The Utility of Personnel Selection Decisions

Abstract

Abstract. Compensatory selection is generally more reliable than multiple-hurdle selection. Yet, practitioners may lean toward multiple-hurdle models, because administering an entire predictor battery to every applicant can be time-consuming, labor-intensive, and costly. Using Monte Carlo simulation, we considered some specific cases to illustrate, in terms of selection utility and the cost-reliability tradeoff between compensatory and multiple-hurdle selection models. Results showed that compensatory model selection produced a higher level of expected criterion performance in the selected applicant subgroup, and a higher overall selection utility in most conditions. The simulation provides researchers and practitioners with a practical illustration of the tradeoff between reliable (compensatory) versus cost-efficient (multiple-hurdle) selection models – one that can inspire the exploration of other scenarios and tradeoffs.