Case analysis :Managing diversity at Yelp
Submitted by:
Tanya , Athish Balasubramaniam, Nandni Mittal, Japleen Kaur, Saahil Bharadwaj
Question 1. Analyse the hiring process of engineers at Yelp. Does any factor if any
contributes to non-diverse pool of employees?
The hiring process for engineers at Yelp, as outlined in the case study, involves multiple
stages:
1. Campus Recruitment Focus: Yelp primarily recruits entry-level engineers from a
select group of universities with strong engineering programs. This could
contribute to a non-diverse talent pool if these universities lack diversity in their
computer science and engineering departments.
2. Resume Screening and Code Test: Candidates go through a code test, after which
recruiters screen resumes and assign scores based on coursework and prior
experiences. Biases in this evaluation process could unintentionally favor
candidates from privileged backgrounds or those with access to elite education.
3. Interview Process:
o An initial 45-minute Skype interview involves discussing background and
solving a coding problem.
o Final interviews involve four 45-minute sessions, including two technical
and two managerial rounds.
4. Promotion from Within: Many senior engineering positions are filled through
internal promotions rather than external hiring. Since the initial hiring pool lacks
diversity, this perpetuates the lack of representation at leadership levels.
5. Lack of Structured Diversity Measures: While Yelp recognized diversity as an
issue, there were no explicit hiring quotas or processes to ensure the recruitment
of underrepresented groups in tech.
Factors Leading to a Non-Diverse Pool:
Limited Outreach: The focus on certain universities may exclude talented individuals
from historically Black colleges and universities (HBCUs) or Hispanic-serving
institutions.
Bias in Screening: Implicit biases in resume evaluation and coding tests may
disadvantage candidates from non-traditional backgrounds.
Lack of Senior Diversity: A non-diverse leadership team may impact hiring decisions
and company culture.
Question 2. Should Companies Set Diversity Targets?
Yes, companies should set diversity targets, but these should be realistic and part of a broader
strategy for inclusion. Targets can serve as benchmarks to ensure hiring practices align with
diversity goals, fostering innovation and better decision-making.
Value of Diversity in the Workforce:
Improved Problem-Solving: Diverse teams bring different perspectives, leading to
more creative and effective solutions.
Better Representation of Customers: A workforce that reflects the diverse customer
base can design more inclusive products and services.
Enhanced Employee Satisfaction: An inclusive environment promotes engagement,
reducing turnover and increasing productivity.
Yelp's efforts to improve diversity, such as hiring Rachel Williams to lead inclusion
initiatives, indicate a willingness to address these challenges. However, a more structured
approach, including outreach to diverse universities, bias training, and revised promotion
policies, would further enhance diversity efforts.
Question 3. Is there any kind of workplace discrimination in Yelp? If yes, what kind and
how does it manifest itself?
While Yelp does not exhibit overt workplace discrimination, the case study highlights
systemic barriers that have historically limited diversity in the tech industry, and Yelp was no
exception. These challenges manifested in several ways:
Lack of Representation: The data released by Yelp in 2014 showed that only 10% of
technical roles were held by women, while 7% of employees were Hispanic and 4%
were Black. This disparity reflected broader industry-wide trends, where women and
racial minorities faced challenges in entering and advancing within technical fields.
Unconscious Bias in Hiring and Promotion: The hiring process at Yelp heavily relied
on traditional recruitment practices, such as prioritizing applicants from a select group
of engineering schools and conducting coding interviews that may not have been
structured to minimize bias. These practices may have unintentionally disadvantaged
candidates from underrepresented backgrounds.
Workplace Culture Concerns: Rachel Williams’ listening tour revealed that some
employees felt hesitant to express their full identities at work, fearing negative
perceptions from colleagues or managers. This suggests that while Yelp was not
explicitly discriminatory, the workplace culture did not always feel inclusive or
welcoming to all employees.
Formation of Informal Affinity Groups: Employees organically formed groups, such
as an LGBTQ+ email thread and a women-only book club, to create supportive
spaces. While affinity groups can be a positive aspect of workplace culture, their
formation in an unofficial capacity suggests that Yelp may not have had sufficient
formal support structures in place for employees from diverse backgrounds.
Question 4. What definition of diversity is Yelp using? Is it serving its purpose?
primarily focused on demographic diversity—increasing representation of women and racial
minorities, particularly in technical roles. This aligns with the broader industry movement
that gained momentum in 2014 when major tech companies started publicly disclosing their
workforce demographics.
Rachel Williams and Yelp’s leadership also recognized that diversity should go beyond hiring
numbers to include inclusivity—ensuring that employees feel supported, valued, and
empowered to thrive. Some key aspects of Yelp’s diversity approach included:
Recruitment Strategy Adjustments: Rachel Williams considered modifying the hiring
process to reduce biases, such as blinding resumes (removing names and identifiable
characteristics), introducing structured interviews, and expanding recruitment efforts
beyond traditional tech hubs.
Retention & Workplace Culture Focus: Rachel identified that increasing diversity
without fostering inclusivity would not be effective. Employees needed to feel
comfortable bringing their authentic selves to work, which meant addressing cultural
and structural barriers. Initiatives such as formalizing affinity groups and
implementing bias training for managers were explored to create a more inclusive
environment.
Question 5. What is the contribution of the top management at Yelp to increasing D&I?
Top management at Yelp played a crucial role in setting the tone for diversity and inclusion
(D&I) initiatives. Their contributions included:
Leadership Commitment & Appointment of a D&I Head:
Yelp CEO Jeremy Stoppelman and COO Geoff Donaker demonstrated their
commitment by appointing Rachel Williams as the first Head of Diversity and
Inclusion in 2014. This was a significant step, as it signaled that diversity was a
strategic priority for the company rather than a secondary concern.
Granting Autonomy & Resources for Change:
Rachel was given free rein to propose changes in the company’s hiring, interviewing,
promotion, and workplace culture practices. This level of autonomy was crucial in
allowing her to explore and implement effective solutions without excessive
bureaucratic constraints.
Active Executive Involvement in Diversity Discussions:
Geoff Donaker personally attended meetings related to diversity, which helped
reinforce the message that D&I was a core management issue rather than an HR
initiative alone. His involvement also helped ensure that diversity efforts were
integrated into broader business goals.
Public Disclosure of Diversity Data:
By publishing workforce diversity statistics alongside major tech companies like
Google and Facebook, Yelp’s leadership contributed to greater transparency and
accountability in the industry. This moves increased pressure on companies to
improve their hiring and retention of underrepresented groups.
