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Use of Integrity Tests May Reduce Workers’ Compensation Losses

1 April 2011

Abstract

Purpose: The purpose of this study was to examine whether the use of integrity tests in personnel selection would reduce the cost of worker’s compensation claims in organizations representing four different industries.

Design/Methodology/Approach: Four large samples representing different industries (total n = 33418) allowed a comparison of employees (total n = 10929) hired once the organization implemented an integrity test as part of the selection system with employees for whom the integrity test was not used (total n = 22489). Test scores of employees making workers compensation claims were compared with those not making claims. In addition, cost of claims was compared across groups.

Findings: In all four industries a higher proportion of the unscreened group of employees made worker’s compensation claims than in the screened group and the dollar value per claim was higher in the unscreened group.

Implications: Introducing integrity testing into the selection process can result in fewer worker’s compensation claims. Such claims as are made by members of the screened group are for less money than claims by unscreened group members.

Originality/Value: Using a research approach that goes beyond traditional validation methods, this study showed that integrity testing can result in substantial savings across multiple industries.


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