What is Adverse Impact?
Adverse impact is an unintentional discriminatory effect that a hiring practice, test, or requirement has on a protected group, even when there was no intent to discriminate.
Why does Adverse Impact matter?
Employers can be found liable for adverse impact even without discriminatory intent, which is why hiring criteria like assessments, degree requirements, or physical tests need to be job-related and regularly reviewed.
How does Adverse Impact work?
Adverse impact is commonly measured using the “four-fifths rule,” comparing the selection rate of a protected group to the group with the highest selection rate; a ratio below 80% may signal adverse impact requiring further review.
Frequently asked questions
Is adverse impact the same as intentional discrimination?
No, adverse impact can occur even without any intent to discriminate; it focuses on the outcome of a practice rather than the intent behind it.
What is the four-fifths rule?
It’s a guideline used to assess adverse impact, generally flagging concern when a group’s selection rate is less than 80% of the highest-selected group’s rate.
How BrightMove helps
BrightMove’s reporting helps HR and recruiting teams monitor selection rates across the hiring process to catch potential adverse impact early. See BrightMove’s recruiting analytics.