Question

you will evaluate the hiring practices for a company based on flow statistics and stock statistics. Flow statistics mean the number of people hired vs the number of people that applied. Stock statistics indicate the number of people in your company within a specific position compared to the number of potential workers with a given qualification/skill (usually also restricted to your geographic area).

Calculating Adverse Impact Using Flow Statistics:

Using this table, determine the selection ratio between female and male applicants. Then determine if adverse impact is occurring. Then determine if a hiring goal should be established and what that goal should be. Once this is complete, answer the questions below.

Job Group	Number of female applicants	Hired Females	Number of male applicants	Hired Males	What is the Selection Ratio?	Is Adverse Impact Occurring? If yes, what (if any) goal would you have with regard to hiring male vs female applicants?
1 Sales (Example)	500	50	1000	250	Step 1. Calculate the female selection ratio (50/500) = .10 Step 2. Calculate the male selection ratio (250/1000) = .25 Step 3. Determine the Selection ratio: .10/.25 =.40 or 40%	Yes, adverse impact is occurring because the selection ratio is only 40% meaning men are much more likely to be hired even after accounting for the differences in the number of applicants (you can use the 4/5ths or 80% rule here). New goal = 33% of new hires be female. I set the goal for new hires to be 33.33% female because that would indicate the company is hiring men and women at equal rates. To calculate this (# of female applicants/# of total applicant). In this case 500/1500 = 33.33%. I could also set a goal between about 26% to 42%, which would keep the company in legal compliance with respect to adverse impact (80% rule). Note, these would be goals NOT Quotas.
2 Warehouse	5	20	1000	900
3 Customer Serv.	1500	700	1500	650
4 Management	250	25	200	25
5 Stylists	250	50	50	5
6 HR	500	30	600	30

What criteria did you use to decide whether or not adverse impact is occurring?

What criteria did you use to determine if a hiring goal should be set and what the goal should be?

What other information (if any) would you want to have to help develop an AAP to help meet your goals?

Answer 1

If the ratio is between 75% to 125% then adverse effect is not the problem.
If Adverse effect is happening and there is cash flow available with the company and if it can afford to hire people, it should set a hiring goal.

Instead of calculating teh ratio, I would recemmend to take inputs of educational qualifications of the candidates and relevent work-ex in the industry. And then discount the ratios with these numbers, because it could very well happen that Male candicates that apply for job have more relevent work ex then there is no use of just considering interview cracking ratios of irrelevent work ex people or educationally poor background candidates