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Can Pre-employment Tests Identify White-collar Criminals and Reduce Fraud Risk in Your Organization?
Sat, March 5, 1:45 to 3:15pm, Crowne Plaza Charlotte Executive Park Charlotte, North Carolina, TBAAbstract
ABSTRACT
Can Pre-employment Tests Identify White-collar Criminals and Reduce Fraud Risk in Your Organization?
Organizations use pre-employment tests to identify individuals characterized as having a propensity (likelihood) to commit theft with the intent to limit at-risk hires, thereby reducing the risk of fraud. This study empirically examined the efficacy of pre-employment tests to elicit a predictive profile of white-collar crime by testing the relationship between deviant behaviors, personality traits, and integrity.
The data for this study was obtained through questionnaires and pre-employment tests administered within the Federal prison system. The total sample consisted of twenty (N=20) convicted white-collar inmates. Results of this sample were compared to the general population statistics as provided by the pre-employment test providers.
In line with the literature, positive relationships were found between low integrity and deviant behaviors. Contrary to past literature, no significant relationships were found between Agreeableness and Integrity or Emotional Stability/Neuroticism and Integrity. A positive relationship was found between high Conscientiousness and Integrity. Of particular note, this study found the rate which these tests failed to identifying individuals with predictive profiles of deviant behaviors including theft, was 45% for overt-integrity tests and 100% for personality tests.
This study contributes to the existing literature on personality, integrity, and deviant behaviors by providing insights into the nature of the relationships as they relate to white-collar crime. This study also specifies practical implications to be considered by management and pre-employment test providers for the purpose of enhancing fraud prevention and reducing deviant behaviors within the organization.