Pay dispersion has been found in prior research to negatively affect both individual and workplace performance. In this study, we examine whether the relationship between horizontal pay dispersion and firm financial performance is curvilinear in nature, with moderate levels of dispersion leading to more positive outcomes than either low or high levels. Using data from a government-sponsored survey of Korean firms, we find support for the hypothesized curvilinear relationship between pay dispersion and firm financial performance. We further find that this curvilinear relationship is moderated by firm and human resource system characteristics. Where the firm had more incumbents in the rank being examined, where pay level was higher, and where there was greater organizational investment in performance evaluation and feedback, the positive slope (within the curvilinear relationship) inverted at a higher level of dispersion.

Perspectives from 22 countries on aspects of the legal environment for selection are presented in this article. Issues addressed include (a) whether there are racial/ethnic/religious subgroups viewed as "disadvantaged," (b) whether research documents mean differences between groups on individual difference measures relevant to job performance, (c) whether there are laws prohibiting discrimination against specific groups, (d) the evidence required to make and refute a claim of discrimination, (e) the consequences of violation of the laws, (f) whether particular selection methods are limited or banned, (g) whether preferential treatment of members of disadvantaged groups is permitted, and (h) whether the practice of industrial and organizational psychology has been affected by the legal environment.

Perspectives from 22 countries on aspects of the legal environment for selection are presented in this article. Issues addressed include (a) whether there are racial/ethnic/religious subgroups viewed as “disadvantaged,” (b) whether research documents mean differences between groups on individual difference measures relevant to job performance, (c) whether there are laws prohibiting discrimination against specific groups, (d) the evidence required to make and refute a claim of discrimination, (e) the consequences of violation of the laws, (f) whether particular selection methods are limited or banned, (g) whether preferential treatment of members of disadvantaged groups is permitted, and (h) whether the practice of industrial and organizational psychology has been affected by the legal environment.

Increasingly, small and medium enterprises are outsourcing human resource (HR) activities to professional employer organizations (PEOs). The authors draw on social network theory, transaction cost economics, and social exchange theory to examine how PEO and client characteristics moderate the impact associated with outsourcing human capital-enhancing HR services. Results from a study suggest that using a PEO for human capital-enhancing services was positively related to HR outcomes and that this relationship was stronger when a weak-ties service delivery model was used, client receptivity was high, and the PEO contract was more detailed.

A common research problem in validation studies is the estimation of the population correlation between predictor X and performanceY from a non–randomly selected sample. Procedures for getting unbiased estimates of population correlations in a limited set of conditions in which no rejection of job offers is assumed have been developed. However, in applied selection settings, it is very likely that some of the candidates who have received job offers reject them through a selfselection process. If an estimation model based on the assumption that there is no rejection of job offers via self-selection is used, estimates of population parameters may be biased due to model misspecification. In the current study, a procedure is developed that is applicable to a variety of realistic validation settings, including a setting in which both institutional selection and applicant’s rejection of job offers are involved. Data requirements of the procedure are also discussed.

A common research problem is the estimation of the population correlation between x and y from an observed correlation rxy obtained from a sample that has been restricted because of some sample selection process. Methods of correcting sample correlations for range restriction in a limited set of conditions are well-known. An expanded classification scheme for range-restriction scenarios is developed that conceptualizes range-restriction scenarios from various combinations of the following facets: (a) the variable(s) on which selection occurs (x, y and/or a 3rd variable z), (b) whether unrestricted variances for the relevant variables are known, and (c) whether a 3rd variable, if involved, is measured or unmeasured. On the basis of these facets, the authors describe potential solutions for 11 different range-restriction scenarios and summarize research to date on these techniques.