Adverse Impact and Recruiting

Introduction

When employers seek new employees, they have a variety of external recruiting methods available from which to choose. The method chosen may depend on such factors as budget, desired applicant characteristics, and type of access to potential employees in the labor market. Recruiting decisions should also consider each method’s potential for adverse impact against certain groups of employees. Adverse impact in employee recruitment or selection occurs when a hiring practice intentionally or unintentionally discriminates against a protected group (CSU-Global, 2013). To decrease the likelihood of adverse impact, employers should proactively engage in recruiting activities designed to reach a broad range of potential job applicants.

Broad recruiting allows employers to increase their pool of qualified, diverse job candidates. According to Reed and Bogardus (2012), diversity in the workplace is associated with “benefits such as improved productivity and bottom-line results for shareholders” (p. 44). There are also legal implications encouraging workplace diversity. Title VII of the Civil Rights Act of 1964 and subsequent amendments prohibit unlawful employment practices which discriminate against classes of individuals based on race, color, religion, national origin, or sex (Reed & Bogardus, 2012). It is unlawful to treat protected class members in a disparate manner in recruitment, selection, or hiring actions, as well as in post-employment compensation or training (Reed & Bogardus, 2012). Therefore, the business case and the legal case can be made for careful recruiting practices which avoid adverse impact against protected group members.

Guidelines for Adverse Impact in Employment Decisions

The Uniform Guidelines...

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