HR Adverse Impact Calculator

Adverse Impact Formula:

\[ \text{Impact Ratio} = \left( \frac{\text{Minority Rate}}{\text{Majority Rate}} \right) \times 100 \]

80% rule for adverse impact if <80%

Minority Selected:

persons

Minority Total Applicants:

persons

Majority Selected:

persons

Majority Total Applicants:

persons

Impact Ratio:

Minority Rate:

Majority Rate:

Adverse Impact:

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1. What is HR Adverse Impact Calculator?

The HR Adverse Impact Calculator determines whether employment practices have a disproportionately negative effect on protected groups using the 80% rule (Four-Fifths Rule) established by the Equal Employment Opportunity Commission (EEOC).

2. How Does the Calculator Work?

The calculator uses the adverse impact formula:

\[ \text{Impact Ratio} = \left( \frac{\text{Minority Selection Rate}}{\text{Majority Selection Rate}} \right) \times 100 \]

Where:

Minority Selection Rate = (Minority Selected ÷ Minority Total Applicants) × 100
Majority Selection Rate = (Majority Selected ÷ Majority Total Applicants) × 100
Impact Ratio = (Minority Rate ÷ Majority Rate) × 100

Interpretation: If the Impact Ratio is less than 80%, adverse impact is indicated according to the EEOC's Four-Fifths Rule.

3. Importance of Adverse Impact Analysis

Details: Adverse impact analysis helps organizations identify potentially discriminatory employment practices, ensure compliance with equal employment opportunity laws, and promote fair hiring and promotion processes.

4. Using the Calculator

Tips: Enter the number of selected and total applicants for both minority and majority groups. Ensure all values are positive integers and selection numbers do not exceed total applicants.

5. Frequently Asked Questions (FAQ)

Q1: What is the 80% rule?
A: The 80% rule (Four-Fifths Rule) states that adverse impact exists if the selection rate for any protected group is less than 80% of the selection rate for the group with the highest rate.

Q2: What constitutes adverse impact?
A: Adverse impact occurs when employment practices appear neutral but have disproportionate negative effects on protected groups (race, gender, age, etc.).

Q3: Is adverse impact illegal?
A: Adverse impact itself isn't automatically illegal, but it requires employers to demonstrate that the practice is job-related and consistent with business necessity.

Q4: What should I do if adverse impact is detected?
A: Review the employment practice for job-relatedness, consider alternative practices with less adverse impact, and document the business necessity justification.

Q5: Are there statistical tests beyond the 80% rule?
A: Yes, statistical significance tests (chi-square, Fisher's exact test) and practical significance measures may provide additional insights beyond the 80% rule.