Impact Ratio Analysis
How can we help you?
Career Resources believes that the only way for a company to ensure equal opportunity in employment and comply with federal regulations is to statistically evaluate its adherence to company employment policy. This is achieved by conducting impact ratio analyses for your employment selection decisions. We can conduct an impact ratio analysis (IRA) for the following:
- Applicants vs. Offers/Hires
- Promotions
- Transfers
- Terminations
- Training
- Selection Stage IRA’s
Career Resources will conduct IRA’s for you and can work with you to enhance your recordkeeping and selection process to help you avoid legal issues. A company’s close monitoring of its employment practices is a way in which costly discrimination complaints can be refuted. Victims of discrimination have a considerably stronger case when an employer has no data to backup its position, clings to an unacceptable definition of an applicant, or has incomplete and unreliable data of its entire selection process and does not measure the success or failure through IRA calculations.
What is an Impact Ratio Analysis (IRA)? - IRA’s are a series of statistical calculations that measure the rates at which females and minorities are selected for employment decisions (hires, terminations promotions). If the selection rate for the protected classes is statistically less than the non-protected classes adverse impact exists which could lead to financial and/or administrative penalties.
What is adverse impact? - A substantially different rate of selection in hiring, promotion, transfer, training, or other employment related decisions for any race, sex, or ethnic group. A finding of adverse impact in and of itself does not constitute a violation. Upon closer review of the selection decisions, factors such as job relatedness or business necessity may explain the outcome of the analysis.
What you should know - The EEOC and OFCCP garner most financial remedies due to an employer's selection process having adverse impact. Impact ratio analysis results continue to play a major role in the OFCCP’s audit process. In 2008, the OFCCP recovered a record $67.5 million in remedies from federal contractors who, even inadvertently, were found to have discriminated. With the recent revisions to CFR 60–2 and the OFCCP’s final rule of the definition of an internet applicant, many contractors are finding themselves in unfamiliar territory with systems and practices that could wind up costing them more money than they could imagine. Being blindsided by an accusation of discrimination and the ensuing lengthy process of defending your company against this accusation is both costly and time consuming. Career Resources can assist you with preparing your analyses, identifying potential problems or red-flags, and proactively make corrections in an effort to avoid negative ramifications during an OFCCP audit .
EEOC Systemic Task Force Report The EEOC has launched an initiative to fight systemic discrimination by stepping up its efforts to shatter glass ceilings related to both race and gender. The EEOC published its Systemic Task Force Report that listed 100 specific action oriented recommendations to enable the EEOC to become more effective in uncovering, fighting, and remedying systemic discrimination.