Ethnic Bias in Leadership Selection: Evidence from Ghana’s Financial Sector

Ethnic bias in recruitment and leadership selection is a significant issue in Ghana's financial sector, where social and tribal affiliations can affect hiring and career advancement. Despite a focus on diversity and inclusion, there is limited research on how unconscious bias impacts professional paths in Ghana. This study examines the influence of ethnic bias on leadership selection and career progression in Ghana's financial sector. Using Social Identity Theory, it examines the roles of in-group favoritism, nepotism, and implicit biases in corporate decisions. A quantitative research design was utilized, gathering survey data from 104 professionals at various job levels. The research tested hypotheses with ANOVA and descriptive statistics to assess perceptions of ethnic bias among different respondent groups. The findings indicated that unconscious ethnic bias significantly influenced the selection of leaders and the advancement of careers, often prioritizing in-group individuals over qualifications based on merit. While diversity training and inclusive hiring practices have the potential to address these biases, their effectiveness can vary. These results highlighted the need for organizations to adopt merit-based recruitment, enforce strict anti-bias policies, and provided structured diversity training to ensure workplace equity. Future research should focus on the long-term effects of diversity initiatives and analyze hiring biases across various sectors and regions to create better intervention strategies. Tackling these biases is crucial for building a more inclusive and competitive corporate environment in Ghana and beyond.