Selection Under Scrutiny: Building a Valid Hiring Process at Cornerstone Health
A hospital's nursing test triggered a federal audit. Hiring is frozen. You need to redesign the process without losing what made it work.
Duration
90 min
Difficulty
Advanced
Stakeholders
4
Company Size
Large (500-5000)
Organizational Background
Cornerstone Health System operates four hospitals and 22 outpatient clinics across the mid-Atlantic region, employing 6,200 people. Three years ago, HR modernized its selection process with a cognitive ability test, a work sample simulation, and an unstructured panel interview. The cognitive test was purchased off-the-shelf and validated on a national normative sample. No local validation study was conducted. A recent adverse impact analysis by an outside consultant revealed a selection rate of 58% for white applicants vs. 34% for Black applicants - a 0.59 ratio, below the 0.80 threshold. The hospital's legal counsel has recommended ceasing use of the cognitive test pending a full review. The Head of Talent Acquisition has pushed back, arguing the test is 'the best predictor we have.' The CHRO needs a defensible path forward before the OFCCP audit begins in eight weeks.
Key Stakeholders
Learning Objectives
- Apply the 4/5ths rule and adverse impact analysis in a real selection context
- Evaluate the trade-offs between predictive validity and adverse impact in assessment selection
- Understand OFCCP compliance requirements and the legal framework for defensible selection
- Design a criterion-related validity study appropriate to the organizational context
- Advise on alternative assessment strategies that reduce adverse impact without sacrificing validity
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