10 steps to eliminating gender bias in the recruitment process

Gender inequality persists in the finance industry, even as firms across the UK and Ireland grapple with challenges in identifying and recruiting talent. The pandemic only exacerbated gender disparities, disproportionately affecting women's employment. To fully understand gender inequality in financial services and how you can work to achieve gender balance, see our blog A comprehensive guide to achieving gender equality in financial services. 

As workers seek out new workplace modalities and opt for new career paths, what can recruiters do today to address gender balance challenges? Employers can take multiple steps to address gender bias in the recruitment process to resolve these issues and develop new, fairer procedures, as we'll see below.

The effect of gender bias on the gender gap

Numerous studies show the gap in gender equity remains persistent across industries, including the financial sector. A recent paper by the International Monetary Fund, focusing on fintech firms, revealed that women today hold only 10% of leadership positions (founders, co-founders, or executive board members).

The report also showed that having women in leadership positions is good for business. Those with a 10% more women in leadership saw a 13% boost in revenue and funding.

Structural barriers contributing to gender inequity persist. For example, in a recent report titled Women in Finance Charter Blueprint 2022, the authors note that the ratio of men to women in STEM higher education degrees is 65:35. Many recruitment communications, particularly job descriptions, are gendered, resulting in unintended bias during recruitment.

In addition, the recruitment cycle for women and men is different. Recruiting women takes, on average, 130 days compared to 90 for men. Men typically exaggerate and overstate their abilities and accomplishments, while women tend to understate the same. It’s important to read between the lines of what is on a resume or in a cover letter to determine which candidates are worth a closer look.

The consequences of gender bias in hiring are significant. Among other long-term impacts:

• It perpetuates gender inequities throughout the organisation
• It leads to and continues gender pay gaps within the organisation
• It reduces the breadth and depth of your talent pool, both for new hires and for internal promotions
• It could lead to legal action related to gender discrimination

How to eliminate gender bias in the recruitment process

There are lots of ways that finance companies can change their approach to recruiting to attract and hire more women. Most of them aren't even difficult to implement and won't require any major changes in internal policies or practices. Here are some simple steps to eliminate bias in your recruiting processes:

1. Set goals: Establish ambitious yet reachable gender diversity goals for the organisation, and ensure that there are metrics in place to track progress and quantify the work. Goal-setting can identify gaps in processes and procedures or other needs for the organisation to succeed.
2. Diversify hiring panels: Hiring panels should comprise members from different backgrounds, identities, experiences, and roles within the company. These panels should receive training on unconscious bias and diversity, equity, and inclusion within the hiring process.
3. De-identify applicants: Redacting or hiding details that could identify gender helps eliminate unconscious bias. Blind names on resumes, CVs, and cover letters is another approach. This methodology shows a candidate’s work history, experience, and contact information but omits gender, age, and ethnicity.
4. Standardise interviews: Interviewers should use standard interview questions for all candidates, rather than a casual approach to interviewing.
5. Expand the time horizon: Longer lead times for hiring should be used to account for the fact that women tend to require a longer hiring cycle.
6. De-gender hiring materials: All materials related to hiring -  including policies, marketing collateral, and job descriptions - should be reviewed to remove masculine words and images. Going even further than simply removing ‘he’ or ‘she’, recruiters should avoid using stereotypical male words like ‘leader’, ‘competitive’ or ‘dominant’ as research shows that this type of language only serves to maintain traditional gender divisions.
7. Set standards for candidate pools: Consider mandating that all interview pools and shortlists include equal numbers of men and women.
8. Recruit differently: Hold women-only recruitment events and work with recruitment agencies that specialise in building diverse candidate pools.
9. Use digital platforms: While digital recruiting platforms are not new, there is a new wave of tools leveraging artificial intelligence and machine learning to screen applicants and recommend who to interview. Platforms can also deliver customised tests that evaluate candidates’ abilities regarding specific job requirements.
10. Eliminate appearance-based decisions: According to a recent survey by Greene King, 51% of employers make snap judgements on applicants based on appearance. In addition to biases based on visible tattoos, hair colour, or clothing choices, gender judgements at the outset can cloud the recruitment process. As part of bias training, hiring panels should learn about these appearance biases.

Eliminating gender bias in the recruitment process is not just a goal, but a necessity for fostering a more inclusive and progressive future. By implementing a combination of measures, from critically evaluating job descriptions to fostering an unbiased interview atmosphere and leveraging technology, organisations can pave the way towards gender equality.

Embracing diversity strengthens teams and enriches perspectives, leading to innovative solutions and long-term success. As we navigate the path toward equitable recruitment, remember that change begins with a commitment to challenge bias wherever we see it and create a culture that values each candidate on their merit and potential. Let's reshape the recruitment landscape and empower a workforce that reflects the full spectrum of talent in our society.

Expertise to address gender bias in finance recruitment

To effectively tackle gender bias in finance recruitment, partnering with a recruitment expert with specialised knowledge in gender diversity and inclusion is crucial. These experts possess the insights and strategies needed to identify and rectify biases in recruitment processes, ensuring fair evaluation of candidates and facilitating the development of a more diverse and equitable workforce within the finance industry.

At Savvi Recruitment, we help companies eliminate gender bias in recruiting the most suitable and talented finance employee. We can anonymise applications, assist in standardising your recruiting process, and review job applications and descriptions to remove gendered language. A trusted recruitment partner will help your company take action right now and address the gender gap.