is an attempt to determine the extent to which a selection system provides real benefit to the…

➤ Why does utility analysis matter for HR decisions?
Utility analysis matters because it translates psychometric results into business impact. It shows whether a test’s predictive validity justifies its costs by estimating reduced turnover, higher productivity, or lower training expenses. Leaders use it to prioritize selection tools, set hiring budgets, and defend decisions during audits or legal challenges.