Job Descriptions as a Risk Management Tool
Issue # 79
November, 17, 2008
How can job descriptions help employers avoid costly mistakes in the employment process and even save money on insurance? You may be surprised to find that these documents are excellent risk management tools in a number of ways. Let's take a look at a few.
Hiring Process
Job descriptions can be used to form the basis for developing interview questions with new job applicants. This allows you to be consistent and only ask questions pertaining to the position, thereby avoiding potential violations of equal employment opportunity laws. By detailing the physical demands of the job, they also provide medical examiners a clear picture of what to look for during the post-offer pre-employment physical examination. This can help to avoid disability discrimination complaints and minimize the potential for new employees getting hurt on the job, which in turn raises workers' compensation insurance costs.
Wage & Hour Laws
Misclassifying an employee as exempt from overtime pay when in fact they are not exempt can be expensive. Remedies include suits to recover back wages and an equal amount in liquidated damage, plus attorney's fees and court costs. Employers who willfully violate the law may face criminal penalties, including fines and imprisonment. A well drafted job description can be compared to federal and state wage and hour laws to ensure they meet the requirements for exempt status.
Performance Reviews
In order to focus your performance reviews on the important aspects of the job, you can use the essential functions from the job description to develop a performance appraisal form. Each function can be described, and a rating can be assigned along with any relevant comments.
Early Return to Work Programs
As a method for controlling workers' compensation costs, early return to work programs are consistently ranked as being an employers most effective tool. By providing temporary transitional or modified work activity, injured employees remain an active and vital part of the company. In order for the medical practitioner to evaluate an injured workers ability to work, a job description containing the physical demands of the job is important. The attending physician can then establish the appropriate limitations and restrictions to use in establishing a modified position.
Employers should carefully analyze each job function to confirm that it is actually essential to the job in question as performed in the workplace. Job descriptions should be regularly reviewed to ensure that essential functions listed in the description match job duties and functions.
Kempkey Insurance Services goes beyond insurance by designing and implementing risk management programs for growth oriented businesses. We help our clients maximize the value of their insurance dollars and minimize their potential for unwanted surprises. Ed Kempkey can be contacted at (888) 536-7539 extension 2188, or at ed@kempkey.com.