Addressing the so-called validity–diversity trade-off: Exploring the practicalities and legal defensibility of Pareto-optimization for reducing adverse impact within personnel selection

It is necessary for personnel selection systems to be effective, fair, and legally appropriate. Sometimes these goals are complementary, whereas other times they conflict (leading to the so-called “validity-diversity dilemma”). In this practice forum, we trace the history and legality of proposed approaches for simultaneously maximizing job performance and diversity through personnel selection, leading to a review of a more recent method, the Pareto-optimization approach. We first describe the method at various levels of complexity and provide guidance (with examples) for implementing the technique in practice. Then, we review the potential points at which the method might be challenged legally and present defenses against those challenges. Finally, we conclude with practical tips for implementing Pareto-optimization within personnel selection.