What is an Impact Ratio Analysis?An impact ratio analysis compares applicants to hires using various statistical tests in order to identify adverse impact (a substantially different selection rate for members of a protected group) as required by the OFCCP’s regulations. The impact ratio analysis should be conducted at least on an annual basis in order to identify any potential discriminatory issues that may escalate in an OFCCP audit and possibly could lead to financial remedies.Action Items after Completing Your Impact Ratio AnalysisIf the results of your impact ratio analysis indicate adverse impact for any group (females, males, minorities, non-minorities) within one or more of your AAP job groups, it is imperative that you review your applicant and hire data to ensure its accuracy in terms of job title, job group, requisition number, race, gender, disposition, date of application/hire, etc. Once you have reviewed your data and determine that it is accurate and no changes are needed, you will need to investigate each of the selections that occurred to determine whether each selection can be justified. You should also conduct an impact ratio analysis at a more detailed level such as by job title, requisition, selection stage, etc. to determine whether there is still an indication of adverse impact at this more detailed level. Adverse impact that cannot be explained away in an OFCCP audit could result in administrative and/or financial remedies including a two year reporting period, back pay, and make whole relief.The Importance of Regularly Conducting an Impact Ratio AnalysisIt is critical to conduct an impact ratio analysis at least once per year. If you need assistance doing your analysis feel free to contact Career Resources Inc. This will give you the opportunity to identify any possible data errors in your applicant/hire data and will also give you an indication of whether you have any possible discrimination issues with regard to the selections that were made.