Banding Selection Scores in Human Resource Management Decisions: Current Inaccuracies and the Effect of Conditional Standard Errors

Abstract

The personnel selection literature has recently included discussion of statistically based banding as a way to handle some differences in test scores when assessing job applicants. Banding uses classical test theory and an estimated standard error of measurement to create bands of individual scores, and these bands are treated as equivalent with respect to top-down selection. However, such banding operationally assumes that standard errors of measurement are homogeneous, whereas a focus on the top score logically and statistically implies the use of a conditional standard error. Other methods, such as item response theory and binomial error models, are therefore more appropriate for computing bands. Via example and analysis, the authors demonstrate that more accurately computed bands are substantially narrower under a variety of circumstances than currently computed bands. Bands as currently constructed will label an inaccurate excess of individuals as equivalent, particularly if the test is relatively easy.

New strategies for addressing the diversity–validity dilemma with big data.

“…Group-Agnostic. Two commonly used group-agnostic postmodeling techniques include cut scores (Cascio et al, 1988;Hoffman & Thornton, 1997) and banding (Bobko et al, 2005;Cascio et al, 1995). Cut scores take the predicted scores and transform them into a binary variable (e.g., pass/fail) used for decision-making, while banding involves grouping test scores into ranges and treating scores within a particular range as equivalent when making personnel decisions.…”

Personnel selection: A review of ways to maximize validity, diversity, and the applicant experience

“…Further, the most recent revision to the The Principles (2018) says very little about banding beyond that it generally will yield lower expected criterion outcomes and utility, but it may increase administrative ease, as well as diversity depending on how within‐band selections are made (p. 32). A few studies have examined formulaic issues with creating bands (e.g., Bobko et al., 2005; Gasperson et al., 2013). Interestingly, there has been little or no field research that directly examines the extent to which banding affects the criterion‐related validity of selection procedures.…”

Strategies for dealing with the diversity-validity dilemma in personnel selection: Where are we and where should we go?

“…For example, although banding seems to be effective in reducing adverse impact only when using racioethnic minority preferences to select or break ties within a band (Ployhart & Holtz, 2008), this approach is prohibited by law in the USA (Cascio, Jacobs, & Silva, 2010). Future research should investigate other methods than the classical test theory for computing bands, such as item response theory (see Bobko, Roth, & Nicewander, 2005).…”