Abstract: | Selection utility models have been developed over a number of decades and in recent years a standard terminology has been developed for evaluating the financial outcome of selection procedures. The aim of the present study is to analyse some of the features of the basic models and to show that they can be formulated in ways which will identify economic break-even points and clarify decision-making for HR professionals. It is shown that the standard deviation of monetary job performance and length of expected employment are much more sensitive variables than selection ratios and validity coefficients and that this is especially the case when length of employment is a function of test validity. |