04-16-2024
Researchers from the National Bureau of Economic Research sent 80,000 resumes to apply for 10,000 jobs at 100 companies from 2019 to 2021. They created resumes and used varying names to suggest white or Black and male or female candidates. All of the positions were entry-level. Their research showed that employers reached out to applicants with white-sounding names 9.5% more than individuals with Black-sounding names.
There were notable differences among companies and industries when researchers analyzed the results. A fifth of the companies, predominantly retailers or car dealers, accounted for almost half of the callback gaps between perceived white and Black applicants. AutoNation, a used car retailer, contacted white applicants 43 percent more often (The company did not respond to the NYT's request for comment). Genuine Auto Parts preferred white candidates about 33 percent more often. The company told the New York Times that it will continue to evaluate its policies to "ensure inclusivity and break down barriers."
On the positive side, companies such as FedEx, Target, Kohls, Kroger, Lowe's, Hilton, and Sysco demonstrated much smaller or nonexistent racial gaps. Overall, grocery stores, food manufacturers, freight, and wholesale organizations reflected less racial bias. Gender discrimination was less prevalent at most of the surveyed companies. Research finds gender discrimination starts later in women's careers. Nonbinary pronouns did not seem to impact applicants negatively in the survey.
The researchers only looked at large companies, many of which have robust human resources departments. In fact, a thoughtful, centralized HR department "strongly predicted less discrimination." According to Sysco's chief HR officer, a cohesive HR team focused on the position requirements while reviewing resumes lessens the opportunity for personal biases to impact decisions. Diverse people making hiring decisions result in more diversity among new hires. Other factors leading to less biased hiring are limiting jobs requiring degrees, more regulatory scrutiny on hiring, and more profitable companies seem less biased.