Adverse Impact Exercise

Adverse Impact Exercise

Symco Industries has been in a rapid growth mode for the past year. The company has worked hard to recruit the number of employees needed to fill organizational vacancies. However, because of the pace of recruitment and hiring, the company has not had an opportunity to look at its hiring data with regard to EEO considerations. A sequential, non-compensatory hiring approach is employed. That is, candidates must “pass” each stage to be hired. Below are the recruitment and hiring statistics for 2016 for the engineering job family. Using the 4/5 rule as a guide, examine the data and answer the following questions: (a) From the data presented below, is there any “overall” indication of discrimination? If yes, what type of discrimination is occurring? How do you know? Show all calculations.

Adverse or disparate impact is present when certain groups are hired or chosen at a different rate than others. These groups can be differentiated between gender and/or race. In the scenario with Symco Industries, evidence indicates the company did indeed practice discrimination when hiring employees in 2016. Data shows that the standard rate of jobs offered was 48%. Statistics furthers show that 60% of men were offered jobs in comparison to 40% of offers made to women, and 40% of minorities were offered positions compared to the 60% of non-minorities. Based upon the 80% rules, the percentages show a clear sign of discrimination in Symco’s hiring practices.

(b) Examine the entire employment process. Is there potential for discrimination occurring at any stage in the process? If yes, who is being discriminated against and where in the process is discrimination occurring? Show all calculations. (c) What argument, if any, could the company make in response to charges of discrimination based on the adverse impact analysis?

Employment Stage

Men

Women

Minority

Non-Minority

Applications Received

200

100

100

200

Applicants Interviewed

160

80

80

160

Applicants Tested

140

40

60

120

Job Offers Made

120

40

40

120

Employment Stage

Men

Women

Minority

Non-Minority

Standard Rate

Outcome

Adverse Impact

Applications Received

Applicants Interviewed

80%

80%

80%

80%

64%

80% > 64%

NO

Applicants Tested

70%

40%

60%

60%

56% for Men and Women & 48 % for Minorities and Non-Minorities

Men & Women (40%48%)

YES & NO

Job Offers Made

60%

40%

40%

60%

48%

40%

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