This article is the second part of a three-part series on hiring discrimination. To read the first part on when bias enters the hiring process, click here.
In our last post, we learned that bias — whether conscious or unconscious — enters the hiring process as recruiters are strapped for time in the screening stage. There is a real risk for organizations that do not build a diverse workforce, and doing so should be an imperative for every organization.
Where We Are
- Resumes with white-sounding names receive 50% more call-backs than resumes with diverse-sounding names
- Having a white-sounding name is the equivalent of an additional 8 years of experience
- Gender-diverse companies perform 15% better financially
- Ethnically-diverse companies perform 35% better financially
- Women make up 47% of the workforce but only 20% of C-Suite positions
- 57% of employees want their companies to be more diverse
- 41% of managers say they are “too busy” to implement diversity initiatives
- 67% of job seekers indicated that a diverse workforce was a key consideration when evaluating companies with open positions.
Impact on Your Bottom Line
As the workforce grows increasingly diverse, it is increasingly important for companies to set a diversity strategy and begin intentional recruitment of a diverse workforce now. 85% of new entries to the workforce are people of color, women, and millennials. By 2025, 75% of the workforce will be millennials — one of the most diverse age groups in history.
Studies show that organizations that build diversity in their ranks perform better financially. According to a report by McKinsey,
“In the United States, there is a linear relationship between racial and ethnic diversity and better financial performance: for every 10 percent increase in racial and ethnic diversity on the senior-executive team, earnings before interest and taxes rise 0.8 percent.”
Importantly, increasing diversity in your organization brings additional expertise and perspective to increase your reach and scope—a boon for any business. This assertion is backed by data: the McKinsey report further showed that companies in the top quartile of diversity metrics are 35% more likely to report higher-than-median returns.
In our next post, you will learn our best strategies for decreasing bias in the hiring process. Until then, schedule a live demo of Appliqant’s automated video interviewing and assessment technology today to learn how we can help you recruit and retain diverse talent.
Appliqant is an AI-infused, blockchain driven, automated video interview platform developed by the team at Quantilus.