Title: Presented by Si Lamm CPCU, Director of Sales slammmerchantsinfo'com 503'697'6551
1Presented by Si Lamm CPCU, Director of
Salesslamm_at_merchantsinfo.com503.697.6551
2Screening 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
3Background InformationAmerican Tescor, LLC
- Founded 1979 by Dr. Peter Bullard
- Headquarters Phoenix, Arizona
- Service Area North America
- Testing Volume 35,000 Applicants Weekly
4Benefits of Tescor Screening
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
5Tescors Electronic Behavioral Assessment
- 73 Questions About Theft, Drug Abuse, Violence
Lying. - Identifies Applicants with Entitlement
Mentality. - 5th Grade Reading Level. Takes 20 Minutes.
6Tescors Electronic Behavioral Assessment
- 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.
7Electronic Delivery Systems
Tescor Data Recorder
All Tescor systems provide instant results.
8Electronic Delivery Makes Administration Easy
- The Data Recorder
- Complete with TescorNet software.
- Instant scoring via modem link.
9Tescor Data RecorderSample Results
- Results received in under one minute.
- Identifies applicant by SSN.
- Scores applicant as either Qualified or
Non-Qualified.
10Electronic Delivery Systems
Tescor on the Internet
All Tescor systems provide instant results.
11Internet HR MagnetSample Results
12(No Transcript)
13The Tescor Scales
14Theft Scale
- Sample Question
- 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.
15Drug and Alcohol Scale
- Sample Question
- 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.
16Hostility/Violence Scale
- Sample Question
- 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.
17Faking Scale
- Sample Question
- 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.
18The 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
ones behaviors are in conflict with their
values.
19Scoring the Tescor Survey
- An individual who scores HIGH in any risk
category (Theft, Drugs, Faking and/or Hostility)
is considered a NON-QUALIFIED applicant.
20Validation ResearchNational Sample - 1,152,358
Applicants
21Overall Risk
22Passing Rates for Theft Scale
23Passing Rates for Drug Scale
24Passing Rates for Hostility Scale
25Passing Rates for Faking Scale
26Theft Behaviors
27Drug Admissions
28Drug and Alcohol Use
29Comparing Screening Tools Criminal Background
Checks
- Only convictions are reported.
- 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.
30Comparing Screening ToolsUrinalysis Limitations
- Most drugs (except marijuana) clear a users
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
31Comparing Drug Capture Rates
13
4.5
32Overall Capture Rates
33False Negative StudyMidwest Based Staffing
Company
- Study Background
- 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.
34False Negative StudyMidwest Based Staffing
Company
- Study Period 12/1/05 to 7/1/06
- 25,003 Workers Screened by Tescor
- 19,901 Workers Passed Tescor
- 80 Tescor Passing Rate
- 142 (.7) Passed Tescor and Failed Urinalysis
- 59 (.3) Passed Tescor and Failed Background
Check - 201 (1) Total Tescor False Negatives
35The 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
36The 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
37Legal Compliance
- 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. - Tescor has been litigation free throughout
29-year history.
Passing Rate (percent)
38Passing Rates of 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)
39 Tescor Scoring Options
- Standard 73 - 20 minutes passing rates 65-75
- Quick 73 shorter questions 14 minutes faking
scale isnt scored passing rates 80-85
40Tescors Effects On Workers Compensation
41Common Denominators In Expensive Comp Claims
- History of Absenteeism
- History of Disciplinary Action
- History of Prior Claims
- History of Drug Abuse
42Measuring Tescors Impact In Reducing Workers
Comp Losses
- Controlled Studies Cover Nearly 400,000 Workers
- Time Frame 1996 to 2006
- of Companies In Studies 12
- Average Claim Frequency Reduction 54
- Average Claim Severity Reduction 21
- Overall Average Loss Rate Reduction 63
43Comp Loss Reduction Among Tescor Screened
Workers
The severity reduction is based on all claims,
open and closed. When the analysis is based on
closed claims only, the severity reduction is
significantly higher.
44Workers Comp Analysis Hospitality Industry
3/15/03 2/29/04
Tescor Screened Employees vs. Unscreened Employees
Projected Savings from Tescor Screening on New
Hires Only
45Workers Comp Analysis 3/15/03 2/29/04
The Tescor Group's frequency was 51
lower. The Tescor Group's severity was 50
lower. The combined savings was 75 on an
Incurred basis.
46Workers Compensation
Closed Claim Study Southern California Employer
2003 - 2007
47Cornell University Schoolof Hotel
Administrations Findings
- Screened employees are less likely to file a
claim. - 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., gt 2000) than unscreened
employees.
48Overall Projected Workers Comp Loss Reduction
49Short Term Disability (STD) Studies Year 2000
In the first 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.
50Sample Industries Served By American Tescor
- Hospitality Good Times Restaurants 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., and Joulé Staffing
Services - Transportation Goldenstate Overnight
- Manufacturers Assemblers Technicolor, Thor
Industries - Retail Distribution U-Haul, Johnstone Supply,
Weis Markets - Building Maintenance and Security Levy
Security, American Building Maintenance - Oil Gas Grey Wolf Drilling, Diamond Offshore
- Construction-Jaynes Corp, CLP Resources, Eplica
Corp.
51Tescor Screening Improves Earnings, Safety
Productivity
- Tescor Electronic Screening
- Highly Effective
- Easy to Administer
- Generates Very High ROIs
52American Tescor, LLCA Division of Merchants
Information Solutions
Hire Your Way to Higher Earnings Through
Pre-employment Screening
- For further information contactSi Lamm,
503.697.6551SLamm_at_MerchantsInfo.com