Adverse Impact
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  • Reads 1
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  • Parts 1
  • Time 6m
Ongoing, First published Aug 23, 2022
What does adverse impact mean? And how can I minimize the negative impacts of my decisions? The term 'adverse impact' refers to the unintended consequences of a decision or action. Learn more: https://blog.hirenest.com/what-is-adverse-impact-how-to-minimize-adverse-impact-2022/

For example, if you hire someone who has a criminal record, then they might steal from you. Or if you fire someone without giving them notice, they might sue you. These types of situations are called adverse impact because they have a negative effect on the organization. Adverse impact happens when you take actions that negatively affect other employees, customers, suppliers, partners, or even society at large. 
If you want to reduce the likelihood of these negative outcomes, you should consider the following three steps: (1) identify potential problems before taking action, (2) evaluate the risks associated with each option, and (3) choose the least risky course of action.

How can you reduce adverse impact?
The first step is to understand what makes people tick. This means understanding personality traits like conscientiousness, agreeableness, neuroticism, openness to experience, extraversion, and emotional stability. These traits influence everything from how we interact socially to our ability to focus at work. You can find out more in our article: https://blog.hirenest.com/what-is-adverse-impact-how-to-minimize-adverse-impact-2022/
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