Utility Formula

• Utility Formula – estimate the monetary savings to an organization
• Average tenure – average amount of time that employees in the position tend to stay with the company
• Test Validity – criterion validity coefficient
• Standard Deviation of performance in dollars – total salaries of current employees in the position in question should be averaged
• Mean standardized predictor score of selected applicants – obtained by the average score on the selection test for both applicants who are hired and the applicants who are not hired