What does the term 'adverse impact' indicate in employment selection?

The term 'adverse impact' in employment selection refers specifically to situations where a selection process or employment practice disproportionately affects a minority group. This concept is particularly important in the realm of fair employment practices and is commonly evaluated in the context of equal employment opportunity laws. Adverse impact occurs when the selection criterion, such as a test or a screening tool, leads to significantly lower selection rates for a protected group compared to a majority group, potentially reflecting discrimination.

Understanding adverse impact is crucial for organizations as it highlights the need for careful analysis of hiring practices to ensure they are fair and do not unintentionally disadvantage any group. It emphasizes the requirement for organizations to use valid and reliable selection methods that can substantiate that their processes are equitable and do not harm or exclude certain demographics.

The other options do not accurately convey the meaning of 'adverse impact.' The overall performance of an employee does not relate to disparities in selection processes, and stating that selection processes benefit all groups equally contradicts the notion of adverse impact. Meanwhile, evaluating how candidates succeed in their job roles does not directly link to the principles surrounding selection and its impact on different groups.