Integrity at Work Tool - IAW
Content
Integrity at Work Tool
Improving attendance, retention and productivity through personality
Introduction Integrity and honesty at work are hot topics for management and HR specialists. Annual cost estimates of employee theft fall within the region of $20-50 billion in the United States. Indeed, employee theft has been cited as one of the primary reasons for up to 30% of all small business failures within the US. For particular industry sectors, employee honesty is a critical issue (e.g. retail, finance, hospitality) whilst in others, an increasingly fragmented and outsourced workforce has heightened concerns for employee integrity, loyalty and commitment.
Our research Aware of the major impact that workplace honesty can have on organisations' financial success, we set out to investigate the work undertaken by management specialists and psychologists into integrity and honesty. We soon found that the bulk of research focused on the development of commercial instruments of dubious value, with little underlying theoretical basis. As a result, we decided to explore the very nature of integrity at work using a range of methods. Firstly, we undertook intensive interviews with a range of professionals into their personal understanding or 'constructions' of integrity using Kelly's Repertory Grid Technique. This research produced an initial model of integrity which suggested that (a) integrity is a multi-faceted concept, and (b) some elements of integrity are likely to be closely related to classical personality theory (which takes in such concepts as extraversion, stability, openness, etc.) We went on to develop a psychometric instrument which tapped into each of nine areas of integrity, and piloted the tool on over 1,000 adult employees. This process revealed an eight factor model of integrity, comprising the following dimensions: Element of Integrity Low Score Vigilant of others’ agendas; cautious/suspicious of others’ intentions. High Score
Trust
Always trusting of others; belief that other people are entirely trustworthy.
Emotion
Prone to feelings of anxiety, may Content and stable, unlikely to exhibit changeable moods; prone to experience changeable moods; dissatisfaction/pessimism. generally optimistic. Primary focus outside of work; more Motivated to work hard; primary important sources of satisfaction than focus on work as a source of hard work per se. satisfaction/achievement. Moralistic; rigid principles; Flexible principles; tends not to allow conscience plays a definite part in conscience to affect judgement. decision-making. Straightforward/open with other people – tends to ‘speak his/her mind’; tolerant of difference. Dependable, somewhat predictable;
Work-orientation
Principles
Careful with what s/he says to Straightforwardness others; less tolerant of difference; more likely to be ‘reserved’. Reliability Less predictable/reliable;
expedite/pragmatic attitude towards conscious of rules and regulations. rules. Social focus Focuses principally on own needs and interests; favours seen as quid pro quo. Focuses principally on the needs and interests of others; unconditionally generous.
Business focus
Favours people-focused approach at Favours pragmatic approach to work (diplomatic, accommodating, business (competitive, shrewd, taskpossibly naïve). focused, possibly ruthless).
So what are the benefits? Research to date has revealed close relationships between dimensions of our psychometric instrument (provisionally titled the Integrity at Work Tool - IAW) and employee behaviour. These relationships are summarised in the following table, with employee behaviours defined immediately below: • • • • • Turnover intentions – stated intentions to stay with or leave the organisation over time; Absenteeism – illegitimate absence rates over 12 month period; Organisational citizenship – willingness to go the extra mile, help new starters, seeking ways to improve performance; Commitment – championing the organisation externally, investment in the future of the organisation; Prosocial work behaviours – attitudes towards theft, rule-breaking, lateness, illegitimate absence.
Turnover intentions Absenteeism Organisat’l citizenship Commitment Prosocial work behaviours
IAW dimension Trust Emotion Work orientation Principles Straightforwardness Reliability Social Focus Business Focus
Each IAW dimension, then, is able to significantly predict three or more areas of employee behaviour/performance. For example, employees who report a high level of emotional stability (a high score on ‘Emotion’): • • • Are less likely to leave the organisation Are less likely to go absent without permission Are more likely to go the extra mile, and help out new employees
• •
Are more likely to ‘talk up’ the organisation and feel invested in it Are likely to show a more prosocial attitude towards theft, rule-breaking and illegitimate absence.
So, the IAW tool can help to: • Reduce turnover • Decrease absence • Increase the number of 'organisational citizens' you employ • Increase staff commitment • Reduce the risk of theft and rule-breaking
What are the applications? We see the Integrity at Work tool as having significant potential in the areas of employee selection and development. In terms of selection, the IAW could be used as part of the recruitment profiling process, providing information on prospective candidates as to their likely 'fit' with the organisation in terms of behavioural preferences and performance in the role. We have already identified a number of classic competency areas which map directly onto the IAW model framework. Interview prompts could be used during the recruitment process to probe more deeply around candidates' stated behavioural preferences. The IAW Interview Guide provides interviewer questions around the following headings: Interpersonal style Working style Management style - Social focus - Business focus - Trust - Straightforwardness - Work orientation - Emotion - Reliability - Principles As far as development is concerned (both individual and organisational), we see the key applications as follows: • Performance Management Recommendations - based on an individual's IAW profile, recommendations can be generated on the performance management issues which may surface with that employee, i.e. what might be most effectively used to motivate, develop and reward them. • IAW Career Drivers Tool - identifies the aspects of a role and a workplace that the employee will respond to, be motivated by and find fulfilling; it also identifies those elements that would be seen as less motivating/desirable for the employee, and thus may result in lower productivity. • Succession Management - as part of the succession management process, IAW can describe and explain individual managers' operating styles, to be considered alongside their experience, capabilities and competencies. • Team Development - The team dynamics report comprises a visual plot of team members in each area of their IAW profile to enable the team and their manager to appreciate the individual strengths within the team, thus promoting team understanding, integration and success.
The next stage An agreement has now been reached with the Test Agency on production and distribution of the instrument. During the time to roll-out, the following additional work will be completed: • Additional validation studies within specific industry sectors (e.g. retail, security) - we would be keen to hear from any organisation who might wish to participate in this final validation project;
•
Development of assessment materials including question and answer booklets, manual, software, interview prompts and feedback reports.
Benefits to your organisation in participating in the final stages of the validation project would be as follows: • Crucial information on the behaviour and performance of your staff (including all performance data listed above ); • Discounted access to the product when launched • Negligible costs (photocopying only).
Distortion Scales
What is a Distortion Scale? A scale labeled Distortion has been incorporated into these Hiring Suite™ assessments: Personality Plus™, Sales Plus™, and The Insure Survey™. The questions contained in the Distortion Scale, also called a Lie Scale, are ones for which the correct answers are already known and the applicant must answer the majority of these with the "right" response. The Distortion SCORE refers to the reliability of the results, not the honesty of the applicant. If the distortion scale suggests distortion some doubt may be cast upon the openness of the individual in their responses to the other questions (which have no right or wrong answer). How Important Is It? A Distortion Scale is vitally important in a pre-employment situation. A low score on this scale suggests that the applicant may have distorted their responses in the 'look good" direction. An example would be trying to appear outgoing and competitive for a sales opening. If the assessment asked "Do you like meeting new people?" the applicant knows that meeting new people would be part of the salesperson's duties so will answer YES, even though it may be against his/her nature to enjoy this type of activity. By using the Distortion score, the interviewer can gauge if the applicant is trying to "look good" to get the job. Accept No Substitutes! Beware of pre-employment personality assessments without distortion scales! Most of these are Word-Matching (or Choosing) assessments which were originally intended for helping a person become more selfaware of why they ACT the way they ACT. Most give a choice of two words like OUTGOING or RESERVED. They are often headed by the phrase 'I SEE MYSELF AS.... on one side of a paper above a list of adjectives and on the other side of the paper with "OTHERS SEE ME
AS..." above the same list of adjectives. They really work well in self awareness sessions, but NOT pre-employment! Why is This So Essential? In self awareness sessions there is no pressure to respond in a "correct" manner. After all, the exercise is for their own self attainment, not to get a job! Conversely, job applicants are under a tremendous amount of pressure to respond in the "right way" so they can get the job. Choosing OUTGOING instead of RESERVED seems to be the most correct answer. Therefore, they will probably mark OUTGOING if it will get them the job. DO All Pre-employment Assessments Require Distortion Scales? NO. Skills testing, like for spelling or math, do not require Distortion Scales because there is only one true right answer to each question. For example "potatoe" is always wrong and 2+2 always equals 4
Of all the available selection tools, psychological tests have been found to be one of the most valid and cost effective means for identifying the most suitable applicants for the job (Schmidt & Hunter, 1998). Indeed, when properly conducted, selection testing can save companies hundreds of thousands of dollars each year. For example, Hunter and Schmidt (1984), using extremely conservative assumptions, calculated that the US gross national product could be increased between $80 and $100 billion (in 1981 dollars) if selection testing were introduced throughout the workplace. Clearly, an organization can realize substantial benefits through the use of the ESQ. As the figure below indicates, 86% of the counterproductive workers failed the ESQ by obtaining a score of 50 or lower. The following are the key counterproductive behaviors that can cost an organization hundreds of thousands of dollars annually: • • • • • • Theft Turnover Loafing Absenteeism On-the-Job Substance Abuse Safety Violations
Theft
On average, 44% of all inventory shrinkage is due to employee theft. Employees tend to steal significantly more than shoplifters. In fact, 20% to 40% of employees in the retail, manufacturing, supermarket, restaurant, and healthcare industries report a history of theft. From unauthorized giveaways to friends and family to serious theft (over $100.00), the ESQ was able to screen those individuals likely to engage in thievery. Individual's who reported stealing from their work in the past failed the ESQ.
Turnover
A high turnover rate will result in unnecessary loss of both resources and reputation. In an example from the healthcare industry (a hospital with 200 beds employing 1200 persons with a turnover rate of 2% per month) Cascio (2000) calculated that the cost of replacing 288 employees
per year was $2,888,295.52 when all sources of costs were analyzed. The common sources of these costs are: 1. Recruitment of replacements. 2. Lost productivity associated with the interim period before a replacement can be placed on the job and the time required for the new worker to get up to speed on the job. 3. Costs of training, including supervisory and coworker time spent in formal training. The ESQ can identify impulsive job applicants, and those with less inclination toward organizational commitment. In fact, the ESQ has been shown to predict for employee productivity and good citizenship, and therefore would have a substantial impact on overall turnover rates and employee performance.
Loafing
Loafers (those spending an average of 20% of their time engaged in non-work-related activities) scored significantly higher on the ESQ counterproductivity scale than non-loafers (those spending an average of only 2% of their time on non-work-related activities). A dollar value can be placed on the cost of loafing to the employer using utility analysis (Cascio, 2000). First, it is assumed that an employee's total compensation value per hour is $23.00, the average total compensation for all full-time workers in private industry as of March 2001 according to the Bureau of Labor Statistics. Based on this level of compensation, utility analysis indicates that an employee who loafs for approximately 20% of an eight hour shift will cost an employer approximately $24,500 per annum. This amounts to a total cost of $122,500 per loafing employee over a five-year period. Stated differently, using the ESQ to identify and eliminate potential loafers from an applicant pool can result in substantial cost savings to the employer.
Absenteeism
There are several costs associated with absenteeism in the workforce, including loss of productivity, customer dissatisfaction and costs associated with a temporary replacement. Some individuals claim to be sick when they simply feel like a vacation day. Chronic absenteeism is prevalent in today's society, in 1998 about 4% of full-time workers in the United States, and more than 6% of full-time workers in Canada were absent from work (CCH Unscheduled Absence Survey; Statistics Canada). Those respondents who had reportedly taken 'bogus' sick days score below the 50, thereby, failing the ESQ.
On-the-job Substance Abuse
The US Board of Labor estimated the total cost of employee substance abuse falls between $75 billion to $100 billion per year. The prevalence of on the job alcohol and drug abuse is alarmingly high. Ten percent of employees consume more than five glasses of alcohol in a workday, and approximately 70% of drug users are employed (Williams-Harold, 1998). To save your company's resources and reputation, use the ESQ to screen out those individuals who are likely to engage in substance abuse during the workday. Those respondents who admitted to drinking while on the job failed the ESQ.
Safety Violations
The Insurance Research Council estimates that over 3 million employees experience on-the-job injuries per year. While insurance protects businesses from the costs associated with medical bills, Safety Services of CyperComp state that the costs not covered by insurance are four to five times higher. The following are examples of how these uninsured costs indirectly affect the productivity and profits of an organization: 1. employee wages (e.g. wages to the injured employee and their replacement); 2. repairing damaged equipment or products;
3. 4. 5. 6.
time invested in investigating the accident and filling out paperwork; overtime by other employees and supervisors to compensate for the loss of production; increased insurance premiums; the costs associated with a possible lawsuit (e.g. lawyer's fees, settlement, bad publicity.)
Disregard of safety regulations can result in serious accident or death to the employee or coworkers and in substantial costs to the employer. Furthermore, adherence to safety regulations is an indication of employees' willingness to follow organization rules, procedures and policies. There is a direct relationship between frequency of safety infractions and ESQ scores. Those who most frequently reported safety violations failed the ESQ.
Conclusion
According to the Society of Human Resource Management more than 50 % of potential employees misrepresent themselves on their job applications. It is therefore the organization's responsibility to ensure the hiring of productive, dependable employees. The ESQ can save an organization both time and money by making their employee selection processes more efficient and effective
INTEGRITY/HONESTY TESTS Integrity tests predict the broad criterion of "organizationally disruptive behavior (theft, disciplinary problems and absenteeism) Honesty – operationally defined as the absence of ‘theft’ in the workplace.
•
designed to identify job applicants who will not steel or otherwise engage in counterproductive behavior on the job.
Two types of integrity test 1. Overt Integrity Test – applicant clearly understands the intention of the test. First Section measures "Attitude" towards theft and other forms of dishonesty Second Section deals with "admissions" of theft other illegal activities.
The responses to such tests are distorted – to form favorable impression (social desirability). 2. Personality based measures – makes no reference to theft. assess conscientiousness and emotional stability factors
•
Other Predictors Interview :
Interview Format Types of Questions. Applications
Few, if any, 1. planned Unstructure questions. d (are made up during the interview)
Useful when trying to help interviewees solve problems or understand why they are not right
for a job 2. Structured A predetermined checklist of questions, Useful for valid results especially when dealing with large number of usually asked of applicants. all applicants. A combination of 1 and 2, that resemble what is usually done in practice. Realistic approach that yields comparable answers plus indepth insights. Useful to understand applicant’s reasoning and analytical abilities under modest stress
3. Mixed
4. Situational
Questions limited to hypothetical situations. Evaluation is on the solution and the approach of the applicant.
5. Stress
A series of Useful for harsh, rapid-fire stressful jobs, questions such as handling
intended to upset the applicant
complaints.
Limitations: Illusion of validity (we are not good judges of people, but we think we are) and influence of ‘barriers’ of effective person judgement (personal bias, halo effect, constant error leniency, projection, stereotyping) Research findings (interview methods)
1.
structured interviews for selecting entry level production employees generated data that were reliable (r = .88) and valid (rs between .34 and .56) (Campion et
al., 1988)
2.
interviewer’s judgements for selecting seasonal retail sales clerks yielded strong
validities (rs between 0.34 and 0.61) (Arvey
et al., 1987)
The interview is valid for making inferences about applicants’ sociability and verbal skills, and work motivation. Assessment Centers – are "group-oriented, standardized series of activities which provide a basis for judgments or predictions of human behavior believed or known to be relevant to work performed in an organizational setting" (Finkle, 1976, p.861). Central characteristics: 1. assesses of evaluated in groups 2. by groups of assessors
3.
using a variety of measurement techniques 4. to determine the applicants’ suitability for managerial positions
Measurement techniques used: 1. objective paper-and-pencil tests; 2. projective tests such as Thematic Apperception Test (TAT) (McClelland, Atkinson,
Clark, & Lowell, 1953; Murray, 1938)
3. 4. and 5.
Interviews Peer’s and other candidates ratings; Situational exercises such as leaderless group discussions and inbaskets
Raters (assessors) evaluate the assessees on a number of
performance dimensions judged relevant for the job (leadership, decision making, practical judgment, and interpersonal relations skills) Research findings Several research findings attest to the validity of assessors’ judgements
•
(these positive results) can be attributed to the fact that they relied upon candidates’ subsequent rates of promotion as the criterion (London & Stumpf, 1983;
Turnage & Muchinsky, 1984).
•
implies that assessment center ratings are less predictive of job performance when the criterion
is some other measure of performance.
Work Samples and Situational Exercises Work sample - present the applicant with opportunities to perform small, manageable segments of job tasks or duties.
•
•
prediction is more straightforward. high content validity time consuming and expensive to administer. The focus is on applicant's capabilities at the time they are being considered for jobs (ignores potential to acquire
problems:
•
•
important skills through training or onthe-job experience) Solution to the second problem Miniature Job Training: -the job seeker is trained to perform a sample of tasks and immediately following the training, his ability to perform this task is measured. Assumption - a person who can demonstrate the ability to learn and perform on a job sample will be able to learn and perform on the total job. Situational Exercises - asses problem solving ability Eg. Inbasket Test - "in-basket" filled with memos, telephone messages,
short reports, and other documents that demand manager's attention.
•
observers record applicant's priorities as they undertake the various tasks.
Research findings A review of the psychometric properties of in-basket measures reported "marginal" evidence of validity (Schippmann, Prien, & Katz, 1990) suggested that valideity improves when orgnaizations specifically design in-basket exercises. Validity analyses of strength tests and tests of other physical abilities have produced inconsistent results.
To sum, we have only begun to explore the potential of situation test to predict job performance. Letters of Recommendation This method takes into account other people's (usually a current employer, professional associate or a personal friend) opinions of applicant's qualifications, job related abilities, and experience. Available research does not support the popularity of this method
•
•
meta-analyses revealed average validities ranging between .16 and .27(Hunter and Hunter, 1984). Evidence concerning the validity of peer ratings is more encouraging (.49 -
•
promotion, .49 supervisor's ratings and . 36- training success) Peer ratings seem to be promising, particularly in military settings.
New and Controversial Methods of Assessment
• • • •
Drug Testing Polygraphy or Lie Detection Graphology Tests of Emotional Intelligence
Evaluation of Predictors Four standards that are useful for comparison of different predictors: 1. Validity - the ability of the predictor to forecast criterion performance accurately
2.
Fairness - the ability of the predictor to render unbiased predictions of job success across applicants in various subgroups of gender, race, age, etc. 3. Applicability - whether the method can be applied across the full range of job and applicant types. 4. Cost - cost of implementing the method. PERSONNEL DECISIONS Human Resource Management Operative Functions
•
• • •
Procurement: recruitment, selection and placement Development: training and development Compensation: compensate equitably Integration: integrating individual, organizational and societal needs
•
•
Maintenance: maintaining the willingness of able employees (motivation) Separation: sending the individuals back to society.
Recruitment: - the process of attracting people to apply for a job.
• •
yield pyramid recruitment and selection process is mutual - both companies and applicants are engaged in assessing the degree of fit with each other.
Improving attendance, retention and productivity through personality
Introduction Integrity and honesty at work are hot topics for management and HR specialists. Annual cost estimates of employee theft fall within the region of $20-50 billion in the United States. Indeed, employee theft has been cited as one of the primary reasons for up to 30% of all small business failures within the US. For particular industry sectors, employee honesty is a critical issue (e.g. retail, finance, hospitality) whilst in others, an increasingly fragmented and outsourced workforce has heightened concerns for employee integrity, loyalty and commitment.
Our research Aware of the major impact that workplace honesty can have on organisations' financial success, we set out to investigate the work undertaken by management specialists and psychologists into integrity and honesty. We soon found that the bulk of research focused on the development of commercial instruments of dubious value, with little underlying theoretical basis. As a result, we decided to explore the very nature of integrity at work using a range of methods. Firstly, we undertook intensive interviews with a range of professionals into their personal understanding or 'constructions' of integrity using Kelly's Repertory Grid Technique. This research produced an initial model of integrity which suggested that (a) integrity is a multi-faceted concept, and (b) some elements of integrity are likely to be closely related to classical personality theory (which takes in such concepts as extraversion, stability, openness, etc.) We went on to develop a psychometric instrument which tapped into each of nine areas of integrity, and piloted the tool on over 1,000 adult employees. This process revealed an eight factor model of integrity, comprising the following dimensions: Element of Integrity Low Score Vigilant of others’ agendas; cautious/suspicious of others’ intentions. High Score
Trust
Always trusting of others; belief that other people are entirely trustworthy.
Emotion
Prone to feelings of anxiety, may Content and stable, unlikely to exhibit changeable moods; prone to experience changeable moods; dissatisfaction/pessimism. generally optimistic. Primary focus outside of work; more Motivated to work hard; primary important sources of satisfaction than focus on work as a source of hard work per se. satisfaction/achievement. Moralistic; rigid principles; Flexible principles; tends not to allow conscience plays a definite part in conscience to affect judgement. decision-making. Straightforward/open with other people – tends to ‘speak his/her mind’; tolerant of difference. Dependable, somewhat predictable;
Work-orientation
Principles
Careful with what s/he says to Straightforwardness others; less tolerant of difference; more likely to be ‘reserved’. Reliability Less predictable/reliable;
expedite/pragmatic attitude towards conscious of rules and regulations. rules. Social focus Focuses principally on own needs and interests; favours seen as quid pro quo. Focuses principally on the needs and interests of others; unconditionally generous.
Business focus
Favours people-focused approach at Favours pragmatic approach to work (diplomatic, accommodating, business (competitive, shrewd, taskpossibly naïve). focused, possibly ruthless).
So what are the benefits? Research to date has revealed close relationships between dimensions of our psychometric instrument (provisionally titled the Integrity at Work Tool - IAW) and employee behaviour. These relationships are summarised in the following table, with employee behaviours defined immediately below: • • • • • Turnover intentions – stated intentions to stay with or leave the organisation over time; Absenteeism – illegitimate absence rates over 12 month period; Organisational citizenship – willingness to go the extra mile, help new starters, seeking ways to improve performance; Commitment – championing the organisation externally, investment in the future of the organisation; Prosocial work behaviours – attitudes towards theft, rule-breaking, lateness, illegitimate absence.
Turnover intentions Absenteeism Organisat’l citizenship Commitment Prosocial work behaviours
IAW dimension Trust Emotion Work orientation Principles Straightforwardness Reliability Social Focus Business Focus
Each IAW dimension, then, is able to significantly predict three or more areas of employee behaviour/performance. For example, employees who report a high level of emotional stability (a high score on ‘Emotion’): • • • Are less likely to leave the organisation Are less likely to go absent without permission Are more likely to go the extra mile, and help out new employees
• •
Are more likely to ‘talk up’ the organisation and feel invested in it Are likely to show a more prosocial attitude towards theft, rule-breaking and illegitimate absence.
So, the IAW tool can help to: • Reduce turnover • Decrease absence • Increase the number of 'organisational citizens' you employ • Increase staff commitment • Reduce the risk of theft and rule-breaking
What are the applications? We see the Integrity at Work tool as having significant potential in the areas of employee selection and development. In terms of selection, the IAW could be used as part of the recruitment profiling process, providing information on prospective candidates as to their likely 'fit' with the organisation in terms of behavioural preferences and performance in the role. We have already identified a number of classic competency areas which map directly onto the IAW model framework. Interview prompts could be used during the recruitment process to probe more deeply around candidates' stated behavioural preferences. The IAW Interview Guide provides interviewer questions around the following headings: Interpersonal style Working style Management style - Social focus - Business focus - Trust - Straightforwardness - Work orientation - Emotion - Reliability - Principles As far as development is concerned (both individual and organisational), we see the key applications as follows: • Performance Management Recommendations - based on an individual's IAW profile, recommendations can be generated on the performance management issues which may surface with that employee, i.e. what might be most effectively used to motivate, develop and reward them. • IAW Career Drivers Tool - identifies the aspects of a role and a workplace that the employee will respond to, be motivated by and find fulfilling; it also identifies those elements that would be seen as less motivating/desirable for the employee, and thus may result in lower productivity. • Succession Management - as part of the succession management process, IAW can describe and explain individual managers' operating styles, to be considered alongside their experience, capabilities and competencies. • Team Development - The team dynamics report comprises a visual plot of team members in each area of their IAW profile to enable the team and their manager to appreciate the individual strengths within the team, thus promoting team understanding, integration and success.
The next stage An agreement has now been reached with the Test Agency on production and distribution of the instrument. During the time to roll-out, the following additional work will be completed: • Additional validation studies within specific industry sectors (e.g. retail, security) - we would be keen to hear from any organisation who might wish to participate in this final validation project;
•
Development of assessment materials including question and answer booklets, manual, software, interview prompts and feedback reports.
Benefits to your organisation in participating in the final stages of the validation project would be as follows: • Crucial information on the behaviour and performance of your staff (including all performance data listed above ); • Discounted access to the product when launched • Negligible costs (photocopying only).
Distortion Scales
What is a Distortion Scale? A scale labeled Distortion has been incorporated into these Hiring Suite™ assessments: Personality Plus™, Sales Plus™, and The Insure Survey™. The questions contained in the Distortion Scale, also called a Lie Scale, are ones for which the correct answers are already known and the applicant must answer the majority of these with the "right" response. The Distortion SCORE refers to the reliability of the results, not the honesty of the applicant. If the distortion scale suggests distortion some doubt may be cast upon the openness of the individual in their responses to the other questions (which have no right or wrong answer). How Important Is It? A Distortion Scale is vitally important in a pre-employment situation. A low score on this scale suggests that the applicant may have distorted their responses in the 'look good" direction. An example would be trying to appear outgoing and competitive for a sales opening. If the assessment asked "Do you like meeting new people?" the applicant knows that meeting new people would be part of the salesperson's duties so will answer YES, even though it may be against his/her nature to enjoy this type of activity. By using the Distortion score, the interviewer can gauge if the applicant is trying to "look good" to get the job. Accept No Substitutes! Beware of pre-employment personality assessments without distortion scales! Most of these are Word-Matching (or Choosing) assessments which were originally intended for helping a person become more selfaware of why they ACT the way they ACT. Most give a choice of two words like OUTGOING or RESERVED. They are often headed by the phrase 'I SEE MYSELF AS.... on one side of a paper above a list of adjectives and on the other side of the paper with "OTHERS SEE ME
AS..." above the same list of adjectives. They really work well in self awareness sessions, but NOT pre-employment! Why is This So Essential? In self awareness sessions there is no pressure to respond in a "correct" manner. After all, the exercise is for their own self attainment, not to get a job! Conversely, job applicants are under a tremendous amount of pressure to respond in the "right way" so they can get the job. Choosing OUTGOING instead of RESERVED seems to be the most correct answer. Therefore, they will probably mark OUTGOING if it will get them the job. DO All Pre-employment Assessments Require Distortion Scales? NO. Skills testing, like for spelling or math, do not require Distortion Scales because there is only one true right answer to each question. For example "potatoe" is always wrong and 2+2 always equals 4
Of all the available selection tools, psychological tests have been found to be one of the most valid and cost effective means for identifying the most suitable applicants for the job (Schmidt & Hunter, 1998). Indeed, when properly conducted, selection testing can save companies hundreds of thousands of dollars each year. For example, Hunter and Schmidt (1984), using extremely conservative assumptions, calculated that the US gross national product could be increased between $80 and $100 billion (in 1981 dollars) if selection testing were introduced throughout the workplace. Clearly, an organization can realize substantial benefits through the use of the ESQ. As the figure below indicates, 86% of the counterproductive workers failed the ESQ by obtaining a score of 50 or lower. The following are the key counterproductive behaviors that can cost an organization hundreds of thousands of dollars annually: • • • • • • Theft Turnover Loafing Absenteeism On-the-Job Substance Abuse Safety Violations
Theft
On average, 44% of all inventory shrinkage is due to employee theft. Employees tend to steal significantly more than shoplifters. In fact, 20% to 40% of employees in the retail, manufacturing, supermarket, restaurant, and healthcare industries report a history of theft. From unauthorized giveaways to friends and family to serious theft (over $100.00), the ESQ was able to screen those individuals likely to engage in thievery. Individual's who reported stealing from their work in the past failed the ESQ.
Turnover
A high turnover rate will result in unnecessary loss of both resources and reputation. In an example from the healthcare industry (a hospital with 200 beds employing 1200 persons with a turnover rate of 2% per month) Cascio (2000) calculated that the cost of replacing 288 employees
per year was $2,888,295.52 when all sources of costs were analyzed. The common sources of these costs are: 1. Recruitment of replacements. 2. Lost productivity associated with the interim period before a replacement can be placed on the job and the time required for the new worker to get up to speed on the job. 3. Costs of training, including supervisory and coworker time spent in formal training. The ESQ can identify impulsive job applicants, and those with less inclination toward organizational commitment. In fact, the ESQ has been shown to predict for employee productivity and good citizenship, and therefore would have a substantial impact on overall turnover rates and employee performance.
Loafing
Loafers (those spending an average of 20% of their time engaged in non-work-related activities) scored significantly higher on the ESQ counterproductivity scale than non-loafers (those spending an average of only 2% of their time on non-work-related activities). A dollar value can be placed on the cost of loafing to the employer using utility analysis (Cascio, 2000). First, it is assumed that an employee's total compensation value per hour is $23.00, the average total compensation for all full-time workers in private industry as of March 2001 according to the Bureau of Labor Statistics. Based on this level of compensation, utility analysis indicates that an employee who loafs for approximately 20% of an eight hour shift will cost an employer approximately $24,500 per annum. This amounts to a total cost of $122,500 per loafing employee over a five-year period. Stated differently, using the ESQ to identify and eliminate potential loafers from an applicant pool can result in substantial cost savings to the employer.
Absenteeism
There are several costs associated with absenteeism in the workforce, including loss of productivity, customer dissatisfaction and costs associated with a temporary replacement. Some individuals claim to be sick when they simply feel like a vacation day. Chronic absenteeism is prevalent in today's society, in 1998 about 4% of full-time workers in the United States, and more than 6% of full-time workers in Canada were absent from work (CCH Unscheduled Absence Survey; Statistics Canada). Those respondents who had reportedly taken 'bogus' sick days score below the 50, thereby, failing the ESQ.
On-the-job Substance Abuse
The US Board of Labor estimated the total cost of employee substance abuse falls between $75 billion to $100 billion per year. The prevalence of on the job alcohol and drug abuse is alarmingly high. Ten percent of employees consume more than five glasses of alcohol in a workday, and approximately 70% of drug users are employed (Williams-Harold, 1998). To save your company's resources and reputation, use the ESQ to screen out those individuals who are likely to engage in substance abuse during the workday. Those respondents who admitted to drinking while on the job failed the ESQ.
Safety Violations
The Insurance Research Council estimates that over 3 million employees experience on-the-job injuries per year. While insurance protects businesses from the costs associated with medical bills, Safety Services of CyperComp state that the costs not covered by insurance are four to five times higher. The following are examples of how these uninsured costs indirectly affect the productivity and profits of an organization: 1. employee wages (e.g. wages to the injured employee and their replacement); 2. repairing damaged equipment or products;
3. 4. 5. 6.
time invested in investigating the accident and filling out paperwork; overtime by other employees and supervisors to compensate for the loss of production; increased insurance premiums; the costs associated with a possible lawsuit (e.g. lawyer's fees, settlement, bad publicity.)
Disregard of safety regulations can result in serious accident or death to the employee or coworkers and in substantial costs to the employer. Furthermore, adherence to safety regulations is an indication of employees' willingness to follow organization rules, procedures and policies. There is a direct relationship between frequency of safety infractions and ESQ scores. Those who most frequently reported safety violations failed the ESQ.
Conclusion
According to the Society of Human Resource Management more than 50 % of potential employees misrepresent themselves on their job applications. It is therefore the organization's responsibility to ensure the hiring of productive, dependable employees. The ESQ can save an organization both time and money by making their employee selection processes more efficient and effective
INTEGRITY/HONESTY TESTS Integrity tests predict the broad criterion of "organizationally disruptive behavior (theft, disciplinary problems and absenteeism) Honesty – operationally defined as the absence of ‘theft’ in the workplace.
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designed to identify job applicants who will not steel or otherwise engage in counterproductive behavior on the job.
Two types of integrity test 1. Overt Integrity Test – applicant clearly understands the intention of the test. First Section measures "Attitude" towards theft and other forms of dishonesty Second Section deals with "admissions" of theft other illegal activities.
The responses to such tests are distorted – to form favorable impression (social desirability). 2. Personality based measures – makes no reference to theft. assess conscientiousness and emotional stability factors
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Other Predictors Interview :
Interview Format Types of Questions. Applications
Few, if any, 1. planned Unstructure questions. d (are made up during the interview)
Useful when trying to help interviewees solve problems or understand why they are not right
for a job 2. Structured A predetermined checklist of questions, Useful for valid results especially when dealing with large number of usually asked of applicants. all applicants. A combination of 1 and 2, that resemble what is usually done in practice. Realistic approach that yields comparable answers plus indepth insights. Useful to understand applicant’s reasoning and analytical abilities under modest stress
3. Mixed
4. Situational
Questions limited to hypothetical situations. Evaluation is on the solution and the approach of the applicant.
5. Stress
A series of Useful for harsh, rapid-fire stressful jobs, questions such as handling
intended to upset the applicant
complaints.
Limitations: Illusion of validity (we are not good judges of people, but we think we are) and influence of ‘barriers’ of effective person judgement (personal bias, halo effect, constant error leniency, projection, stereotyping) Research findings (interview methods)
1.
structured interviews for selecting entry level production employees generated data that were reliable (r = .88) and valid (rs between .34 and .56) (Campion et
al., 1988)
2.
interviewer’s judgements for selecting seasonal retail sales clerks yielded strong
validities (rs between 0.34 and 0.61) (Arvey
et al., 1987)
The interview is valid for making inferences about applicants’ sociability and verbal skills, and work motivation. Assessment Centers – are "group-oriented, standardized series of activities which provide a basis for judgments or predictions of human behavior believed or known to be relevant to work performed in an organizational setting" (Finkle, 1976, p.861). Central characteristics: 1. assesses of evaluated in groups 2. by groups of assessors
3.
using a variety of measurement techniques 4. to determine the applicants’ suitability for managerial positions
Measurement techniques used: 1. objective paper-and-pencil tests; 2. projective tests such as Thematic Apperception Test (TAT) (McClelland, Atkinson,
Clark, & Lowell, 1953; Murray, 1938)
3. 4. and 5.
Interviews Peer’s and other candidates ratings; Situational exercises such as leaderless group discussions and inbaskets
Raters (assessors) evaluate the assessees on a number of
performance dimensions judged relevant for the job (leadership, decision making, practical judgment, and interpersonal relations skills) Research findings Several research findings attest to the validity of assessors’ judgements
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(these positive results) can be attributed to the fact that they relied upon candidates’ subsequent rates of promotion as the criterion (London & Stumpf, 1983;
Turnage & Muchinsky, 1984).
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implies that assessment center ratings are less predictive of job performance when the criterion
is some other measure of performance.
Work Samples and Situational Exercises Work sample - present the applicant with opportunities to perform small, manageable segments of job tasks or duties.
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prediction is more straightforward. high content validity time consuming and expensive to administer. The focus is on applicant's capabilities at the time they are being considered for jobs (ignores potential to acquire
problems:
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important skills through training or onthe-job experience) Solution to the second problem Miniature Job Training: -the job seeker is trained to perform a sample of tasks and immediately following the training, his ability to perform this task is measured. Assumption - a person who can demonstrate the ability to learn and perform on a job sample will be able to learn and perform on the total job. Situational Exercises - asses problem solving ability Eg. Inbasket Test - "in-basket" filled with memos, telephone messages,
short reports, and other documents that demand manager's attention.
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observers record applicant's priorities as they undertake the various tasks.
Research findings A review of the psychometric properties of in-basket measures reported "marginal" evidence of validity (Schippmann, Prien, & Katz, 1990) suggested that valideity improves when orgnaizations specifically design in-basket exercises. Validity analyses of strength tests and tests of other physical abilities have produced inconsistent results.
To sum, we have only begun to explore the potential of situation test to predict job performance. Letters of Recommendation This method takes into account other people's (usually a current employer, professional associate or a personal friend) opinions of applicant's qualifications, job related abilities, and experience. Available research does not support the popularity of this method
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meta-analyses revealed average validities ranging between .16 and .27(Hunter and Hunter, 1984). Evidence concerning the validity of peer ratings is more encouraging (.49 -
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promotion, .49 supervisor's ratings and . 36- training success) Peer ratings seem to be promising, particularly in military settings.
New and Controversial Methods of Assessment
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Drug Testing Polygraphy or Lie Detection Graphology Tests of Emotional Intelligence
Evaluation of Predictors Four standards that are useful for comparison of different predictors: 1. Validity - the ability of the predictor to forecast criterion performance accurately
2.
Fairness - the ability of the predictor to render unbiased predictions of job success across applicants in various subgroups of gender, race, age, etc. 3. Applicability - whether the method can be applied across the full range of job and applicant types. 4. Cost - cost of implementing the method. PERSONNEL DECISIONS Human Resource Management Operative Functions
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Procurement: recruitment, selection and placement Development: training and development Compensation: compensate equitably Integration: integrating individual, organizational and societal needs
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Maintenance: maintaining the willingness of able employees (motivation) Separation: sending the individuals back to society.
Recruitment: - the process of attracting people to apply for a job.
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yield pyramid recruitment and selection process is mutual - both companies and applicants are engaged in assessing the degree of fit with each other.
