Preemployment Honesty Testing: Current Research and Future Directions

By John W. Jones | Go to book overview
Save to active project

4
Improving Corporate Profitability with Preemployment Integrity Tests

STEVEN H. WERNER, DENNIS S. JOY, AND JOHN W. JONES

It is widely acknowledged that internal employee theft is one of a number of factors contributing to inventory shrinkage, cash shortages, and, in some cases, business failure. Although accurate and reliable estimates of the typical amount of financial loss resulting from internal theft incurred by businesses are difficult to obtain, theft by employees, as well as other forms of workplace counterproductivity (e.g. on-the-job drug abuse, carelessness, violations of safe personnel practices), have had a significant impact on the profit-making structure of most major businesses today. This is an unacceptable fact given that U.S. corporations are struggling to regain a strong leadership role in the global economy. An estimate by the National Corrective Training Institute indicated the overall shrinkage losses for all segments of retailing were between $16 billion and $24 billion annually. Findings recently published by the Bureau of National Affairs have confirmed this earlier estimate: "A conservative estimate of the annual economic loss to U.S. business from employee theft ranges from $15 billion to $25 billion per year" ( Shepard & Duston, 1988).

Hollinger and Clark ( 1983) determined that the average base rate of employee theft in the retail sector was 42 percent of workers. These findings are consistent with even more recent research conducted by Hefter ( 1986) that suggests that one in three employees steals at work. Research conducted by Slora ( 1988) indicates that theft in the fast food industry is significantly more prevelant than in other industries. Admittedly, no methods can accurately determine the share of total company loss due to internal theft, shoplifting, bookkeeping error, or

-53-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
Preemployment Honesty Testing: Current Research and Future Directions
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 262

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?