A 5% bias doesn't sound like much. But when that 5% appears at every stage of a multi-stage process, the effects compound dramatically.
Adjust the bias at each stage of this hiring funnel and watch how Group A and Group B diverge.
Starting Population
Both groups are equally qualified. Only the bias differs.
Bias at Each Stage
Positive = favors Group A, Negative = favors Group B
The Funnel
Compound Effect
Individual stage biases:
Combined effect: disparity in outcomes
The math of compounding bias
Why this matters
Each evaluator might genuinely believe they're being fair. A 5% bias is nearly imperceptible at the individual levelâit's the difference between a "maybe" becoming a "yes" or a "no" in ambiguous cases.
But systems have many stages. And biases compound multiplicatively, not additively. Four stages of 5% bias each don't create 20% disparityâthey create much more.
This is why looking at outcomes matters. If your final results show large disparities despite equal starting populations, the bias is hiding somewhere in your processâeven if no single stage looks problematic.