Research & Analysis (RA1): Adverse Impact
Description: This assignment presents the student with the opportunity to conduct an analysis on the workforce for InterGalactic Financial Services (a fictitious company) at the end of the recent calendar year. The accompanying data set illustrates the assembled workforce at the end of the recent calendar year, and both terminations and promotions for the year.
This assignment utilizes the application of the Uniform Guidelines “four-fifths” EEOC rule of thumb, to determine adverse impact at InterGalatic Financial Services. The 80% rule is not a legal definition of discrimination; rather it is a method which the EEOC or any other enforcement agency uses to monitor serious discrepancies in hiring, promotions or other employment decisions for protected classes.
Assignment: Using the provided dataset (note worksheet tabs ACTIVE, PROMO, TERM) file provided with “Adverse Impact Calculations” examples; and chapter 3 content on equal employment law –
1. Calculate the ACTIVE workforce summarizing each demographic category below by total number & as a percentage to entire workforce. Show your calculations.
a. Sex (males, females)
b. Minority (total non-White ethnicities) & Non-Minority (total White)
c. Age (total under 40; and 40 and over)
2. Calculate adverse impact for TERM (terminated) for each of the following demographic categories. Show your calculations. Indicate whether Adverse Impact is present (note, a ratio for the protected class greater than 80% reflects adverse impact).
a. Sex (males, females)
b. Minority vs Non-Minority
c. Under 40 vs 40 and Over
3. Calculate adverse impact for PROMO (promoted) for each of the following demographic categories. Show your calculations. Indicate whether Adverse Impact is present (note, a ratio for the protected class less than 80% reflects adverse impact).
a. Sex (males, females)
b. Minority vs Non-Minority
c. Age (under 40; 40 and over)
4. Summarize your adverse impact observations based on your adverse impact calculations. Identify potential corrective actions to areas of adverse impact.
