By the Employment Attorneys at Garg & Associates, PC, serving The Woodlands, Spring, Houston, Conroe, Humble, Kingwood, Tomball, Cypress, Huntsville, Westchase, Southwest, Sugar Land, West Oaks, Alief, Memorial, River Oaks, Stafford, Katy, and Missouri City.

What is “selection rate”?

Selection rate is the term used for a mathematical calculation that can be a threshold element for finding adverse impact. Selection rate is determined by dividing the number of actual hire by the number of applicants. A comparison is then made between the selection rate of non-protected class applicants and that of a protected class. If the comparison ratio (selection rate of non-protected class divided by the selection rate of the protected class is less than 80%, adverse impact is usually indicated.

For example: non-protected class applicants-100/the number of hires-50 = a selection rate of 50%. The protected class applicants -50/the number of hires-30 = a selection rate of 60%. In this case, 60% is 120% of 50% (more than 80%), therefore, no adverse impact.

It is important to remember that a finding of adverse impact does not necessarily mean that there is discrimination. Further, simply because the selection rate ratio is found to be greater than 80%, like in our example, discrimination may still be present.

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