To find out how to interpret bias in recruitment, we also have a great eBook on inclusive hiring.
What is workplace diversity?
While workplace diversity might once have been considered a ‘nice to have’, today it’s a ‘must-have’ for employers who recognize the value it brings to their organization, especially in the context of diversity hiring. The core idea of workplace diversity is that the people in any organization’s team should reflect the society in which we live – that is people of different genders, different ages, and different ethnic and cultural backgrounds. That seems logical and simple enough, yet achieving diversity, and especially achieving diversity hiring goals, is still a struggle for many.
What does diversity look like?
Today, workplace diversity is not just about increasing female representation and employing team members from different cultural backgrounds. While these are great goals and are central to many diversity hiring ideas, true diversity is about so much more.
Diversity can be broadly sorted into two categories:
Inherent – effectively the defining traits and characteristics we are born with – gender, ethnicity, sexual orientation, age, socio-economic background, religious and cultural backgrounds.
Acquired – reflecting our experience of the world around us and covering things like education, life knowledge, learned values and skills, socio-economic mobility, political beliefs. These are developed, earned or achieved over time.
It’s the combination of inherent and acquired traits that make people and societies diverse. This holistic view of culture, background, life experience, education, values, and perspectives is a top priority for recruiters and employers alike, emphasizing the need for effective diversity hiring platforms and tools.
What is diversity hiring?
Diversity hiring, often inquired as “what is a diversity hire?”, simply describes the processes of recruiting that support diversity in the workplace. Diversity hiring is not about increasing workplace diversity for the sake of diversity. Hiring for diversity is all about giving every candidate an equal opportunity, regardless of their background. It’s about identifying and removing any steps in the diversity hiring process in sourcing, screening, and shortlisting candidates that may allow discrimination against candidates and personal characteristics that have nothing to do with their ability to do the job such as gender, age, religion, sexual orientation and so on.
By removing biases against individuals or groups of candidates, the process of finding the best candidates to be considered for the role can be based on merit and all the qualities identified as essential for the role and the organisation.
A fairer path to recruitment considers the experience of the candidate at every single step.
From discovering an opportunity through to offer. It addresses bias, inclusivity and fairness. And ideally, it makes recruiters’ lives easier. This is explored in the Inclusive Hiring e-Book here >
Why do you need diversity?
Diversity is embraced by companies who understand the value it brings to their business. Why diversity hiring is important is highlighted by many studies.
In their 2018 report Delivering through Diversity, McKinsey&Company found that:
- Companies in the top-quartile for gender diversity on executive teams were 21% more likely to outperform on profitability and 27% more likely to have superior value creation.
- Beyond gender, companies in the top-quartile for ethnic/cultural diversity on executive teams were 33% more likely to have industry-leading profitability. This diversity included traits such as age and generation, international experience and LGBTQIA+ representation.
While McKinsey’s study was focused on US global companies, their findings are reflected in other studies, white papers and shared experiences of organisations all around the world.
They confirm that workplace diversity impacts a wide range of business metrics:
- better performance and productivity
- business growth
- improved problem-solving abilities
- increased creativity and innovation
- a sense of belonging that boosts employees’ health and wellbeing
- fewer incidents of discrimination or harassment in the workplace
- improved employee retention and tenure
- enhanced reputation as an employer
It’s what employees want too
Unsurprisingly, diversity in the workplace can be a deal maker or breaker for millennial and GenZ job seekers. Deloitte found that 83% of millennials are more engaged when they can know a company fosters an inclusive culture.
But it’s not just the next generations. A recent survey by Glassdoor found that 67% of all candidates say it’s an important factor when considering employment opportunities while more than 50% of current employees want their workplace to do more to increase diversity, emphasizing why is diversity hiring important.
Diversity hiring laws
While there’s no doubt that diversity hiring is good for business, for any organization that doesn’t embrace diversity and hiring practices, the opposite can also be true. Apart from missing out on the benefits that diversity brings to productivity, employee satisfaction, and business reputation, employers also risk breaking the law.
Within Australia, diversity is supported by national and state laws that cover equal employment opportunity, human rights, and anti-discrimination in the workplace. It’s essential that all employers understand their own responsibilities and the rights of employees or job candidates. The cost of non-compliance can be severe while the damage to an organization’s reputation could be matched by irreparable damage to sales, business contracts, and their employer brand.
In Australia, it is unlawful to disadvantage employees and job seekers in any way because of their:
- race
- colour
- gender
- sexual orientation
- age
- physical or mental disability
- marital status
- family or carer’s responsibilities
- pregnancy
- religion
- political opinion
- national extraction (place of birth or ancestry)
- social origin (class, caste or socio-occupational category)
- industrial activities (such as belonging to a trade union)
Unconscious bias – it’s a human condition
Whether innate or learned, everybody is capable of unconscious bias. Reinforced by our own personal experiences, cultural background, beliefs and world view, bias is how we feel about something – a person or group of people, an idea, a thing – and how we use those feelings to make judgements and decisions about those people or things, often instantaneously.
Psychologists and researchers have identified over 150 types of bias that impact the way we engage, assess and interact with others. In the recruitment process that’s 150 ways that otherwise suitably qualified candidates can be overlooked, ignored, put aside or deliberately discounted. You can read more about unconscious bias in our article here.
Algorithms do the job humans can’t
Because unconscious bias is a universal and inherently human condition, it’s a problem that can’t be solved by any amount of bias training or awareness.
So if humans can’t solve the very human problem, what can be done? Sapia has solved the issue of unconscious bias in hiring by taking humans out of the process for top-of-funnel interview screening through an Artificial Intelligence enabled chat interview platform. It’s an easy way to implement data-driven decision-making with a structured and automated process that provides a level playing field for all candidates.
Six more ways to build your diversity hiring capabilities
Adopting Sapia Ai-enabled decision-making to remove bias from the early interview process is one of the easiest ways to get diversity hiring working for you. Here are some further ideas from Sapia’s team to help increase diversity in candidate sourcing, screening, and, ultimately, hiring.
1.Agree your diversity hiring goals
More female graduates in technical roles? A better cultural spread across the organization? More women in middle management? Without understanding how diversity hiring supports your business plans, how would you ever know you’re making progress? Diversity hiring strategies and initiatives should be agreed by your leadership team, documented in HR plans, and socialized among all stakeholders.
2. Develop your employer brand and policies that support diversity
Developing a reputation as an employer who values and nurtures diversity starts with your own people. Talk to your people to hear what’s important to them and understand if they think any policies (or attitudes) are holding diversity back. Talk to your team about diversity and the benefits it can bring.
Think about policies that may support more diversity in your workplace. Beyond hiring, it may be providing extra time off for community events or religious festivals, or simply providing workplace flexibility and freedom for employees to be comfortable being themselves.
The more your team buy into policies that support, value, and celebrate diversity, the more your reputation as a diversity employer will organically grow. And the more it grows, the easier diversity hiring will become… as candidates who value diversity will be lining up to work with you.
3. Use your ATS to build diverse talent pools
Sapia’s automated interview platform is designed to integrate seamlessly with leading Applicant Tracking Systems (ATS). Even before the interview process, use screening tools in the ATS to filter and sort candidates on skills, qualifications or experience alone. This blind screening to identify candidates with the best potential adds an additional layer of bias-free screening to your diversity hiring.
4. Mind your language and rethink your screening factors for diversity
Undertaking a review of past job ads can help you see where bias may have crept into your recruiting process. Is your language inclusive? Would all candidates feel they could apply regardless of age, gender or cultural background? While being careful not to actually be biased, your words can talk more directly to the candidates you want to attract and explain why they’d be a great fit for your team.
While you’re reviewing the way you reach out to candidates, also consider whether you’re screening or interviewing for the qualities you actually value most or you’re unconsciously guiding the process towards certain types or profiles. Sometimes you need to ask others to check your own bias.
5. Add some diversity into your candidate sourcing
Is it time to fish for candidates in a different talent pool? If you’re relying on the same sources and same screening factors, you’re likely to keep cultivating the same type of candidate. Think about where and how you can connect with a more diverse candidate pool.
If you are targeting more women in specific roles, for example, find relevant interest or networking groups online or within platforms such as LinkedIn and talk to candidates directly. Ask your female employees to recommend their own connections or former colleagues and share job leads. The same principle applies to reaching out to any particular demographic or skill set and employees appreciate having their opinions and recommendations heard and valued.
6. Consider some affirmative action
Especially when you’re starting your diversity hiring journey, you may want to help things along with specific diversity programs that could offer an internship or traineeship to candidates of specific backgrounds. Consider working with local schools, colleges, or community groups to make connections and target the appropriate up-and-coming candidates. It can also be a great way to engage and motivate your own team in supporting diversity hiring goals.
Sapia: Blind screening at its best
Sapia solves bias by screening and evaluating candidates with a simple open, transparent interview via a text conversation.
Candidates know text and trust text and questions can be tailored to suit the requirements of the role and the organisation’s brand values. Unlike competitors, Sapia has no video hookups, visual content or voice data. No CVs and no data extracted from social channels. All of which can be triggers for bias– unconscious or otherwise.
Sapia’s solution is designed to provide every candidate with a great experience that respects and recognises them as the individual they are. People are more than their CV and candidates appreciate the opportunity to tell their story in their own words, in their own time. Sapia is the only conversational interview platform with 99% candidate satisfaction feedback. You can read more about blind screening in our article here.
Find out more about Sapia’s AI-powered interview automation platform and how we can support your diversity hiring goals.
You can try out Sapia’s Chat Interview right now – here – or leave us your details to get a personalised demo
Related
Blog
How leading retailers are using AI-Native Hiring
Retail leaders have embraced AI to improve supply chains, automate checkout, and enhance customer experience. But what about finding the people who deliver that customer experience?
AI brings incredible possibilities to supercharge how retailers hire, develop, and retain talent.
At Sapia.ai, we helped iconic retailers like Woolworths, Starbucks, Holland & Barrett, and David Jones reimagine hiring from the ground up – replacing resumes, ghosting, and gut feel with structured, ethical AI that delivers performance and fairness at scale.
The Retail Problem: Volume, Turnover, and Ghosting
Retail is high volume. It’s high churn. And it’s high stakes for candidate experience:
- Candidates ghosted during slow hiring cycles
- Store managers are overloaded with admin
- Recruiters are overwhelmed with 100,000+ seasonal applicants
- Talent is overlooked due to bias or unfair screening processes, not a lack of potential
And yet, most hiring still relies on broken tools: resumes, forms, manual processes, and outdated systems.
Sapia.ai: The AI-Native Hiring Engine Built for Retail
Our platform automates the entire “apply to decide” journey, leveraging AI & automation to streamline the hiring process & bring intelligence into retail hiring.
Smart Interviewer™: Mobile-first, chat-based, structured interviews for a holistic candidate assessment.
Live Interview™: AI-driven bulk interview scheduling without calendar chaos.
InterviewAssist™: Instant interview guide generation.
Discover Insights: Embedded analytics to track hiring health in real-time.
Phai: GenAI coach for career and leadership potential.
Unlike resume parsing or generic chatbots, Sapia.ai assesses soft skills, communication, and culture fit using natural language processing and validated psychometrics. It’s ethical AI built in, not bolted on.
From Application to Interview in Under 24 Hours
Candidates don’t want to wait. They don’t want to be ghosted. And they don’t want resumes to define them.
> 80% of Sapia.ai chat interviews are completed in under 24 hours.
We see consistently high completion across categories: grocery, merchandising, home improvement, and luxury retail.
“It was fast, fair, and I actually got feedback. That never happens.” – Retail Candidate Feedback
Real Impact, Across Every Retail Category
Sapia.ai powers hiring for millions of candidates across diverse retail environments:
| Impact of Sapia.ai on Retail Hiring in 2024 | |||
| Category | Hours Saved | FTEs Saved | Cost Saved |
| Grocery | 272k | 131 | $6.5m |
| General Merchandise | 193k | 93 | $4.6m |
| Specialty Retail | 133k | 64 | $3.2m |
| Home Improvements | 103k | 50 | $2.5m |
| Merchandising | 22k | 11 | $0.5m |
| Luxury | 9k | 4 | $0.2m |
The savings created by intelligent, AI-native automation have unlocked team capacity, impacted retailers’ P&L, and improved store readiness.
Speed That Delivers Real ROI
Every candidate gets interviewed instantly. No waiting. No bias. Just fast, fair, data-backed decisions. This generates real impact for retailers who previously relied on slow, outdated processes to handle thousands of applicants.
- Woolworths: 5,000 hours saved in a single week
- Starbucks: Doubled hiring capacity, 91.8% completion
- Holland & Barrett: Time to hire cut from 20 to 7 days
- Woodie’s: 3x more ethnic minorities hired in 3 months
DEI by Design, Not by Mandate
With Sapia.ai:
- 98% of candidates opt in to demographic questions
- Zero adverse impact detected across gender, ethnicity, and disability
- 1.5–3x improvements in diverse hiring rates
DEI Fairness Scores (based on actual hiring data):
Gender: 1.03 (vs customer baseline of 1.01)
Ethnicity: 1.15 (vs customer baseline of 0.74)
Why? Because ethical AI removes what humans can’t unlearn: bias. With a candidate experience that is inclusive by design, retailers can ensure fairness in screening, and measure it in hiring.
Candidate Experience = Brand Experience
Retail candidates are your customers. And the experience you give them matters. We have built a brand advocacy engine that delights candidates and gives you the data to prove it.
- 9.2/10 CSAT across 2.6 M+ retail candidates
- NPS: 78 (30+ points above industry benchmark)
- 87% more likely to recommend the company’s products post-interview
Responsible, Explainable AI Built for Retail
Not all AI is created equally. Since 2018, Sapia.ai has been built on a foundation of responsible AI:
- No use of resumes or scraped data
- Hosted securely via AWS Bedrock
- Claude-powered LLM scoring with model cards and explainability
- Independent audits on bias, privacy, and methodology
“We can’t go back to life before Sapia.ai. We used to spend half the day reading resumes.”
— Talent Lead, Starbucks AU
What’s at Stake: Time, Brand, and Revenue
Every day spent using outdated hiring methods costs retailers:
- Wasted recruiter hours
- Lost revenue from unfilled roles
- Bad churn that drains training budgets
- Lower customer satisfaction from poor-fit hires.
With Sapia.ai, you get the productivity unlock retail hiring demands, and the intelligence your talent deserves.
Want to see how fast, fair, and human retail hiring can be?
Book a demo
Blog
Reinventing the Competency Framework: A Data-Driven Approach for the AI Era
We can’t hide from reality anymore. Talent needs are shifting overnight, and AI is redefining what it means to work. Traditional talent frameworks are no longer fit for purpose. At Sapia.ai, we believe the future of talent strategy lies in a smarter, fairer, and more adaptive way of defining what great looks like.
Our AI hiring platform is built on the largest proprietary dataset of interview answers globally – we’re a data company at heart, and we’ve seen the power of data-driven people methodology in transforming how organisations hire and retain good talent.
So, when it came to building a new Competency Framework that could be leveraged globally for hiring for any role at any scale, of course, we used a ground-up, data-led methodology that bridges the gap between organisational psychology and AI.
Why Rethink Competency Frameworks?
Conventional frameworks are typically crafted through expert interviews and focus groups. While valuable, they tend to be subjective, static, and too slow to keep pace with evolving job demands. As roles become more fluid and technology augments or replaces task-based skills, organisations need a new way to understand the human capabilities that genuinely matter for performance.
We wanted to identify enduring, job-agnostic competencies that reflect what drives success in a modern workplace – capabilities like adaptability, resilience, learning agility, and customer orientation.
(Why competencies and not just skills? Read why here.)
Our Approach: Where AI Meets I/O Psychology
Sapia.ai’s methodology is rooted in the science of human behaviour but powered by cutting-edge AI. We asked two core questions:
- Can we make competency discovery agile, scalable, and evidence-based?
- Can we use AI to automate the process without losing the rigour of traditional psychology?
The answer to both: yes.
We began with a rich dataset of over 37,000 job descriptions across industries and role types. Using large language models (LLMs) and advanced NLP techniques, we extracted over 200,000 behavioural descriptors. These were distilled down through a four-step process:
- Behavioural Descriptor Extraction
- Clustering and Labeling
- Cluster Analysis by I/O Psychologists
- Thematic Categorisation and Definition of Competencies
This resulted in a refined list of 25 human-centric competencies, each with clear behavioural indicators and practical relevance across a wide range of roles.
Built to Scale. Built to Adapt.
Our framework is intelligent, but importantly, it’s adaptive. Organisations can apply this methodology to their own job descriptions to discover custom competencies. This bottom-up, role-data-led approach ensures alignment to real work, not just theoretical models.
And because the framework integrates directly with our AI-powered hiring tools, you get a connected system that brings your talent strategy to life.
Our framework comes to life in the following tools:
- Job Analyser – Starting with a job description, it creates a unique competency profile for each role to build tailored structured interviews in seconds.
- Structured Chat-based Interviews that assess candidates’ responses according to the competency profile for consistent candidate assessment.
- Talent Insights Reports from every interview with deep reasoning and explainability for fair and objective hiring decisions.
- Phai Career Coach for internal mobility and employee growth that considers their competency strengths and career aspirations.
The Future of Talent Acquisition & Development is Competency-First
Skills alone cannot predict success. Competencies do. As AI continues transforming how we work, Sapia.ai’s Competency Framework offers a scalable, scientific, and fair foundation for hiring and developing the talent of tomorrow.
Want to see how it works? Download the full framework.
Blog
It’s Time to Stop Hiring for Skills, and Start Hiring for Competencies
If you’re a CHRO or Head of Recruitment at an enterprise today, chances are you’ve been inundated with messages about the importance of “skills-based hiring.” LinkedIn’s recent Work Change Report (2025) is full of compelling data: a 140% increase in the rate at which professionals are adding new skills to their profiles since 2022, and a projection that by 2030, 70% of the skills used in most jobs today will have changed.
This is essential reading. But there’s a missed opportunity: the singular focus on “skills” fails to acknowledge the real metric that talent leaders need to be using to future-proof their workforce — competencies.
Skills vs Competencies: The Crucial Distinction
- Skills are task-specific capabilities. Think Python programming, Excel, or even negotiation.
- Soft skills refer to interpersonal or behavioural qualities like adaptability, communication, and resilience.
But skills on their own — even soft ones — are generic, disjointed, and often disconnected from real-world performance. In contrast:
- Competencies are clusters of skills, knowledge, behaviours and abilities that are observable, measurable, and context-specific.
Put simply, competencies answer the all-important question: Can this person apply the right skills, in the right way, at the right time, to deliver results in our environment?
Why Competencies Matter More Than Ever
The Work Change Report outlines a future where job titles are fluid, roles evolve quickly, and AI is a constant disruptor. This creates three massive challenges for hiring at scale:
- Roles are changing faster than static skill frameworks can keep up
- Job candidates may have non-linear, cross-functional backgrounds
- The shelf-life of technical skills is shrinking rapidly
Skills alone don’t tell us whether someone can succeed in a role that will look different 12 months from now. But competencies can. Because they measure not just what a person knows, but how they apply it.
Adaptive Talent: The New Competitive Advantage
The LinkedIn report highlights a critical insight: organisations now prioritise agility in entry-level hiring. And there’s a good reason for that. With professionals expected to hold twice as many jobs over their careers compared to 15 years ago, adaptability is not just a nice-to-have. It’s core to success.
But you can’t measure agility with a keyword on a CV. You measure it by looking at competencies like:
- Learning agility
- Change resilience
- Cross-functional collaboration
- Problem-solving in ambiguous contexts
When you shift the focus away from skills to behavioural competencies that can be defined, observed, and assessed in structured ways, you open yourself up to a much more dynamic and more useful way of managing talent.
Building a Competency-Based Talent Framework
To hire effectively at scale, particularly in a technology-driven world of work, talent leaders must shift their lens:
- Define Role-Specific Competencies: Move beyond job descriptions based on qualifications or vague skill sets. Break roles down into measurable competencies that reflect current and emerging performance expectations. This step is crucial for organisations to be able to accurately assess role-fit in the next stages. Sapia.ai does this automatically, taking job descriptions and building role-specific competency models in seconds.
- Assess Competencies Fairly and Objectively: Use structured behavioural interviews, ideally at scale. These provide a much more accurate picture of a candidate’s readiness than self-reported skills or credentials. Sapia.ai’s AI powered interviews enable competency assessment, at scale.
- Build Pathways for Development and Internal Mobility: A competency framework makes it easier to identify transferable strengths, development gaps, and future-fit potential. It gives employees clarity on how to grow within the business. Using an AI-powered coach can help ensure that talent is being continuously developed against the organisation’s competency framework.
The Future of Work Requires Depth, Not Just Breadth
LinkedIn’s data shows that people are learning more skills more quickly than ever. But the real question for talent leaders like you is: Are those skills being applied in ways that drive value? Are we hiring for task proficiency or performance?
The truth is that the organisations that will thrive in an AI-driven, skills-fluid economy aren’t the ones chasing the next hot skill. They’re the ones designing systems to identify, develop and scale competence.
Keen to Shift to Competencies, but Lacking a Framework?
Sapia.ai has developed a comprehensive Competency Framework using a data-driven approach. Download the full paper here.