personnelSelectionUtility

personnelSelectionUtility systematizes classical and contemporary utility-analysis methods for personnel selection under consistent notation, organised by criterion scale (classification or continuous/monetary) and selection structure (compensatory or multiple-hurdle).

The package implements Taylor-Russell univariate and Thomas-Owen-Gunst multivariate classification models, Brogden-Cronbach-Gleser and Boudreau-style continuous and monetary utility, Schmidt-Hunter-Pearlman intervention utility, Sturman-style incremental validity for multiple predictors and multiple outcomes, the integrated Sturman comprehensive cascade, simulation tools for compensatory and staged multiple-hurdle systems, Pareto frontiers for validity-diversity trade-offs, AUC-to-effect-size conversions, and Monte Carlo uncertainty propagation.

Installation

# Stable installation from CRAN (when available)
install.packages("personnelSelectionUtility")

# Development installation
pak::pak("rgempp/personnelSelectionUtility")
# or
remotes::install_github("rgempp/personnelSelectionUtility", build_vignettes = TRUE)

Argument naming convention

The package uses readable R argument names while preserving the notation used in the utility-analysis literature.

library(personnelSelectionUtility)
argument_glossary()

Key conventions:

base_rate = BR or phi: population proportion successful before selection.

selection_ratio = SR: proportion selected by one cutoff or composite.

selection_ratios = vector of marginal SRs for multiple predictors or stages.

joint_selection_ratio = overall conjunctive selection ratio under multiple cutoffs.

validity = r_xy; validities = vector of predictor-criterion correlations.

sdy = SD_y, the monetary or criterion-unit standard deviation of job performance.

baseline_validity = validity of the operating system used as comparator (Sturman, 2000, 2001).

n_applicants = number of applicants assessed; n_selected = number selected.

tenure = expected number of periods.

n_by_period, cost_by_period = preferred names in boudreau_utility() for time-varying parameters.

range_restriction_ratio = the literature’s u, the ratio of unrestricted to restricted predictor standard deviations.

Main model families

The package is organised around two decisions that should be made explicit before computing utility:

  1. Criterion scale: continuous/monetary versus dichotomised/classificatory.
  2. Selection structure: compensatory top-down composite versus conjunctive or staged multiple-hurdle cutoffs.
Criterion scale Compensatory selection Multiple-hurdle selection
Continuous / monetary bcg_utility(), boudreau_utility(), shp_utility(), restricted_canonical_validity(), sturman_comprehensive() multiple_hurdle_selection_staged(), compare_selection_systems_staged(), selection_utility_from_z()
Dichotomised / classificatory tr_classic(), tr_solve() tr_multivariate(), tr_multivariate_equal_cutoff(), group_tr_multivariate()

Examples

library(personnelSelectionUtility)

# Brogden-Cronbach-Gleser utility with an operating baseline
bcg_utility(
  validity          = .35,
  selection_ratio   = .20,
  sdy               = 50000,
  n_selected        = 100,
  tenure            = 3,
  cost              = 75000,
  baseline_validity = .20
)

# Taylor-Russell, univariate
tr_classic(base_rate = .50, selection_ratio = .20, validity = .35)

# Thomas-Owen-Gunst multivariate Taylor-Russell with specified marginal cutoffs
R <- matrix(c(
  1.00, .30, .40,
  .30, 1.00, .35,
  .40, .35, 1.00
), nrow = 3, byrow = TRUE)
tr_multivariate(selection_ratios = c(.50, .50), base_rate = .50, R = R)

# Thomas-Owen-Gunst equal-cutoff design indexed by a target joint selection ratio
R_tog <- matrix(c(
  1.00, .50, .70,
  .50, 1.00, .70,
  .70, .70, 1.00
), nrow = 3, byrow = TRUE)
tr_multivariate_equal_cutoff(joint_selection_ratio = .20, base_rate = .60, R = R_tog)

# AUC effect-size conversions for algorithmic or classificatory summaries
auc_to_rank_biserial(.75)
auc_to_d_equal_variance(.75)
auc_to_point_biserial(.75, base_rate = c(.50, .30, .20))

# Sturman (2001) integrated comprehensive utility model
S11 <- matrix(c(1, .30, .30, 1), 2, 2)
S12 <- matrix(c(.30, .10, .15, .25), 2, 2, byrow = TRUE)
S22 <- matrix(c(1, .40, .40, 1), 2, 2)

sturman_comprehensive(
  validity                       = .35,
  baseline_validity              = .20,
  selection_ratio                = .20,
  sdy                            = 50000,
  n_year_one                     = 100,
  tenure                         = 5,
  fixed_cost                     = 75000,
  hires_per_period               = c(100, 15, 15, 15, 15),
  losses_per_period              = c(0, 15, 15, 15, 15),
  tax_rate                       = .25,
  discount_rate                  = .08,
  predictor_cor                  = S11,
  predictor_criterion_cor        = S12,
  criterion_cor                  = S22,
  criterion_weights              = c(.7, .3),
  probation_cutoff_z             = -1,
  acceptance_rate                = .70,
  quality_acceptance_correlation = -0.20
)

References

Boudreau, J. W. (1991). Utility analysis for decisions in human resource management. In M. D. Dunnette & L. M. Hough (Eds.), Handbook of industrial and organizational psychology (Vol. 2, pp. 621-745). Consulting Psychologists Press.

Brogden, H. E. (1949). When testing pays off. Personnel Psychology, 2, 171-183.

Cronbach, L. J., & Gleser, G. C. (1965). Psychological tests and personnel decisions (2nd ed.). University of Illinois Press.

Hanley, J. A., & McNeil, B. J. (1982). The meaning and use of the area under a receiver operating characteristic (ROC) curve. Radiology, 143(1), 29-36.

Holling, H. (1998). Utility analysis of personnel selection: An overview and empirical study based on objective performance measures. Methods of Psychological Research Online, 3(1), 5-24.

Kerby, D. S. (2014). The simple difference formula: An approach to teaching nonparametric correlation. Comprehensive Psychology, 3, 11.IT.3.1.

Naylor, J. C., & Shine, L. C. (1965). A table for determining the increase in mean criterion score obtained by using a selection device. Journal of Industrial Psychology, 3, 33-42.

Ock, J., & Oswald, F. L. (2018). The utility of personnel selection decisions: Comparing compensatory and multiple-hurdle selection models. Journal of Personnel Psychology, 17(4), 172-182.

Rice, M. E., & Harris, G. T. (2005). Comparing effect sizes in follow-up studies: ROC area, Cohen’s d, and r. Law and Human Behavior, 29(5), 615-620.

Salgado, J. F. (2018). Transforming the area under the normal curve (AUC) into Cohen’s d, Pearson’s r_pb, odds-ratio, and natural log odds-ratio: Two conversion tables. The European Journal of Psychology Applied to Legal Context, 10(1), 35-47.

Schmidt, F. L., Hunter, J. E., McKenzie, R. C., & Muldrow, T. W. (1979). Impact of valid selection procedures on work-force productivity. Journal of Applied Psychology, 64, 609-626.

Sturman, M. C. (2000). Implications of utility analysis adjustments for estimates of human resource intervention value. Journal of Management, 26, 281-299.

Sturman, M. C. (2001). Utility analysis for multiple selection devices and multiple outcomes. Journal of Human Resource Costing and Accounting, 6(2), 9-28.

Taylor, H. C., & Russell, J. T. (1939). The relationship of validity coefficients to the practical effectiveness of tests in selection. Journal of Applied Psychology, 23, 565-578.

Thomas, J. G., Owen, D. B., & Gunst, R. F. (1977). Improving the use of educational tests as selection tools. Journal of Educational Statistics, 2(1), 55-77.