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Adverse Impact Calculator

Compare group selection rates for hiring, promotions, or workforce reductions. Enter the number considered and the number hired, promoted, or retained in each group. The calculator compares each rate with the highest rate and flags ratios below 80% for review.

About this calculator

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Method note: The four-fifths rule and adverse impact Reviewed

What to expect Have the number considered and selected for each group ready. This takes about one minute.

Selection data

Add a named row for each group and enter the number hired, promoted, or retained.

Counting selections

For hiring, count applicants hired from each group. For promotions, count employees promoted from each eligible group. For a reduction, count employees retained from each group in the decision unit.

In small groups, one additional selection can change the ratio substantially. The federal Q and A discusses a 2% threshold for when group-level adverse impact information is required. Review the underlying counts carefully, especially for smaller groups.

Four-fifths results

All group ratios are at least 80%
Highest selection rate: …

Group selection rates

For each group below 80%, examine the selection counts and criteria. Statistical significance can provide additional context for small or large groups.

Email your results

Email your group comparison and the figures behind it.

Compare selection rates

How the four-fifths rule works

The Uniform Guidelines on Employee Selection Procedures, 29 CFR 1607.4(D), describe how to compare selection rates across race, sex, and ethnic groups. A rate below 80% of the highest group's rate calls for a closer look at the selection decision. The method can help review hiring, promotion, and reduction decisions.

See the calculation

Calculate the selection ratios

Divide the number selected in each group by the number considered. Find the highest selection rate, then divide each group's rate by that figure. Ratios below 80% are flagged.

Example

Suppose one group has 7 selections from 72 people, a rate of 9.7%. Another has 3 selections from 63 people, a rate of 4.8%. The second group's selection rate is approximately 49% of the first group's rate. Examine the selection criteria, supporting records, and alternative approaches.

Examine flagged results

Use the four-fifths comparison as a starting point. Examine the group counts, whether the selection criteria are job-related and consistent with business necessity, and whether another approach could achieve the same business objective with less impact.

Consider group size

In a small group, one additional selection can change the result substantially. In larger groups, smaller differences can also matter. For major employment decisions, use statistical analysis alongside the four-fifths comparison.

Look beyond the ratios

Review the full selection list

For a fuller review of a workforce reduction, use the RIF and Restructure Planning Kit. It includes a Selection Scorer, reviews by age, sex, and race or ethnicity, WARN screening, OWBPA group disclosure, and a separation tracker.

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Compare this estimate with your records to help plan your next step.

Next steps

Review the selection decision

Save the comparison with your selection records, then review the full list and supporting documentation.

01 · Calculate

Confirm the group counts

Check that each group has the correct number considered and selected.

02 · Save and compare

Review the selection list

Email your results and use the kit to review the full selection list.

Explore the RIF and Restructure Planning Kit →
03 · Reduction planning · $199

RIF Complete System

Model workforce reduction savings and plan WARN notices in one system.

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