Adverse Impact

What is the Adverse Impact?

 

‘Adverse Impact’ is the bad outcome of any employment practice or regulation. Mostly adverse impact is found in the policies related to candidate and employee assessments.

 

There are many laws in place to avoid the adverse impact of these practices either intentionally or unintentionally. For example, the 4/5ths rule states that a screening technique is not suitable in case the selection rate of any group is 4/5ths the selection rate of the highest group.

 

Some examples of adverse impact include stating the upper limit for experience when providing a job description, which leads to the loss of older applicants with higher years of experience. Similarly, screening someone based on physical strength when the job doesn’t actually require the use of physical strength also leads to adverse impacts.

More HR Terms

Gag Clause

What is Gag Clause ?    ‘Gag Clause’ refers to any contract based stipend that restricts an employee from disclosing sensitive information about the company,

Cooperative

What is Cooperative?   ‘Cooperative’ refers to a kind of business structure in which two or more parties work together to reach a common goal.

Administrative Services Only

What is Administrative Services Only ?    ‘Administrative Services Only’ is the practice of hiring another company to provide administrative services for employee benefits while

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