1. What is Adverse Impact Ratio?

The Adverse Impact Ratio (AIR) is a statistical measure used in employment practices to identify potential discrimination. It calculates the ratio between the selection rates of minority and majority groups in hiring, promotion, or other employment decisions.

2. How Does the Calculator Work?

The calculator uses the Adverse Impact Ratio formula:

Where:

• \( \text{Minority Selection Rate} \) — Percentage of minority candidates selected
• \( \text{Majority Selection Rate} \) — Percentage of majority candidates selected

Interpretation:

• AIR ≥ 0.8: Generally indicates no adverse impact (Four-Fifths Rule)
• AIR < 0.8: Suggests potential adverse impact requiring further investigation
• AIR = 1.0: Perfect equity between groups

3. Importance of AIR Calculation

Details: AIR calculation is crucial for compliance with equal employment opportunity laws, identifying potential discrimination patterns, and ensuring fair hiring practices. It helps organizations monitor and improve their diversity and inclusion efforts.

4. Using the Calculator

Tips: Enter both minority and majority selection rates as percentages (0-100%). The calculator will compute the ratio and help you determine if adverse impact may be present according to the Four-Fifths Rule.

5. Frequently Asked Questions (FAQ)

Q1: What is the Four-Fifths Rule?
A: The Four-Fifths Rule (or 80% rule) is a guideline from the Equal Employment Opportunity Commission (EEOC) stating that a selection rate for any minority group that is less than 80% of the majority group's rate may indicate adverse impact.

Q2: When should AIR analysis be conducted?
A: AIR should be calculated regularly for hiring, promotion, and termination decisions, especially when making significant numbers of selections or when patterns suggest potential disparities.

Q3: What factors besides AIR should be considered?
A: Statistical significance, sample size, business necessity, and alternative selection procedures should all be considered alongside AIR for comprehensive analysis.

Q4: Can AIR be used for small sample sizes?
A: While AIR can be calculated for any sample size, results from small samples may not be statistically significant and should be interpreted with caution.

Q5: What actions should be taken if AIR indicates adverse impact?
A: Organizations should investigate the causes, review selection criteria for job-relatedness, consider alternative procedures, and document the business necessity of any practices causing disparity.