Certified Human Resource Professional (CHRP) Practice Exam

The selection rate for a protected group identified in human rights legislation is lower than the selection rate for the comparison group. What problem is occurring in this situation?

1. Adverse impact

2. Discrimination

3. Selection bias

4. Wrongful hiring

The correct answer is: Adverse impact

The scenario describes a situation where the selection rate for a protected group is lower than that for a comparison group, indicating potential adverse impact. Adverse impact occurs when a selection procedure disproportionately affects a group protected by human rights legislation, such as those based on race, gender, age, or disability. This concept is critical in human resources as it addresses the fairness and equity of hiring practices. When there is a statistically significant difference in selection rates that adversely affects a protected group, it raises concerns about whether the selection process is leading to inequality and potentially violating legal and ethical standards. Understanding adverse impact is essential for HR professionals, as it directly relates to the goal of creating a diverse and inclusive workforce. Organizations need to ensure their selection methods are valid and do not unintentionally discriminate against individuals based on their membership in a protected class. This understanding allows HR practitioners to evaluate and reform hiring practices to mitigate any adverse impacts and promote fairness in recruitment processes.