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This paper discusses the roles of validity, cut score choice, and adverse impact on selection system utility using data from two concurrent validation studies. We contrast an assessment center and published aptitude test on several metrics, including validity, testing costs, adverse impact, and utility. The assessment center produced slightly lower validity than the aptitude test while costing roughly 10 times as much per candidate. In spite of these advantages for the aptitude test, the assessment center produced so much less adverse impact its operational utility would be higher given cut scores likely to be chosen in this organization. Potential concerns with applying net utility models to this type of situation are discussed in comparison to gross utility models.
Hoffman et al. (Sun,) studied this question.