1. What is the Adverse Impact Ratio?

The Adverse Impact Ratio (IR) compares the layoff rates between minority and majority groups in healthcare organizations. It helps identify potential discrimination in workforce reduction decisions.

2. How Does the Calculator Work?

The calculator uses the Impact Ratio formula:

Where:

• \( Minority Layoff Rate \) — Percentage of minority employees laid off
• \( Majority Layoff Rate \) — Percentage of majority employees laid off

Interpretation: An IR of 1.0 indicates equal impact. Values above 1.0 suggest adverse impact on minorities, while values below 1.0 suggest adverse impact on the majority group.

3. Importance of Impact Ratio in Healthcare

Details: Monitoring adverse impact is crucial in healthcare to ensure equitable workforce practices and maintain diversity in patient care teams.

4. Using the Calculator

Tips: Enter both layoff rates as percentages. The calculator will compute the ratio, which can help assess potential discrimination in layoff decisions.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a problematic impact ratio?
A: Typically, an IR above 0.8 is considered acceptable, while ratios below this threshold may indicate adverse impact requiring further investigation.

Q2: How should layoff rates be calculated?
A: Layoff rate = (Number in group laid off / Total number in group) × 100. Calculate separately for minority and majority groups.

Q3: What groups should be compared?
A: Typically compares protected classes (race, gender, age) against non-protected classes, following EEOC guidelines.

Q4: Are there legal thresholds for adverse impact?
A: While no fixed legal threshold exists, the "four-fifths rule" (IR < 0.8) is commonly used as a benchmark for potential discrimination.

Q5: What other factors should be considered?
A: Consider job categories, performance metrics, and seniority to ensure layoffs were based on legitimate, non-discriminatory factors.