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What Are the Legal Issues Associated with Integrity Testing?

Recent research conducted by Gallup and the Better Business Bureau on the dramatic loss of consumer trust in business underscores an important truth: Customers value integrity in companies and their salespeople more than ever.

Integrity testing is one effective method managers can use to help ensure that the sales candidates they hire have high levels of integrity. While integrity testing has been used in workplace environments for years, some managers have legal concerns associated with the use of these types of pre-employment assessments.

For decades, the polygraph was the primary screening method companies used to determine which candidates possessed high integrity. In 1988, the Employee Polygraph Protection Act prohibited employers from using a pre-employment polygraph to screen applicants. Companies then turned to written integrity tests as a means to screen applicants.

Although integrity testing is not federally regulated, a few states have restricted the use of integrity testing under anti-polygraph statutes. For example, Rhode Island does not ban integrity tests, but enacted a statute that such tests may not constitute the "primary basis" of an employment decision. Massachusetts forbids the use of any written technique that provides a diagnostic opinion of honesty, a statute that effectively prohibits integrity tests.

Research conducted by Terpstra, Mohamed, and Bryan (1999) supports the legality of integrity testing if it is used as one component in a structured interview process and not the sole determinant of whether to hire an applicant. The study reviewed 158 US federal court cases involving hiring discrimination and reported that the "unstructured interview"
was the most frequently challenged selection methodology. The structured interview method survived 100% of the legal challenges against it, while the unstructured interview method withstood only 59% of challenges.

News

• Register today for Pat's upcoming session on "Best Practices in Loan Officer Recruiting and Sales Training" at the 2012 Regional Conference of MBAs in Atlantic City, N.J. on March 15, 2012. Get the details here.

• Did you miss Pat's session at the National MBA Conference on the Best Practices in Sales Training and Retention of Top Producers? View the key presentation points (PDF) here.

• With Mortgage Sales Playbook on the Go, our newest product, you can access state-of-the-art sales training on your mobile phone. Contact sales@qfsconsulting.com.

• Pat's latest article, "Walking the Walk: Three Keys to Sales Success in Origination," appears in the May 2011 issue of MBA magazine. View a copy here (PDF)

• J.D. Power ranked three of our clients in the Top 6 in customer satisfaction in 2011. Read More

• Listen to Pat discuss how to improve the sales performance of current Los from this webinar.


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