Termination for Cause and Job Tenure: The Contribution of a Pre-Employment Screening Inventory

Abstract

This study examined the rates of termination for cause among three groups of employees in a resort hotel environment. Comparative rates of termination for cause (e.g., falsification of information, failure to perform satisfactorily on the job) were obtained for 321 employees hired prior to the inclusion of a pre-employment inventory in the selection process, and 437 employees hired subsequently. The latter group was subdivided into 247 employees who were hired making use of scores on the inventory as part of the selection process, and 190 who were hired without scores on the inventory. Analyses indicated that in two consecutive years, the rates of termination for cause were the same for applicants hired without using the inventory (7.8% and 8.2%). In contrast, the rate of termination for cause was significantly less (5.3%) for the group who were hired making use of scores on the inventory. Corresponding results also were observed with respect to an over-all measure of job tenure. Some preliminary benefit-cost implications are discussed.