Hire your Way to Higher Earnings
Download
1 / 59

Screening Tools Used by Fortune 1000 - PowerPoint PPT Presentation


  • 128 Views
  • Uploaded on

Hire your Way to Higher Earnings With Pre-Employment Screening Presented by: Si Lamm CPCU, Managing Director American Tescor LLC, a division of Merchants Information Solutions, Inc. Criminal Records Checks 88% Employment Verification 86% Drug Screening 78%

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Screening Tools Used by Fortune 1000' - phila


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Hire your Way to Higher EarningsWith Pre-Employment ScreeningPresented by:Si Lamm CPCU, Managing DirectorAmerican Tescor LLC, a division of Merchants Information Solutions, Inc.


Screening tools used by fortune 1000

Criminal Records Checks 88%

Employment Verification 86%

Drug Screening 78%

Education Verification 74%

Verification of Professional Licenses 59%

MVR Checks 50%

Credit History 39%

Integrity Testing 7%

Screening Tools Used by Fortune 1000

Confidential


Background information american tescor llc

Founded - 1979 by Dr. Peter Bullard

Headquarters – Phoenix, Arizona

Service Area – North America

Testing Volume – 40,000+ Applicants Weekly

Background InformationAmerican Tescor, LLC

Confidential


Tescor s electronic behavioral assessment

73 Questions about Theft, Drug Abuse, Violence & Lying.

Identifies Applicants with “Entitlement Mentality”.

5th Grade Reading Level. Takes 20 Minutes.

Tescor’s Electronic Behavioral Assessment

Confidential


Tescor s electronic behavioral assessment1

English plus 21 Foreign Language Versions. Audio Versions in English & Spanish.

In Compliance with all State and Federal Hiring Guidelines.

All Electronic Screening & Immediate Results 24/7/365 with/without Internet.

Tescor’s Electronic Behavioral Assessment

Confidential


Benefits of tescor screening
Benefits of Tescor Screening English & Spanish.

  • The Tescor Survey has proven to be a powerful tool in improving productivity, employee morale, and earnings. This is accomplished by Reducing:

  • Turnover Sick Leave Utilization

  • Employee Theft (Shrinkage) EAP Utilization

  • Workplace Violence Workers’ Comp Losses

  • Negligent Hiring Suits STD Losses

  • Disciplinary Actions LTD Losses

  • Terminations for Cause Group Medical Costs

  • Unemployment Insurance Auto Liability

  • FMLA Utilization EPL Claims

Confidential


Measuring tescor s impact in reducing workers comp losses

Controlled studies cover over 428,000 workers English & Spanish.

Time Frame – 1996 to 2009

# of Companies In Studies – 17

Average Claim Frequency Reduction – 54%

Average Claim Severity Reduction – 21%

Overall Average Loss Rate Reduction – 63%

Measuring Tescor’s Impact In Reducing Workers’ Comp Losses


Tescor produced a 15 improvement in turnover

Data From A National Rental Company English & Spanish.

Study Period-24 Months

Tescor ProducedA 15% Improvement in Turnover

Confidential


Tescor s effect on unemployment
Tescor’s English & Spanish. Effect on Unemployment

  • Tescor Produced 87% Fewer Unemployment Claims & 89% Less Expensive Claims.

  • National Rental Company

  • Unemployment Claims Study Period 24 Months

Confidential


Short term disability std study period 12 months
Short Term Disability (STD) English & Spanish.Study Period 12 Months

In the study, 6,800 applicants were screened with the Tescor Survey. The Unscreened group had a claim frequency rate 40% higher than the Tescor Screened group.

Confidential


Sample industries served by american tescor

Hospitality English & Spanish. –Huntington Hotel Group, Hospitality Management Corp

Food Processors – National Beef

Car Rental Agencies - Hertz

Long-Term Care – Kisco, Delta Healthcare, AccentCare

Commercial Laundries – American Linen Supply (ALSCO)

Staffing – TrueBlue, Inc., Joulé Staffing Services

Transportation – KKW Trucking

Manufacturers & Assemblers – Technicolor, Thor Industries

Retail & Distribution – U-Haul, Johnstone Supply, Weis Markets

Building Maintenance and Security – Levy Security, Pacific Building Care, American Building Maintenance

Oil & Gas – Precision Drilling, Diamond Offshore

Construction-Jaynes Corp, CLP Resources, Eplica Corp Cajun Industries

Sample Industries Served By American Tescor

Confidential


Electronic delivery systems
Electronic Delivery Systems English & Spanish.

Tescor on the Internet

All Tescor systems provide instant results.

Confidential


Internet hr magnet sample results
Internet: HR Magnet English & Spanish.Sample Results

Confidential


Confidential English & Spanish.


Tescor scales

Tescor Scales English & Spanish.


Theft scale

Sample Question: English & Spanish.

Excluding minor office supplies (pads, pens, etc.), what would you guess is the value of things you have secretly taken from work in the past 2 years?

A. None

B. $5 - $25

C. $26 - $500

D. $501 or more

Serious and recent theft only.

Excludes all amounts below $5.

Theft Scale

Confidential


Drug and alcohol scale

Sample Question: English & Spanish.

Excluding pills you got from a doctor (prescriptions), which of the following drugs do you use?

A. Cocaine, Coke, Snow, Crack

B. LSD, Acid, Mescaline, Peyote

C. Heroin, Opium

D. None

Only “current use” drug inquiries.

Only job-related alcohol inquiries.

Drug and Alcohol Scale

Confidential


Hostility violence scale

Sample Question English & Spanish.:

Suppose you were insulted. Would you hit the person who insulted you?

A. Definitely would not

B. Probably would not

C. Probably would

D. Definitely would

Hostile individuals often interview well.

Hostility often comes out in hidden ways.

99% of all applicants pass this scale.

Hostility/Violence Scale

Confidential


Faking scale

Sample Question: English & Spanish.

Since age 16, how often have you told a lie?

A. Frequently

B. Occasionally

C. Rarely

D. Never

More than 90% of all applicants pass this scale.

Faking Scale

Confidential


The science behind tescor

Individuals engaging in aberrant behaviors tend to rationalize their behaviors as normal. Otherwise, they suffer from “cognitive dissonance,” an anxiety provoking state where one’s behaviors are in conflict with their values.

The Science Behind Tescor

Confidential


Scoring the tescor survey

An individual who scores HIGH in any risk category (Theft, Drugs, Faking and/or Hostility) is considered a NONQUALIFIED applicant.

Scoring the Tescor Survey

Confidential


Validation Research Drugs, Faking and/or Hostility) is considered a NONQUALIFIED applicant.National Sample - 1,152,358 Applicants


Overall risk
Overall Risk Drugs, Faking and/or Hostility) is considered a NONQUALIFIED applicant.

Confidential


Passing rates for theft scale
Passing Rates for Drugs, Faking and/or Hostility) is considered a NONQUALIFIED applicant.Theft Scale

Confidential


Passing rates for drug scale
Passing Rates for Drugs, Faking and/or Hostility) is considered a NONQUALIFIED applicant.Drug Scale

Confidential


Passing rates for hostility scale
Passing Rates for Drugs, Faking and/or Hostility) is considered a NONQUALIFIED applicant.Hostility Scale

Confidential


Passing rates for faking scale
Passing Rates for Drugs, Faking and/or Hostility) is considered a NONQUALIFIED applicant.Faking Scale

Confidential


Theft behaviors
Theft Behaviors Drugs, Faking and/or Hostility) is considered a NONQUALIFIED applicant.

Confidential


Drug admissions
Drug Admissions Drugs, Faking and/or Hostility) is considered a NONQUALIFIED applicant.

Confidential


Drug and alcohol use
Drug and Alcohol Use Drugs, Faking and/or Hostility) is considered a NONQUALIFIED applicant.

Confidential


Comparing screening tools criminal background checks

Only convictions are reported. Drugs, Faking and/or Hostility) is considered a NONQUALIFIED applicant.

Limited in geographic scope – by county or state.

Not all states have statewide databases

There are 3,380 counties in U.S.

25 states have automated less than 60% of their felony convictions.

Most employee theft is never caught or reported.

Identity theft will not be caught.

Capture Rate: 6% Cost: $25 to $150.

Comparing Screening Tools Criminal Background Checks

Confidential


Comparing screening tools urinalysis limitations

Most drugs (except marijuana) clear a user’s system in less than 72 hours.

Web sites like “urineluck.com” sell clean powdered urine with 200% guarantee.

Subject to legal challenges through faulty lab work, sample mix-ups, or chain of custody.

Capture Rate: 5% Cost: $10 to $50

Comparing Screening ToolsUrinalysis Limitations

Confidential


False negative study midwest based staffing company

Study Background less than 72 hours.

This Midwest based staffing company primarily serves the light industrial sector. They conducted urinalysis screening on all applicants who passed the Tescor Survey. All those who passed the urinalysis were then subject to criminal background checks.

False Negative StudyMidwest Based Staffing Company

Confidential


False negative study midwest based staffing company1

Study Period: 24 months less than 72 hours.

25,003 Workers Screened by Tescor

19,901 Workers Passed Tescor

80% Tescor Passing Rate

Prior to implementing Tescor 5% Failed Urinalysis and

5% Failed for Adverse Background Check

After Implementing Tescor:

142 (.7%) Passed Tescor and Failed Urinalysis

59 (.3%) Passed Tescor and Failed Background Check

201 (1%) Total Tescor False Negatives

False Negative StudyMidwest Based Staffing Company

Confidential


The cost of high risk employees

Thirty-eight percent to 50% of all workers’ compensation claims are related to the abuse of alcohol or drugs in the workplace.

-U.S. Department of Labor

Drug-using employees are five times more likely to file a workers’ compensation claim.

-National Institute on Drug Abuse

Drug and alcohol abuse in the workplace cause 65% of on-the-job accidents.

-Department of Labor

The Cost of High Risk Employees

Confidential


The cost of high risk employees cont

Studies show that alcohol and other drug users use three times as many sick days.

-National Council on Alcoholism & Drug Dependence

Drug users are absent from work an average of five days per month due to drug use.

-U.S. Department of Labor

Substance abusers are 10 times more likely to steal from the company or from other employees.

-U.S. Department of Labor

The Cost of High Risk Employees Cont.

Confidential


The cost of high risk employees cont1

The U.S. Department of Commerce reported that the annual losses generated by poor hires, absenteeism, drug abuse and theft amount to $75 billion per year; and 30% of business failures are due to poor hiring practices.

The Cost of High Risk Employees Cont.

Confidential


Legal compliance
Legal Compliance losses generated by poor hires, absenteeism, drug abuse and theft amount to $75 billion per year; and 30% of business failures are due to poor hiring practices.

  • Tescor has been “litigation free” throughout 30+ year history.

  • Screening tools must be either validated or non-discriminatory – Tescor is both.

  • Federal and State guidelines require protected classes to pass at a rate that is 80% or better, compared to the relevant class.

Confidential


Passing rates of protected classes
Passing Rates of losses generated by poor hires, absenteeism, drug abuse and theft amount to $75 billion per year; and 30% of business failures are due to poor hiring practices. Protected Classes

By Race, Sex and Age

White

80% Rule

Non-White

Male

80% Rule

Female

Under 40

80% Rule

Over 40

Passing Rate (percent)

Confidential


Tescor’s losses generated by poor hires, absenteeism, drug abuse and theft amount to $75 billion per year; and 30% of business failures are due to poor hiring practices. Effects on

Workers’ Compensation


Common denominators in expensive comp claims
Common Denominators losses generated by poor hires, absenteeism, drug abuse and theft amount to $75 billion per year; and 30% of business failures are due to poor hiring practices.In Expensive Comp Claims

  • History of Absenteeism

  • History of Disciplinary Action

  • History of Prior Claims

  • History of Drug Abuse

Confidential


Cornell university findings

Screened employees are less likely to file a claim. losses generated by poor hires, absenteeism, drug abuse and theft amount to $75 billion per year; and 30% of business failures are due to poor hiring practices.

The screened employees’ average claim was smaller than the average claim filed by an unscreened employee.

The screened employees’ claim variance was smaller than the unscreened employees’ claim variance.

The average claim cost of all screened employees is less than average claim cost of all unscreened employees.

The screened employees are less likely to file large claims (i.e., > $2000) than unscreened employees.

Cornell University Findings

Confidential


Overall projected workers comp loss reduction
Overall Projected Workers’ losses generated by poor hires, absenteeism, drug abuse and theft amount to $75 billion per year; and 30% of business failures are due to poor hiring practices.Comp Loss Reduction

Confidential


The essence of business

“The first duty of business is to survive and the guiding principle of business economics is not the maximization of profit – it is the avoidance of loss.”

-Peter Drucker

The Essence of Business

Confidential


Hiring the right people

"In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.” - Warren Buffet

Hiring the Right People

Confidential


Tescor screening improves earnings safety productivity

Tescor Electronic Screening: qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.”

Highly Effective

Easy to Administer

Generates Very High ROIs

Tescor Screening Improves Earnings, Safety & Productivity

Confidential


Tescor’s qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.” integrity test is a highly effective tool in reducing the costs associated with employees’ high risk behaviors. After using the Tescor Survey for a two year period, we conducted a comp benchmarking study for our California operations. Our projected saving was more than $10,000,000 in direct cost alone and greater than a 20 to 1 ROI.Using Tescor’s screening on new job applicants allows us to hire a higher quality employee which also means less turnover, employee theft, and hostile incidents in the workplace.Chris BurgerDirector of OperationsPacesetter Personnel Services

Confidential


Workers compensation
Workers’ Compensation qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.”

The Tescor Group’s frequency was 47% lower.

The Tescor Group’s severity was 9% lower.

The combined savings was 52% on an Incurred basis.

Confidential


The cost of loss

On average INDIRECT costs outweigh the DIRECT costs qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.”

by a 4:1 ratio.

Direct Costs (Hard Costs)

Medical Treatment

Compensation

Legal Cost

Indirect Cost (Soft Costs from Cash)

Time for Completing Reports  Investigation Time

Loss of Productivity  Increased Work for Others

Missed Schedules  Loss of Worker

Seeking Medical Treatment  Cost of Replacement

Paid Time for Treatment

The Cost of Loss

Confidential


Workers compensation1
Workers’ Compensation qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.”

  • Closed Claim Study

    • Study Period 48 Months

Confidential


"The Tescor Experience" qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.”

The Jaynes Companies

  • Regional General Building Contractors

  • Five Companies – Six Area Offices

  • New Mexico

  • Colorado

  • Nevada

  • California

  • Texas, Arizona & Utah

  • Union & Non-Union Employees

  • Average 450 employees 2006 - 2010

  • Implemented Tescor January 2006


"The Tescor Experience" qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.”

Affected Applicants

Tescor currently administered to all new hire positions in all companies & locations

Tescor currently administered to rehired employees

Stage of Hiring Process

  • Tescor administered immediately after application completed


"The Tescor Experience" qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.”

Non-Qualified Results

  • 2006 @ 24.94% Non-Qualified Results

  • 2007 @ 23.12% Non-Qualified Results

  • 2008 @ 17.00% Non-Qualified Results

  • 2009 @ 18.75% Non-Qualified Results

  • 2010 @ 18.29% Non-Qualified Results


"The Tescor Experience" qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.”

Failure Category Results

2006 - 2010

  • Theft Scale @ 11%

  • Drugs Scale @ 8%

  • Faking Scale @ 5%

  • Hostility Scale @ 0%


"The Tescor Experience" qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.”

OSHA Recordable Incident Rates

Days Away, Restricted, Transfer (DART)

  • 2006 @ 5.58

  • 2007 @ 3.89

  • 2008 @ 4.43

  • 2009 @ 1.87

  • 2010 @ 1.46


"The Tescor Experience" qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.”

OSHA Recordable Incident Rates

Total OSHA Recordables

  • 2006 @ 7.85

  • 2007 @ 5.33

  • 2008 @ 6.36

  • 2009 @ 3.12

  • 2010 @ 2.62


"The Tescor Experience" qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.”

Workers’ Comp Costs

  • 2006 @ $0.37 / Man-hour

  • 2007 @ $0.05 / Man-hour

  • 2008 @ $0.26 / Man-hour

  • 2009 @ $0.15 / Man-hour

  • 2010 @ $0.13 / Man-hour


"The Tescor Experience" qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.”

Attorney Representation

2006 - 2010

  • Non-Tescored Injured Employees

  • 4 out of 90 = 4.44%

  • Tescored Injured Employees

  • 1 out of 94 = 1.06%


Questions answers

Questions & Answers qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.”

Si Lamm, CPCU, Managing Director

Phone: 503.697.6551

[email protected]

www.americantescor.com

American Tescor LLC, a division of Merchants Information Solutions, Inc.


ad