp                                          6                                                              880

AmTrust Workers Comp                                                                9                                                              880

First Comp Insurance                                                                     5                                                              720

Employers Liability Coverage                                                      6                                                              720

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Wisconsin

 

 

 

 

 

Workmans Comp WI

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New York

 

 

 

Workers Compensation Insurance NY

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Massachusetts

Workers Comp MA

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Keyword Research

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AmTrust Workers Comp   /

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Employers Insurance     /

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UBIC

Workers Compensation Utah        /

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workers comp class codes          /

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Travelers Insurance Workers Comp

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AmTrust Workers Comp

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ncci codes

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Workers Compensation Insurance NY     /

https://www.workerscompensationshop.com/insurance-states/new-york/rates.html

Employer Liability Coverage

https://www.workerscompensationshop.com/workers-comp-information/employers-liability.html

employers preferred insurance company

https://www.workerscompensationshop.com/workers-compensation-services/companies/employers.htm

Acord 130

https://www.workerscompensationshop.com/docs/acord130_form.pdf

ncci class codes     /

https://www.workerscompensationshop.com/workers_compensation_class_codes.htm

Markel First Comp

https://www.workerscompensationshop.com/workers-compensation-services/companies/first-comp.htm

California Workers Compensation Rates     //

https://www.workerscompensationshop.com/insurance-states/california/rates.html

Workmans Comp WI

https://www.workerscompensationshop.com/insurance-states/wisconsin/forms.html

TN Workers Comp Exemption     /

https://www.workerscompensationshop.com/insurance-states/tennessee/forms.html

Workers Compensation Codes

https://www.workerscompensationshop.com/workers_compensation_class_codes.htm

Workmans Comp Utah

https://www.workerscompensationshop.com/insurance-states/utah/rates.html

Workers Compensation Class Codes     /

https://www.workerscompensationshop.com/workers_compensation_class_codes.htm

 

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