Predictor Validity and Selection Ratio
Two major factors determine the quality of newly hired employees, predictor validity and selection ratio. The predictor cutoff is a test score differentiating those passing a selection measure from those who did not. People above this score are hired or are further considered while those below it are not.
The selection ratio (SR), on the other hand is the number of job openings n divided by the number of job applicants N. This value will range between 0 and 1, reflecting the selectivity of the organization's hiring practices. When the SR is equal to 1 or greater, the use of any selection device has little meaning, but this is not often the case as there are usually more applicants than job openings. Finally, the base rate is defined by the percentage of employees thought to be performing their jobs satisfactorily following measurement.
Read more about this topic: Personnel Selection
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