As conversations around diversity, equity, and inclusion (DEI) and unconscious bias shift, I’m reminded of Shakespeare’s words: “A rose by any other name would smell as sweet.”
In other words, changing the terminology doesn’t change the reality. Research consistently shows that bias exists and impacts businesses daily. Instead of getting caught up in semantics, companies should stay focused on the tangible benefits—both cultural and financial—of fostering diversity and counteracting bias.
Changing an attitude you’re aware of is one thing. But what about the biases you don’t even realize you have? That’s the challenge of unconscious bias or implicit bias—deep-seated perceptions that shape our decisions without us realizing it.
According to the Kirwan Institute for the Study of Race and Ethnicity at Ohio State University, unconscious bias refers to “the attitudes or stereotypes that affect our understanding, actions, and decisions in an unconscious manner.” These biases, both positive and negative, are triggered automatically, without intentional control.
Unconscious bias influences hiring, promotions, and everyday interactions in the workplace. It can be based on factors like gender, race, age, education, appearance, and even something as simple as a name or accent. In fact, researchers have identified more than 150 types of unconscious bias in the workplace.
If you doubt the impact, consider this: As mentions of diversity, equity, and inclusion have declined on earnings calls, so has progress in leadership representation. For the first time since 2005, the percentage of women in C-suite positions across publicly traded U.S. firms dropped—from 12.2% in 2022 to 11.8% in 2023 (S&P Global, 2024).
Similarly, the share of Black workers in the S&P 100 workforce declined from a peak of 17% in 2021 to 16.8% in 2023—signaling that post-George Floyd-era progress has stalled or reversed (Bloomberg, 2024).
Our brains are wired to categorize information quickly—it’s a survival mechanism that helps us process large amounts of data. But in today’s workplace, these mental shortcuts can reinforce stereotypes, leading to biased decision-making.
Bias can show up in hiring (favoring candidates who are “similar” to us), performance evaluations (associating confidence with competence), and everyday interactions (whose ideas get heard, who gets promoted). The result? Companies miss out on diverse talent, perspectives, and innovation—all of which impact business performance.
Beyond the ethical concerns, bias carries a real financial cost.
From a leadership perspective, bias also limits who reaches the top. Research consistently shows that companies with diverse leadership teams outperform their competitors. A 2023 McKinsey & Company study found that companies in the top quartile for diversity were 39% more likely to financially outperform companies in the bottom quartile, up from just 15% in 2015.
In short: Bias isn’t just a workplace fairness issue—it’s a business performance issue.
If you’re not measuring unconscious bias in your organization, you’re likely underestimating its impact. Here’s where to start:
You can’t fix what you don’t measure. Go beyond surveys—often skewed by social desirability bias—and use tools that assess real decision-making patterns through simulations. Complement this with quantitative and qualitative data from hiring, promotions, and exit interviews for a more accurate picture.
Unconscious bias shows up in many ways, including:
Addressing bias isn’t a one-time training—it requires continuous reinforcement. Best practices include:
Unconscious bias is costly—hurting engagement, innovation, and the bottom line. But it’s not inevitable. With the right data, training, and behavioral insights, organizations can shift mindsets, improve decision-making, and build more inclusive, high-performing workplaces.
Learning Pool’s adaptive compliance solutions help organizations pinpoint biases, track improvements, and drive real behavior change—ensuring that bias doesn’t stand in the way of business success.
This post was updated on 6 March 2025 to reflect new insights and industry updates.
She is deeply committed to developing engaging and effective ethics and compliance training programs and helping organizations align their business objectives with legal and regulatory requirements.