ABSTRACT
Industrial and organizational (I-O) psychologists have played major roles in developing selection (or staffi ng) tools and implementing selection programs at every level for organizations of every size and in every industry, domestic and multinational. This chapter focuses on evaluating, monitoring, and managing the business value of employee selection. We begin by offering some general comments about the traditional model of employee selection, or staffi ng, its focus, and its components, with particular emphasis on selection as a dynamic organizational process and the rationale for evaluating the business value of employee selection. We then consider what managers know about employee selection, the different perspectives of I-O psychologists and managers, and what both groups should know about the value of employee selection. Following that discussion, we present a decision-based framework that illustrates the logic of employee selection, with particular emphasis on assessing the outcomes of selection efforts. Such outcomes may be expressed in qualitative or quantitative terms, and we illustrate both. We also illustrate the potential payoffs associated with valid selection programs over multiple cohorts and time periods, and the assessment of employee performance in economic terms. We conclude with a set of recommendations for managing and monitoring the business value of employee selection, including trade-offs among managerial concerns for “better, faster, cheaper, with less adverse impact.”
