When companies hire new employees, they’re not just looking for skills; they want people who are honest, reliable, and ethical. That’s where pre-employment integrity tests come in. These assessments help employers determine if a candidate is likely to be trustworthy and follow organizational rules. According to the Society for Human Resource Management (SHRM), organizations that use integrity tests report significant reductions in theft-related incidents, with declines as much as 20-30% among new hires screened with these methods. Additionally, surveys reveal that over 60% of large companies utilize integrity assessments to minimize risks like theft and reduce employee turnover. The adoption of pre-employment testing, including integrity assessments, is growing rapidly, fueled by the increasing demand for reliable hiring tools. In fact, the global employee screening market is projected to reach $5.46 billion by 2026. While these tests are invaluable in mitigating risks, it’s important to remember they are not infallible. Let’s dive into what these tests are, why they’re useful, and a few things companies should keep in mind.

What Are Pre-Employment Integrity Tests?

Integrity tests are designed to measure a person’s honesty, reliability, and decision-making in ethical situations. Unlike personality or skill tests, these focus on how likely someone is to follow workplace rules or engage in unethical behavior. The questions could be direct, like asking if someone has stolen from a previous job, or more subtle, evaluating how they think about workplace rules and honesty.

Scores on integrity tests correlate positively with a number of criterion variables that are beneficial to an employer, such as job performance or tenure (staying in a job and not quitting quickly). They also correlate negatively with bad variables, such as propensity to steal from the employer, or counterproductive work behavior (CWB). As such they can be incredibly important to employers, especially at an aggregate level, for example if the employer hires thousands of people every year, the return on investment can be quite substantial!

Types of Integrity Tests

There are two main types:

1. Overt Integrity Tests: These ask direct questions about a person’s past behavior, like whether they’ve lied to a boss or stolen something at work.

2. Personality-based Integrity Tests: These focus on traits like responsibility and dependability, without directly asking about honesty. They aim to assess whether someone’s personality aligns with ethical behavior.

Examples of Integrity Assessment Items

For the first type above, here are some example items, answered in Y/N format:

  • I think it is OK to take home minor objects from my employer, such as a stapler
  • It is acceptable to put personal purchases on a company credit card
  • If I was a manager, I would promote my friends even if they are not doing a good job.

Here are some examples of the second type:

  • I think it is important to do high quality work
  • I like to finish things that I have started
  • It is important to be punctual.

 

Why Use Integrity Tests?

Here’s why more companies are using integrity tests during hiring:

1. Lower Risk of Dishonesty: These tests can help spot candidates who might engage in unethical behavior like theft or fraud. For businesses that handle money or sensitive info, this can prevent big problems later on.

2. More Reliable Employees: People who score well on integrity tests tend to be more reliable, showing up on time, following rules, and doing their work without constant supervision.

3. Reduced Turnover: When you hire people who share your company’s values, they’re more likely to stick around. This means lower turnover and fewer headaches from constantly recruiting and training new employees.

4. Building a Positive Culture: Prioritizing integrity in hiring sends a message to your workforce that honesty and accountability matter. This helps create a positive work environment where people trust each other and follow the rules.

Limitations of Integrity Tests

While these tests can be helpful, they’re not foolproof. Here are a few things to watch out for:employees

1. False Results: A common threat to validity is “faking good.” One problem with non-cognitive tests like this is that they are easy for an examinee to catch onto what is being assessed, determine what the employer would like to see, and answer in that manner. So, even if someone thinks it is OK to take home a stapler, they will answer No to that item. This, of course, can lead to false positives when hiring. Sometimes, an honest candidate might answer a question wrong and fail the test, or a dishonest person might know how to give the “right” answers. This could lead to hiring mistakes.

2. Bias: Integrity tests can sometimes unintentionally discriminate against certain groups if they’re not carefully designed. Different cultures or experiences can influence how people respond to questions.

3. Over-reliance: While useful, integrity tests shouldn’t be the only test for hiring decisions. Interviews, references, and other assessments should also be part of the process. This is known as incremental validity.

4. Privacy Concerns: Some candidates might find these tests too personal, especially if they ask about past behavior. Companies need to make sure the questions respect privacy and are legally compliant.

Ethical and Legal Considerations

There are some ethical issues to consider when using integrity tests. Is it fair to judge a person’s character based on a test? These tests might not fully capture someone’s true ethical behavior. Also, companies need to think about how transparent they are with candidates. If someone doesn’t get hired because they failed an integrity test, should the company tell them why? It’s important to be fair and transparent, but that can also bring legal challenges. It is critical for an employer to show that any test used for pre-employment screening is job-related (e.g., testing an accountant on knowledge of accounting law) or has predictive validity  without showing bias.

Conclusion

Pre-employment integrity assessment can be a great way to assess a candidate’s honesty, reliability, and ethical decision-making. They help reduce risks like theft and improve workplace culture by bringing in employees who share the company’s values. However, they aren’t perfect and should be used alongside other hiring methods. By combining integrity tests with interviews and other evaluations, companies can build a trustworthy and reliable workforce.

In today’s competitive business landscape, retaining experienced talent is more crucial now than ever before. High employee turnover can be costly, disruptive, and detrimental to company culture and morale. One effective strategy to enhance employee retention is through thoughtful and strategic use of assessments. In this blog post, we’ll explore how improving employee retention with assessment can help organizations build stronger teams, boost morale, and ultimately drive business success.

In today’s competitive business landscape, retaining experienced talent is more crucial now than ever before. High employee turnover, which research has shown is over 75% preventable and often stems from a lack of understanding of employee expectations, can be costly, disruptive, and detrimental to company culture and morale. With 87% of employers identifying retention as a priority in their organizations, addressing this issue has become essential. Alarmingly, 40% of employees report that they are considering leaving their jobs in the next few months, highlighting the urgency for proactive solutions. One effective strategy to enhance retention is through thoughtful and strategic use of assessments. Research shows that employers who act on employee feedback are four times more likely to retain talent.

In this blog post, we’ll explore how improving employee retention with assessment can help organizations build stronger teams, boost morale, and ultimately drive business success.

Understanding the Relationship Between Assessments and Retention

Employee assessments, which effectively utilized, provide valuable insights into various aspects of an employee’s fit within the organization, their skills, and their potential for growth. By aligning assessment practices with retention strategies, companies can address issues proactively and create an environment where employees feel valued and engaged.

Types of Assessments that Enhance Retention

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  1. Pre-Employment Assessments: Hiring the right people is the first step towards employee employee retention. “Pre-employment assessments” evaluate candidates’ skills, personalities, and cultural fit before they join the company. Tools such as cognitive ability tests, personality assessments, and job simulations can help ensure that new hires are well-suited for their roles and align with the company’s values and culture. The creation of this alignment reduces the likelihood of early turnover, which, again, can be costly and disruptive.
  2. Onboarding Assessments: Once a new employee is recruited and received their introductory training, “onboarding assessments” can gauge how well they are adapting to their role and the company culture. Regular check-ins and feedback sessions during their initial-quarter months can identify any challenges they may be facing, and can provide opportunities to lend support in addressing said challenges. Utilizing this proactive approach helps new hires feel supported and valued, significantly improving their chances of staying with the company for a long period of time.
  3. Employee Engagement Surveys: Engaged employees are more likely to stay with a company. Regular “employee engagement surveys” help measure job satisfaction, identify areas for improvement, and provide insights regarding employees’ perspectives on various aspects of their work environment. These insights can then be acted upon by implementing changes that enhance employees’ job satisfaction, thereby reducing turnover rates.
  4. Performance Reviews: Ongoing performance assessments are crucial for employee development and retention. “Performance reviews” that focus on both an employees’ strengths and areas for improvement provide employees with clear feedback and opportunities for personal development. When employees see paths for career growth and understand that their contributions are recognized, they are more likely to stay committed to the organization.
  5. Skill Gap Analysis: Identifying and addressing skill gaps within the team through regularly-administered “skill gap analyses and assessments” can prevent frustration and disengagement. By offering training and development opportunities based upon these assessments, companies demonstrate their employees’ professional growth. This helps not only in retaining employees, but also equips them with the skills needed to meet evolving business needs.

 

Implementation of Effective Assessment Strategies

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  1. Align Assessments with Business Goals: Ensure that the assessments you use “are aligned with your company’s business objectives and values”. Utilizing this alignment aids in identifying candidates and employees who provide valuable skills and share the company’s vision, leading to better long-term relations.
  2. Transparency is key when utilizing assessments: “Clearly communicate the purpose and benefits of said assessments to employees”. When employees understand how assessments contribute to their personal growth and the organization’s success, they are more likely to engage in said assessments.
  3. Act on Feedback: Assessments are most effective when “feedback is acted upon”. Use the insights gleaned from these assessments to make informed decisions and implement changes that enhance the work environment. Examples include adjusting job roles, offering additional training, or improving company policies, which, if utilized based on the results of the assessments, shows employees that their feedback is valued.
  4. Regularly Review and Adjust: The landscape of employee expectations and business needs is constantly evolving. “Regularly review and adjust your assessment tools and strategies to ensure they remain relevant and effective”. Continuous improvement in assessment practices can provide competitive advantages in attracting talented individuals and maintaining high employee retention rates.

In conclusion, improving employee retention by utilizing assessments is a strategic approach that can yield significant benefits for organizations. By integrating various assessment tools throughout the employee lifecycle, spanning recruiting to ongoing development, companies can create a supportive environment that fosters engagement and loyalty. Investing in thoughtful assessment practices aids in retaining valuable employees and contributes to the overall success and growth of the business. By understanding and effectively implementing the key types of assessments listed above, organizations can build a stronger and more committed workforce. Finally, utilizing assessments in our dynamic job market is an effective differential strategy that can enhance employee retention and aid in achieving long-term success.

You may also be interested in reading two related blog posts: Navigating Leadership Assessments: A Science-Backed Approach and HR Assessment Software: Approaches and Solutions.

Leadership assessments are more than just tools; they are crucial to identifying and developing effective organizational leadership. Plenty of options exist for “leadership assessments,” from off-the-shelf tools costing $15 to the incredible bespoke, intense, and, sometimes, invasive assessments that use multiple psychologists and can cost upwards of $50,000. In this blog, I’ll provide a framework for leadership assessments with the right amount of measurement rigor that won’t break the bank or your candidates. I’ll focus on leadership assessments in the selection (i.e., hiring) context, although the information extends to assessments for leadership development.

The Role of Job Analysis in Leadership Assessments

In any selection context, it’s important to begin with a job analysis so you understand what you are trying to measure. In other words, what does “good” look like? We find that using historical information (e.g., job description, ONET data, industry information, etc.) followed by detailed discussions with subject matter experts within an organization appropriately balances efficiency and comprehensiveness in pinpointing the essential skills and tasks necessary for a leader to succeed. 

Designing Robust Leadership Assessments

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Senior female CEO and multicultural business people discussing company presentation at boardroom table. Diverse corporate team working together in modern meeting room office. Top view through glass

From the job analysis, we gather a list of the critical skills along with their importance ratings. With this information, we create a comprehensive leadership assessment incorporating several methodologies to evaluate potential leaders. These include:

  • Construct Validity: Utilizing psychometric tools that are rigorously tested and validated to measure specific leadership constructs effectively. For example, measuring a candidate’s ability to influence may involve assessments like the Hogan Insight Series and the Leadership Effectiveness Analysis, as they have proven their constructs with leadership samples over the past decades.
  • Content Validity: Structured interviews reflect the competencies identified during the job analysis stage. These interviews are crafted to probe deep into the candidate’s experiences and skills in areas critical to the role.
  • Criterion-Related Validity: The real test of an assessment’s value is its ability to predict actual job performance. Correlating assessment outcomes with real job performance metrics confirms the predictive validity of the assessment tools.

At People Strategies, we integrate these approaches to ensure our leadership assessments are not just theoretical but also practical and actionable.

Effective Reporting for Informed Decision-Making

Despite the complex underpinnings, the reporting of assessment results is simplified to aid quick and informed decision-making. Each leadership skill assessed is rated and integrated into a weighted fit score. This score reflects its importance as determined in the job analysis, providing a clear, quantifiable measure of a candidate’s suitability for the leadership role.

Conclusion

Effective leadership assessments are vital for nurturing and selecting the right leaders to meet an organization’s strategic goals. At People Strategies, we emphasize a scientific approach, integrating thorough validation processes to ensure that our assessments are accurate and deeply informative. This rigorous methodology allows us to deliver assessments that are both comprehensive in their analysis and practical in their application, ensuring that organizations can confidently make crucial leadership decisions.

You may also be interested in reading two related blog posts: ‘Improving Employee Retention with Assessment: Strategies for Success’ and ‘HR Assessment Software: Approaches and Solutions.’

About the Guest Author: David Dubin, PhD

David Dubin, PhD, is founder and principal of People Strategies.  People Strategies knows that a business strategy means nothing without the people. We help busy leaders and HR professionals find and implement the tools they need to bring the benefits of people science to their organizations so they can bring hiring and employee development to the next level.