A note on the economic utility of generalized validity coefficients in personnel selection.

This study compared economic utility estimates that were based on noninteractive, interactive, independent multiplicative, and Taylor Series Approximation (TSA) 1 and 2 validity generalization results for clerical selection procedures at a large international manufacturing company. On the basis of estimates of the mean true validity and lower bound 90% credibility value, magnitude and percentage differences in resulting utility estimates across validity generalization procedures were relatively small for almost all comparisons. Regardless of the specific validity generalization parameter estimate used in estimating a utility value, the change in economic utility, going from the organization's current selection procedure (i.e., a verbal ability test) to an alternative procedure, was sizable in most cases. These results clearly demonstrate the practical similarity in utility terms of alternative validity generalization procedure results as well as the sizable economic value of minimum-level generalized validity coefficients. (PsycINFO Database Record (c) 2010 APA, all rights reserved)