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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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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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Skills Measurement vs Skills Inference – What’s the Difference and Why Does It Matter?

There’s growing interest in AI-driven tools that infer skills from CVs, LinkedIn profiles, and other passive data sources. These systems claim to map someone’s capability based on the words they use, the jobs they’ve held, and patterns derived from millions of similar profiles. In theory, it’s efficient. But when inference becomes the primary basis for hiring or promotion, we need to scrutinise what’s actually being measured and what’s not.

Let’s be clear: the technology isn’t the problem. Modern inference engines use advanced natural language processing, embeddings, and knowledge graphs. The science behind them is genuinely impressive. And when they’re used alongside richer sources of data, such as internal project contributions, validated assessments, or behavioural evidence, they can offer valuable insight for workforce planning and development.

But we need to separate the two ideas:

  • Skills Measurement: Directly observing or quantifying a skill based on evidence of actual performance. 
  • Skills Inference: Estimating the likelihood that someone has a skill, based on indirect signals or patterns in their data. 

The risk lies in conflating the two.

The Problem Isn’t Inference of Skills. It’s the Data Feeding It

CVs and LinkedIn profiles are riddled with bias, inconsistency, and omission. They’re self-authored, unverified, and often written strategically – for example, to enhance certain experiences or downplay others in response to a job ad. 

And different groups represent themselves in different ways. Ahuja (2024) showed, for example, that male MBA graduates in India tend to self-promote more than their female peers. Something as simple as a longer LinkedIn ‘About’ section becomes a proxy for perceived competence.

Job titles are vague. Skill descriptions vary. Proficiency is rarely signposted. Even where systems draw on internal performance data, the quality is often questionable. Ratings tend to cluster (remember the year everyone got a ‘3’ at your org?) and can often reflect manager bias or company culture more than actual output.

Sophisticated ≠ Objective

The most advanced skill inference platforms use layered data: open web sources like job ads and bios, public databases like O*NET and ESCO, internal frameworks, even anonymised behavioural signals from platform users. This breadth gives a more complete picture, and the models powering it are undeniably sophisticated.

But sophistication doesn’t equal accuracy.

These systems rely heavily on proxies and correlations, rather than observed behaviour. They estimate presence, not proficiency. And when used in high-stakes decisions, that distinction matters.

Transparency (or Lack Thereof)

In many inference systems, it’s hard to trace where a skill came from. Was it picked up from a keyword? Assumed from a job title? Correlated with others in similar roles? The logic is rarely visible, and that’s a problem, especially when decisions based on these inferences affect access to jobs, development, or promotion.

Presence ≠ Proficiency

Inferred skills suggest someone might have a capability. But hiring isn’t about possibility. It’s about evidence of capability. Saying you’ve led a team isn’t the same as doing it well. Collecting or observing actual examples of behaviour allows you to evaluate someone’s true competence at a claimed skill. 

Some platforms try to infer proficiency, too, but this is still inference, not measurement. No matter how smart the model, it’s still drawing conclusions from indirect data.

By contrast, validated assessments like structured interviews, simulations, and psychometric tools are designed to measure. They observe behaviour against defined criteria, use consistent scoring frameworks (like Behaviourally Anchored Rating Scales, or BARS), and provide a transparent, defensible basis for decision-making. In doing this, the level or proficiency of a skill can be placed on a properly calibrated scale. 

But here’s the thing: we don’t have to choose one over the other.

A Smarter Way Forward: The Hybrid Model

The real opportunity lies in combining the rigour of measurement with the scalability of inference.

Start with measurement
Define the skills that matter. Use structured tools to capture behavioural evidence. Set a clear standard for what good looks like. For example, define Behaviourally Anchored Rating Scales (BARS) when assessing interviews for skills. Using a framework like Sapia.ai’s Competency Framework is critical for defining what you want to measure. 

Layer in inference
Apply AI to scale scoring, add contextual nuance, and detect deeper patterns that human assessors might miss, especially when reviewing large volumes of data.

Anchor the whole system in transparency and validation
Ensure people understand how inferences are made by providing clear explanations. Continuously test for fairness. Keep human oversight in the loop, especially where the stakes are high. More information on ensuring AI systems are transparent can be found in this paper.

This hybrid model respects the strengths and limits of both approaches. It recognises that AI can’t replace human judgement, but it can enhance it. That inference can extend reach, but only measurement can give you higher confidence in the results.

The Bottom Line

Inference can support and guide, but only measurement can prove. And when people’s futures are on the line, proof should always win.

References

Ahuja, A. (2024). LinkedIn profile analysis reveals gender-based differences in self-presentation among Indian MBA graduates. Journal of Business and Psychology.

 

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Making Healthcare Hiring Human with Ethical AI

Hiring for care is unlike any other sector. Recruiters are looking for people who can bring empathy, resilience, and energy to the most demanding human roles. Whether it’s dental care, mental health, or aged care, new hires are charged with looking after others when they’re most vulnerable. The stakes are high. 

Hiring for care is exactly where leveraging ethical AI can make the biggest impact.

Hiring for the traits that matter

The best carers don’t always have the best CVs.

That’s why our chat-based AI interview doesn’t screen for qualifications. It screens for the the skills that matter when caring for others. The traits that define a brilliant care worker, things like:

Empathy, Self-awareness, Accountability, Teamwork, and Energy. 

The best way to uncover these traits is through structured behavioural science, delivered through an experience that allows candidates to open up. Giving candidates space to give real-life, open-text answers. With no time pressure or video stress. Then, our AI picks up the signals that matter, free from any demographic data or bias-inducing signals.

Candidates’ answers to our structured interview questions aren’t simply ticking boxes. They’re a window into how someone shows up under pressure. And they’re helping leading care organisations hire people who belong in care and those who stay.

Inclusion, built in

Inclusivity should be a core foundation of any talent assessment, and it’s a fundamental requirement for hirers in the care industry. 

When healthcare hirers use chat-based AI interviews, designed to be inclusive for all groups, candidates complete their interviews when and where they choose, without the bias traps of face-to-face or phone screening. There are no accents to judge, no assumptions, just their words and their story.

And it works:

  • 91.8% of carer candidates complete their interviews
  • Carer candidates report 9/10 Candidate Satisfaction with their interview experience 
  • 80% of candidates would recommend others to apply 
  • Every candidate receives personalised feedback, regardless of the outcome

Drop-offs are reduced, and engagement & employer brand advocacy go up. Building a brand that candidates want to work for includes providing a hiring experience that candidates want to complete. 

Real outcomes in care hiring

Our smart chat already works for some of the most respected names in healthcare and community services. Here’s a sample of the outcomes that are possible by leveraging ethical AI, a validated scientific assessment, wrapped in an experience that candidates love: 

Anglicare – a leading provider of aged care services
  • Time-to-offer dropped from 40+ days to just 14
  • Candidate pool grew by 30%
  • Turnover dropped by 63%
Abano Healthcare – Australasia’s largest dental support organisation
  • 1,213 recruiter hours saved  in the first month (67 hours per individual hiring team member) 
  • $25,000 saved in screening and interviewing time
Berry Street – a not for profit family & child services organisation
  • Time-to-hire down from 22 to 7 days
  • 95.4% of candidates completed their chat interviews

A smarter way to hire

The case study tells the full story of how Sapia.ai helped Anglicare, Abano Healthcare, and Berry Street transform their hiring processes by scaling up, reducing burnout, and hiring with heart. 

Download it here:

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