WORKPLACE SCREENING
WORKPLACE
Integrity Screening
Employers who need to reduce workers ’ compensation claims are turning to claims prevention through better hiring practices . The standard tools are application , reference check , criminal background check , and possibly a drug test . While these practices help , they can be costly and require legal consent . That ’ s why integrity testing has recently gained notice as an effective initial screening tool . One of the advantages of integrity testing is that a legal release from the applicant is not required .
An integrity test is a specific type of personality test designed to assess an applicant ’ s tendency to be honest , trustworthy , and dependable . A lack of integrity is associated with such counterproductive behaviors as theft , violence , sabotage , disciplinary problems , and absenteeism . However , can screening a prospective employee ’ s integrity affect workers ’ compensation claims ?
A study in 2012 1 of companies representing four different industries was conducted to determine if integrity tests as part of the prehire process would reduce the frequency and cost of workers ’ compensation claims .
In all four industries studied , the workers ’ compensation claim rate was higher for the unscreened group . In addition , the unscreened group had a higher claim incurred cost . The differences were statistically significant — that is , greater than would be expected due to chance . The results suggest that introducing integrity testing into the selection process can result in fewer workers ’ compensation claims and at less cost per claim compared to unscreened prehires .
Integrity testing can also point out job performance behaviors like poor work ethic , risky behavior , and lack of moral decision making . There are three basic types of integrity testing :
• Overt Tests - Clear in purpose , these tests use direct questions that identify job applicants who admit they ’ re high risk for behaviors which commonly drive workers ’ compensation claims . Overt tests contain questions that leave little doubt about what is being determined . For example , “ What is the most you have ever stolen : a ) $ 0 ; b ) $ 1 –$ 500 ; c ) $ 501 –$ 1,000 ; d ) more than $ 1,000 .”
• Covert Tests - Concealed in purpose , these tests use indirect questions that predict the likelihood of risk for a potential employee if hired . The answers give a sense of the individual ’ s conscientiousness , emotional maturity , and the like .
• Hybrid Tests – As the name implies , this is a combination of Overt and Covert questions .
An effective integrity test can identify up to 20 % of job applicants as high risk when used in general labor or light industrial placements . Staffing companies who identify high-risk job applicants before a hiring decision are able to avoid potential costly claims and subsequently an improved bottom line . The company can then focus their attention on applicants who likely improve the quality , productivity , and performance of the organization ’ s workforce .
By any measure — legal , technical , and return on investment ( ROI )— integrity testing gets at least a passing grade . In addition , few , if any , integrity test performance differences are found between men and women or applicants of different races or ethnicities . Integrity tests will not eliminate dishonesty or theft at work , but the research does strongly suggest that individuals who score poorly on these tests tend to be less suitable and less productive employees .
When compared to other pre-employment screening options such as checking credit histories and criminal records , integrity testing is the clear winner . Both credit checks and criminal background checks provide historical data that don ’ t necessarily predict future behavior . Both also face growing legal and legislative scrutiny .
In contrast , integrity tests have been validated repeatedly by independent researchers and HR professionals at the many companies using them .
Among all types of prehiring assessments , including background screening , research has shown that integrity tests have the highest validity for predicting undesirable behaviors at work . +
BY : ERIC P . WOKAS , CSP ARM SENIOR RISK ENGINEER JGS INSURANCE , A BALDWIN RISK PARTNER
Eric P . Wokas has over 25 years of experience as a risk management consultant working for various major property / casualty insurance carriers including Continental , Zurich and Gerling as well as Aon an international insurance brokerage firm . At JGS Insurance Eric Wokas continues to assist clients in development and implementation of practical solutions in reducing risk .
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1 . Celina Oliver et al ., “ Use of Integrity Tests May Reduce Workers ’ Compensation Losses ,” Journal of Business and Psychology 27 , no . 1 ( March 2012 ): 115 – 122 , https :// www . jstor . org / stable / 41474910 .