Article: Preventing bias in the hiring process

Because the hiring process is as human as it gets, the pursuit of the perfect candidate often navigates through a maze of biases, both conscious and unconscious. In fact, a McKinsey study found that unconscious biases in the hiring process is the “leaky pipeline” that gets in the way of an organization’s vision for a diverse, inclusive, and innovative workforce.

Beyond diversity and equality, biases increase the likelihood of an organization passing up on great talent. When bias is rampant in the process, the tendency of hiring managers is to focus on their perception rather than the actual credentials, experience, and qualifications of a candidate. A situation like this can increase turnover rates, which can ultimately kill a business.

But bias is not something that managers can’t prevent. The only requirement is to understand where all the biases in the hiring process come from and how do they impact the organization as a whole. Understanding its root and impact is the first key step in building processes, systems, and strategies to rid the company of unwanted bias.

The types of bias in hiring

Bias can manifest in various forms, each posing a unique challenge to fair decision-making. Understanding these nuances is pivotal in dismantling barriers and fostering a more inclusive recruitment process.

1. Unconscious bias

Unconscious bias, often operating beneath the surface of awareness, can significantly influence hiring decisions. Data from a lecture about biases in the workplace showed a staggering 79 percent of hiring managers admit that unconscious bias exists within their hiring process.

This type of bias is subtle, pervasive, and can manifest in various ways, from affinity bias to conformity bias. This kind of bias also refers to the automatic judgments and assessments we make about others based on stereotypes, without conscious thought. Unconscious bias can lead to the perpetuation of homogenous teams, hindering creativity and innovation.

2. Systemic Bias

Systemic bias, deeply ingrained in organizational structures and processes, is a formidable challenge to overcome. It often extends beyond individual prejudices, encompassing policies, practices, and historical legacies that perpetuate inequality.

A research paper at the University of Chicago revealed that certain demographics face higher barriers in recruitment processes due to systemic bias. The study, published in 2021, found that US employers show “nationwide patterns of racial discrimination that are temporally and spatially stable,” with at least 20 percent of the firms involved in the study discriminate heavily against Black sounding names during the hiring process.

The roots: Why bias exists in the hiring process

Biases can come from lots of places (or people), but it often stems from implicit associations our brains make between certain characteristics and perceived abilities. It happens mostly because the conscious brain can only handle so much information, that it has formed a habit to create shortcuts in the entire though process, leading to certain biases.

For example, hiring managers may unconsciously seek information that confirms their preconceived notions about a candidate, instead of actually giving an effort to think of the actual information that matters in the conduct of the interview.

Biases can also have structural roots. Homophily, the tendency to prefer those similar to ourselves, can result in the formation of homogeneous hiring panels. If a company’s hiring managers are all hypermasculine men, then it may follow that they hire the people with the same personality, which immediately impacts diversity at work.

Another source of biases in the hiring process is organizational culture. The culture, or lack thereof, of an organization can inadvertently foster biases, impacting the hiring process. For example, historical biases and discriminatory practices may persist in organizational structures, influencing contemporary hiring decisions.

Consequences of bias in hiring

The impact of biased hiring on diversity and inclusion is profound. A separate McKinsey study, for one, found that ethnically diverse companies are at least 33 percent more likely to outperform their rivals on profitability. This is good news if your hiring process has eliminated biases. But if not, chances are your company is lagging its competitors.

Bias hiring can also have some legal consequences, exposing companies to potential litigation and reputational damage. In fact, in 2022, nearly one-fourth of all the charges filed before the Equal Employment Opportunity Commission (EEOC) are related to the hiring process, just behind charges related to discharge and harassment. Legal repercussions can result in significant financial and reputational damage for companies found guilty of discriminatory practices. Proactive efforts to eliminate bias not only mitigate legal risks but also enhance an organization's reputation as an employer of choice.

Strategies to prevent bias in hiring

Addressing bias in the hiring process requires a multifaceted approach that combines awareness, education, and the strategic use of tools. Implementing these strategies empowers organizations to create an inclusive and equitable hiring environment, ensuring that every candidate has a fair chance to succeed.

1. Blind recruitment

Removing identifying information during the screening process, leaving only the details like matter, like experience, skills, and qualifications, will help eliminate unconscious bias based on demographic factors. In fact, today’s AI-driven tools can streamline the initial stages of recruitment and help hiring managers anonymize the hiring process.

2. Build diverse interview panels

Creating diverse interview panels brings varied perspectives to the evaluation process. This panel can ensure unbiased decision-making by collaborating in building interview questions, establishing criteria for the position, and even in evaluating the candidates. A diverse interview will even help you nail a job offer as an Apple Diversity study has shown that 63 percent of the candidates said they are akin to accept an offer if underrepresented groups are involved in the interview process.

3. Continuous training against bias

Ignorance is the best friend of unconscious bias. And the best way to battle it is through education. Regular training programs on unconscious bias raise awareness among hiring teams, enabling them to recognize and address biases. Training encourages self-reflection and also fosters a culture of continuous improvement and personal accountability.

4. Utilizing technology for fairness

There have been a lot of AI-driven platform lately that cater to HR, specifically for recruitment. Some of Australia’s largest companies, such as Qantas, Medibank, Suncorp, and Woolworths, have tapped the power of AI-driven smart interviewer platforms not just to make the process more efficient, but to also eliminate bias and promote diversity.

Cultivating a workforce that thrives on diversity, inclusion, and innovation is not just a moral imperative but a strategic necessity. All the studies and figures point to one lesson: Companies embracing diversity are positioned for greater success. And the first step towards this goal is to eliminate biases in the hiring process.