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The diversity-validity dilemma is one of the enduring challenges in personnel selection. Technological advances and new techniques for analyzing data within the fields of machine learning and industrial organizational psychology, however, are opening up innovative ways of addressing this dilemma. Given these rapid advances, we first present a framework unifying analytical methods commonly used in these two fields to reduce group differences. We then propose and demonstrate the effectiveness of two approaches for reducing group differences while maintaining validity, which are highly applicable to numerous big data scenarios: iterative predictor removal and multipenalty optimization. Iterative predictor removal is a technique where predictors are removed from the data set if they simultaneously contribute to higher group differences and lower predictive validity. Multipenalty optimization is a new analytical technique that models the diversity-validity trade-off by adding a group difference penalty to the model optimization. Both techniques were tested on a field sample of asynchronous video interviews. Although both techniques effectively decreased group differences while maintaining predictive validity, multipenalty optimization outperformed iterative predictor removal. Strengths and weaknesses of these two analytical techniques are also discussed along with future research directions. (PsycInfo Database Record (c) 2023 APA, all rights reserved).
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