Integrity Testing Can Reduce Workers' Compensation Claim Costs

Lockton report shares ideas on predicting claim costs and preventing losses

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Jun 06, 2013, 11:30 ET

KANSAS CITY, Mo., June 6, 2013 /PRNewswire/ -- Trying to find the right person for a job in your company can be labor intensive, especially when the current job market can generate a large number of applications for each open position. A new report by Lockton examines how integrity testing can examine your applicants for those with the potential to raise your Workers' Compensation claims costs.

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The report, authored by Lockton's Keith Rosenblum, is entitled "Predicting Adverse Risk Behaviors: Reducing Workers' Compensation Claim Costs Through Integrity Testing." It includes a comparison of Workers' Compensation claims costs for employees who underwent integrity testing and those who did not. Negative traits, such as a lack of conscientiousness or an entitlement mentality, that are revealed through integrity testing correlate to higher Workers' Compensation claim costs. By identifying applicants with these traits before hiring them, you can reduce your costs.

"Interestingly, between 25 and 30 percent of applicants completing integrity tests self-disclose undesirable behaviors such as on-the-job illicit drug use, theft and violence in the workplace," Rosenblum said. In addition, integrity testing can also help identify candidates who are at high risk for voluntary and involuntary turnover, thus reducing other costs for your organization.

Lockton has considerable experience with pre-employment testing and can assist with adding integrity testing into your hiring process.

About Lockton
More than 4,450 professionals at Lockton provide 15,000 clients around the world with risk management, insurance, and employee benefits consulting services that improve their businesses. From its founding in 1966 in Kansas City, Missouri, Lockton has attracted entrepreneurial professionals who have driven its growth to become the largest privately held insurance broker in the world and 9th largest overall. Independent researcher Greenwich Associates has awarded Lockton its Service Excellence Award for risk management for large companies. For four consecutive years, Business Insurance has recognized Lockton as a "Best Place to Work in Insurance." To see the latest insights from Lockton's experts, check Lockton Market Update.

SOURCE Lockton