1. What Is Negative Impact?

Negative Impact, also known as Disparate Impact Ratio, is a statistical measure used to assess potential discrimination in employment practices. It compares selection rates between minority and majority groups to identify adverse impacts.

2. How Does The Calculator Work?

The calculator uses the Negative Impact formula:

Where:

• \( \text{Minority Rate} \) — Selection rate for the minority group (dimensionless)
• \( \text{Majority Rate} \) — Selection rate for the majority group (dimensionless)

Explanation: A ratio below 0.8 (or 80%) typically indicates adverse impact according to the EEOC's Four-Fifths Rule.

3. Importance Of Negative Impact Calculation

Details: Calculating Negative Impact helps organizations identify potential discriminatory practices in hiring, promotion, or other employment decisions, ensuring compliance with equal employment opportunity regulations.

4. Using The Calculator

Tips: Enter selection rates for both minority and majority groups as decimal values (e.g., 0.25 for 25%). Both values must be valid (rates ≥ 0, majority rate > 0).

5. Frequently Asked Questions (FAQ)

Q1: What Is Considered A Problematic Negative Impact Ratio?
A: Typically, a ratio below 0.8 (80%) is considered evidence of adverse impact, though this is a rule of thumb rather than a legal definition.

Q2: Can Negative Impact Be Greater Than 1?
A: Yes, a ratio greater than 1 indicates the minority group has a higher selection rate than the majority group.

Q3: What Are Some Limitations Of This Metric?
A: The metric doesn't prove discrimination - it only identifies potential disparities that may warrant further investigation.

Q4: How Should Selection Rates Be Calculated?
A: Selection rate = (Number selected from group) / (Total applicants in group). Rates should be based on meaningful sample sizes.

Q5: Are There Alternative Measures To Negative Impact?
A: Yes, statistical significance tests (like chi-square) and regression analyses can provide additional insights into potential discrimination.