Free HR calculator
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
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
Group selection rates
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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.