1. What is Adverse Impact Ratio?

The Adverse Impact Ratio (IR) compares the selection rates between minority and majority groups in hiring or promotion decisions. It's a key metric in employment discrimination analysis and equal opportunity compliance.

2. How Does the Calculator Work?

The calculator uses the Adverse Impact Ratio formula:

Where:

• \( Selection\ Rate\ Minority \) — Selection rate for the protected group (decimal)
• \( Selection\ Rate\ Majority \) — Selection rate for the majority group (decimal)

Interpretation: An IR below 0.8 (the "four-fifths rule") may indicate potential adverse impact requiring further investigation.

3. Importance of Adverse Impact Analysis

Details: Regular adverse impact analysis helps organizations ensure fair employment practices, comply with equal opportunity laws, and identify potential biases in selection processes.

4. Using the Calculator

Tips: Enter selection rates as decimals between 0 and 1 (e.g., 0.25 for 25%). Both values must be greater than 0.

5. Frequently Asked Questions (FAQ)

Q1: What is the four-fifths rule?
A: A rule of thumb suggesting adverse impact may exist if the selection rate for a protected group is less than 80% of the majority group's rate.

Q2: Is the four-fifths rule legally binding?
A: No, it's a guideline from the Uniform Guidelines on Employee Selection Procedures, but courts often consider it in discrimination cases.

Q3: What statistical tests complement the IR?
A: Statistical significance tests (e.g., chi-square, Fisher's exact test) help determine if observed differences are likely due to chance.

Q4: How are selection rates calculated?
A: Selection rate = (Number selected / Number applicants) for each group.

Q5: What factors should be considered with IR results?
A: Sample sizes, job-relatedness of selection criteria, and alternative explanations for the disparity should all be examined.