An Exploration of the Biases that Affect Employer Decision-Making

Welcome to Hire Potential with Indeed, a series of fireside chats with experts in diversity and inclusion, employer branding, recruiting, HR and more.

Most people are aware of some of the more obvious kinds of biases we experience. The reality, though, is that some of the most common biases are the sort we don’t even realise we’re making. And if these unconscious biases are at play on any given day – in any given environment – how are they impacting employers’ decision-making when hiring new talent? With 1 and 5 minority groups still feeling like their organisation doesn’t treat everyone equally (Indeed D&R report, 2022), being aware of biases – and recognising the impact they have – is an important step towards more inclusive workplaces. 

In this episode, we talk with Lynda Ugarte, Head of HR – Japan, Australasia and Pacific at InterContinental Hotels Group (IHG®), about how employers and recruiters can better navigate bias (both conscious and unconscious) – and in doing so, help their teams reach their full potential.

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Prologue

Cathy: Welcome to Hire Potential with Indeed. Indeed’s new 2022 D&I Report has just gone live. It's one of the most comprehensive studies into D&I issues in Australian workplaces. Click the link in this episode's description to get your free copy. 

A welcoming workplace is built from the ground up with attention to diversity, inclusion, accessibility and openness. But the way many leaders and companies’ approach this is often full of grey areas, uncertainty and quite possibly, fear. Hire Potential with Indeed is here to help demystify the process through the most powerful channel possible, conversations, groundbreaking ones too. 

I'm your new host, Cathy Ngo, Diversity, Equity & Inclusion Changemaker and Presenter. I’ve spent over a decade in HR, Corporate Affairs and Communications but I'm most passionate about pushing the boundaries relating to diversity, equity and inclusion. 

In this podcast series will tackle the issues we face in the modern workplace from diversity and inclusion to remote working, accessibility, fair hiring practices, and more. This podcast is an initiative of Indeed.com, the world's number one job site with over 250 million unique visitors every month from over 60 different countries. 

Introduction

Cathy: Before we dive in, I wish to acknowledge the traditional owners of the land on which we are meeting today and to any Aboriginal or Torres Strait Islanders who may be listening. I pay my respects to their elders, past, present and emerging. 

In this episode, we are exploring the biases that affect employer decision-making. The development of biases is a natural part of human evolution, we can continue to evolve by working to identify and avoid acting upon them. According to Indeed’s 2022 Diversity and Inclusion Report, one fifth of workers in minority groups disagree with the idea that their organisation treats everyone equally regardless of different backgrounds. 23% of workers who are LGBTIQ+ and 26% of workers from culturally or religiously diverse backgrounds, are most likely to say their workplaces don't treat everyone equally. Over one in 10 currently employed Australian women also don't agree that men and women are treated equally in the workplace. 

In this episode, we explore the different biases that can affect employer decision-making, such as cultural sexuality, beauty, weight, name, authority and affinity bias and how we can catch these biases before they affect the organisation, potential candidates and even current employees. Joining us today to explore employer decision-making bias is Lynda Ugarte, head of HR - Japan, Australasia and Pacific at InterContinental Hotels Group where she has worked for over a decade, helping teams and employers do their best work in a people-centric industry. 

Welcome, Lynda.

Lynda: Thank you, Cathy.

Cathy: It's a pleasure to have you here. 

To kick us off, it would be great to understand more about your role at InterContinental Hotels group as head of HR. Can you tell us a little bit about your role?

Lynda: Firstly, the company I work for IHG Hotels and Resorts, it is one of the world's leading hotel companies. It's a vast company with about 350,000 colleagues working across 100 countries to deliver true hospitality with over 5900 and hotels globally, both managed and franchised. We have some amazing brands, which I'm sure a lot of the listeners will know. 

Intercontinental, Crowne Plaza, the Holiday Inn brand, Hotel Indigo, the Regent, VOCO hotels, Vignette hotels and Six Senses. So, we're quite a lot bigger than just intercontinental and as IHG Hotels and Resorts. We're really proud of that. Within my region as head of HR for JPAC as you've said, it encompasses a number of different diverse countries, Japan, Australasia and the Pacific, a total of 10 countries. And we have over 110 hotels in this region. I like to think I'm really privileged to lead an amazing team of HR leaders within both our corporate offices, which we have in Sydney and in Tokyo, and also the HR leaders in our hotels, and we collectively deliver support to our managed hotels using all of our global HR tools and resources, which are amazing, as well as creating really customised local solutions to support the markets that we operate in.

I partner really closely with our JPAC Managing Director and her leadership team, we plan and engage our future people strategy and planning and make sure that we deliver the results, not just for our owners, which of course, is very important, but also for our guests, and most importantly, the people who we work with. We're really well known for a focus on our people, professional and personal level. And particularly coming out of the years that we've had on, I'm super proud of the integrity and track record that we have in this space.

Cathy: Wonderful. I come from an HR background as well. And just hearing the diversity in people, regions, hotel brands, it's just wow, such an amazing job you have.

What are biases and what forms do they come in

So, this episode is about exploring biases. To take this episode right back to basics, can you explain what biases are and what forms they come in?

Lynda: Sure, it's complex, but it's simple. I think if you have a brain, then we have bias, because it's very much all about that. Bias is a natural and inevitable part of our thinking, of the human cognition. And it's evolutionary around how we've adapted as people, potentially over time. And it helps us allow our prior knowledge and experiences to inform decisions today in the present. 

So, we're all influenced by those things. Generally, a bias is something that makes you have an opinion or make decisions in favour of, or against a thing or person or a group compared to another. And it shows up in a range of different behaviours. It's about who we choose to include, who we choose to talk to, who we welcome, who we're more comfortable with. And also, it helps us make decisions to pace. Bias at a very basic level is all about survival. And if you go back to the caveman, it was all about saying, “Well, okay, I see that sabre-toothed tiger, it's dangerous, I need to do something here.” Not a lot of thought needs to go into it, because you've just got that learning. So, that learned behaviour experiences that we've had in our own lives, definitely impact the way we feel about things. It's awful unconscious, you don't actually know you've even got it.

Cathy: Yeah, that's right. 

Some biases seem more obvious than others, like racial bias and gender bias. But what are some of the lesser known biases that you've come across?

Lynda: There are many buyers that we see a lot of what we call confirmation bias where somebody has a view of something. And then it involves them favouring that and focusing on information that proves the view that they may have quickly taken about a person or a thing. And that can be blended up with a lot of prejudice as well, or things that people bring to the table actually look to confirm the very thing they're thinking versus having an open mind around, “What am I truly seeing here?” And I think your confirmation bias shows up when people automatically discount information, particularly with recruitment, looking for people who have certain characteristics and traits. And then once they found that they look for all other things to confirm that they've made the right decision.

Cathy: Yeah, certainly something that I am guilty of in the past because it is often really unconscious, it really depends on our own lived experience.

Tips for better identifying unconscious bias in your decision-making process

How can we better identify unconscious bias in our decision-making, and also in the decision-making around us in everyday lives?

Lynda: I think being aware of it, it's the first thing. Self inside is so valuable in many ways. I think from a work perspective, equipping leaders and teams with the right education about unconscious bias, absolutely, is the first step. The impact it can have if it continues unchecked can have a real impact on the diversity and inclusion within teams. You might think you have diversity and inclusion happening but if teams aren't aware of their own unconscious bias, they're actually not aware of the behaviours that could be very much holding them back from unlocking everybody's true potential. I think education is key. 

I think the other way is once that education has happened, and you've got an environment that welcomes inclusion, the ability for leaders and teams to hold each other accountable, to build a culture where they balance both in real time the inquiry about what's happening here and being curious about decisions and to think about, once they've learned about unconscious bias. They are being curious and thinking, “Are there any unconscious biassed decisions being made here?” 

And having an inquiring mindset with each other, to help each other stop the very natural thing that's going to happen.  So that's a really positive thing to do. And I think from an advocacy perspective, because sometimes decisions are made and then in retrospect, you can see that actually, there's been some bias in the decision-making. And then for leaders and teams even themselves in the line to be able to feel comfortable to say, “I noticed that this has happened or in this meeting you did this, were you aware of that?” And it might be holding us back from making everybody feel really comfortable.

So, having a culture, a really welcoming culture to help each other stop what is a not fully intended thing, it's just a very natural, unconscious bias that people might be bringing in. So, I think that's the best way to do that outside of there's lots of tools and resources that you can build. But unless you have that culture of inquiry and advocacy in the teams that are working together, every system and process will just simply be that, and you might not get the real culture that you're looking for.

Cathy: I certainly agree with that, Lynda, so many organisations have our unconscious bias training. But unless you've got the culture in place to actually embed all of that, then it's just virtually a waste of time doing the training, basically.

Lynda: It actually backfires on you because I think people in general, as humans, we want to feel included. It's probably one of the basic human instincts. So, I think if you've got a company who says that they do that and they welcome that, and then that doesn't happen to you, in your work environment it's very dangerous in today's workplace. I think we're very well progressed. And many companies are doing great work in this space, but it's just something to continually watch out for and not to just be complacent to say, “Well, we did that training, so we'll leave it there, or we've got this award for that. So, let's just not continue that conversation.” Because this is an ongoing world we're in, it's going to continue to morph.

Cathy: That's right. Yeah, I like how you said it, it will continue to morph because there's just so much happening in the world at the moment, our bias will always change. I love how we should continuously have an inquiry mindset, I really like that one, and really just hold each other accountable. I really liked that advice. 

Examples of how bias can impact employer decision-making

I have another question about bias impacting employer decision-making. I know you mentioned earlier about bias within the recruitment, how it's just so prevalent. Do you have any other examples where bias can impact employer decision-making?

Lynda: I think every decision at every point can be impacted by bias. Hiring is an obvious one. And it's probably a lot more understood by people generally that that's the front door, so who you will come in. So, therefore, the recruitment process definitely can control the level of diverse groups that come in. And if bias exists there, you really don't have much chance of unlocking a truly diverse team in your workforce. But outside of that, it's not just about who we hire, but it's even who we recognize in teams, it's the events that we run in teams and within workspaces, and who's feeling welcome and who is not. 

A type of bias that can come into decision-making might be experience bias where a leader who has had a rather traditional work life, where they've had a rigid work schedule, they've worked in the office, and they make decisions about their work environment, about what's suitable to them. So, I think in their current environment, where there's a lot more working from home, and how that's going to look in the future, whether it's hybrid work or working from home permanently. 

And that experience bias gets in the way, because leaders who are making decisions are thinking they're making the right decision, because it feels comfortable to them, it feels right to them. But they need to get, perhaps, a little bit more curious and uncomfortable because from a diversity perspective, a lot of people are looking for that. Big decisions can be heavily influenced by somebody's bias. 

And I suppose the other one, which is always talked about, it's who you choose to work on projects, it's who you choose to promote, it's who you feel perhaps more comfortable with based on your bias that makes you think you're making the right decision. And we call that sort of affinity bias or in-group bias. And it can really impact the type of candidates you look at for those sorts of things. The people in your organisation see those groups forming, and can see that there's not diversity within the people who are welcomed there. And again, as we said, it’s a whole roadmap to having an inclusive culture, but those things are real markers for that. And then outside of work, but still in work, you've got your social interactions where affinity bias or in-group bias can become a real problem, because people who feel comfortable together, hang together, and therefore they don't invite others. And that could be just simply talking about sport on the weekend and nodding, including others, or people who are louder than others and simply don't let others have a conversation.

Cathy: Yeah, certainly. 

Is employer bias playing a role in minority groups not feeling confident in their organisation’s ability to respond to discrmination appropriately? 

According to Indeed’s 2022 D&I Report, one in five workers in minority groups still don't think their organisation treats everyone equally, and at least confident that their organisation responds appropriately when discrimination occurs. How much do you think this has to do with employer biases?

Lynda: On the positive side, I think over the last 20 years, organisations have come a very long way with regard to the principles of equality, including really measured responses when discrimination has occurred, far more transparency and far more preparedness to go there and address that. There are incredible examples now of organisations that embrace diversity and inclusion with real integrity. And we're hearing more and more of this. But there's still some way to go to achieve equality and inclusion for all. And I think that's why we see those sorts of statistics coming through when we serve a large groups of people, they're not all fully confident about that. And while I think in today's world, all employees understand and feel committed to it, they all are committed to it, and wanting to provide that fair and equitable workplace. 

However, it's the behaviour of all leaders that actually needs to bring that to life. So, even if you have a senior executive who's committed to that, then colleagues are going to feel that, “Perhaps if something didn't go right here, I wouldn't be fully comfortable in going and talking about it with somebody else.” So, leaders who don't fully embrace the diversity, equity inclusion initiatives, the culture in their workplace can create that situation. And I think that's really where organisations are continuing to work with those teams. I think we're all well aware of it. 

And what I love about the conversation is that everybody's welcoming it, it's the right thing to do, and allowing people to have a speak -up culture and talk to the leader or to the right people about when things aren't going well and for that to be welcomed, managed really well and carefully. And then for people to see that colleagues can go through that journey, and whilst often it's difficult, and often difficult outcomes ensue, the right thing is done. And when that's happening, organisations will have people answering that question in a very positive sense, saying, “I feel really comfortable.” And perhaps that's where success is, isn't it, because everybody wants to be in a workplace where they can feel fairly treated.

Cathy: Yes, absolutely agree with that. 

Tips on how to avoid leaning in your own internal bias at all stages of the employee lifecycle

It seems fair to assume that biases have the potential to affect the entire employee lifecycle, from the job description to the interviewing process, to once an employee is in the job itself. What can employers do at each of these stages to avoid leaning into their own internal biases?

Lynda: Beginning with the end in mind is really important. So, I think to have a consultative approach from the very beginning, as a collective, and then as each individual touches the points of entry in the employee lifecycle, everybody needs to begin with the end in mind, “What are we trying to achieve here, and what could get in the way of us making decisions that aren't going to give us the diversity and the inclusion that we're looking for?” So, if everybody has that true and authentic commitment to welcome a diverse team, and providing that inclusive workplace, then that education that I spoke about is really paramount for that. Because that level of awareness is sometimes the most important unlock for these sorts of initiatives to work. And then employers can create ways to ensure decisions regarding that lifecycle are equitable, it's like your Fitbit, you want to check in and see how many steps you've done, you want to check in and see how your diversity is going. 

So, I think at a practical level, preparing, hiring and creating that job description is the first step. And there's a lot of bias in writing job descriptions, if you look back and the words you use the pronouns, you use the experiences that you want, the education you think you want. And that's really got in the way of people reading job ads, and seeing themselves in that role, because if you using your affinity bias, and you just asking for people like yourself, then people who aren’t like you, which is probably the people you want to come and give a different viewpoint, won't ever see themselves applying for that role. And in the current environment, that's quite disastrous. 

So, I think removing any bias in that job description, making sure that the requirements of the role are clearly stated, not the requirements, so much of the person or a specific person is really important. And then also to include in not just the job description, but also in the job ad and in every conversation that we have, really overtly stating the commitment that we have to welcoming diverse candidates, because that invitation is very important, and it can't be frivolous. So, as a candidate, you have to see that show up in every point of your lifecycle, whether it's entry or through your career progression. 

I think the other things which they talked about a lot, candidate selection, so when you do have a collection of candidates or when you're putting your job out there, and I'm talking about this at a time where the job market is extremely challenging, and there's not an incredibly high amount of candidates applying to job roles, but let's assume there were and you've got a selection of candidates to choose from, we need to make sure that we take steps to remove maybe some identifying features that could create some unconscious bias situations. We could remove the names, we could remove identifying characteristics, to really help hiring managers make the right decision based on skills and experience and then perhaps talk about the person afterwards. And that can be very useful to then find what's the requirement for the role, what's the best person for that requirement, and then consider that for the next steps.

And then once we've made that decision as to a shortlist of candidates, for example, we would include more than one person. And we would include a diverse mix of people, or two people, three people, depending on the role to help make the decision. Ideally, you'd like them to be interviewed by a few people or you'd like to have some interview experiences that give the candidate a diverse experience of your organisation because these days it's just about as much about them making a decision, “Do I want to work here?” As it is about as a company, “Are we making the right decision to bring in the diverse workforce that we need to move forward?” 

And then as we welcome them in, we obviously take them through onboarding. We've all been the new person in a role and we get introduced around the organisation. Even that planning is super important to show them the diversity that they have within the organisation. The things we can do around training, recognition, career development, what I said earlier, that real time inquiry should prevail whenever we're putting a list together whenever we're considering groups of people for something. And then advocacy, when it's obvious that a decision has been made, that's impacted, whether it was conscious or unconscious. And this is where data can be useful and taking stock of where you're at, what your results look like and then talking about that with leadership teams and making sure that everyone's aware, “We might be off track here, or we've missed an opportunity here.” Best thing to do is in real time, having that inquiring mindset at all times to say, “Is this giving us the best person for the requirement? Are we putting forward the right person based on the requirements versus personal preference or any unconscious bias?”

Cathy: Great, I love how you mentioned data. And then you also mentioned Fitbit, which I have a Fitbit, and I'm obsessed with it because I'm always tracking my sleep, my steps and everything. 

Tools to help employers check their bias on a regular basis

And I think about diversity inclusion, we need to also track the stats as well, how many diverse candidates we are tracking, shortlist, that sort of thing. In your experience, what are some practical tools employers can implement to check their bias on a regular or daily basis?

Lynda: I think the first tool is the way in which they engage with each other. I keep coming back to this. But you can take a measure using some tools such as we've said that the data mix around what your diversity mix says and take a good look at your, what I call a diversity map of your team, are you getting the right mix of experience of background of culture, business experience, into inside the company, outside the company, and you can cut that data into a number of different ways to show you how you're going. 

I think the checking bias on a regular basis has to be lead time, not lag time, it does come back to having a culture where leaders and teams, everybody should be collectively aware of the importance of checking for bias at every level. It is having that open culture of inquiry and advocacy looking at what's happening right in front of you, and asking for feedback and inquiring with teams to say, “Do we feel that we are inclusive? And are we making diverse decisions?” 

And then at a company level, advocacy is a positive word, and it's positively intended. And I think in teams and leaders can be really well used to give real time feedback. And as a company, we have a responsibility, then, to look at that more broadly and diagnose the business and make decisions around, “What do we need to further do to make every moment count when it comes to decisions that could be impacted by bias?”

Cathy: Indeed’s 2022 D&I Report has confirmed two thirds of working age Australians say they feel the need to hide their identity or not be their true self at work, at least some of the time, which is a significant 18% increase since Indeed’s 2020 Report. What role do you think bias related decision-making has had to play in this increase, particularly during the pandemic?

Lynda: Before the pandemic and if we look at our society, we've made incredible progress in integrating culture and our collective acceptance and celebration of diversity across the board in the last few decades. It's made people feel a lot more comfortable to bring their true selves to work. The company I work with, has that at our heart to say, “We want you to be able to do that.” And we've done that for many years. Many other companies have done that as well. But obviously as we’ve spoken before, it takes the whole village to do that. And sometimes there can be leaders who still send signals to people that, “If you do that, you're not going to be truly welcomed.” And I think we're all working on making that not be the case. 

But over the last few years, it has been incredibly challenging for business leaders and people are under pressure. And I think when we're under pressure natural behaviours come out and biases are unconscious and they're natural. It can, if the organisation is perhaps not at the maturity level yet, what could have happened in the pandemic in some organisations is they'll revert back to what they know what they feel comfortable with. And perhaps colleagues have had some experiences where leaders have unconsciously made decisions to promote, keep, remove, people based on who they feel more comfortable with or who they have an affinity with or who they have recency bias. 

So, there's a lot of things that could have come out simply because there was so much going on at that time. And I would always say that it's not ill-intended, it's just unintended. But the consequences of that are people could feel that, “Okay, I better just come back in my shell here. 

Even though I was being told I should bring my whole self to work. I'm feeling I'm just going to go underground a little bit here, because I'll just see what happens.” And of course, employment was often in question in some organisations, so people didn't want anything to impact that. And I feel that fear and pressure that COVID bought too many people could have interrupted some of the good work that we had about people feeling and being able to bring their whole self to work. 

On the other side of that statistic, when we talk about maturity, there were many companies who realised the true value of that diverse workforce during COVID because those combined skills and perspectives and experiences that they bought collectively, because obviously, there was nobody who had actually an experience with the pandemic. But those that had diverse teams and different points of view, really could move at pace and create new solutions and ideas, and really harnessed from their hearts and their minds, really unique and amazing responses to what was a historical moment. And that is the real example of the power of diversity, we talk about why you should have diverse teams. And it just makes good business sense. In my organisation, I’ve never seen that more than during the pandemic, because we do have very diverse teams. And the most inexperienced people, actually, bought some of the best ideas. The most experienced people sometimes bought the best balanced we could have had for them to collectively do great work.

Cathy: Amazing. I agree wholeheartedly with everything that you mentioned, also thought about how everyone during that time, we're still in, technically, in a pandemic, but it's all about survival. And we hone into what we already know. But then there's also a danger in that bias just looks out, having a culture where we check on each other, we have an inquiry mindset. And I really like how we address things in the lead time and not lag time. So, that's very good advice there. 

It's been such a pleasure to have you here on the show, Lynda. The final question I have, which is how we finish every single episode of Hire Potential with Indeed is, what will it ultimately take to ensure a better and more inclusive workplace in the future?

Lynda: It is well known that companies that have a really authentic culture towards diversity inclusion outperform their competitors. So, the business imperative is absolutely crucial, particularly in times like today. And as we come into the recovery post COVID, this business imperative will create a tipping point towards an inclusive workplace as being the norm, not the exception. The Diversity Council of Australia recently released a Report Inclusion at work and a few really interesting points, particularly in today's context, found that inclusive teams are going to be 10 times more likely to be innovative and very satisfied, compared with non inclusive teams. And in times like these, you want people to stay and you want people to come up with great new ideas. 

Inclusive teams are four times less likely to quit, that's crucial as well. And they're five times less likely to experience harassment at work. These facts in the current business context, are going to create an amazing platform that makes good business sense. It's the right thing to do for business. And that imperative, helps push leaders who perhaps may have been sitting on the fence on this into real action. The emerging CEOs and COOs that we see coming through grew up in a world of what I call good D&I intention, but in their more junior roles failed to see real authentic authenticity to the principles. Those that had power at the time, may have been paying lip service, actually. And as they step into their roles, they're going to have an expectation of nothing less. For them, that is the right thing to do. And I think that combination of business imperative and changing of the guard of senior leadership to really enable everybody to take a positive approach to diversity, equity and inclusion will make it happen for everyone.

Cathy: Love that advice, Lynda. Thank you so much for your time today. I really enjoyed our conversation.

Lynda: Thanks so much, Cathy, I’ve enjoyed it as well.

Conclusion 

Cathy: Thank you for listening to Hire Potential with Indeed. Before you go and start building a better workplace, don't forget to hit subscribe, and leave a review if you found this podcast helpful. If you'd like to read our full D&I report, click the link in this episode's description and fill out the form. 

Just a quick note, the views and opinions expressed in this episode by the guest do not necessarily reflect the official policy or position of Indeed. Additionally, the information in this episode does not and is not intended to constitute legal advice. Instead, all content we discuss is for general informational purposes only, and you should consult with a legal professional for any legal issues you may be experiencing.

Sources: Indeed is the world's #1 job site according to Comscore, Total Visits, January 2022.

Sources: Over 250 million unique visitors every month, Google Analytics, Unique Visitors, February 2020.

Sources: The research in the report referenced in this episode was commissioned by That Comms Co. on behalf of Indeed and conducted by YouGov. The study was conducted online between 11 - 17 January 2022, involving 2,076 participants.