1. What is the Adverse Impact Ratio?

The Adverse Impact Ratio compares the service termination rates between minority and majority groups. It helps identify potential discrimination in employment or service termination decisions.

2. How Does the Calculator Work?

The calculator uses the Adverse Impact Ratio formula:

Where:

• Service Termination Minority — Percentage of minority group members whose service was terminated
• Service Termination Majority — Percentage of majority group members whose service was terminated

Interpretation: A ratio less than 0.8 (or 80%) may indicate adverse impact against the minority group.

3. Importance of Adverse Impact Analysis

Details: Adverse impact analysis is crucial for ensuring fair treatment in employment and service provision, helping organizations comply with equal opportunity regulations.

4. Using the Calculator

Tips: Enter termination percentages for both minority and majority groups. Values should be between 0 and 100.

5. Frequently Asked Questions (FAQ)

Q1: What constitutes a problematic ratio?
A: Generally, a ratio below 0.8 (80%) suggests potential adverse impact, though context matters.

Q2: Is this analysis legally required?
A: While not always required, it's considered a best practice for demonstrating compliance with equal opportunity laws.

Q3: What sample size is needed?
A: Larger samples provide more reliable results. Small samples may produce misleading ratios.

Q4: How often should this analysis be conducted?
A: Regular monitoring (e.g., annually) is recommended, especially after policy changes.

Q5: What if the ratio shows adverse impact?
A: Further investigation is needed to determine if there are legitimate, non-discriminatory reasons for the disparity.