The Impact Ratio Analysis 

is the most common statistical analysis used for identifying adverse impact - a substantially different rate of selection in one of the three main employment processes -  hiring, promotion or termination.  It is not an indicator of discrimination or an affected class, but a preliminary indicator which suggests that further review and analyses need to be conducted by the Human Resources Department to determine whether discrimination has occurred.

It is important that the company be prepared should a Compliance Officer in an audit determine adverse impact exists.  With this report prepared annually and kept separate from the AAP, the company conducts periodic reviews of its employment processes and documents with defensible facts the non-discriminatory reasons that the numbers may show a potential problem.  In addition, if you identify and address problems when they show up, these potentially dangerous areas may disappear by the time an audit of the establishment is conducted.

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