The Adverse Impact Calculator is a valuable tool that helps organizations assess potential disparities in their hiring processes. It is used to determine whether there is a significant difference in the selection rates between two groups: the majority group and the protected group.
Formula of Adverse Impact Calculator
To understand how the Adverse Impact Calculator works, let's break down the formula step by step:
Calculate the Selection Rate for the Majority Group: Selection Rate for Majority Group = (Number of Majority Group Applicants Selected / Total Number of Majority Group Applicants) × 100
Protected Group: Selection Rate for Protected Group = (Number of Protected Group Applicants Selected / Total Number of Protected Group Applicants) × 100
Calculate the Adverse Impact Ratio (AIR): AIR = Selection Rate for Protected Group / Selection Rate for Majority Group
Compare the Adverse Impact Ratio to the 80% Threshold:
- If AIR < 0.8, there is no adverse impact.
- If AIR ≥ 0.8, adverse impact may be occurring.
This formula allows organizations to quantitatively assess whether their hiring practices are inadvertently leading to disparities between different groups of applicants.
Utilizing General Terms and Conversions
To make the use of the Adverse Impact Calculator even more accessible, here is a table of general terms and conversions that people often find helpful:
| Term | Explanation |
|---|---|
| Majority Group | The larger group in a selection process. |
| Protected Group | A group protected by anti-discrimination laws. |
| Selection Rate | The percentage of applicants selected. |
| Adverse Impact Ratio (AIR) | A measure to assess potential discrimination. |
| 80% Threshold | The threshold for assessing adverse impact. |
Example of Adverse Impact Calculator
Let's illustrate the application of the Adverse Impact Calculator with a practical example:
Suppose a company receives 500 applications from the majority group and selects 100 of them. From the protected group, they receive 200 applications and select 40. Let's use the formula to calculate the Adverse Impact Ratio (AIR):
Selection Rate for Majority Group: Selection Rate for Majority Group = (100 / 500) × 100 = 20%
Selection Rate for Protected Group: Selection Rate for Protected Group = (40 / 200) × 100 = 20%
Adverse Impact Ratio (AIR): AIR = 20% / 20% = 1.0
In this example, the AIR is 1.0, which means there is no adverse impact since it's equal to the 80% threshold.
Most Common FAQs
The Adverse Impact Calculator is a tool used by organizations to assess potential disparities in their hiring processes and determine whether there is unintentional discrimination.
The AIR is calculated by dividing the Selection Rate for the Protected Group by the Selection Rate for the Majority Group. If AIR is less than 0.8, there is no adverse impact; if it's equal to or greater than 0.8, adverse impact may be occurring.
The 80% threshold is a commonly used benchmark to assess adverse impact. If the Adverse Impact Ratio (AIR) is less than 0.8, it suggests that the selection process does not discriminate significantly against any group.