Understand Outcomes. Identify Risk. Act With Confidence.
Impact Ratio Analysis evaluates selection outcomes across demographic groups to identify potential adverse impact under applicable guidelines, including the Uniform Guidelines on Employee Selection Procedures (UGESP).
Rather than treating adverse impact as a pass/fail result, we help employers understand:
- Where disparities may exist
- How outcomes vary by job group or decision point
- Whether patterns warrant further review or documentation
The goal is informed awareness—not assumptions or overreaction. Our approach focuses on clarity and helping you understand what the data shows and why it matters.
Practical Analysis. Clear Results. Trusted Guidance.
Lighthouse performs Impact Ratio Analysis using structured, consistent methodologies informed by regulatory expectations and real-world audit experience. We handle the technical evaluation so your team can focus on understanding results and next steps.
Our process includes:
- Reviewing hiring, promotion, or termination data
- Evaluating selection rates across relevant groups
- Identifying statistically meaningful patterns
- Providing clear explanations of findings
We emphasize transparency and practicality throughout the analysis.
Frequently Asked Questions
Impact Ratio Analysis doesn’t have to be intimidating. With Lighthouse, you gain insight, context, and confidence so you can address potential concerns thoughtfully and responsibly. Below are a few frequently asked questions.
What is an impact ratio?
An impact ratio compares selection rates between groups to determine whether outcomes differ in a meaningful way. It helps identify whether certain groups may be disproportionately affected by employment decisions.
Is impact ratio analysis required by law?
While not always explicitly required, impact ratio analysis is widely used to assess compliance with federal and state anti-discrimination regulations. It is commonly requested during audits or investigations and is considered a best practice for proactive compliance.
Does an adverse impact result mean we did something wrong?
Not necessarily. An adverse impact finding indicates that outcomes differ between groups, but it does not automatically imply discrimination. The analysis helps identify areas that may warrant further review or explanation.
How often should impact ratio analysis be performed?
Many organizations perform impact ratio analysis regularly—such as annually or per hiring cycle—especially for high-volume decisions. The appropriate frequency depends on your organization’s size, hiring activity, and risk profile.
Let’s move forward with confidence
If you’re looking for a thoughtful, experienced approach to workforce compliance, we’re here to help.