A recent study from the National Bureau of Economic Research highlights the persistence of hiring bias, particularly concerning race, with certain industries showing higher prevalence than others.
On average, companies contacted applicants perceived to be White about 9.5% more often than those perceived to be Black. Notably, a fifth of the companies accounted for half of this gap in callbacks, with firms in the retail or auto industries showing the largest disparities. For instance, AutoNation contacted White applicants 43% more often, while Genuine Parts Company/Napa Auto contacted White candidates 33% more frequently.
However, some companies demonstrated little to no difference in callback rates between White and Black applicants. These included well-known names like Charter Communications, Dr Pepper, FedEx, Hilton, Kohl’s, Kroger, Lowe’s, Sysco, and Target.
The study suggests that firms with poor performance in terms of callback rates could learn from those with more equitable practices. By adopting similar HR policies, such as those followed by the highly-rated companies, firms may improve their behavior and mitigate bias in hiring.
To conduct the study, researchers sent 84,000 fictitious applications to 11,000 jobs at 108 firms between 2019 to 2021. These applications, including both Black and White applicants, were distributed across various locations nationwide. By analyzing whether employers attempted to contact these fictitious applicants within 30 days, the researchers gauged racial and gender discrimination in the hiring process.
Interestingly, a lack of racial bias was more common in certain industries like food, transport, and wholesale. However, gender bias was observed in industries such as manufacturing and apparel, favoring men and women, respectively.
Furthermore, the study revealed minor differences related to gender, age, and sexual orientation. Centralized HR operations were identified as a factor predicting less bias, suggesting that a formalized hiring process could help mitigate implicit bias, particularly in decentralized hiring practices.
The study underscores the importance of ongoing efforts to improve fairness and efficiency in corporate recruiting. By implementing reforms to organizational practices, companies can work towards fostering more inclusive and equitable hiring processes.
