you will evaluate the hiring practices for a company based onflow statistics and stock statistics. Flow statistics mean thenumber of people hired vs the number of people that applied. Stockstatistics indicate the number of people in your company within aspecific position compared to the number of potential workers witha given qualification/skill (usually also restricted to yourgeographic area).
Calculating Adverse Impact Using FlowStatistics:
Using this table, determine the selection ratio between femaleand male applicants. Then determine if adverse impact is occurring.Then determine if a hiring goal should be established and what thatgoal should be. Once this is complete, answer the questionsbelow.
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 hiringmale 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 isonly 40% meaning men are much more likely to be hired even afteraccounting for the differences in the number of applicants (you canuse the 4/5ths or 80% rule here). New goal = 33% of newhires be female. I set the goal for new hires to be 33.33%female because that would indicate the company is hiring men andwomen at equal rates. To calculate this (# of femaleapplicants/# 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 toadverse impact (80% rule). Note, these would be goals NOTQuotas. |
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 impactis occurring?
What criteria did you use to determine if a hiring goal shouldbe set and what the goal should be?
What other information (if any) would you want to have to helpdevelop an AAP to help meet your goals?