A cautionary note on the effects of range restriction on predictor intercorrelations

• Main Authors: SACKETT, Paul R., LIEVENS, Filip, BERRY, Christopher M., LANDERS, Richard N.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2007
• Subjects: Range restriction; predictor intercorrelations; ability; interview; meta-analysis; Human Resources Management; Organizational Behavior and Theory
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5694; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6693/viewcontent/irr.pdf
• Institution: Singapore Management University

The purpose of this research report is to highlight a unique set of issues that arise when considering the effects of range restriction in the context of estimating predictor intercorrelations. Three approaches are used to illustrate the issue: simulation, a concrete applied example, and a reanalysis of a meta-analysis of ability-interview correlations. The general conclusion is that a predictor intercorrelation can differ dramatically from the population value when both predictors are used in a composite that is used operationally for selection. The compensatory nature of a composite means that low scorers on one predictor can only obtain high scores on the composite if they obtain very high scores on the other predictor; this phenomenon distorts the correlation between the predictors.