A tool designed for human resources professionals and statisticians helps determine whether employment practices disproportionately affect specific demographic groups. This analysis commonly uses the four-fifths rule, comparing selection rates across different groups. For example, if the hiring rate for one group is less than 80% of the hiring rate for the group with the highest rate, it may indicate potential issues needing further investigation.
This analytical process plays a crucial role in promoting equitable hiring and promotion practices. By identifying potential disparities, organizations can proactively address systemic biases and foster a more inclusive workplace. Historically rooted in legal and regulatory frameworks concerning equal employment opportunity, this type of analysis has become a standard practice in many organizations, contributing to fairer employment outcomes and greater transparency in decision-making processes.
