1. What is Adverse Impact Ratio?

The Adverse Impact Ratio (AI Ratio) compares the selection or termination rates between minority and majority groups. It's a key metric in employment discrimination analysis, particularly for identifying potential disparate impact in termination decisions.

2. How Does the Calculator Work?

The calculator uses the Adverse Impact Ratio formula:

Where:

• Termination Rate Minority — Percentage of minority employees terminated
• Termination Rate Majority — Percentage of majority employees terminated

Interpretation: An AI Ratio below 0.8 (or 80%) typically indicates adverse impact, suggesting the minority group is being terminated at a significantly higher rate than the majority group.

3. Importance of AI Ratio Calculation

Details: Calculating the AI Ratio helps organizations identify potential discrimination in termination practices, comply with equal employment opportunity regulations, and maintain fair workplace practices.

4. Using the Calculator

Tips: Enter both termination rates as percentages (e.g., 5.25 for 5.25%). The calculator will compute the ratio between the two rates.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a problematic AI Ratio?
A: Generally, ratios below 0.8 (80%) are considered evidence of adverse impact, though context matters.

Q2: Does a low AI Ratio prove discrimination?
A: No, it only indicates potential adverse impact. Further investigation is needed to determine causes.

Q3: What sample sizes are needed for reliable analysis?
A: Larger samples (typically 30+ in each group) provide more reliable results. Small samples may show misleading ratios.

Q4: Should other factors be considered?
A: Yes, legitimate business factors (performance, qualifications) may explain differences in termination rates.

Q5: How often should this analysis be conducted?
A: Regular monitoring (e.g., annually) is recommended to identify and address potential issues early.