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Cutoff scores that maximize the total utility of a selection program: Comment on Martin and Raju's (1992) procedure

Law, Kenneth S., Myors, Brett

Journal of Applied Psychology · 1993 · Volume 78 · Issue 5

DOI: 10.1037/0021-9010.78.5.736

Abstract

S. L. Martin and N. S. Raju (see record 1992-18379-001 ) proposed a procedure for setting the cutoff score that maximized the total utility of a selection program by including a continuous function of recruiting costs. In the present article, the authors comment on some limitations of Martin and Raju's approach and suggest a modified procedure that uses a step recruitment-cost function. The modified procedure has the flexibility of allowing variable combinations of recruiting sources in any order to maximize total dollar utility of the selection program. It is also suggested that researchers should work toward the goals of finding the optimal combination of recruiting sources and of developing a confidence interval around the final estimate of the number of applicants based on the estimated variability of labor supply. A working example of the modified procedure is discussed. (PsycInfo Database Record (c) 2025 APA, all rights reserved)

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