“What you do on the front end to screen out bad hires can have a bigger impact than just about anything you do: hiring the right people to start with,” said David J. Schaerer, executive vp of pre-employment screening company American Tescor Inc. in Beaverton, Ore.
Speaking as part of a panel at REBEX 2003, the annual conference of the Chicago and Wisconsin chapters of the Risk & Insurance Management Society Inc. last month in Chicago, Mr. Schaerer suggested that many employees come into the workplace with an “entitlement mindset.”
That mindset can manifest itself in workers compensation claims, excessive absenteeism and other workplace problems, Mr. Schaerer said. But behavioral screening can help an employer avoid hiring such individuals, as well as others who might be high risks for theft or workplace violence.
There are several common denominators in expensive workers compensation claims, Mr. Schaerer said. “Typically, we see a history of absenteeism,” he said. Also, there is typically a history of disciplinary action, prior claims or drug abuse.
Mr. Schaerer added that retailers have used behavioral analysis for years to identify job applicants who are high risks for theft, lying, substance abuse and hostile behavior.
“Interestingly, those people who are hostile, by the way, tend to interview very well,” Mr. Schaerer said.
Because they have found ways to rationalize their behavior, many who do pose theft or substance abuse risks answer honestly in behavioral screenings, Mr. Schaerer said, noting that “18% of all job applicants admit to theft behavior” and “13% of all job applicants admit to current drug use.”
Of those tested, on average, “2% are hostile,” Mr. Schaerer said. “That’s the good news. The bad news is, do not hire this 2%.”
“Any screening is better than no screening,” Mr. Schaerer said. “The more, the better.” But he acknowledged that many techniques have limitations.
The most common tools used by employers today in screening prospective employees are drug testing and criminal background checks.
“Criminal background checks are good up to a point,” Mr. Schaerer said, but most states don’t have statewide criminal information databases and the information available may be deficient or out of date. Also, only convictions are reported, and most employee theft is never reported. [R&A Comment – This can be averted by verifying prior employment. If the prior employer was not candid in revealing a prior theft, a current employer has a cause of action against that prior employer called Negligent Referral. We discuss that action in this blog post.]
Likewise, urinalysis is “not a bad tool, subject to a lot of limitations,” he said, noting that “the cottage industry on beating drug tests is big business.” [R&A Comment – We discuss how oral fluid drug testing is very effective at thwarting any cheating in this blog post.]
A variety of approaches are needed to address risks with existing employees and to reduce employee turnover, said Stephen M. Bennett, national leader of the workforce strategies practice at Marsh USA Inc. in Chicago. In general, those techniques center around the company culture and maintaining a good workplace environment, he said.
“Obviously, there are a ton of contributing factors that make a good work environment,” Mr. Bennett said. “Culture impacts employee behavior; how you’re treated by your employer has a lot to do with how you’re motivated every day and your work environment.”
Mr. Bennett suggested employers should audit their management processes, benchmarking them against either internal or external peer groups. Such audits will highlight those management practices that reduce risks and employee turnover, he said.
James P. Randisi, President of Randisi & Associates, Inc., has been helping employers protect their clients, workforce and reputation through implementation of employment screening and drug testing programs since 1999. This post does not constitute legal advice. Randisi & Associates, Inc. is not a law firm. Always contact competent employment legal counsel. To learn more about the rights of employees who test positive for marijuana, Mr. Randisi can be contacted by phone at 410.494.0232 or Email: info@randisiandassociates.com or the website at randisiandassociates.com
