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What is utility analysis in HR?

The short answer

Utility analysis translates the quality of a people decision into dollar terms: the Brogden-Cronbach-Gleser framework combines validity, the variability of job performance in dollars, selection ratio, and cost to estimate what a better hiring or training process is actually worth. It is decades old, well established in the selection literature, and almost never used in practice — which is why HR programs get defended with sentiment instead of value.

The problem underneath

HR programs are defended with sentiment instead of value estimates; utility analysis — decades old and well validated — translates selection validity and program effects into dollar terms leaders can weigh, yet almost no practitioner uses it.

The evidence

Every claim on this site traces to a graded source — see the proof graph.

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Related questions

utility analysisBrogden-Cronbach-Gleserselection validityHR ROIpeople analytics

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