Determining whether a selection process results in a disparate impact, which disproportionately affects a protected group, involves quantifying the difference in selection rates between that group and the most successful group. One common method involves calculating the selection rate for each group (number selected divided by total applicants) and then determining the impact ratio. This ratio is obtained by dividing the selection rate of the protected group by the selection rate of the group with the highest selection rate. For example, if 60 out of 100 White applicants are selected, and 30 out of 100 Black applicants are selected, the selection rates are 60% and 30% respectively. The impact ratio would then be 30% / 60% = 0.5.
The identification of disparate impact is crucial for promoting fair and equitable employment practices. Organizations can use these calculations to proactively identify potentially discriminatory hiring or promotion practices. Addressing disparities can mitigate legal risks associated with discrimination claims and fosters a more diverse and inclusive workplace. This concept emerged from legal precedents aimed at ensuring equal opportunity in employment, particularly Title VII of the Civil Rights Act of 1964.
