With top talent becoming increasingly harder to find and keep, organizations in Canada know their recruiting and hiring practices need to evolve, but how? Clarity Recruitment hosts a Clarity Labs webinar exploring the research findings from the study on bias in hiring practices, findings that will help you make better hiring decisions.

1. Is Your
Judgement Clouded?
Two Biases That May Stop You
From Hiring the Best Finance
and Accounting Professionals
#claritylabs

2. Joe Diubaldo Alex Kaju
Introduction
#claritylabs

3. Agenda
The Current State of Hiring: An Ugly Truth
Clarity Labs – How Bias Hurts Hiring
Bias 1 – The Endowment Effect
Bias 2 – Zero-Risk Bias
What You Can Do Now

4. The Current State of Hiring

5. What’s Happening
46% of new hires fail
within the first 18
months on the job
Source: Leadership IQ
58% of high-
priority hires fail
within the first 18
months on the job
Source: Michael Watkins
66% of hiring
managers come
to regret their
interview-based
hiring decisions
Source: DDI

6. What It Costs
The average bad hire
can cost 100% (or more)
of the individuals first
year salary
Source: ADP (Bad Hire Calculator)
The CEO of Zappos estimates
the total cost of bad hires to his
organization is $100 million
Source: Business Insider

7. Broken Data
Why It’s Happening
65% of candidates lie
on their resume
Source: The Risk Advisory Group
Less than 50% of interviewed
candidates are qualified
Source: eBullpen, LLC

8. Broken Process
Why It’s Happening

9. What’s Happening
46% of new hires fail
within the first 18
months on the job
Source: Leadership IQ
58% of high-
priority hires fail
within the first 18
months on the job
Source: Michael Watkins
66% of hiring
managers come
to regret their
interview-based
hiring decisions
Source: DDI

10. Resource constraints
Lack of personal talent network
Recruiters required to be generalists
Hiring authorities haven’t been educated
Bias interference
Internal Factors
Why It’s Happening

11. We’re All Pretty Bad At Hiring

12. Using research, statistics, and original findings to illuminate:
The cost of
bad hires
Common mistakes
in hiring
Hiring solutions
and strategies
Clarity Labs
Data. Insight. Clarity.

13. Clarity Labs
Research Study 1
What role do our psychological biases play in the hiring
decision making process?

14. How Bias Hurts Hiring
Bias #1 – The Endowment Effect
A psychological bias in which we give excess value to
things that we feel a sense of ownership towards.
Does the endowment effect translate into the
world of accounting and finance hiring?

15. How Bias Hurts Hiring
Scenario 1
An employee who YOU hired is leaving. You can:
Offer an incentive Hire a new employee

16. How Bias Hurts Hiring
Scenario 1 – The Result
76% of respondents
said they would
incentivize the hire
to keep them.

17. How Bias Hurts Hiring
Scenario 2
Your friend tells you a member of THEIR team is
leaving. You advise them to:
Offer an incentive Hire an new employee

18. How Bias Hurts Hiring
Scenario 2 – The Result
64% of respondents
suggested the
replacement of the
outgoing employee
rather than incentivize
them to stay.

19. How Bias Hurts Hiring
The Endowment Effect Comes to Life
Your hire Advice on your
friend’s hire

20. What It Means
We are likely to overpay or
overinvest in current assets.
Once a great candidate
leaves, we over-hire rather
than hire the right person
for the role.

21. What You Can Do
Know your situation
How much does overpaying
cost your business?

22. What You Can Do About It
Bring data into the decisions
Are you objective when
quantifying “market value”
of talent?

23. What You Can Do About It
The value of a comparative metric
66% of respondents chose to
promote the employee who
they did not hire, who also
had higher performance scores.

24. What You Can Do About It
Train your team
Does your team know
when to counter offer
and when to let go?
Provide data to your team

25. Be Prepared to Hire

26. How Bias Hurts Hiring
Bias #2 – The Zero-Risk Bias
The tendency to reduce a small risk to zero rather
than taking a larger chunk out of a bigger risk.

27. How Bias Hurts Hiring
Think of it like this:

28. How Bias Hurts Hiring
Scenario 3
As a hiring manager, you need to hire a star performer
in a specialized role but your boss is not fond of using
outside agencies.
BIG
RISK
Unsuccessful
hire
Small
risk
Short-term
boss’ disapproval

29. How Bias Hurts Hiring
Scenario 3
The options are to:
1. Use a
tenured
agency
2. Use a
less tenured
agency
3. Use only
internal
resources

30. How Bias Hurts Hiring
Scenario 3 – The Results
64% of respondents chose to use the most experienced
recruiting agency because it maximized their chance
of success
20% of respondents chose to use the less expensive,
less tenured agency
16% chose to use internal resources only

31. What It Means
The zero-risk bias
skews our perception
of which risk to take.

32. What You Can Do About It
Clearly communicate
Ensure your team knows that
successfully fulfilling the role
is the primary goal of a hire.
Define parameters of the search.

33. What You Can Do About It
Scorecard any recruiter you’re working with
 How does the firm define a successful hiring process?
 Do they have a tenured team?
 How effective are they at teaching you how to hire better?
Are they willing to be taught by you?
 How do they create alignment between candidates, clients and
recruiters?
 How effective are they are removing bias from the hiring
process?
 What is their guarantee? Are they willing the share the risk?

34. Be Prepared to Participate

35. Recap
The Current State of Hiring: An Ugly Truth
Clarity Labs – How Bias Hurts Hiring
Bias 1 – The Endowment Effect
Bias 2 – Zero-Risk Bias
What You Can Do Now

36. What to Do Next
1. Take time to reflect on how bias impacts
your hiring decisions
2. Download the full whitepaper
3. Call us if you’re unsure whether or not you
should counter offer or if you need data to
present a convincing argument

37. Thank You
Questions