What is Socioeconomic Bias? Steps to prevent it

Socioeconomic bias is one of the strongest biases that exist in the workplace. It is described as a situation when an individual is discriminated against based on his class and economic status. This bias can be attributed to various reasons. A study by the University of Edinburgh found that almost 25 per cent of managers in the United Kingdom found themselves being mocked or discriminated against due to their working-class background.

It is a widely prevelant in the hiring industry and can greatly detriment to a diversified workplace. So, what is Socioeconomic bias, and what are the solutions?

Socioeconomic bias

Unlike other biases such as race and gender, socioeconomic bias encompasses one or more biases at the same time. For example, a person could be rejected for a job because they come from a lower socioeconomic background and also belong to a specific gender or race, which they are adjudged to be not fit for the job posting.

A study at the University of Yale found that people are judged based on their income and status, which also affects hiring managers. 

Also Read: AI Bias Audit Strategies for Fair Hiring Practices

Improper recruitment process 

One reason for this bias could be an improper recruitment process. Lack of interviewer training could lead to a flawed process in which a candidate from a lower socioeconomic background may find it harder to get employment opportunities. 

Lack of diversity in the hiring team

A McKinsey & Company study published in 2022 stated that diverse workplaces are likely to be 21 percent more profitable. However, despite this, organizations are finding it difficult to reach their diversity goals. A reason for this could be a lack of diversity in the hiring team, which can lead to conscious or even unconscious bias.

Also Read: What is Disability bias and how can we solve it?

Preconceived behavior 

Despite forming policies and processes, humans ultimately have certain beliefs. This is where bias of any kind can seep into the process. It is one of the primary reasons candidates could find the levs abstained from a level playing field.

Absence of strong diversity policies 

While organizations in the 21st century are heavily invested in creating a more diverse workplace, there is still a long way to go. Diversity is a broad spectrum that encompasses race, age, gender, and much more. Thus, it remains a huge challenge for the hiring industry to ensure equality in hiring.

Also Read: Bias in Artificial Intelligence Examples and How to Address It

Social connotations 

One of the primary reasons for socioeconomic bias is the social connotations. In hiring, unless a blind resume is used, the interviewer can see every piece of information. This creates more chances of them being swayed by the socioeconomic status of the candidates, and this has been backed by research.

A study by the British government’s Social Mobility Commission stated that people from disadvantaged sections are half as likely to achieve grades of five and over. The study found that 68.3 percent of candidates from lesser socioeconomic status fail to achieve high GCSE scores.

How to solve socioeconomic bias 

Diversifying the hiring department 

They say charity begins at home, and in the case of diversity in hiring, it starts with the hiring team. At the end of the day, the Human resources department is responsible for every hiring. So, this juncture has the highest chance of bias seeping into the system. Thus, a diverse hiring manager team is the most effective way to reduce socioeconomic bias. 

Structured interviews 

Bias occurs in a system when different candidates are subjected to different questions based on their gender, race, or socioeconomic status. However, using structured interviews with predetermined questions creates a level playing field for all candidates.Another advantage of using structured interviews is that the hiring manager has a data set where they can analyze how different candidates deal with the same problem. This makes the interview a more robust and succinct process.

Blind resume 

A blind resume is a CV where all the details that could identify the candidate are hidden. This resume contains only the educational and working qualifications of the candidates. Reasoning behind using such a process is simple; allowing an interviewer to see only the details necessary for the job will help them make decisions that are unlikely to be influenced by external factors such as race, gender, ethnicity, or religion.

Also Read: What is Gender Bias in Hiring? Solutions to Prevent it

Conducting awareness sessions 

People coming from lower socioeconomic backgrounds are more likely to face several issues that may not have an effect on their peers who have had privileged upbringings. So, conducting sessions that educate employees about the challenges that lower-income groups face can help combat socioeconomic bias. We must remember that even after being hired, an individual could face socioeconomic bias in the workplace. Thus, regular sensitization sessions have to be conducted.

Using AI tools like BarRaiser 

The launch of ChatGPT brought an AI revolution in the digital world. And since then there have been a host of AI products that are now slowly becoming an integral part of the hiring industry. BarRaiser is one such tool that covers all bases. It uses AI Interview Copilot, structured interviews and interviewer training to massively improve the hiring process. BarRaiser helps in quick hiring, quality hiring and at the same time eliminating hiring bias and ensuring diversity and inclusion in the workplace.

Also Read: What does BarRaiser do to curb bias via AI?

Self-realization by hiring managers

While an organization can take every measure to eliminate socioeconomic bias, the hiring at the end is majorly reliant on humans. And with humans bias can always occur. Several researches have already proved that the hiring process can be unfair. So, interviewees must go into an interview with the mindset that can be susceptible to bias. This will massively help them in identifying bias at the earliest. Furthermore, it will also help them form policies that are best at countering such issues when they arise.

Conclusion 

Socioeconomic bias can be the hardest bias to detect. The reason for this is moving up the socioeconomic ladder is seen as an aspiration and those less privileged are seen as people who don’t have the motivation to work hard.

This then forms a wide societal view that makes them numb in the situation where bias of such sort is occurring. So, only a solution that offers a multi-frontal solution can help eliminate bias of any kind in the herring industry.-