Are you letting anchoring bias get in the way of hiring?

If you’re responsible for hiring new staff, it’s important to have a clear and efficient decision-making processes.

Hiring decisions are critical for your organisation.

When it comes to hiring, you need to ensure your decisions are for the good of the organisation and aren’t limited or influenced by bias.

But what happens when anchoring bias makes it difficult to view business decisions objectively? This can affect judgement, causing you to perceive options differently and rely too much on limited information.

In some cases, anchoring bias may prevent you from choosing a great candidate to fill a role at your organisation, leaving you with a less suited employee.

Are you letting anchoring bias get in the way of hiring decisions?

Find out how to identify and overcome this important hiring bias.

What is anchoring bias?

Anchoring bias is a form of cognitive bias, affecting the way you perceive and understand new information.

When you are affected by anchoring bias, you are likely to rely heavily on the first piece of information you receive about a topic or subject. This is your anchor.

When you receive new information, anchoring bias may prevent you from viewing it objectively, instead causing you to perceive fresh details from the reference point of your initial (anchor) knowledge.

Anchoring bias can alter judgement and perception, holding you back from understanding new details on their own merit.

For example, a 15 percent off sale may seem like a great deal, but when you find a store offering a 20 percent discount, the first option won’t seem like such a good option.

Why does anchoring bias occur?

There are many reasons why anchoring bias may occur, and triggers vary from person to person.

Many psychologists believe that anchoring is deeply ingrained in human thinking. Some scientists say the phenomenon is a feature of logical reasoning, allowing you to simplify and prioritise information to understand it more quickly and easily.

Anchoring bias is intended to reduce overwhelm when it comes to reasoning and decision-making. However, it can also have a negative influence on goals and decisions when anchor information is not an accurate or comprehensive indication of the broader picture.

What does anchoring bias feel like?

In most cases, anchoring bias is an automatic and subtle process, so it may be difficult to identify when it is occurring.

You might assume that you are experiencing anchoring bias if you find yourself relating new pieces of information back to an older or initial ‘anchor’ detail.

If you are affected by anchoring bias, you might find it difficult to access new information that does not align with anchor information. You may notice that you naturally prioritise previously held views or perspectives over new details or beliefs.

In a hiring situation, anchoring bias may cause you to develop and maintain preconceptions of job candidates based on their resume, email communications, or interview details.

Can anchoring bias be a good thing?

Anchoring bias may sound negative, but it can also have a positive effect.

Psychologically, anchoring bias is designed to simplify and streamline information to help you make quick, effective judgements. In some instances, anchoring bias can help you to narrow down options or rule out ineffective choices.

However, it is important that you prevent anchoring bias from having a negative impact on your decision-making. Anchoring bias should not replace broader information or more detailed decision-making processes.

How can anchoring bias affect hiring processes?

Anchoring bias can affect leaders and hiring managers in many ways, influencing all levels of goal setting and decision-making. The phenomenon is particularly relevant to the hiring process.

When hiring a new team member, you may find you need to rely on small, seemingly insignificant information to narrow down prospects and progress to the next stage in the hiring process.

When reviewing CVs, communicating with candidates online, and conducting interviews; you will receive initial information about each person’s professionalism, communication style, personality, and suitability for the role. This is a first impression - and the foundation of anchoring bias.

Anchoring bias means that you are likely to rely on first impression information to inform future understandings, even when new information becomes available.

In hiring, anchoring bias may cause you to prioritise your first impression and allow this to have an excessive influence on your opinion when it comes to interpreting new information. You may discount a great candidate with excellent skills and experiences based on an anchor that doesn’t provide these details.

How to overcome anchoring bias

It is rarely possible to avoid anchoring bias altogether, but it is possible to limit how it informs and impacts your decisions at work. The following steps can help you overcome anchoring bias:

1. Understand the influence of anchoring bias

By knowing what anchor bias is and how it may affect your decision-making, you can begin to identify instances of bias when they occur.

This can help you acknowledge subjectivity and pursue more objective responses in the long-term.

Recognise anchoring bias and its influence on your choices. When you notice yourself relying on a preconceived notion or idea, be willing to question its source.

2. Be as objective as possible about goals and decisions

Objectivity isn’t always possible, but pursuing an objective mindset is a good place to start.

When faced with goal-setting or decision-making responsibilities, aim to consider information from as many viewpoints and perspectives as possible without relying too heavily on any one detail.

If you find it challenging to think objectively, acknowledge this. Ask yourself where your bias is coming from and how you can work to overcome it.

3. Take time to make choices

Good decision-making often takes time, allowing you to carefully consider all of your options and evaluate decisions comprehensively.

When making decisions that may be affected by anchoring bias, take a step back. Make sure you have collected plenty of relevant information and that you have plenty of time to think your options over.

Time can help you to distance yourself from anchor information to let go of bias that could be influencing your judgement.

4. Establish a decision-making team

A collaborative approach to decision making can help overcome anchoring bias.

Including the different viewpoints and perspectives of several decision-making parties will help to acknowledge preconceptions and potential biases across the board.

You might choose to work with a human resources or recruitment professional who is skilled in evaluating decisions and choices from an objective point of view.

Talking your options through and benefitting from multiple perspectives can help you achieve a more well-rounded understanding of your choices.

5. Be open to new information

One of the most important steps in overcoming anchoring bias is being open to new information as it becomes available.

As you access new details related to a pending choice or decision, make a conscious effort to consider these details alongside pre-existing information.

Before making a decision, ensure that you have plenty of information and that you have included all factors in your decision-making process. This will help to reduce bias and allow for more effective choices.

Anchoring bias can be a challenge in the workplace, but knowing how to navigate it effectively gives you the power to approach hiring and other professional decisions with clarity and objectivity.

Want to learn more? Improve your recruiting strategy and connect with Employable Me.