Impact Ratio Calculation

Impact Ratio Formula:

\[ IR = \frac{\text{Minority Rate}}{\text{Majority Rate}} \]

Impact Ratio (IR):

EEOC Compliance Status:

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1. What is Impact Ratio?

The Impact Ratio (IR) is a statistical measure used in employment equity analysis to identify potential adverse impact in hiring, promotion, or other employment decisions. It compares the selection rates of protected groups to majority groups.

2. How Does the Calculator Work?

The calculator uses the Impact Ratio formula:

\[ IR = \frac{\text{Minority Rate}}{\text{Majority Rate}} \]

Where:

\( IR \) — Impact Ratio (unitless)
\( \text{Minority Rate} \) — Percentage selected from protected group (%)
\( \text{Majority Rate} \) — Percentage selected from overall group (%)

EEOC Guidelines: An IR below 0.8 indicates potential adverse impact according to Equal Employment Opportunity Commission standards.

3. Importance of Impact Ratio Calculation

Details: Impact Ratio analysis helps organizations ensure fair employment practices, identify potential discrimination, and maintain compliance with equal opportunity regulations.

4. Using the Calculator

Tips: Enter minority rate and majority rate as percentages (0-100%). Both values must be valid positive numbers, with majority rate greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What constitutes adverse impact per EEOC?
A: An Impact Ratio below 0.8 is generally considered evidence of adverse impact, indicating the selection rate for the protected group is less than 80% of the majority group's rate.

Q2: What are typical Impact Ratio values?
A: Values range from 0 to positive numbers. Values ≥0.8 are generally acceptable, while values <0.8 may require further investigation and justification.

Q3: When should Impact Ratio analysis be conducted?
A: Regularly for hiring, promotion, termination decisions, and whenever employment practices are reviewed for compliance.

Q4: Are there limitations to Impact Ratio analysis?
A: It doesn't prove discrimination but identifies patterns requiring investigation. Small sample sizes can affect reliability.

Q5: What actions should be taken if IR < 0.8?
A: Investigate the reasons, review selection criteria for job-relatedness, and consider implementing corrective measures if unjustified disparities exist.