Simplifying Chi-square: A Tutorial for HR Professionals to Detect Adverse Impact

Adverse impact is an employment practice that appears neutral but has a discriminatory effect on a protected group. Human Resource (HR) professionals can detect if a company's employment decisions are adversely impacting a certain group with the adverse impact ratio, or statistically using the chi-square test. This tutorial explains and demonstrates the chi-square test of independence and the chi-square goodness of fit test using an example in Excel with hiring and gender. This test is a first step for businesses to identify equity challenges in hiring, demotion, promotion, performance evaluation, compensation, referral, retention, certification, transfers, and training, and ensure compliance with EEOC guidelines.

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