This study with fake resumés revealed serious hiring discrimination practices

By Brunno Boaventura Ribeiro

In a recent study conducted by economists Patrick Kline, EvannRose, and Christopher? Walters, 97 of the largest U.S. companies were subjected to an unusual experiment.

Researchers submitted 83,000 fake résumés, each one with equivalent qualifications but varying personal characteristics.?

These characteristics included names that suggested both race and gender, such as "Latisha", "Amy," or "Adam."

The results revealed a notable disparity in employer responses. On average, presumed white applicants received almost 10% more callbacks than their presumed black counterparts.?

However, it is important to mention that this discrepancy was not uniform across all firms and industries. Interestingly, around 20 companies were responsible for nearly half of the gap in callbacks between white and black applicants.?

Among these companies, two stood out:

1. AutoNation, a used car retailer, exhibited a 43% higher contact rate with presumed white applicants.

1. Genuine Parts Company, which sells auto parts, favoured presumed white candidates by 33%.

On the one hand, in response to these findings, the representative of Genuine Parts, emphasised their commitment to inclusivity and the ongoing evaluation of their practices.? On the other hand, AutoNation remained silent.?

This study sheds light on the critical role that HR practices play in shaping hiring outcomes and underscores the need for continued efforts toward equity and fairness in recruitment processes.

Racial Contact Disparities Among Companies

Distinct patterns emerged from this comprehensive study regarding interactions with job applicants based on racial presumptions.?

While the two aforementioned companies exhibited a significant disparity favouring presumed white applicants, conversely, 14 companies demonstrated minimal or no discernible difference in callback rates for white and black applicants.

This extensive audit study was conducted between 2019 and 2021, and represents the largest of its kind in the US. Over 83,000 résumés were submitted to 10,000 job openings, revealing the deep-rooted nature of employment discrimination within the US labour market. Especially concerning is the disadvantage black workers face as they begin their careers in certain industries.

Interestingly, some companies demonstrated equitable treatment of applications. Their HR practices provide valuable insights for mitigating bias during the hiring process.

Industries exhibiting a lack of racial bias were predominantly:

• Food stores (including Kroger)

• Food products (including Mondelez)

• Freight and transport (including FedEx and Ryder)

• Wholesale (including Sysco and McLane Company)

Experimentally Generated Résumés

In an examination of the false résumés submitted to US corporations, a discernible inclination was observed towards candidates whose names suggested white ethnicity.

Researchers created fictitious names using a carefully planned method. First, they collected names from Massachusetts birth certificates between 1974 and 1979. Then, they added more names from speeding tickets issued in North Carolina from 2006 to 2018.?

If a name was common among a specific racial group (more than 90% of people with that name), it was labelled as "distinctive", in order words, that specific name could be assigned to a white or black person.

The study also considered the following aspects:

• Job Positions: The researchers focused on entry-level jobs that didn’t require specific qualifications like a college degree or extensive work experience.

• Attributes Under Investigation: Beyond race and gender, the study also looked at other legally protected characteristics, such as age and sexual orientation.

• Application Process: Researchers sent out up to 1,000 applications per company, limiting it to a maximum of 125 submissions per company across different regions. This extensive approach aimed to uncover consistent patterns in hiring practices rather than isolated incidents.

• Follow-Up: They then monitored whether employers reached out to applicants within a 30-day period after submitting their applications.

Racial Bias in Hiring Practices

When it comes to industries like sales and retail, especially within the automotive sector, there’s a noticeable preference for candidates assumed to be of white descent.?

Surprisingly, this bias even extends to roles where direct customer interaction isn’t a requirement. It hints at deep-rooted discriminatory tendencies within corporate culture and human resources practices, as highlighted by researchers.

Fortunately, there are exceptions. Retailers like Lowe’s and Target seem to have lower levels of bias in their hiring practices.

Keep in mind that the study mainly focused on large corporations, which tend to show less discrimination. But this might underestimate the discrimination faced by black applicants in the broader job market.

Moreover, it is worth mentioning that the study didn’t specifically consider names associated with Latino or Asian American candidates. Additional research suggests that these groups also experience reduced contact rates compared to their white counterparts, although not as severely as black applicants.

While some companies may have evolved their practices over time, a comprehensive review of audit studies ranging three decades reveals a consistent pattern of discrimination against black job seekers.

Interestingly, after the 2020 Black Lives Matter protests, certain employers briefly reduced discriminatory practices. However, researchers warn that this effect might not be long-lasting.

Gender, Age, and LGBTQIA+ in Hiring Practices

Recently, companies have shown progress in treating male and female applicants more equally. This aligns with existing research, which shows that gender discrimination against women is rare in entry-level positions. However, disparities tend to emerge later in career paths.

Despite this overall fairness, there are noticeable biases in specific sectors. For instance:

• In manufacturing, there's a preference for male applicants.

• In retail, especially apparel stores, female candidates receive favourable treatment.

Interestingly, these gender biases are more pronounced than racial biases. The impact of gender varies slightly across racial groups:

• Being female gives a slight advantage to white applicants.

• For black applicants, being female presents a slight disadvantage.

Researchers also explored other interesting factors:

• Applicants over 40 face a minor penalty.

• Using nonbinary pronouns doesn't affect hiring decisions.

• Identifying as gay (e.g., through an LGBTQIA+ club affiliation on a CV) slightly penalises white applicants but benefits black applicants. Interestingly, this indicator cancels out the racial penalty when present.

Understanding and addressing hiring biases remain ongoing challenges, but raising awareness is essential for fostering fairer workplaces.

How Companies are Fighting Discrimination in Hiring Practices

While many common initiatives, such as appointing diversity officers, implementing training programs, and ensuring board diversity, didn’t significantly reduce discrimination in entry-level hiring, one factor stood out: centralised HR operations.?

Here are some key insights from the research:

• Centralised HR: Companies with fewer unique phone numbers (indicating centralised operations) showed less bias. In contrast, calls from individual local hiring managers led to more bias. A structured hiring process, involving approvals and deliberations, helped mitigate implicit biases.

• Diversify Applicant Pools: Widening the range of applicants and reevaluating hiring criteria are crucial for reducing bias.

• Regulatory Oversight: Companies subject to federal contractor scrutiny or with more Labor Department citations tended to exhibit less bias in hiring practices.

• Profitability Correlation: Profitable companies showed reduced bias. This aligns with economic theories suggesting that discrimination harms business success. A diverse workforce and efficient HR processes contribute to this positive correlation.

Lastly, the study emphasises the pivotal impact of HR practices on hiring results. It underscores the ongoing imperative for equity and fairness in recruitment processes.

As organisations actively combat biases, valuable insights from centralised HR operations, diverse applicant pools, and regulatory oversight emerge as promising pathways toward cultivating inclusive workplaces and minimising implicit biases in hiring practices.