Unconscious bias in hiring could be costing your business £327k a year. Discover how to spot and reduce bias to build more inclusive, successful teams.
Aiden Wynn
Unconscious bias could be costing your business six figures...
If you’re hiring based on ‘gut feelings’ or leaning on familiar names and backgrounds, you might be overlooking the best talent – and wasting big money in the process.
According to our team’s bad hire calculator, unconscious bias could be costing average-sized organisations £327,000 per year. That’s a hefty sum, especially for industrial sectors like manufacturing, metals, and logistics, where hiring the wrong person can disrupt entire operations.
So, what can you do about it?
Let’s explore what unconscious bias looks like, why it leads to bad hiring decisions, and how inclusive hiring can positively impact your bottom line.
What We'll Cover:
- What Is Unconscious Bias in Hiring?
- How Bias Leads to Bad Hiring Decisions.
- The Business Case for Inclusive Hiring.
- Identifying Bias in Your Hiring Process + Checklist.
- Next Steps for Talent Managers.
What Is Unconscious Bias in Hiring?
Unconscious bias is the set of assumptions and preferences we’re not even aware we have – those ‘snap judgements’ that creep in before we’ve had a chance to think.
In hiring, this means we could be dismissing highly qualified candidates or fast-tracking poor fits simply because we feel more comfortable with certain names, backgrounds, or communication styles.
Source: Zippia.
In industrial sectors like manufacturing, metals, and logistics, this might look like overvaluing experience from a familiar company or assuming certain roles are best suited for men. Or perhaps a candidate’s educational background or accent triggers a subconscious preference – even if they have all the right skills to excel.
By allowing these hidden biases to guide decisions, organisations miss out on fresh perspectives, valuable expertise and, ultimately, better performance.
Common Types of Unconscious Bias
Unconscious biases come in many forms, but here are the five that most commonly affect hiring:
- Attribution Bias: We tend to blame external factors when we make mistakes, but see others’ errors as evidence of their character.
- Halo Effect: When a single positive trait (e.g. prestigious experience or something you have in common) leads us to overlook potential weaknesses.
- Horns Effect: The opposite of the halo effect; when one negative detail (like a gap in employment) overshadows a candidate’s attributes.
- Affinity Bias: When we gravitate toward people who remind us of ourselves, potentially excluding those with different perspectives.
- Confirmation Bias: When we look for proof that our first impressions were correct, ignoring evidence that might contradict those initial assumptions.
How Bias Leads to Bad Hiring Decisions
When our subconscious preferences influence who we hire – or don’t hire – our decisions become skewed. This often results in teams that lack diversity of thought, struggle to stay innovative, and higher turnover.
Here’s how bias can derail your recruitment process:
- False Positives: You might bring in someone who feels like a good fit for the wrong reasons – despite not having the right skills or attitude.
- False Negatives: Conversely, talented candidates with unconventional CVs or unfamiliar accents and backgrounds may be overlooked, costing you the fresh perspectives and problem-solving approaches you need.
- Mounting Costs: A bad hire can have a much wider impact – low morale, a drop in productivity, and additional recruitment spend when you realise they’re not right for the role.
- Compliance and Reputation Risks: If unconscious bias becomes a pattern, you could end up harming your employer brand.
The Business Case for Inclusive Hiring
Being intentional about hiring inclusively isn’t just a ‘nice-to-have’ – it’s a genuine driver of performance, revenue, and employee engagement!
When you hire the right person rather than the comfortable choice, you gain fresh ideas, stronger engagement, and a healthier bottom line.
Here’s why it matters:
Higher Performance and Profitability
- Inclusive organisations are up to eight times more likely to achieve better business outcomes.
- Gender diverse organisations can outperform financially by up to 25%, while ethnically diverse companies have been found to do so by up to 36%.
- Diverse organisations can generate up to 2.5X higher cash flow per employee.
Stronger Retention and Team Cohesion
- Employees who can be themselves at work are more likely to stay longer, reducing costly turnover.
- Inclusive teams are over 35% more productive – largely because people perform better when they’re comfortable sharing ideas.
- A culture that is actively inclusive of people of all backgrounds has been linked to greater wellbeing, which directly impacts team morale and productivity.
Sharper Competitive Edge
- Diverse perspectives can uncover new efficiencies and opportunities, while helping teams spot problems and solutions much faster.
- By removing unconscious bias and focusing on inclusive hiring, you’ll tap into a wider talent pool and gain the fresh thinking required to stay ahead in competitive markets!
Identifying Bias in Your Hiring Process + Checklist
Unconscious bias can creep into hiring at multiple stages, from writing job descriptions to making final hiring decisions.
The good news is that, by regularly auditing your processes, you’ll be better equipped to spot patterns that exclude qualified candidates.
Below are some key areas to watch out for:
Job Ads and Descriptions
- Are your requirements genuinely essential, or are you adding ‘nice-to-haves’ that limit your talent pool?
- Could any language unintentionally suggest the role is only suitable for a specific gender or background?
Application Screening
- Are you filtering out candidates with unconventional CV formats or missing credentials – even if they have the right skills?
- How much weight do you give to personal ‘connections’ or familiar names?
Interviews
- Do you have a structured, consistent set of questions, or does each interviewer rely on ‘gut feel’?
- Could biases like accents, communication styles, or regional backgrounds be influencing who makes the cut?
Assessment and Feedback
- Are your scoring criteria measurable and standardised?
- Do you gather diverse viewpoints when evaluating candidates?
Your Inclusive Hiring Process Checklist [Downloadable]
Tick all the right boxes in your hiring audits with our free downloadable checklist.
Breaking down each stage of the recruitment process, it offers step-by-step tips for spotting and reducing bias – click below to download:
Next Steps for Talent Managers
Removing unconscious bias from the recruitment process won’t happen overnight, but consistent efforts can drive lasting change.
Here are a few final takeaways to keep top of mind:
- Review Your Processes: From job ads to final interviews, look for areas where bias can sneak in.
- Set Clear Standards: Standardise your evaluations and document them, ensuring every candidate is assessed fairly.
- Champion Inclusivity: Encourage open dialogue, training, and accountability within your hiring teams.
- Stay Proactive: Continually measure your results, gather feedback from new hires, and adapt as you learn.
For expert inclusive hiring support and advice tailored to your organisation, our team at Aspion Search is ready to help.
Get in touch today and start building a recruitment strategy that brings the best talent on board – without bias.
Frequently Asked Questions
Common questions about unconscious bias.
How Does Unconscious Bias Affect Recruitment Decisions?
Bias can influence who gets shortlisted, interviewed, or offered roles – often without employers realising. It can lead to ‘safe’ hiring decisions that favour familiarity over potential, narrowing talent pools and unintentionally excluding skilled candidates who don’t fit preconceived ideas of a 'good hire'.
How Can Unconscious Bias Impact Team Performance and Culture?
When bias shapes who’s hired or promoted, it limits diversity of thought and experience. This can stifle innovation, lead to groupthink, and create environments where some staff feel overlooked or undervalued. Meanwhile, inclusive teams tend to be more engaged, creative, and productive.
Why Is Inclusive Language Important in Job Adverts?
The words you use can attract – or alienate – candidates. Overly gendered or jargon-heavy language can put off underrepresented applicants. Inclusive language widens your reach and signals a workplace where everyone has a fair chance, helping to level the playing field from the first touchpoint.
Can Unconscious Bias Affect Staff Retention and Progression?
Yes. If certain employees feel consistently overlooked for promotions, projects, or recognition, they may disengage or leave. Bias doesn’t stop at hiring – it can quietly shape who thrives. Creating fair, transparent progression pathways helps retain diverse talent and build trust across teams.
How Can SMEs Improve Diversity Without Large Budgets?
Start with small, practical changes: review job adverts for bias, diversify interview panels, offer mentoring, and create safe spaces for feedback. Training and inclusive practices don’t have to break the bank – what matters most is consistency, intention, and a genuine commitment to change.
