Cornell Study Finds High Return on Investment in Integrity Tests

2007-10-25
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  • Cornell Center For Hospitality Research Though integrity tests are rarely used in the hospitality industry, an analysis by two researchers at Cornell's Center for Hospitality Research finds that integrity tests can more than pay for themselves by identifying job candidates who have dangerous work habits.

    The report, 'The Truth About Integrity Tests: The Validity and Utility of Integrity Testing for the Hospitality Industry,' is available at no charge at http://hotelschool.cornell.edu/research/chr/pubs/reports/2007.html. For their analysis, Cornell associate professors Michael Sturman and David Sherwyn examined test results of a large United States-based hotel chain. Using workers' compensation claims as a financial measure, the researchers found that employees who passed the test screen filed about half as many compensation claims as unscreened workers. Because of the chain's size (over 27,000 employees), the cost savings were considerable. The data for the study were provided by American Tescor, LLC, a corporate friend of the center.

    'We understand that asking job applicants to take an integrity test will cost money,' said Sturman. 'This needs to be seen as an investment in your employees. In fact, we calculated a return on that investment of at least 130 percent. Furthermore, this return is only based on reducing workers' compensation claims, and we would expect additional benefit from reducing absenteeism, turnover, and employee theft, which the tests can also help screen out.'

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    Noting that use of the tests is within the scope of U.S. employment laws, Sturman and Sherwyn pointed out that the tests control for candidates who lie about their drug use or theft. However, they also note that test takers are 'remarkably candid' in their test answers.

    Meet and interact with Michael Sturman, an active member of the executive education faculty at the School of Hotel Administration, when he presents sessions in the General Managers Program http://www.hotelschool.cornell.edu/industry/executive/gmp/.

    Thanks to the support of the partners listed below, all Cornell Hospitality Reports and Tools are made available free of charge from the center's website, www.chr.cornell.edu.

    About the Center for Hospitality Research
    A unit of the Cornell School of Hotel Administration, The Center for Hospitality Research (CHR) sponsors research designed to improve practices in the hospitality industry. Under the lead of the center's 61 corporate affiliates, experienced scholars work closely with business executives to discover new insights into strategic, managerial and operating practices. The center also publishes the award-winning hospitality journal, the Cornell Hospitality Quarterly (formerly the Cornell Hotel and Restaurant Administration Quarterly). To learn more about center and its projects, visit www.chr.cornell.edu.

    Center partners and sponsors: AIG Global Real Estate Investment, American Airlines Admirals Club, Deloitte & Touche USA LLP, Denihan Hospitality Group, Expedia, Inc., Four Seasons Hotels and Resorts, HVS International, JohnsonDiversey, Inc., LRP Publications, Marriott International, Inc., Marsh's Hospitality Practice, Mobil Travel Guide, Nestlé, PricewaterhouseCoopers, Proskauer Rose LLP, Smith Travel Research, Southern Wine and Spirits of America, Inc., SynXis (a Sabre Holdings Corporation), Taj Hotels Resorts and Palaces, Thayer Group of Companies, Travelport, WATG, and WhiteSand Consulting.

    Center friends: 4Hoteliers.com • American Tescor, LLC • Caribbean Hotel and Restaurant Buyers Guide • Cody Kramer Imports • Cruise Industry News • DK Shifflet & Associates • ehotelier.com • Estrela Marketing Solutions • EyeforTravel • Fireman's Fund Insurance Company • Gerencia de Hoteles & Restaurantes • Global Hospitality Resources • Hospitality Financial and Technology Professionals (HFTP) • hospitalityInside.com • hospitalitynet.org • Hotel Asia Pacific • Hotel China • HotelExecutive.com • Hotel Interactive • Hotel Resource • International CHRIE • International Hotel and Restaurant Association • International Hotel Conference • iPerceptions • KPMG Japan/Global Management Directions • Lodging Hospitality • Lodging Magazine • MindFolio • PKF Hospitality Research • The Resort Trades • RealShare Hotel Investment & Finance Summit • RestaurantEdge.com • Shibata Publishing Co. • The Lodging Conference • TravelCLICK • UniFocus • WageWatch, Inc. • WIWIH.COM


    Logos, product and company names mentioned are the property of their respective owners.

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