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Integrity Testing

By David W. Arnold, Ph.D., J.D.

What is an Integrity Test? the research base for these instruments

Periodically human resources and loss expanded, it was found that integrity tests
prevention professionals have the did a good job of predicting other forms of
perception that polygraph and general counterproductivity, which
integrity tests are similar in nature. While includes turnover, absenteeism, disciplinary
the instruments originally were developed problems and wasting time. These tests
to address the same significant need (to have also been shown to be good
prevent employee theft), that is really the predictors of the flip-side of the coin—high
“... they enhance only similarity between these instruments. performing employees tend to score well
the likelihood of on integrity tests. Bottom line, integrity
hiring highly First, polygraphs are used to evaluate the tests tend to be a good measure of a large
veracity of an applicant’s statements. The constellation of behaviors that are
conscientious focus is on whether the person is lying characterized as conscientiousness under
and productive about previous behavior. Based on the psychology’s Big Five Personality
employees.” polygraph examiner’s determination that Factor model.
someone is lying about their past behavior,
the inference is made that the person may Today, a large number of North American
be dishonest on the job. In contrast, employers utilize integrity tests to help
integrity tests were not developed to identify individuals that will not walk out
ascertain if a job applicant is lying. Rather, the back door with their employer’s money
an applicant’s answers are taken at face and merchandise. However, employers are
value and used to predict whether the equally motivated to use these
individual will engage in certain instruments because they enhance the
inappropriate workplace behavior. The likelihood of hiring highly conscientious
inferences drawn by scores on integrity and productive employees.
tests are supported by validation
studies that show that lower scores on Integrity Tests Supplement Other
these tests are associated with higher Hiring Procedures.
likelihoods of workplace Not only does integrity testing do a good
counterproductivity. Thus, rather than job of identifying individuals who will not
being supported by a mere, but somewhat engage in various forms of
logical, rationale that liars are dishonest, counterproductivity, these assessments
integrity tests are supported by scientific are extremely useful for supplementing the
research documenting their effectiveness. information gleaned from other commonly
used employment screening tools. The vast
Similar to polygraphs, initially majority of organizations use some form
integrity tests were developed to of application blank or résumé review as
exclusively identify individuals that were an initial component of the hiring process.
high risks for stealing an employer’s However, research shows that employers
money and/or merchandise. However, as should be very cautious about relying on

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the information provided on application • David Edmondson claimed he had

blanks and in résumés. Research commonly degrees in theology and psychology
shows that 20% to 50% of applications and from Pacific Coast Baptist College,
résumés contain material but the school had no record of the
misrepresentations. This is truly driven degrees. Edmondson admitted the
home by the fact that many very high level information was “incorrect.”
workers have provided significant
misrepresentations regarding their Additionally, for the most part, the
background. For instance: information contained within résumés and
applications provide little insight
• Senator Harkin from Iowa indicated regarding how well the job applicant
that he spent a year in Vietnam actually performed in a previous job.
flying combat missions. In reality, While an applicant may have worked in
he was stationed in Japan and saw a retail setting for the past three years,
no combat experience. that doesn’t mean the person was a high
• George O’Leary lost his football performer nor does it provide any insight
coaching job at Notre Dame due to regarding whether the person engaged in
falsely claiming he had a master’s various forms of workplace
degree in education. counterproductivity.

• The Research Director of While certain information contained

Institutional Shareholder Services within an application and résumé can be
lost his job due to misrepresenting verified, it is important to recognize that
that he had a law degree. applicants are now going to extremes to
• Kenneth Lonchar, CFO of Veritas cover up their misrepresentations. For
Software, resigned after it was instance, dishonest applicants are now
determined that he didn’t have providing prospective employers with toll
an MBA. free numbers that are hooked up to fake
• The CEO of Bausch & Lomb didn’t degree providers that verify the applicant’s
have the M.B.A. he claimed to have stated educational background. Candidates
had and forfeited a million for employment have even gone so far as
dollar bonus. to pay hackers to plug their names into the
class lists of where they lied about going to
• The current governor of New college.
Mexico has claimed for 40 years
that he was a draft pick for the Many employers conduct criminal
Kansas City A’s baseball team. Late background checks to help ensure that
in 2005, he admitted he had not members of their workforce are ethical and
been a draft pick. honest individuals. While this is certainly a
• In February of 2006, the chief useful approach, it has a number of
executive of Radio Shack resigned constraints. First, employers can only
after the Fort Worth Star-Telegram legitimately consider criminal convictions
found false information on his in the employment process. It is
resumé. noteworthy that a large percentage of

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crimes committed either go undetected or For instance, a 2005 study conducted by

do not lead to convictions. Thus, certainly CareerBuilder.com found that
not all previous wrongdoers are identified approximately one in five workers lie at
through a criminal background check. the office at least once a week. While the
Typically, criminal background checks have motivations for lying varied, some common
a hit rate of about 5%, with many of the reasons were to:
convictions not being job-related or
relating to integrity. This situation is 1. Cover up for a failed project.
exacerbated with applicant pools that 2. Appease a customer.
contain a high number of young job 3. Explain an unexcused absence or
applicants. Except in rare circumstances, late arrival.
juvenile records are sealed and not 4. Get another employee in trouble.
available to a prospective employer.
Other research in 2005 from the Food
Finally, at one time employers commonly Marketing Institute (FMI) examined the
used references as a means of gauging the major loss prevention and security chal-
integrity of their applicants. Unfortunately lenges for the food retail and wholesale
due to concerns about defamation lawsuits, industry. The research looked at three
organizations commonly provide very little common causes of shrink—employee theft,
information to prospective employers. The shoplifting, and organized retail theft.
information typically provided (e.g., job According to FMI, and potentially
title, length of employment) provides no somewhat surprising to some readers,
insight regarding an applicant’s likelihood employee theft accounted for 43.3% of
of engaging in workplace total shrink, while the other two causes
counterproductivity. each accounted for about 25% of it.
According to FMI’s study, cash was the
Bottom line, while applications, resumés, number one type of employee theft, with
references, and criminal background checks merchandise theft coming in a
are important hiring tools that can provide close second.
useful information, the information they
provide regarding a candidate’s integrity is Beginning in 1991, researchers have
far from comprehensive and candid. Thus, conducted the National Retail Security
the prudent employer who is concerned Survey (Retail Survey). In 2004 the Retail
with workplace counterproductivity and Survey received data from 107 retailers
performance will supplement these representing 20 different retail markets.
procedures with a high quality test that is On average, these firms had a shrinkage
designed to effectively assess such rate of 1.54% of total annual sales or $31
characteristics. billion. Consistent with the results of the
FMI study discussed above, the Retail
Employee Statistics Document the Survey found that the largest contributor
Need forIntegrity Screening to shrinkage was employee theft, which
While the need for screening for integrity accounted for 47% of shrinkage or $14.6
is almost axiomatic, there is a wealth of billion. Additionally, this study found that
research which also documents this fact. organizations that had high levels of

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employee turnover experienced greater Validity Evidence for Integrity Tests

levels of shrink, and that employers with Periodic debate regarding the validity of
part-time employees had greater shrink. integrity tests generally stems from
detractors being unfamiliar with the
From a non-industry specific perspective, scientific research on this subject matter or
according to a 2005 report released by the reliance on a misleading 1990 paper
Association of Certified Fraud Examiners, published by the now defunct Office of
U.S. organizations lose $600 billion Technology Assessment (OTA).
annually to fraudulent activity—an amount Subsequently, scientific and exhaustive
that exceeds the annual budget for the U.S. reviews of these instruments have always
Department of Defense. According to the concluded that the research on integrity
report, asset misappropriation (particularly testing strongly supports their validity and
cash) was the most common form of fraud. utility for pre-employment screening. This
Further, the report recommends diligence section will discuss this research.
in the hiring process to protect against
employee fraud and abuse. In the wake of the Employee Polygraph
Protection Act of 1988 (EPPA) being signed
While maybe not as obviously into law by President Reagan, four
problematic as stealing money and goods members of Congress who had
from an employer, time theft by employees vigorously endorsed and supported the
is extremely costly. According to a 2005 EPPA requested that the OTA review the
study by Salary.com and America Online, existing research on integrity testing in
the average worker admits to frittering an attempt to form a basis for introducing
away 2.09 hours per day, not counting restrictive legislation. In a similar vein, the
lunch. This unproductive time costs OTA had previously reviewed the available
employers $759 billion annually. research regarding the polygraph and
concluded that it was not a valid
Similar to the research above, Wonderlic instrument, which led to the introduction
researchers have found that almost 15% of of the EPPA. These members of Congress
employees admit to spending more than misguidedly assumed that integrity tests
30 minutes of the workday surfing the Web were similar in intent, design, and research
for non-business reasons. Additionally, 7.3% to the polygraph. In support of the OTA
indicate that they waste over 30 minutes of study, integrity test publishers and the
their workday playing computer games or Association of Personnel Test Publishers
sending text messages. (now the Association of Test Publishers)
provided the OTA with volumes of research
In conclusion, employers lose billions and regarding validity evidence, but very little
billions of dollars each year due to various of this documentation was reviewed and
forms of employee theft and reported by the OTA. In 1990 the OTA
counterproductivity. As a result, employers released a paper entitled “The Use of
can significantly impact their bottom lines Integrity Tests for Pre-employment
if they utilize hiring tools, such as integrity Screening”, which was based on very little
tests, which help to identify job applicants of the research provided to the OTA. Still
who are likely to engage in these costly the bottom line of the paper was that “The
behaviors. research on integrity tests has not yet

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produced data that these tests can predict regarded Journal of Applied
“Results indicate that dishonest behavior.” Psychology. This article evaluated over 600
integrity test integrity test studies involving 576,460
validities are Unlike the OTA’s earlier paper that test takers. A review of this research led
substantial for evaluated the available research on the the researchers to conclude that: “Results
predicting job polygraph, the OTA’s conclusions indicate that integrity test validities are
performance and regarding integrity testing were inadequate substantial for predicting job
counterproductive to form the basis to introduce any performance and counterproductive
behaviors on the job, restrictive legislation. Additionally, since behaviors on the job, such as theft, disci-
such as theft, the paper obviously did not address the plinary problems, and absenteeism.” Thus,
disciplinary problems, wealth of research on integrity tests, it is the research indicated that these
and absenteeism.” important to note that this paper was assessments not only do a good job of
widely criticized by some of the most helping screen job applicants who may
prominent industrial psychologists have integrity problems, but they are
throughout the country. In fact, the 1992 useful for identifying candidates who will
Annual Review of Psychology concluded be high performers. The Meta-Analysis also
that, “The Congressional Office of indicated that integrity tests are not likely
Technology Assessment, after two years to have an adverse impact on the basis of a
of study, released a background paper on job applicant’s race or gender. Interestingly,
integrity testing. This study is superficial the authors concluded the Meta-Analysis
and in part clearly erroneous…” by acknowledging a tendency towards
negative bias in conducting this
Moving on to the other reviews that have comprehensive study. Specifically, they
actually focused on the extant research stated that: “When we started our research
on integrity tests, in 1991 the American on integrity tests, we, like many other
Psychological Association (APA) released a industrial psychologists, were skeptical of
report entitled “Questionnaires Used in the integrity tests used in industry. Now, on
Prediction of Trustworthiness in the basis of analysis of a large database
Preemployment Selection Decisions.” consisting of more than 600 validity
While this study did not involve as an coefficients, we conclude that integrity
exhaustive review as subsequently tests have substantial evidence of
conducted studies, the APA certainly generalizable validity…perhaps the most
considered and reported on substantially significant conclusion of this research is
more of the available research than the that integrity test validities are positive
OTA paper. According to the APA’s review, across situations and settings.”
“The preponderance of the evidence is
supportive of their [integrity tests] The next, and most recent comprehensive
predictive validity.” analysis of integrity tests, appears in the
1998 edition of Psychological Bulletin. The
In 1993 an article entitled “Comprehensive article entitled, “The Validity and Utility of
Meta-Analysis of Integrity Test Validities: Selection Methods in Personnel
Findings and Implications for Personnel Psychology: Practical and Theoretical
Selection and Theories of Job Performance” Implications of 85 Years of Research
(Meta-Analysis) was published in the highly Findings,” was written by two of the

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nation’s most respected industrial Legal Issues

psychologists—Frank Schmidt and John E. Polygraph Prohibitions
Hunter. Rather than focusing exclusively Periodically, there seems to be a general
on the utility of integrity tests, these two misunderstanding regarding the purpose
researchers evaluated the effectiveness of integrity tests vs. that of the polygraph.
of 19 different selection procedures (e.g., Contrary to the beliefs of some
work samples, interviews, integrity tests, commentators, the two instruments are
reference checks, job experience), both very dissimilar. Polygraphs and lie detectors
individually and used in conjunction with were developed to determine whether a
each other. Their review concluded that person is lying based on their physiological
the use of a general mental ability test responses to questions. In contrast,
and integrity test in combination yielded integrity tests were developed to predict
the highest validity of any combination various aspects of work performance based
of the 19 selection measures. They also on a person’s answers to a questionnaire.
noted that the combination did a good job
of predicting job performance (not just Due to the misguided approach of lumping
counterproductivity) and tended to be an integrity tests in with polygraphs, a limited
inexpensive means of selecting entry-level number of professionals believe that
and experienced applicants. Also noted in federal and state prohibitions regarding lie
the previously discussed Meta-Analysis, the detectors apply to written integrity tests.
use of an integrity test in conjunction with In reality, only two state polygraph statutes
a general mental ability test will lead to less restrict the use of written integrity tests. In
adverse impact than when the mental Massachusetts, employers may not use any
ability test is used alone. written instrument that provides a
diagnostic opinion of honesty, while in
In sum, the objective and scientific Rhode Island such tests cannot be the
reviews of integrity tests have determined primary basis of an employment decision.
that these instruments have high utility
and validity for predicting not only Additionally, in the two states where there
counterproductive behaviors like has been litigation regarding this issue,
employee theft, but also for identifying the courts have held that their lie detector
individuals who will be superior statutes do not cover the use of written
performing employees. The importance integrity tests. Specifically, over 20 years
of this is reinforced in the Schmidt and ago the Minnesota Supreme Court
Hunter article discussed above, wherein addressed this issue in Minnesota v.
they state that: “In economic terms, the Century Camera, Inc., 309 N.W.2d 735
gains from increasing the validity of [a (1981). Under the relevant Minnesota
company’s] hiring methods can amount statute, employers cannot require
over time to literally millions of dollars. employees or prospective employees to
However, this can be viewed from the submit to a “polygraph, voice stress
opposite point of view: By using selection analysis, or any test purporting to test
measures with low validity, an the honesty” of a person. The court held
organization can lose millions of dollars in that the statute applied only to tests
reduced production.” that measured physiological changes and

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specifically precluded coverage of written

psychological questionnaires used to gauge Do Integrity Tests Exhibit Adverse
honesty. Impact?
One of the major concerns regarding hiring
Under current Wisconsin law an honesty procedures, including integrity tests, is
test is defined as a “polygraph, whether they tend to exhibit adverse
deceptograph, voice stress analyzer, impact on the basis of race or gender.
psychological stress evaluator, or similar While test publishers and researchers
mechanical or electrical device” used to certainly have generated significant
evaluate honesty. Hence, the current documentation that integrity tests do not
Wisconsin statute obviously does not exhibit adverse impact, employers
apply to written integrity tests because responding to applicant challenges have
they are certainly not “mechanical or provided such information as well. With
electrical devices.” However, before the respect to challenges of adverse impact,
Wisconsin legislature amended and employers in over 30 cases have been able
clarified the relevant statute by adding the to demonstrate to administrative
“mechanical and electrical devices” agencies that these instruments do not
language, a Wisconsin appeals court had exhibit adverse impact. To the best of our
spoken to the issue of whether the state’s knowledge, there has not been a single
polygraph statute covered written integrity
tests. Use of a written integrity test was Equal Employment Opportunity
not a violation of the state’s polygraph Commission, state/provincial human rights
statute because the test did not measure agency or court determination holding that
physiological responses, according to the integrity tests exhibit an adverse impact
appeals court in Pluskota v. Roadrunner on the basis of race or gender—regardless
Freight Systems, Inc., 524 N.W.2d 904 of subgroup status, job applicants tend to
(1994). The court distinguished the devices pass such tests at pretty much the same
covered by the statute from written tests, rate.
noting that paper and pencil tests are
designed to measure attitudes regarding As an aside, while employers’ perfect
honesty, while polygraphs measure success rate in defending their use of
physiological changes and make integrity tests in response to the 30 plus
determinations regarding deception. formal challenges speaks extremely well for
such tests, it also indicates that integrity
In sum, no states other than Rhode Island tests are not lightning rods for litigation.
and Massachusetts place restrictions on Millions of integrity tests have been
the use of written integrity tests via their administered since the advent of the Civil
lie detector statutes. Additionally, such Rights Act of 1964—given the fact that
instruments do not fall within the purview there have only been about 30
of the federal Employee Polygraph challenges indicates that employers are
Protection Act of 1988. As a result, integrity not increasing their exposure to litigation
tests are commonly used by employers through test use.
throughout the U.S., as well as Canada.

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Privacy Issues In sum, the notion that integrity tests

Commonly the popular press, as well as contain invasive items, which are likely to
human resources and legal publications, trigger litigation, is without merit. First,
indicate that integrity tests contain such tests do not contain odd or invasive
invasive questions, which makes them a items. Second, as stated in the previous
likely target of litigation. In reality, this is section regarding disparate impact, there
far from true. The confusion regarding this have only been about 30 challenges to the
issue apparently stems from the fact that use of integrity tests over the course of
certain clinical personality tests have been over 40 years—no challenge has alleged
inappropriately characterized as integrity invasion of privacy.
tests. Clinical personality tests that were
developed to assess emotional stability Americans with Disabilities Act
in healthcare settings commonly contain Turning to the Americans with Disabilities
invasive items regarding sexual practices, Act (ADA), the most common concern here
bodily functions, religious beliefs, and seems to be whether integrity tests are
disabilities, and are periodically used in the medical in nature, which would
employment domain. In a few instances mandate that they only be administered
involving their misuse, these clinical after a conditional offer of employment. In
personality tests have been the focus of this vein, the Equal Employment
invasion of privacy suits. Opportunity Commission’s (EEOC)
general guidance in this area was cited
In contrast, integrity tests have not been in a recent Seventh U.S. Circuit Court of
the focus of invasion of privacy challenges Appeals opinion that held that a clinical
simply because they do not contain items personality test (MMPI) was a medical
that are perceived as invasive by job examination (See Karraker v. Rent-A-
applicants. A good example of this fact Center, 411 F.3d 831 (7th Cir. 2005)). In its
stems from a suit against Target Stores (See holding, the Court of Appeals referred to
Soroka v. Dayton Hudson, 235 Cal.App.3rd that guidance in stating that “Psychological
654 (1991)). This case involved a challenge tests that are designed to identify a mental
regarding the invasive nature of tests used disorder or impairment qualify as medical
by Target to screen store security examinations, but psychological tests that
personnel. Target’s testing consisted of one measure personality traits such as honesty,
instrument comprised of the Minnesota preferences, and habits do not.” Hence,
Multiphasic Personality Inventory (MMPI) integrity tests can, and in fact should, be
and the California Personality Inventory—a administered prior to an applicant receiv-
clinical personality instrument that ing a conditional offer of employment.
contained various questions about religious Note, the EEOC has indicated in various
beliefs and sexual practices, as well as an policy letters that only
integrity test called the Employment medical examinations should take place
Inventory. Upon plaintiff’s review of all after a conditional offer of employment has
tests used by Target, the integrity test was been tendered. This has been strongly
dropped from the litigation because it con- reinforced by the Ninth and Fifth U.S.
tained no inappropriate or Circuit Courts of Appeals. See Buchanan
invasive inquiries. v. City of San Antonio, 85 F.3d 196 (5th Cir.
1996) and Leonel v. American Airlines, No.

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03-15890 (9th Cir. 2005).

In conclusion, while all tests should be

reviewed to ensure that they are not
medical examinations under the ADA,
integrity tests are typically not considered
medical in nature. As a result, the lawful
timing for admission of such instruments is
prior to a conditional offer being tendered
by an employer.

Conclusion
The use of integrity tests has been growing
over the last 30 years. This is mainly due
to the extremely favorable research results
supporting the use of these instruments,
as well as their ability to withstand judicial
scrutiny. Additionally, in today’s highly
competitive business climate, employers
are extremely concerned with employee
productivity and counterproductivity
issues. Only through diligence in applicant
screening and a strong focus on employee
conscientiousness can employers be truly
competitive in today’s environment.

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