10/7/2013
"In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.” ‐ Warren Buffet
Overt Integrity Testing
Presented by:
Gary G. Pederson
President/CEO
The Edge, LLC
Screening Tools Utilized ‐ Fortune 1000
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Criminal Records Checks
88%
Employment Verification
86%
Drug Screening 78%
Education Verification
Education Verification
74%
Verify Professional Licenses 59%
MVR Checks
50%
Credit History
39%
Integrity Testing
<30%
Overt Integrity Testing
Drug
Use
Hostility
Pre‐employment
Applicant Screening Tool
Thievery
Lying
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10/7/2013
Covert
Overt Integrity Test
Fast
Flexible
12‐15 Minutes
5th Grade
Reading Level
Multi‐Lingual
23 Languages
Audio Version
Available
(Personality)
Simple
Effective
On‐line 24 x 7
20% ‐ 25%
Non qualified
Non‐qualified
Instant Results
(Pass/Fail)
Overt
(Self Admitting)
Varies By
Industry
Before I show you any sample questions…do you speed?
Speeding…
Is it right?...No
Is
it right? No
Is it against the law?...Yes
Would I admit to it?...Yes
Would I hire someone who speeds?...Yes
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10/7/2013
Guess what…
Cognitive Dissonance
People rationalize
People
rationalize their behaviors
their behaviors as as
normal, or justify their behaviors when their life styles are in conflict with their values.
25% of job applicants admit to what most employers consider high risk behaviors
Examples:
•4% admit to smoking pot at work
•3% admit to shoplifting in the past year
•3% admit “would fail urinalysis”
•2% admit drinking/alcohol impaired at work
Theft Scale
Theft Scale
Sample Question:
Sample Question:
• Excluding minor office supplies (pads, pens, etc.), what would you guess is the value of things you have secretly p
y
taken from work in the past 2 years?
A. None
B. $5 ‐ $25
C. $26 ‐ $500
D. $501 or more
• Have you ever pretended to have a work injury in order to collect Workers Compensation Insurance?
A. Never
B. Only Once
C. Only Twice
D. Several Times
 Serious and recent theft only.
 Excludes all amounts below $5.
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10/7/2013
Theft Behaviors
Drug & Alcohol Scale
Sample Question:
• Excluding pills you got from a doctor (prescriptions), which of the following drugs do you use?
Would Fake Time Card if Never Checked
Would Knowingly Buy Stolen Merchandise
Would Give Friend Unauthorized Discount
A. Cocaine, Coke, Snow, Crack
A.
Cocaine, Coke, Snow, Crack
B. LSD, Acid, Mescaline, Peyote
C. Heroin, Opium
D. None
Would Steal if Had Low Pay
Would Steal if Had Opportunity
Would Steal if Angry
– Only “current use” drug inquiries.
– Only job‐related alcohol inquiries.
Would Help Friend Steal
Shoplifted in Past Year
0%
1%
2%
3%
4%
Drug & Alcohol Use
Hostility Scale
Sample Question:
• How often have you hit someone in anger in the past year?
A. Never
B. Rarely
C. Occasionally
D F
D. Frequently
tl
Used drugs in past 3 weeks
Alcohol impairs work
Drinks at work
Drugs impair work
Arrives under effect of substances
Would fail urinalysis
Pot at work
Regular drug use
0.00%
1.50%
3.00%
4.50%
– Hostile individuals often interview well.
– Hostility often comes out in hidden ways.
– 99% of all applicants pass this scale.
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10/7/2013
Faking Scale
Specific Capture Rate Results:
Sample Question:
• Since age 16, how often have you told a lie?
A. Frequently
A
Frequently
B. Occasionally
C. Rarely
D. Never
 Need to work hard to fail this scale.
Overall Scale 25% High Risk
Theft Scale
10% High Risk
Drug Scale
7% High Risk
Honesty Scale
11% High Risk
Hostility Scale
1% High Risk
*Individual categories will not reconcile to overall total, due to multiple category responses %’s based on over 1MM tests in a national study.
EEOC requires that a test must be either nondiscriminatory or validated to be compliant
Nondiscriminatory
or
Validated
Candidate Contesting Results
• Employment Background Screening and Drug Testing is regulated by the FCRA
– Both these services have multiple “hands” assembling reports, hence the candidates have the right to contest reports
• Integrity Testing is not regulated by the FCRA; candidates cannot contest results
– Reason: Candidates answer the questions directly without involvement of 3rd party.
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10/7/2013
Workers Comp Analysis –
12 Month Study
Short Term Disability 12 Month Study
STD Claims Per 100 Employees
Screened Employees vs. Unscreened Employees
7.3
8
5
7
5
6
5
5
5
4
5
3
5
2
5
Projected Savings from Tescor Screening on New Hires Only
5.2
Unscreened Workers
Tescor Screened Workers
5
0
In the study, 6,800 applicants were screened with the Tescor Survey. The Unscreened group had a claim frequency rate 40% higher than the Tescor Screened group.
Measuring Impact In Reducing Workers Comp Losses
15% Improvement in Turnover
Data From A National Rental Company
Study Period‐24 Months
Table 1.
Status
Total Workers
Terminated
Active
Turnover
Tescor Screened Workers
2,213
1,185
1,026
54%
Unscreened Workers
599
373
226
62%
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Controlled studies cover over 428,000 tests Time Frame – 1996 to 2009
# of Companies In Studies – 18
# of Companies In Studies Average Claim Frequency Reduction – 54%
Average Claim Severity Reduction – 21%
Overall Average Loss Rate Reduction – 63%
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10/7/2013
Benefits of Overt Integrity Test
Benefits:
Questions & Answers
• Improves Productivity
• Reduces Turnover
• Reduces “Frictional Costs” (Legal, Rehab & TPA)
• Reduction in FMLA, STD, LTD & Sick Leave
• Reduces Unemployment Insurance Expenses
• Reduces Workers Compensation Loss Rates
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