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Reducing Injuries, Malingering, and Workers’ Compensation Costs by Implementing Overt Integrity Testing

Journal of Business and Psychology volume 36, pages 495–512 (2021)Cite this article

Abstract

Workers’ compensation costs are a substantial expense for employers. Given mixed results of training and job redesign interventions designed to reduce accidents leading to claims, organizations may wish to reduce these costs by screening job applicants with integrity tests. Building on theories of workplace safety and malingering (i.e., faking or exaggerating injuries for personal gain), we argue that overt integrity tests predict workers’ compensation claims through both workplace injuries and malingering. Analyses of archival data from three organizations (study 1) found screening job applicants reduced workers’ compensation claim rates and related costs, demonstrating a return on investment of 734% in one sample and 866% in another. In a three-wave survey of working adults (study 2), integrity test scores related directly to malingering, and indirectly to workplace injuries through motivation to work safely and compliance with safety rules. Analyses of three common dimensions of overt integrity tests (substance abuse, aggression, and theft) found theft scores directly related to malingering, and indirectly related to injuries through lower safety compliance. Substance abuse scores were related to higher rates of injury through lower safety motivation and compliance. Aggression scores were not related to malingering or injuries. We conclude that screening job applicants with overt integrity tests can be a cost-effective way to reduce unnecessary workplace injuries, malingering, and the related workers’ compensation claims.

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Notes

  1. We also contacted the first authors of Sturman and Sherwyn (2009) and Oliver et al. (2012) about the possibility of analyzing their data. Unfortunately, the information required for testing our hypotheses was unavailable.

  2. The variables are (weakly) correlated because the proportion of screened applicants increased over the trial period. In the second half of the trial (January 1 to November 1, 2012), length of employment and screening were correlated at only − .07. The effect of screening in that subset of data after controlling for length of employment (odds ratio .58) was slightly stronger than that reported here (odds ratio .66).

  3. We also measured conscientiousness, agreeableness, and neuroticism using the 44-item Mini-Marker scale (Saucier, 1994). Conscientiousness and neuroticism were predictors of safety behavior in the Christian et al. (2009) meta-analysis of safety behavior, and all three traits are tapped to some degree by overt integrity tests (Ones, 1993; Wanek et al., 2003). In a series of post hoc tests, we controlled for the influence of personality on all of the endogenous safety variables, injuries, and malingering. Although there were some significant relations between personality and the substantive variables, whether these were included in the model did not change the significance of any tests of hypotheses, so we do not include them here. Complete results are available from the first author.

  4. We also conducted analyses to test the study’s hypotheses using a “pass/fail” version of the integrity test variable. In this analysis, we substituted pass/fail (using the organization’s cut score for the individual subscales) for the three separate scale scores. We found that the model fit the data well, χ2 (411, N = 199) = 575.52, p < .001, CFI = .955, RMSEA = .045 (.036, .053), SRMR = .072. Passing the test related positively to safety motivation (b = .25, p < .05), positively to safety compliance (b = .25, p < .05), and negatively to malingering (b = − .21, p < .05). Safety motivation related positively to safety compliance (b = .72, p < .05), which in turn related negatively to injuries (b = − .12, p < .05). Complete results are available from the first author.

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Authors and Affiliations

  1. MVS School of Business & Economics, California State University Channel Islands, One University Drive, Camarillo, CA, 93012, USA

    Dylan A. Cooper

  2. Eller College of Management, University of Arizona, P.O. Box 210108, Tucson, AZ, 85721-0108, USA

    Jerel E. Slaughter

  3. Division of Behavioral and Organizational Sciences, Claremont Graduate University, 150 E. Tenth Street, Claremont, CA, 91711, USA

    Stephen W. Gilliland

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Conflict of Interest

Jerel E. Slaughter and Stephen W. Gilliland are paid consultants to Merchants Information Solutions, the publisher of the test used in this research. They are paid to advise the organization on issues related to testing and assessment, and not to publish or present research related to the test. Stephen W. Gilliland also serves on the board of directors of Merchants Information Solutions, which entails attending board meeting and advising the CEO on strategic decisions. He is nominally paid for meeting attendance and does not receive annual shares, bonuses, or other compensation. Dylan A. Cooper has no conflict of interest.

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Cooper, D.A., Slaughter, J.E. & Gilliland, S.W. Reducing Injuries, Malingering, and Workers’ Compensation Costs by Implementing Overt Integrity Testing. J Bus Psychol 36, 495–512 (2021). https://doi.org/10.1007/s10869-020-09681-9

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Keywords

  • Integrity test
  • Workplace safety
  • Malingering
  • Workers’ compensation
  • Selection