Uniform Guidelines

1
Uniform Guidelines

• Guidelines for use of preemployment tests
• Came from Carter Administration 1977
• Use of test must be justified if there is
  evidence that it has adverse impact
• Intent is irrelevant

2
Uniform Guidelines

• What is adverse impact?
• 4/5th rule Compare hiring rates for different
  groups
• calculate rate of selection
• observe group with the highest selection rate
• compute 80 of this rate
• compare groups rates with this value
• not necessary to do both gender and race together
• if statistical methods used, select .05
  significance level

3
Uniform Guidelines

• Implications of failing 4/5th rule
• Must validate exam
• Can use statistical validation
• Can use content validation - is this necessary on
  the job
• Not easy to validate an exam
• Best way would be to hire randomly - but that has
  costs
• Companies often buy validated exams