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Context
Your organisation receives an offer from an external recruitment company. You are asked to evaluate this offer. The description of the offer can be found below:
"Service providers often recruit a large number of people over a short period of time, a practice known as high-volume recruitment. High-volume recruitment is challenging because decisions have to be made for many people, under tight time constraints, and under uncertainty. Our approach does not require knowledge about the cost of evaluating candidates and the utility of selecting candidates; hence, it is easier to implement in practice. To do that, we propose a data-driven approach that can be used to streamline the recruitment process and aid decision making. The recruitment process consists of two stages: screening and interview. All candidates are evaluated in the screening stage, but only those with sufficiently high screening scores are short-listed for an interview. After the interview stage, offers are made based on the screening and interview scores. We define the error rate as the probability that a candidate who is rejected during either stage might have had a higher job performance than the median job performance of the candidates recruited had he or she been accepted. To do , we use modelling and regressions."
Question
What are the risks of this approach? Discuss your answer, integrating the point of view of the organisation, of the applicants and of the current employees, and highlight the potential ethical issues
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