Although unconscious biases are invisible at first glance, their effects can become quite noticeable and attract the attention of consumers. Even an incident that suggests the possibility of unconscious bias can have an adverse effect on a business or brand.
The effect of unconscious bias
Unconscious prejudices are stereotypes that people have about certain groups without realizing it. These biases may exist against people of different races, ethnicities, gender identities, sexual orientations or physical abilities.
Ignoring unconscious bias can affect several key areas, such as organizational culture, recruitment and retention, innovation, financial success and even has a legal risk.
The impact
Unconscious biases create barriers to fostering a diverse and inclusive work environment.
Furthermore, they can hinder good teamwork and communication between employees, as well as between employees and customers. An example of this is a manager who does not offer a team member a promotion because of assumptions that they will not be able to balance work and family commitments. Another example is planning activities for the team that are not adapted to everyone’s physical capabilities. This is especially the case with ports activities and team members with a physical disability.
In addition to companies losing the chance to build a great company culture, unconscious biases make it difficult to recruit and retain top talent. Today’s job candidates, Generation Y (Millennials), value companies that have diversity and a culture of fairness.
They also rely heavily on their friends and feedback on social networks, where even one incident can negatively affect the company’s reputation.
The examples
What happened in Philadelphia, USA, caused a serious response on social networks after a Starbucks employee refused two visitors of African-American origin to use the restroom of the establishment on the grounds that they were not customers. Video of the incident had more than 4 million viewers in the first 48 hours, followed by many more on social media and television viewers who learned about the incident from the news.
In Bulgaria, a chat between a Takoteka customer and a representative of the establishment made the rounds on social networks. It showed an overheard conversation between employees, suggesting their negative attitude towards people of different sexual orientations and the company’s position on the incident.
The financial and legal dimensions
One of the ways unconscious bias can hinder the financial success of a business is through increased costs due to lower productivity and high turnover in a work environment, specifically when employees perceive the work culture as unfair. A January 2018 study by McKinsey & Company confirms a consistent relationship between diversity and a company’s financial performance. In addition, diversity in leadership teams improves both business innovation and financial performance.
The perception of bias, conscious or not, can put organizations at risk of lawsuits that can be expensive. If unconscious bias starts to influence business decisions and operations, a company may find itself facing accusations of discrimination.
With so many potential risks, it’s clear that ignoring unconscious bias is not an option for any business. This hidden threat can lead to toxic company culture, loss of talented workers, lack of innovation, lower financial performance and a greater threat of litigation.
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