Is Name Blind the Future of Recruitment?

It was no surprise to those in the know that name blind applications received national press back in October 2015. The body of evidence pointing towards discrimination in the recruitment process had risen to unprecedented levels. David Cameron, therefore, announced the start of a new name blind scheme. Thus, name blind applications- the process of concealing any personal information on the candidate’s initial application- will become the status quo for a number of organisations by 2017. The UK government hopes that this initiative will create a more objective hiring process in the preliminary stages.

But are name blind applications simply an equal opportunities exercise or are there some tangible business benefits as well?

Can diversity actually drive profitability? Three major studies think that it could.

First, a McKinsey study of 180 publically traded companies in France, Germany, the UK and USA found that companies with more diverse senior teams were more profitable. In fact, their findings were startlingly consistent across the businesses they examined. Those with more diverse senior teams had a 53% higher return on Equity and 14% higher Earnings Before Interest and Taxes than less diverse counterparts.