Multistage selection strategies: simulating the effects on adverse impact and expected performance for various...

Area of Science:

• Industrial-Organizational Psychology
• Human Resource Management
• Quantitative Psychology

Background:

• Empirical research on the performance-adverse impact trade-off primarily focuses on single-stage selection.
• Multistage selection strategies, common in practice, lack sufficient research regarding this trade-off.

Purpose of the Study:

• To explore the trade-off between expected mean performance and minority hiring in multistage selection strategies.
• To identify multistage selection strategies that effectively balance performance and adverse impact.

Main Methods:

• Monte Carlo simulation was employed to model 43 distinct multistage selection strategies.
• Models incorporated variations in predictor validity, subgroup differences, and predictor intercorrelations.
• Analyses considered diverse net and stage-specific selection ratios.

Main Results:

• While performance often decreased with increased minority hiring, specific multistage strategies demonstrated superior management of this trade-off.
• Certain identified multistage strategies significantly outperform previously recommended approaches.
• The effectiveness of strategies varied depending on selection ratios and predictor characteristics.

Conclusions:

• Multistage selection systems can be designed to yield both high-performing and representative workforces.
• Specific multistage strategies offer practical advantages over existing recommendations for balancing performance and adverse impact.
• Further research into optimizing multistage selection is warranted for HR practitioners.