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- BUSINESS, Page 44Honestly, Can We Trust You?Barred from using polygraphs, employers seek an integrity test
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- Each year U.S. businesses lose as much as $40 billion to
- employees who steal. To protect their profit margins, many hard-hit
- companies have resorted to routine polygraph screening of workers
- and job applicants. But the scientific validity of these devices
- has never been proved, and the tests have sometimes caused harm to
- people who are falsely implicated. Such is the case of Shama
- Holleman, a college student who took a job in 1987 as a part-time
- cashier for Alexander's department-store chain in New York City.
- After a month as a model employee, she was fired because a
- polygraph test indicated that she might be a drug dealer and might
- have served a prison sentence. Neither was true. Holleman sued
- Alexander's, and they reached an out-of-court settlement.
-
- In response to incidents like this, Congress has banned
- employers' use of polygraph tests, voice-stress analysis and other
- electronic methods to screen current or prospective workers. The
- law, which went into effect Dec. 27, exempts government agencies
- and such workers as armored-car guards and employees who have
- access to restricted drugs.
-
- The prohibition is a huge setback for the polygraph industry,
- which is expected to lose about 85% of its $100 million in annual
- revenues. But the new law is a boon for firms that offer two other
- character tests: pencil-and-paper quizzes and graphology, or
- handwriting analysis. Says Eric Zorn, senior vice president of the
- Jamesway discount-store chain: "I'm very unhappy about the new law,
- but I'm thankful we can still use written tests."
-
- The honesty exams, which were given to 3.5 million job
- applicants last year at a cost of $5 to $15 each, can be
- surprisingly straightforward. A questionnaire published by Reid
- Psychological Systems of Chicago asks test takers to mark whether
- or not they recently "overcharged a customer for personal gain" or
- "took something from a store without paying for it." Many job
- applicants freely reveal their transgressions. "People put things
- on written tests they wouldn't tell their mothers," says Larry
- Audler, vice president of personnel for the New Orleans-based D.H.
- Holmes department-store chain.
-
- The written surveys usually include a few ringers (example: "Do
- you always tell the truth?") to determine whether a job seeker is
- being candid. No single answer brands a person as a liar or thief,
- but those who administer the test watch for ominous patterns.
- Observes Arthur Le Blanc, a California psychologist who helped
- screen new employees hired for the 1984 Olympic Games in Los
- Angeles: "If you score in a certain range, you're more likely to
- be dishonest."
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- For $100 to $500 per employee, handwriting analysts will assess
- at least 20 different cursive characteristics and advise the
- prospective employer about the chances of a person's being a future
- embezzler or goldbrick. Ruth Brayer, president of Graphological
- Services International of New York, sees signs of dishonesty in
- illegible handwriting and retraced lines. Brayer, who counts
- Citibank among her clients, also hears warning bells "when a
- signature looks different from the rest of a person's handwriting."
-
- Yet the exams and handwriting tests have a wide margin for
- error, which means that some people are inaccurately labeled as
- dishonest. James Walls, co-founder and executive vice president of
- Stanton Corp. in Charlotte, N.C., which sells 1 million written
- honesty tests a year, admits that his questionnaires are only 88%
- reliable. Employers should use a written test only to supplement
- interviews and background checks, Walls points out. Critics of the
- tests contend that many managers are lazy when it comes to hiring.
- "They want quick answers to the question `Will a person be honest?'
- " explains Jon Bauer, a law professor at the University of
- Connecticut. "Honesty tests have the look and feel of something
- scientific."
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- As pencil-and-paper tests proliferate, they could run into as
- much opposition as the electronic variety. Massachusetts has
- explicitly banned written character tests, and other states have
- laws that may curb their use. The House Education and Labor
- Committee has asked the Office of Technology Assessment to
- determine whether such tests are dependable gauges of integrity.
- "There's a tremendous disagreement about whether you can even
- measure honesty," says Wayne Camara, who develops testing standards
- for the American Psychological Association. But no one disputes
- that when honesty is lacking, the effect on business can be
- extremely expensive.