Develop Diverse Blog

Understanding Merit-Based Hiring: A Path to Fairness

Written by Matilde Kjerulff | Jan 30, 2025 9:31:11 AM

Merit-based hiring is a term that often pops up in conversations about building fair and effective workplaces. But what does it really mean? At its core, merit-based hiring is about evaluating and selecting candidates based solely on their skills, experience, and qualifications - the attributes that directly relate to their ability to perform a job. Sounds simple, right? Not quite. While the concept is appealing in theory, the way we approach merit-based hiring can either bolster or hinder fair recruitment efforts. Let’s unpack why this is the case.

Merit-based hiring and unconscious bias 

At first glance, merit-based hiring and fair recruitment might seem like two different ideas, or even at odds with each other. You might have heard people say that focusing on fairness means lowering the bar for talent. But that’s just not true - what really happens is that traditional hiring methods often overlook what merit truly means.

Here’s the thing: Unconscious biases can sneak into hiring decisions and get in the way of real merit-based hiring - even when we think we’re being objective. For example, we might unconsciously favor candidates with names that sound more familiar, or those who share hobbies like golf. Maybe we’re drawn to people who went to the same school as us or worked at a big-name company like Google (because, let’s be honest, we assume they’re brilliant).

Without systems in place to call out and counteract these biases, we’re not really hiring based on merit. Instead, we’re letting these hidden preferences steer the process. That’s why every part of the hiring journey - from the job posting to the final decision - needs to be thoughtfully designed to keep things fair.

Take job postings, for example. Words like “rockstar” or “competitive” might seem harmless, but they can subtly signal that certain groups belong more than others. Research shows that terms like “dominant” or “competitive” can make women feel less interested or like they don’t fit in, while men might be drawn to them. Small changes in language can make a big difference in attracting a wider range of talented people.

The bottom line? If we want to build a truly merit-based system, we need to focus on fairness and tackle unconscious bias head-on. By doing this, we’re not just being fair - we’re opening the door to a much bigger pool of talent, which leads to better results for everyone.

The criticism: Is merit-based hiring always fair?

It’s important to acknowledge the criticisms of merit-based hiring. Unconscious biases can always influence decisions, even when we think we’re being objective. Professor Emilio Castilla from MIT Sloan calls this the "paradox of meritocracy." Companies that believe they have a merit-based system often overlook the biases still at play. As Castilla points out, when managers think their company is bias-free, they may actually be more prone to bias.

Another study, Can Selecting the Most Qualified Candidate Be Unfair?, shows that merit-based hiring tends to favor candidates from higher socioeconomic backgrounds, challenging the fairness of these processes.

Merit doesn’t exist in a vacuum. Inequities in education, networks, and opportunities mean not everyone has the same chance to develop their potential. Without addressing these barriers, a focus on merit can unintentionally reinforce existing disparities.

Bridging the gap: Making merit-based hiring more fair

So, how can organizations address these challenges and ensure their merit-based hiring processes are fair? It starts with intentionality and a commitment to equity at every stage of the hiring process.

  1. Write inclusive job ads: Use tools like Develop Diverse to ensure your language appeals to a broad range of candidates. Focus on the skills and qualifications that are essential for success, and avoid jargon that might deter underrepresented groups.
  2. Broaden recruitment channels: Don’t just post your jobs on the same platforms over and over again. Partner with organizations, colleges, and professional groups that represent diverse communities.
  3. Evaluate skills fairly: Incorporate structured assessments, work samples, or skill tests into the hiring process to focus on candidates’ abilities rather than their backgrounds.
  4. Train hiring teams:
    Provide implicit bias training for recruiters and hiring managers to ensure evaluations are fair and consistent.
  5. Redefine merit: Consider how potential, adaptability, and lived experiences contribute to a candidate’s ability to succeed. Sometimes the best candidates don’t have traditional credentials, but they bring unique perspectives that enhance creativity and innovation.

Striving for fairer, merit-based hiring

In a perfect world, merit-based hiring would be the gold standard - where skills, experience, and potential determine success, free from bias or privilege. But the reality is more complex. Not everyone has had the same opportunities for education, networking, or career advancement. True fairness in hiring isn’t just about selecting the "best" candidate on paper; it’s about critically assessing what a role truly requires. Does it really demand a specific degree, or is relevant experience just as valuable?

By shifting our focus toward genuine merit - skills, ability, and potential - we can create a more equitable hiring process. That means looking beyond names, hobbies, or traditional markers of success and instead recognizing the diverse paths that lead to excellence. The world may not be perfect, but we can strive to make hiring fairer, more inclusive, and ultimately providing companies with the best candidates for the job and ensuring better performance.