• Turnover is decreased, since people are successful and satisfied on the job.
•  Initial training and development expenditures are decreased.
• Management can devote time to making good employees better rather than focusing the majority of their time on a few subpar employees.
• Organizations will have a larger proportion of high-producing employees.

Yet management often does not realize the importance of employee selection.  Organizations seldom have organized, thoughtful selection systems to fill positions.  They use methods or instruments that are inappropriate, misleading or ineffective.  Managers do not spend enough time making selection decisions, yet they will spend a great deal of time with an employee correcting mistakes and working out problems.  If a small amount of that time had been spent in better selection managers could spend their time in the areas that have a higher impact on the organization. 

In addition to the obvious financial rewards from improved employee selection, there is another compelling reason why managers should be concerned…the Equal Employment Opportunity Commission.  The federal government and many state and local governments have focused on selection decisions as the primary culprit in creating discriminatory differences in job level and pay.  Even organizations that have won discrimination cases have found the victory very expensive.  In addition to legal fees organizations charged with EEOC violations have spent large sums of money putting together documentation required for the court cases.  With the Civil Rights Act of 1991 allowing jury trials the stakes have gotten much greater.  Clearly, compliance with EEOC regulations produces an economic as well as a social good.