Adverse Treatment/Impact : As an external I/O consultant, you are hired to asses

Question

Adverse Treatment/Impact: As an external I/O consultant, you are hired to assess an organization’s selection system with respect to adverse impact.  The HR manager said they recently offered jobs to a number of people to fill vacancies at several new locations. They have used the same hiring system for the past 10 years. She thought it was a good system but the data from their recent testing worries her. She provides you with the following data which includes whether the person belongs to the majority group or minority group and how many in each group were offered jobs:

Applied

Offered a Job

Majority group

300

100

Minority group

75

15

In your analysis provide the following:

Is there evidence of adverse treatment or adverse impact? Why or why not?

What does your analysis mean and what steps would you recommend the organization take at this point?

Applied

Offered a Job

Majority group

300

100

Minority group

75

15

Explanation / Answer

Percentage of Majority people offered a job = Number offered a job / Number applied = 100/300 = 0.333

Percentage of Minority people offered a job = Number offered a job / Number applied = 15/75 = 0.20

Adverse impact ratio (Percentage of fraction of Minority versus Majority people who were offered a job) = 0.20 / 0.333 = 0.6 or 60%  (this is less than 80%)

The adverse impact ratio is less than 80 % . Therefore, there is evidence of adverse impact.

Organization must take steps to ensure that the fraction of Minority versus Majority who were offered a job is atleast 80% and more. They need to adopt a more inclusive approach in their hiring practices.

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