Economic gains refer to the monetary impact of using an assessment method on the
organization. In essence, economic gain is evaluated by examining the revenue generated
by hiring high-performing employees using an assessment versus the costs of using it. The
greater the ratio of revenues to costs, the higher the utility of the assessment. The actual
formulae used to assess economic gain are a bit more complicated than a simple comparison
of revenue and costs. They consider additional factors, such as the correlation between
the assessment and job performance, the number of applicants and the tenure of the
selected group, among others. More information on how to calculate economic gains can
be found in Heneman and Judge (2006). Suffice it to say, however, that if decision makers
can be shown the positive impacts of assessment methods in terms of their bottom line
hiring and economic gains, the value of the assessments is more obviously apparent.