Impact Ratio
The ratio of a group's selection rate to the highest selection rate among all groups.
What Is Impact Ratio?
The impact ratio quantifies the relative disadvantage a group faces in an employment selection process. It is calculated by dividing a group's selection rate by the selection rate of the most-selected group. An impact ratio below 0.80 indicates potential adverse impact under the four-fifths rule. For AI bias audits, impact ratios are calculated for each protected category (race/ethnicity, sex, age) at each decision point. OnHirely calculates impact ratios automatically and flags any values below the 0.80 threshold for remediation.
Related Terms
Adverse Impact
A substantially different rate of selection in hiring that disadvantages members of a protected group.
Read moreFour-Fifths Rule (80% Rule)
A guideline stating that a selection rate for any group should be at least 80% of the highest group's rate.
Read moreBias Audit
An impartial evaluation of an AI hiring tool to assess whether it produces discriminatory outcomes across protected groups.
Read moreSelection Rate
The proportion of applicants from a particular group who are hired or advanced to the next stage.
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