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Applicants’ Fairness Perceptions of Algorithm-Driven Hiring Procedures

Author

Listed:
  • Maude Lavanchy

    (IMD International Institute for Management Development)

  • Patrick Reichert

    (International Institute for Management Development)

  • Jayanth Narayanan

    (NUS Business School)

  • Krishna Savani

    (The Hong Kong Polytechnic University)

Abstract

Despite the rapid adoption of technology in human resource departments, there is little empirical work that examines the potential challenges of algorithmic decision-making in the recruitment process. In this paper, we take the perspective of job applicants and examine how they perceive the use of algorithms in selection and recruitment. Across four studies on Amazon Mechanical Turk, we show that people in the role of a job applicant perceive algorithm-driven recruitment processes as less fair compared to human only or algorithm-assisted human processes. This effect persists regardless of whether the outcome is favorable to the applicant or not. A potential mechanism underlying algorithm resistance is the belief that algorithms will not be able to recognize their uniqueness as a candidate. Although the use of algorithms has several benefits for organizations such as improved efficiency and bias reduction, our results highlight a potential cost of using them to screen potential employees during recruitment.

Suggested Citation

  • Maude Lavanchy & Patrick Reichert & Jayanth Narayanan & Krishna Savani, 2023. "Applicants’ Fairness Perceptions of Algorithm-Driven Hiring Procedures," Journal of Business Ethics, Springer, vol. 188(1), pages 125-150, November.
  • Handle: RePEc:kap:jbuset:v:188:y:2023:i:1:d:10.1007_s10551-022-05320-w
    DOI: 10.1007/s10551-022-05320-w
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    More about this item

    Keywords

    Algorithms; Organizational justice; Fairness; Applicant reactions to selection; Selection; Recruitment;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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