Talent Selection Algorithm Bias Audit
Parker Analytics (PA) develops Talent Selection Algorithms (TSA) for legal organizations. The algorithms use historical performance data and analytics to score job candidates (“Parker Scores”). Clients who use Parker Scores to inform hiring decisions increase: (1) representation of underrepresented groups, (2) shares of high-performing employees, and (3) employee retention rates.
Parker performs TSA diagnostics annually to confirm scoring is equitable. Additionally, independent statisticians conduct a Bias Audit to confirm TSA and Parker Scores comply with the four-fifths rule set by Title VII of the Civil Rights Act of 1964. Title VII prohibits employment discrimination based on race, color, religion, sex, and national origin.
Effective January 1, 2023, employers who use an automated employment decision tool (AEDT) to evaluate New York City job candidates must comply with the city’s administrative code Local Law 144. This law maintains AEDTs will have no adverse impact on the demographic groups protected under Title VII. Compliance requires that clients provide candidates with: (1) access to the summary of the annual Bias Audit on the careers section of their website, (2) notice that an AEDT is used to support talent selection decisions, and (3) an opportunity to request an alternative selection process.
The 2023 Bias Audit returns an aggregate impact ratio of 0.95 for Parker TSAs. This impact ratio exceeds the Title VII threshold of 0.80, thus meeting the four-fifths rule and confirming Parker Scores have no adverse impact. The Bias Audit demonstrates Parker Scores can reliably direct equitable decision-making regarding talent selection.