How can the regency effect negatively influence hiring decisions?

The regency effect refers to the cognitive bias where individuals give greater significance to the most recently available information when making decisions. In the context of hiring, this can manifest as hiring managers placing undue emphasis on candidates who recently interviewed or whose applications were recently reviewed. If decision-makers focus predominantly on these recent candidates, they may overlook earlier candidates who, despite having a stronger overall background or qualifications, may not have made as lasting an impression due to the timing of their interaction.

This effect can lead to a less rigorous selection process where the assessment of past candidates is diminished, resulting in potentially less qualified individuals being chosen over better-suited candidates who were evaluated earlier in the process. Thus, the regency effect can negatively impact hiring decisions by skewing the evaluation criteria based on temporal perception rather than objective merit.