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Comparing financial and social costs for top‐down versus fixed‐band selection: A practical application with bus drivers
Author(s) -
Sorenson Jessica B.,
Hausdorf Peter A.,
Risavy Stephen D.
Publication year - 2018
Publication title -
canadian journal of administrative sciences / revue canadienne des sciences de l'administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.347
H-Index - 48
eISSN - 1936-4490
pISSN - 0825-0383
DOI - 10.1002/cjas.1425
Subject(s) - dilemma , diversity (politics) , context (archaeology) , selection (genetic algorithm) , process (computing) , adverse selection , cognition , actuarial science , business , computer science , economics , psychology , mathematics , artificial intelligence , sociology , paleontology , neuroscience , geometry , anthropology , biology , operating system
A number of solutions have been proposed to the diversity‐validity dilemma arising from the use of cognitive ability tests in employment selection. Cognitive ability tests predict training and job performance but also produce adverse impact against minority groups. Although banding reduces adverse impact, it has been criticized for also reducing the utility of the selection process. We assessed the social and financial impact of a fixed band approach with top‐down hiring across several hiring scenarios with a pool of bus driver applicants. Overall, the fixed band approach reduced adverse impact without substantially reducing the cost effectiveness of the hiring process. We discuss the implications of these two approaches in the context of the diversity‐validity dilemma. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.