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Avoiding biases and adverse impact in predictive hiring

Part of our job here in the workforce science team is to keep up to date with new research in Organisational Psychology. This might sound boring to some people – but we love it!

As massive nerds, we find nothing more exciting than seeing new progress in our field. This time, our knowledge-cravings took us all the way from Melbourne to Orlando, Florida, to this year’s SIOP conference.

The issue of Adverse Impact

An important issue within our field – and within the US in general – is adverse impact and hiring for diversity.

We are passionate about ensuring people are not discriminated against in selection methods, whether it is because of gender, age, ethnic background or sexual orientation.

(Actually, this is also one of the key values and driving forces behind why Paul, our CEO, founded Sapia.)

One key topic at this year’s conference was the combination of data science and behavioural science. Specifically, there were a lot of discussions around how these sciences can work together to minimise bias and discrimination in the hiring process.

The standard recruitment selection process

To give you some background as to why this is important, let’s explore what a standard selection process might look like today.

If you ever have applied for a job, it is likely you have gone through a process involving;

  • your resume
  • a cover letter
  • a psychometric test (personality/intelligence)
  • an interview
  • reference checks

As mentioned, pretty standard. This is typically the different pieces of information that recruiters would use to assess your suitability for a role.

However, from an adverse impact perspective, this isn’t good enough.

The reason is that humans are biased (there are a plethora of studies out there proving this). And even if our biases (in most cases) are unconscious, we still base discriminatory decisions on them.

Does your name predict future performance?

A research study by The Ladders found that recruiters only spend about 6 seconds looking at a resume. Using gaze-tracking technology they identified that recruiters spend almost 80% of this time on only a few items:

  • name
  • current title/company
  • previous title/company
  • previous position start and end dates
  • current position start and end dates
  • education

To most people that would seem reasonable. Our previous professional and educational experience should be predictive of future performance, right?

If you agree, it might surprise you that past job experience only has a 0.13 validity when used to predict performance (and your name certainly has nothing to do with how you would perform).

So not only is the information recruiters look at not actually predictive of performance, but it also has the potential to adversely impact minorities.

An eye-opening example

In the 1970s, the Toronto Symphony Orchestra was composed of almost all white males. A few years later, they caught on to their diversity issue and decided to do something about it.

One initiative was to introduce ‘blind auditions’. Individuals would perform from behind a screen, making the assessors ‘blind’ to who was performing. This meant that the performance was in the center of the assessment, not the individual.

The result?

The proportion of women within the orchestra increased from 5% to 35%.

Individuals within racial minority groups are also discriminated against based on resumes.

Research found that applicants with ‘traditional’ english names received an interview for every 1/10 resumes sent out. This is in contrast to applicants with African-American names, who only got an interview for every 1/15 resumes.

As the resume is one of the most common determinators of whether an applicant progresses to the next stage – it is alarming that this method can adversely impact minority groups.

Luckily, some progress is definitely being made to combat this.

Different techniques, for example blind recruitment, are increasing in popularity. Some progressive businesses have leap-frogged and started using artificial intelligence (AI) driven algorithms as a first step in their assessment process.

Important to keep in mind with AI and Adverse Impact

When using AI, it is very important to understand that the data put into the algorithm is of great importance. AI is often touted as the solution to the biases inherent in our thinking, but if not executed properly, AI can also become biased.

This is because an AI algorithm is only ever as bias-free as the data we used to build it.

It can be difficult to make sure AI is increasing diversity, and at the same time maintaining its predictive power. The predictive power is basically how good a model is at predicting good performance – and weeding out those who wouldn’t do so well.

To ensure best chance of success it is crucial that the data we put into AI recruitment tools is bias free.

One way is to control what you put into your AI models. Big Data can for example be dangerous, as it looks at adding all possible data sources of information to predict performance.

This could mean that the AI model learns that ethnic background is a predictor for success, which we clearly want to avoid.

To combat this issue at Sapia, we make the following decisions:

Targeted variables:

  • we only choose variables that minority groups do not answer differently to other groups

(if we did the model could learn to discriminate against these groups if the variable was considered predictive)

Test our predictors:

  • Are they in fact adversely impacting anyone?
  • Conduct adverse impact studies

When considering a new assessment tool, you should always ask your test provider the following;

How do you ensure the assessment isn’t biased against any gender, age or racial category, whilst remaining highly predictive of performance?

If they can’t give you a satisfying answer, it is definitely worthwhile considering another vendor.


Liked what you read? For further reading on how we minimise bias in our algorithms, head here.


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Mirrored diversity: why retail teams should look like their customers

Walk into any store this festive season and you’ll see it instantly. The lights, the displays, the products are all crafted to draw people in. Retailers spend millions on campaigns to bring customers through the door. 

But the real moment of truth isn’t the emotional TV ad, or the shimmering window display. It’s the human standing behind the counter. That person is the brand.


The missing link in retail hiring

Most retailers know this, yet their hiring processes tell a different story. Candidates are often screened by rigid CV reviews or psychometric tests that force them into boxes. Neurodiverse candidates, career changers, and people from different cultural or educational backgrounds are often the ones who fall through the cracks.

And yet, these are the very people who may best understand your customers. If your store colleagues don’t reflect the diversity of the communities you serve, you create distance where there should be connection. You lose loyalty. You lose growth.

We call this gap the diversity mirror.


What mirrored diversity looks like

When retailers achieve mirrored diversity, their teams look like their customers:

  • A grocery store team that reflects the cultural mix of its neighbourhood.
  • A fashion store with colleagues who understand both style and accessibility.
  • A beauty retailer whose teams reflect every skin tone, gender, and background that walks through the door.

Customers buy where they feel seen – making this a commercial imperative. 

 

How to recruit seasonal employees with mirrored diversity

The challenge for HR leaders is that most hiring systems are biased by design. CVs privilege pedigree over potential. Multiple-choice tests reduce people to stereotypes. And rushed festive hiring campaigns only compound the problem.

That’s where Sapia.ai changes the equation: Every candidate is interviewed automatically, fairly, and in their own words.

  • Bias is measured and monitored using Sapia.ai’s FAIR™ framework.
  • Outcomes are validated at scale: 7+ million candidates, 52 countries, average candidate satisfaction 9.2/10.
  • Diversity can be measured: with the Diversity Dashboard, you can track DEI capture rates, candidate engagement, and diversity hiring outcomes across every stage of the funnel.

With the right HR hiring tools, mirrored diversity becomes a data point you can track, prove, and deliver on. It’s no longer just a slogan.

 

Retail recruiting strategies in action: the David Jones example

David Jones, Australia’s premium department store, put this into practice:

  • 40,000 festive applicants screened automatically
  • 80% of final hires recommended by Sapia.ai
  • Recruiters freed up 4,000 hours in screening time
  • Candidate experience rated 9.1/10

The result? Store teams that belong with the brand and reflect the customers they serve.

Read the David Jones Case Study here 👇


Recruiting ideas for retail leaders this festive season

As you prepare for festive hiring in the UK and Europe, ask yourself:

  • How much will you spend on marketing this Christmas?
  • And how much will you invest in ensuring the colleagues who deliver that brand promise reflect the people you want in your stores?

Because when your colleagues mirror your customers, you achieve growth, and by design, you’ll achieve inclusion.

See how Sapia.ai can help you achieve mirrored diversity this festive season. Book a demo with our team here. 

FAQs on retail recruitment and mirrored diversity

What is mirrored diversity in retail?

Mirrored diversity means that store teams reflect the diversity of their customer base, helping create stronger connections and loyalty.

Why is diversity important in seasonal retail hiring?

Seasonal employees often provide the first impression of a brand. Inclusive teams make customers feel seen, improving both experience and sales.

How can retailers improve their hiring strategies?

Adopting tools like AI structured interviews, bias monitoring, and data dashboards helps retailers hire fairly, reduce screening time, and build more diverse teams.

 

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The Diversity Dashboard: Proving your DEI strategy is working

Why measuring diversity matters

Organisations invest heavily in their employer brand, career sites, and EVP campaigns, especially to attract underrepresented talent. But without the right data, it’s impossible to know if that investment is paying off.

Representation often varies across functions, locations, and stages of the hiring process. Blind spots allow bias to creep in, meaning underrepresented groups may drop out long before offer.

Collecting demographic data is only step one. Turning it into insight you can act on is where real change and better hiring outcomes happen.

What is the Diversity Dashboard?

The Diversity Dashboard in Discover Insights, Sapia.ai’s analytics tool, gives you real-time visibility into representation, inclusion, and fairness at every stage of your talent funnel. It helps you connect the dots between your attraction strategies and actual hiring outcomes.

Key features include:

  • Demographic filters – Switch between gender, ethnicity, English as an additional language, First Nations status, disability, and veteran status. View age and ethnicity in standard or alternative formats to match regional reporting needs.
  • Representation highlights – Identify the top five represented sub-groups for each demographic, plus the three fastest-growing among underrepresented groups.
  • Track trends over time – See month-by-month changes in representation over the past 12 months, compare to earlier periods, and connect the data back to your EVP and attraction spend.
  • Candidate experience metrics – Measure CSAT (satisfaction) and engagement rates by demographic to ensure your hiring process works for everyone. Inclusion is measurable.
  • Hiring fairness – Compare representation in your applied, recommended, and hired pools to spot drop-offs. Understand not just who applies, but who progresses — and why.

     

From insight to action

With the Diversity Dashboard, you can pinpoint where inclusion is thriving and where it’s falling short.

  • See if your EASL candidates are applying in high numbers but not progressing to live interview.
  • Spot if candidates with a disability report high satisfaction but have lower offer rates.
  • Track the impact of targeted campaigns month-by-month and adjust quickly when something isn’t working.

It’s also a powerful tool to tell your success story. Celebrate wins by showing which underrepresented groups are making the biggest gains, and share that progress with boards, executives, and regulators.

Built on science, backed by trust

Powered by explainable AI and the world’s largest structured interview dataset, your insights are fair, auditable, and evidence-based.

Measuring diversity is the first step. Using that data to take action is where you close the Diversity Gap. With the Diversity Dashboard, you can prove your strategy is working and make the changes where it isn’t.

Book a demo to see the Diversity Dashboard in action.

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Neuroinclusion by design. Not by exception.

Why neuroinclusion can’t be a retrofit and how Sapia.ai is building a better experience for every candidate.

In the past, if you were neurodivergent and applying for a job, you were often asked to disclose your diagnosis to get a basic accommodation – extra time on a test, maybe the option to skip a task. That disclosure often came with risk: of judgment, of stigma, or just being seen as different.

This wasn’t inclusion. It was bureaucracy. And it made neurodiverse candidates carry the burden of fitting in.

We’ve come a long way, but we’re not there yet.

Shifting from retrofits to inclusive-by-design

Over the last two decades, hiring practices have slowly moved away from reactive accommodations toward proactive, human-centric design. Leading employers began experimenting with:

  • Sharing interview questions in advance

  • Replacing group exercises with structured simulations

  • Offering a variety of assessment formats

  • Co-designing assessments with neurodiverse candidates

But even these advances have often been limited in scope, applied to special hiring programs or specific roles. Neurodiverse talent still encounters systems built for neurotypical profiles, with limited flexibility and a heavy dose of social performance pressure.

Hiring needs to look different.

Insight 1: The next frontier of hiring equity is universal design

Truly inclusive hiring doesn’t rely on diagnosis or disclosure. It doesn’t just give a select few special treatment. It’s about removing friction for everyone, especially those who’ve historically been excluded.

That’s why Sapia.ai was built with universal design principles from day one.

Here’s what that looks like in practice:

  • No time limits — Candidates answer at their own pace
  • No pressure to perform — It’s a conversation, not a spotlight
  • No video, no group tasks — Just structured, 1:1 chat-based interviews
  • Built-in coaching — Everyone gets personalised feedback

It’s not a workaround. It’s a rework.

Insight 2: Not all “friendly” methods are inclusive

We tend to assume that social or “casual” interview formats make people comfortable. But for many neurodiverse individuals, icebreakers, group exercises, and informal chats are the problem, not the solution.

When we asked 6,000 neurodiverse candidates about their experience using Sapia.ai’s chat-based interview, they told us:

“It felt very 1:1 and trustworthy… I had time to fully think about my answers.”

“It was less anxiety-inducing than video interviews.”

“I like that all applicants get initial interviews which ensures an unbiased and fair way to weigh-up candidates.”

Insight 3: Prediction ≠ Inclusion

Some AI systems claim to infer skills or fit from resumes or behavioural data. But if the training data is biased or the experience itself is exclusionary, you’re just replicating the same inequity with more speed and scale.

Inclusion means seeing people for who they are, not who they resemble in your data set.

At Sapia.ai, every interaction is transparent, explainable, and scientifically validated. We use structured, fair assessments that work for all brains, not just neurotypical ones.

Where to from here?

Neurodiversity is rising in both awareness and representation. However, inclusion won’t scale unless the systems behind hiring change as well.

That’s why we built a platform that:

  • Doesn’t rely on disclosure

  • Removes ambiguity and pressure

  • Creates space for everyone to shine

  • Measures what matters, fairly

Sapia.ai is already powering inclusive, structured, and scalable hiring for global employers like BT Group, Costa Coffee and Concentrix. Want to see how your hiring process can be more inclusive for neurodivergent individuals? Let’s chat. 

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