In your own words, explain the meaning of the concept of SDy and why it’s important for HR Analytics. What did you find when you used the CREPID method to estimate the overall economic value of Jim Hill’s job performance in the exercise? What are the pros and cons of this method compared to Global Estimation?
SDy is a concept that describes the variations of performance between employees. It is important because it gives an organization a monetary value on the variation based on its employee performance. Using the CREPID method, it is estimated that Jim is undervalued for his job performance. Using CREPID can have its pros and cons, the cons is that it is more time-consuming because you are calculating each individually. Whereas, Global Estimation already calculates the SDy based on the percentile. The pros
of using Global Estimation cancel out any bias and random errors of each single individual.
