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Adverse impact analysis.
Adverse impact analysis is a quick and simple tool for adverse impact estimation that
uses a variety of both practical tests and statistical tests. It entails tests that have been
recommended historically by federal regulators in combination with tests from the latest research
that have been held. It is normally defined by uniform guidelines as a substantially unique rate of
selection in hiring, employment decisions including promotions that aims at disadvantaging
individuals from certain sex, race, or ethnic group (Ahmed, 2015). A selection rate for any ethnic
group, gender, or race which is less than eighty percent of the rate for the highest rate group will
act as evidence of adverse impact while if the result is greater than eighty percent it is greater it
cannot be an evidence of adverse impact. This rule is normally referred to as the four-fifths rule
which is the most common and the simplest way of adverse impact estimation.
With regards to the Washington DC demographic analysis, the percentages of female
tellers against those of male tellers exceed four-fifth, it has an 82.6 percent. With regards to
uniformity guidelines the four-fifths rule (the rule of thumb) the selection procedure has been
violated. This means that there is no evidence of the adverse impact that exists for this particular
selection procedure. Others that are higher but have not violated this rule are the sales and related
workers that are white non-Hispanic with a percentage of 75.1 percent and first line supervisors
that are white non-Hispanic with a percentage of 64.1. These patterns mean that most of the
employment conforms to the uniform employment patterns except for the tellers.
The main purpose of adverse impact analysis is to aid the organization or the nation to
attain the goal of equal employment opportunity without discrimination or on the basis of color,
gender, sex, race, religion or even the national origin. This means for the tellers, the employer
has to alter the selection procedure. Considering the employer uses promotion and external hiring
which has resulted in this higher percentage, affirmative action has to be taken. The selection
procedure has to be altered. This act shall be subject to validation on the basis of content,
criterion, and job analysis. This shall provide the solution or less the alternative selection
procedures.
The disadvantages of affirmative actions are that these are desperate measures that might
result in laying off or discrimination in selection and recruitment with the aim of obtaining the
balance. Laying off or this discrimination might result in legal trouble. Establishment of cut off
scores will also limit the organization to selecting some groups of individuals that might not
necessarily be fully qualified. The advantages of affirmative action are that it will ensure equal
employment opportunity of all, and organizations should practice this hence eliminating
discrimination on recruitment on the basis of gender, color or nationality (Derous, 2012).
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Affirmative action has to be taken when the adverse impact is noticed. According to the
thumb rule, when the four-fifth is exceeded the employment criterion has to be altered, desperate
measures like assigning more score to the applicant of interest while lowering the basic scores of
the applicants that need to be eliminated. There is a need for equal employment opportunities for
all. However, this does not mean that validated selection procedures have that are pursuant to
these guidelines does not relieve the employers on their roles to ensure that there is an equal
employment opportunity for all (Sultana, 2017).
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References
Ahmed, Rakib. "Employee Recruitment And Selection Procedures Of Ngos In Bangladesh: A

Study On BRAC." Asian Business Review 2.1 (2015): 24. Web.

Derous, Eva, and Ann Marie Ryan. "Documenting The Adverse Impact Of Résumé Screening:

Degree Of Ethnic Identification Matters." International Journal of Selection and

Assessment 20.4 (2012): 464-474. Web.

Sultana, Rezina. "AFFIRMATIVE ACTION AND DYNAMICS OF WORK-ETHIC

PREFERENCES." Economic Inquiry 55.3 (2017): 1350-1369. Web.