Interview Bias: How It Happens & How to Avoid It, Part 2

Interview Bias

This article is the second in 180one’s two-part series looking at how your organization can avoid interview bias and improve your hiring processes. To read part one of this series, click here. To learn more about the best practices around Diversity, Equity and Inclusion (DEI) during the hiring process click here to read our recent article


Part II

Have you ever felt strongly within the first five minutes of meeting a job candidate whether she or he would be a good fit for the job? We’re social creatures, and it’s human nature to make a quick decision on whether we like someone, based on our own background and beliefs. Likewise, in a business setting, hiring managers can be powerfully and unconsciously influenced by their biases throughout the candidate selection and interview process.


Trying to coach your hiring team to completely let go of bias goes against human nature, but you can guide them on how to be aware of and diminish implicit biases. Then you can put your company resources toward de-biasing hiring procedures rather than mindsets, so that it is a lot harder for personal feelings to influence an objective assessment of the best candidate for the job.


Types of Interview Bias

First, to look at how you can de-bias your interview process, consider the most common types of interview bias you will need to tackle, as found by personnel psychologists and organization researchers:


“Like Me” Bias: When a candidate appears to be similar in style or personality to the hiring manager, and as a result, the hiring manager feels that candidate would be best suited for the job.


Halo/Pitchfork Effect: The Halo Effect happens when one positive characteristic of the candidate influences the entire interview process in favor of the candidate. The Pitchfork Effect happens when one negative characteristic overshadows the candidate’s overall qualifications.

Bias Cartoon

Stereotyping Bias: Our inclination to hold an opinion about how a person will think or act because they’re a certain race, gender, religion or another characteristic.


Nonverbal Bias: When a candidate is assessed in a positive or negative light because of an observed attribute, such as body language or an aspect of physical appearance.


Negative Emphasis Bias: When the interviewer receives one piece of negative information and give it more weight than all the positives about a candidate.


Cultural Noise: The interviewer’s ability, or lack of, to distinguish between a candidate’s answer that is crafted to be more socially acceptable or on-trend rather than revealing their true belief or experience.


Contrast Effect: When a candidate with a stronger presentation style interviews after a weaker-style candidate, the stronger-style candidate may appear more qualified because of the contrast between the two.


(There’s more info on these common biases in Part I of our series, which you can find here.)


In a nutshell, if you think a candidate is or isn’t going to work based on your first reaction or stereotypes, you’re likely to look for reasons to hire or not hire. We find that some of our clients make a judgment based on a candidate’s current or most recent employer, commenting for example that “Their culture is very different than ours and they wouldn’t be a good fit here.”


For example, a candidate may currently be employed in an organization that has a reputation of being slow in decision making, and the hiring organization sees themselves as fast paced decisive. However, just because someone works at a company with a vastly different culture, it doesn’t necessarily mean that the candidate prefers this culture or can only work in that type of culture. The candidate’s current company culture might be a reason why they are looking to make a move.


Yes, these biases stem from human nature, but you can start to neutralize their impact before your candidates even walk through the door. And there’s good reason to make de-biasing a priority – recent studies of diversity in senior-level staffing in a variety of industries have shown definitively that a more diverse workplace is a higher-performing workplace.


For example – in their latest report, “Diversity Matters,” the global management consulting firm McKinsey & Company found that more ethnically diverse companies are 35 percent more likely to outperform their competitors, and that more gender-diverse companies are 15 percent more likely to outperform their competitors.


Strategies to Diminish Interview Bias & Diversify Your Team

You can begin de-biasing your process by readying your hiring committee for their resumé reviews and interviews. Create a preparation plan that highlights how to stay aware of diversity, equity and inclusion throughout the hiring process. That plan could include:


  • Briefing session: Your hiring manager can describe the company’s goals for the position, and how those goals tie to the diversity, equity and inclusion goals of your organization overall.
  • Self-Assessment: “Do I have bias?” can be a hard question to ask yourself, but it’s important to be self aware when participating in the hiring process. You can prepare your hiring team by providing research about implicit bias, and encourage them to do research of their own, such as watching this quick video series about implicit bias created by UCLA’s Office of Equity, Diversity and Inclusion.


A technique we at 180one recommend to mitigate bias is assembling a hiring committee, and picking a diverse team, including members from a variety of ethnicities, gender identities, and age groups who you know work well together. Assign each member or group of members a specific aspect or two of the candidate to focus on. This keeps interview team members in an objective frame of mind about the candidate.


For example, you could assemble a hiring committee of six, and break them into teams of two, which each focusing on two categories:

  • Team 1: Focus on the candidate’s executive leadership skills and business partnering.
  • Team 2: Focus on the candidate’s relatability to company culture and potential for good fit.
  • Team 3: Focus on the candidate’s technical ability to do the job.


With this technique, members of your hiring committee won’t wander into other areas in which there may be unintentional judgments that are not relevant to the job or the candidate’s readiness.


For the next step, personnel psychologists and management consultants recommend blind hiring to remove bias from the process and develop a more diverse candidate pool. You can use a search firm like 180one to prescreen candidate application materials with your hiring goals in mind, so you are not seeing any applicant data that may trigger positive or negative associations before a candidate walks through your door.


When you get to the interview stage, a structured interview that standardizes your questions and the order they are asked will significantly cut back on subjectivity. Personnel psychology research has shown that the more social exchange of an unstructured interview opens up the most opportunities for bias, yet predicts less than 15% percent of ultimate employee performance. You will get a much more objective picture of the candidate by focusing on questions that are skill-based and allow the candidate to explain how he or she would handle situations on the job.


During the interview, consider scoring or taking notes on the answer to each question right after it’s answered. Then after the interviews are completed, the feedback loop among your hiring committee members is very important: they can compare candidate answers side-by-side for each question and rank those answers under the hiring-focus categories your team has set. This systematic comparative evaluation also cuts back greatly on opportunities for biases to guide their impressions.


Companies invest significant time and money to attract the most qualified candidates for executive-level positions, and you want that investment in the hiring process to lead to selecting the most suited person for the job. Diversifying hiring committee assembly, preparing that committee with bias training, structured candidate interviews, and comparative evaluation of answers are smart steps to take in diminishing interview bias and choosing the best talent to serve your organization.

 

Sources cited: Harvard Business Review | McKinsey & Company, Inc.

By Christine Kennedy March 12, 2025
Corporate Development Manager About the Company Impel is a family of companies that offer comprehensive flow management solutions in partnership with each other and the best manufacturers in the world. Each of Impels branches represent individual brand cultures and span the West Coast. Impel serves customers in water, wastewater, agriculture, industrial, manufacturing, energy and mining. Impel was founded in 2021 with a vision to build a “one-stop shop” to serve municipal and industrial fluid management needs by acquiring complementary capabilities in contiguous geographies. The platform launched with the first acquisition of PumpTech , a premier distributor of high-quality pumping products and systems serving the Pacific Northwest. Subsequent acquisitions have grown Impel to over ten fluid management companies throughout the US. Impel is backed by Pike Street Capital , a private equity firm based in Seattle, WA. Recently, Pike Street successfully raised capital to fund additional acquisitions. Impel is actively pursuing growth opportunities and remains focused on acquiring and partnering with family-owned and operated companies in the sector. About the Role This is a key position managing the acquisition process within Impel. You will participate in all aspects of the investment process including industry/market research, deal origination, strategy and execution, and relationship building with acquisition target owners, executives, investment bankers and other intermediaries. This is a great role if you’re looking to own the deal process and progress your skillset as a deal professional. This role will give you deep insight into the entire acquisition process while closing multiple deals a year. We are a fairly lean team and believe in cross functional work so come with a growth mindset and you will develop a skillset across each business function; Our team believes in developing our team members. Primary Responsibilities Perform company analysis, including initial screenings, financial modeling and valuation, due diligence, consultation with external advisors, and preparation of materials for internal investment meetings. Responsible for M&A project management processes to include, but not limited to, valuations, letters of intent, due diligence analysis, financial planning, and business case development. Analysis of risks and opportunities of M&A activities, translate this into fact-based and well-reasoned insights on the valuation and structural impact of various acquisitions. Drive market research and strategic fit analysis. Conduct research on prospective sector opportunities and market trends and develop and present data-based opinions to inform decision-making and price transactions. Participate on deal teams to help structure and execute transactions, including coordinating the deal process and legal and transactional documentation. Special projects working directly with C suite, functional leads, and regional vice presidents. Qualifications 2-6 years experience in private equity, consulting, financial DD/QoE, investment banking, accounting, or corporate M&A Exposure to other diligence areas including commercial, operational, market sizing, risk analysis, customer and supplier, agreement review, etc. Excel and PowerPoint expertise Value oriented Strong communication skills Commitment to high professional standards Credentials: CPA preferred Interested in Learning More? 180one is a retained search firm and has been engaged by Impel to manage this search. If interested in learning more about the opportunity, please contact Tom Haley /503.334.1350/ tom@180one.com
By Greg Togni March 10, 2025
Long Term Incentive Plans (LTIPs) and Why to Implement Executive compensation is a nuanced and multifaceted subject that involves a delicate balance between rewarding top talent and aligning their interests with the long-term success of the organization. Typically, executive pay packages consist of three primary components: base salary, annual bonuses, and long-term incentive plans (LTIPs). While base salary and annual bonuses have historically been the most visible and commonly discussed elements of executive compensation, LTIPs are increasingly being recognized as the third and arguably most important leg of the stool. LTIPs serve as a tool for aligning the goals of executives with those of the company over the long term, offering rewards that are tied to the sustained growth and profitability of the organization. As businesses evolve and face growing challenges, LTIPs have become a central component in shaping how executives are compensated, ensuring they remain focused on creating long-term shareholder value. Over the past 75 years, LTIPs have been a common feature in public companies, where stock options, performance shares, and other equity-based incentives align executives with shareholder interests. It hasn’t been until the past couple of decades that private companies have implemented LTIPs to align executives' interests with the long-term success of the company, but also almost out of necessity to compete for the same talent who might already possess an LTIP as part of their compensation. What Are Long-Term Incentive Plans (LTIPs)? Long-Term Incentive Plans (LTIPs) are compensation structures designed to reward executives for achieving long-term business goals. Unlike annual bonuses, which are typically tied to short-term financial metrics, LTIPs are structured to reward performance over a longer time horizon—usually three to five years or more. The primary purpose of LTIPs is to ensure that executives are motivated to focus on sustainable growth, value creation, and the long-term health of the company. The Factors Driving the Adoption of LTIPs in Private Companies According to a survey by WorldatWork, approximately 63% of private companies are using LTIPs as a means of rewarding executives and aligning their interests with the company’s long-term success. Several factors have contributed to the rise in popularity of LTIPs in private companies, ranging from the quest for competitive advantage to changes in organizational dynamics and evolving employee expectations. But the following reasons might shed additional insight: Companies with LTIPs Have 30% Higher Revenue Growth: Research by the National Center for Employee Ownership (NCEO) found that companies that implement equity-based LTIPs experience 30% higher revenue growth compared to those that do not. The statistic underscores the positive impact of LTIPs on a company’s overall performance, as they drive executive focus on achieving goals that lead to sustained revenue growth, innovation, and market expansion. 91% of Executives in Private Companies Cite LTIPs as Key to Retention: A survey by Korn Ferry found that 91% of executives in privately held companies consider LTIPs an essential factor in their decision to stay with the company. The statistics demonstrate the significant role LTIPs play in retaining key talent, ensuring that executives are motivated to stay with the company over the long term. By offering equity-based compensation, companies can reduce turnover and keep their leadership team focused on long-term objectives. Companies With LTIPs Are 50% More Likely to Meet Exit Targets: According to a report by Bain & Company, private companies that implement LTIPs are 50% more likely to meet or exceed their exit targets during mergers, acquisitions, or initial public offerings (IPOs). By aligning executives' interests with long-term value creation, LTIPs motivate leadership to work toward achieving the performance metrics that will maximize the company’s value at the time of sale or public offering. Transitioning Ownership and Succession Planning: For family-owned businesses or privately held companies with a significant ownership stake held by a small group, succession planning is another critical factor in the decision to adopt LTIPs. As the company grows and the leadership team evolves, there may be a need to transition ownership to new management. LTIPs can help retain key executives during this period of change, providing financial incentives that keep the team focused on the company’s long-term growth even during periods of uncertainty. As businesses strive to remain competitive and evolve in an increasingly dynamic marketplace, the adoption of LTIPs has evolved as a key driver for optimizing performance. No longer limited to public companies; private companies have increasingly recognized the benefit and need for these compensation structures. Perhaps adding these 4 simple letters (L-T-I-P) to a company’s compensation program could be the difference maker that they’ve been looking for.
By Greg Togni March 3, 2025
Assistant General Counsel With roots going back to the 1960’s, Forest City Trading Group (FCTG), may have started as a small lumber yard run by two immigrant brothers, but has since grown into North America’s largest wholesale lumber product distributor. FCTG facilitates the distribution of products across 6 continents through our network of 12 operating companies and over 800 employees. The company’s impact is far-reaching, especially when considering that one in every ten houses today is built using products sourced and sold by our operating companies. As proponents of forest sustainability, FCTG actively supports suppliers who use sustainable forest management practices that promote forest sustainability and result in long-term environmental, social, and economic benefits. Due to significant growth over the last decade, and expecting strong growth in years to come, FCTG is adding an Assistant General Counsel to their legal team to support growth and help scale the business. Position Overview Forest City Trading Group is seeking a highly motivated and skilled Assistant General Counsel to report directly to, and support, the General Counsel and assist in managing the company's legal operations. The ideal candidate will have strong legal expertise, excellent communication skills, and the ability to collaborate effectively across different business units. This position offers an exciting opportunity to be a part of a dynamic team while contributing to the growth and success of the company. Key Responsibilities Provide legal support to the General Counsel on a variety of corporate, commercial, regulatory, and operational matters. Assist in the company's legal department operations, including document management, contract review and negotiation, legal strategy, and corporate governance. Draft, review, and negotiate contracts, agreements, and other legal documents to ensure compliance with applicable laws and regulations. Assist with the management of corporate compliance and risk management programs, including conducting legal risk assessments and providing recommendations for mitigation. Collaborate with cross-functional teams (e.g., finance, IT, human resources, marketing, trading operations) to provide legal guidance on operational and business issues. Advise on employment law matters, including policies, employee relations, and compliance with federal and state employment laws. Handle legal research and due diligence for mergers, acquisitions, and other corporate transactions as needed. Manage outside counsel and vendors, ensuring legal matters are handled efficiently and cost-effectively. Assist with litigation and dispute resolution matters, including managing internal investigations, handling settlement negotiations, and overseeing litigation strategy. Stay updated on legal developments and regulatory changes that may impact the company’s operations and provide proactive legal solutions. Qualifications and Skills Juris Doctor (JD) degree from an accredited law school. Licensed to practice law in Oregon. Minimum of 5 years of legal experience, with preference for some experience within a corporate or in-house legal environment. Experience in corporate governance, commercial contracts, employment law, and regulatory compliance. Strong analytical skills with the ability to identify and solve complex legal problems. Excellent written and verbal communication skills. Ability to work independently, manage multiple priorities, and maintain a high level of professionalism under pressure. Strong interpersonal skills and the ability to build effective relationships with internal stakeholders at all levels of the organization. Ability to handle confidential and sensitive information with discretion. Preferred Experiences Experience supporting operational functions, such as HR, marketing, and compliance, in a corporate setting. Previous experience managing outside counsel and coordinating legal projects. Experience with construction and material supply contracts. Interested in Learning More? 180one is a retained search firm and has been engaged by Forest City Trading Group to manage this search. If interested in learning more about the opportunity, please contact Lisa Heffernan/ 971.256.3076/ lisa@180one.com
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