A recent experiment conducted by a group of economists involved sending out thousands of resumes to over 100 of the largest companies in the United States. The resumes used fake names that suggested either a white or Black applicant, as well as male or female. The results showed that on average, employers contacted the presumed white applicants more frequently than the presumed Black applicants. This bias varied significantly by firm and industry, with some companies favoring white applicants over Black applicants to a much greater extent than others.
Among the companies that showed the most bias in favor of white applicants were AutoNation and Genuine Parts Company. In response to the findings, Genuine Parts stated that they are always evaluating practices to promote inclusivity and break down barriers. AutoNation did not provide a comment. The study, known as an audit study, highlighted the prevalence of employment discrimination in certain industries and the obstacles Black workers face in these sectors.
The researchers also found that some companies did not show any bias in how they treated applications from presumed white or Black applicants. These companies provided insights into HR practices that can help avoid biased decisions in the hiring process. Industries such as food stores, freight and transport, and wholesale showed less racial bias in hiring practices, while some retailers like Lowe’s and Target were exceptions.
The study highlighted the presence of gender biases in hiring practices, with some companies favoring male or female applicants to a much larger extent than racial biases. Builders FirstSource favored male applicants over female applicants, while Ascena contacted female applicants more frequently than male. The consequences of being female varied by race, with a slight advantage for white female applicants and a slight penalty for Black female applicants.
The researchers also tested for biases based on age, sexual orientation, and nonbinary gender identities. They found that companies did not show significant discrimination based on age but did show biases in hiring based on sexual orientation. Companies with centralized HR operations were found to exhibit less bias in their hiring practices, indicating that formalized hiring processes could help mitigate bias. Diversifying the pool of job applicants and hiring based on skills rather than degrees were also factors associated with reduced bias in hiring.
More profitable companies were found to be less biased in their hiring practices, aligning with the theory that discrimination is bad for business. Companies with more regulatory scrutiny, such as federal contractors or those with Labor Department citations, were also associated with less bias. Overall, the study aimed to shed light on the prevalence of discrimination in hiring practices and to highlight strategies that companies can implement to reduce bias in the recruitment process.
