How Osterus Removes Bias in the Hiring Process

In order to reach diverse talent companies need to remove bias from the hiring process. 84% of HR professionals are worried that their hiring processes aren’t reaching diverse talent, according to an iCIMS report. Diversity is a key component to the success of a business, this is universally accepted in 2021. It’s our social mission at Osterus to ensure every candidate has a fair chance when applying for a job and that companies are equipped to understand their own bias.

There have been various methods for hiring diverse talent, some crude methods such as implementing quotas on diverse hires have long been discussed as potential solutions. When we were creating Osterus, we knew that our data can show patterns and point out bias in multiple areas, for example, do companies hire from the same universities, people with the same work experience etc. Osterus can remove bias from the hiring process and help hiring managers understand the data points presented in CVs from all candidates.

Osterus removes bias in the hiring process using a three step process:

Step 1: Osterus analyses the CVs of a company’s employees and will be able to identify if there is a bias towards a specific majority/minority group.

This feature is already being deployed and used in technology firms in Berlin who want to understand their own biases. To create a diverse company, you first need to understand what the current make-up of your company is and see if and where you are hiring diverse talent. For example, is your HR department more diverse than your marketing department? If so, look at the hiring process for both departments: where they source their candidates, how they run the hiring process. Understanding these points can help firms hire diverse talent.

The premise of using this tool is simple: in order to come up with a solution for a problem, you need to diagnose the problem first.

Step 2: Osterus completely anonymises names and contact details within CV’s

Our software removes any identifying factors from CVs whilst still displaying all the important information hiring managers need to decide on whether to progress a candidate or not. While certain things can be inferred from a CV (e.g. where a candidate went to school and the languages they speak may give a clue to their nationality), anonymising CVs automatically goes a long way to reducing immediate bias in the hiring process.

Step 3: Osterus presents understandable data points

Hiring managers aren’t omniscient beings. In order to make an informed decision on a CV, hiring managers need to be able to understand it. Rather than needing to do extra work in researching universities, degrees, or other companies, hiring managers can see and understand all the information they need to.

Why is hiring diverse talent hard?

Hiring diverse talent needs to be made easier for a number of reasons. Recruiters are often overworked, a company Osterus works with, N26, has thousands of job applications per opening, for example. Employee referrals, a method often used to hire quality candidates, can reduce diversity. Payscale reports that white men are 40% more likely to be the recipient of an employee referral than any minority group. These are just two examples of factors that work against hiring a diverse workforce.

The good news is that diverse hires are on the rise. ICIMS reports that there has been an increase in underrepresented ethnic minorities being hired for higher paying jobs (jobs with an annual salary of over $100,000). Women from underrepresented ethnic minorities made up 30% of hires in 2020.

These statistics show that diverse hires are on the rise, and it’s obviously encouraging to see. In order to continue on this trend not only does hiring diverse talent need to be possible, it needs to be easy. That’s where we come in. We show you the complete statistics of your workforce, help you understand the patterns, and, most importantly, decipher what your successfactors look like.

If you are interested, simply reach out to me julian@osterus.com and I will show you a few examples how our data helps you understand your current workforce. Especially if you are interested in comparing your recruitment strategy with your competitors.