1. What Is Adverse Impact Analysis?

Adverse impact analysis is a statistical method used to detect potential discrimination in employment practices. It examines whether selection rates for different demographic groups differ significantly, using the 80% rule as a standard threshold for identifying potential discrimination.

2. How Does The Calculator Work?

The calculator uses the adverse impact ratio formula:

Where:

• \( \text{Minority Selection Rate} = \frac{\text{Minority Selected}}{\text{Minority Applicants}} \times 100 \)
• \( \text{Majority Selection Rate} = \frac{\text{Majority Selected}}{\text{Majority Applicants}} \times 100 \)

80% Rule: If the adverse impact ratio is less than 0.8 (80%), it suggests potential adverse impact and requires further investigation.

3. Importance Of Adverse Impact Analysis

Details: Adverse impact analysis helps organizations identify potential discriminatory practices in hiring, promotion, and other employment decisions, ensuring compliance with equal employment opportunity laws and promoting workplace diversity.

4. Using The Calculator

Tips: Enter the number of selected individuals and total applicants for both minority and majority groups. Ensure all values are positive integers and applicant numbers are greater than zero for accurate calculations.

5. Frequently Asked Questions (FAQ)

Q1: What Is The 80% Rule?
A: The 80% rule (or four-fifths rule) is a guideline from the Equal Employment Opportunity Commission (EEOC) that identifies potential adverse impact when the selection rate for a protected group is less than 80% of the selection rate for the majority group.

Q2: What Constitutes Adverse Impact?
A: Adverse impact exists when employment practices appear neutral but have a disproportionate negative effect on protected groups, regardless of intent to discriminate.

Q3: When Should Adverse Impact Analysis Be Conducted?
A: It should be conducted regularly for hiring, promotion, termination, and compensation decisions to ensure compliance with anti-discrimination laws.

Q4: What If Adverse Impact Is Detected?
A: If adverse impact is detected, organizations should investigate the cause, validate the selection procedure, and consider alternative practices that achieve business needs without discriminatory effects.

Q5: Is Adverse Impact Analysis Legally Required?
A: While not always legally required, it is considered a best practice and may be necessary for compliance with EEOC guidelines and to defend against discrimination claims.