Calculating Adverse/Disparate Impact Using Flow Statistics:

Using this table, determine the selection ratio between female and male applicants. Then determine if adverse/disparate 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. Fill in the rest of the table on your own.

Job Group	Number of female applicants	Hired Females	Selection Rate (Female)	Number of male applicants	Hired Males	Selection Rate (Male)	What is the selection rate cutoff?	Is Disparate Impact Occurring? If yes, what (if any) goal would you have with regard to hiring male vs female applicants?
1 Sales (Example)	500	50	Step 1. Calculate the female selection ratio (50/500) = .10	1000	250	Step 2. Calculate the male selection ratio (250/1000) = .25	Step 3.Determine the selection rate cutoff. Multiply the larger selection rate by .80. Then compare all other selection rates against that cutoff value. Cutoff = .25*.80 Cutoff = .20 (selection rate).	Yes, disparate impact is occurring because the selection rate for female applicants is less than 80% of the selection rate for male applicants (.10 is less than the cutoff of .20). To set a new hiring goal, I suggest looking at the number of applicants from each group. 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%. Note, these would be goals NOT Quotas.
2 Warehouse	50	20		1000	900
3 Customer Serv.	1500	700		1500	650
4 Manager	250	25		200	45
5 Stylists	250	50		50	12
6 HR	500	30		600	30

1. What criteria did you use to decide whether or not disparate impact is occurring?
2. What criteria did you use to determine if a hiring goal should be set and what the goal should be?
3. Based on the information available (just this table), is there evidence that disparate treatment is occurring? Why or why not?
4. What other information would you want to have to help develop an AAP to help meet your goals?