Adverse Impact

Adverse Impact Analysis by Favored Group BALANCEaap will flag statistical results on Adverse Impact reports, when they meet the parameters below. Positive Employment Action (Applicants, Promotions) The favored class is the one with the highest selection rate. Statistical evidence exists for adverse impact if the selection rate of the non-favored class is

Negative Employment Action (Terminations, Involuntary Promotions) The favored class is the one with the lowest selection rate. Statistical evidence exists for adverse impact if the selection rate of the favored class is

Please note that BALANCEaap relies on Standard Deviation or Fisher’s Exact test to determine if the above results are statistically significant, depending on sample size [insert link to the Help page for Statistical Calculations]. Results will be flagged if they are statistically significant.