Lately I’ve been doing some personal research into the psychology behind how we make hiring decisions. It started as curiosity, wanting to understand why some candidates just feel right and others don’t, but the deeper I go, the more I realise how much our instincts shape the way we recruit.
In the world I work in, banking, insurance, financial services, risk and compliance across New Zealand, relationships, trust and judgement are everything. The challenge is that our instincts, the very thing that helps us build rapport and spot talent, can also quietly steer us off course.
Three ideas keep showing up in my work: exaggerated emotional coherence, the halo effect, and confirmation bias. None of them are new, but seeing how they play out every day is changing how I approach referrals and client conversations.
The Biases Behind the Curtain
These ideas have been around for decades. Psychologists like Edward Thorndike, Peter Wason, Daniel Kahneman and Amos Tversky explored how people form impressions and make decisions. But you don’t need a psychology degree to see them in action, they appear every time we interview a candidate, shortlist for a client, or review feedback in a team meeting.
When It All “Feels Right”
I’m learning how easily emotion can take the lead. There are moments when a candidate instantly clicks with me, maybe they share a similar background or they just “get” the industry. It’s tempting to start seeing everything through that positive lens. That’s what Kahneman calls exaggerated emotional coherence, our brain connects the dots too neatly, convincing us that every trait must be positive because one of them shines.
These days I’m trying to slow that down. I ask myself, “What evidence actually supports that gut feeling?” Because in risk and compliance recruitment or in general insurance broking, where precision, policy wording and regulatory understanding really matter, warmth and charm alone won’t keep a client protected or a business compliant.
The Glow That Hides the Gaps
The halo effect is another one I’m learning to catch early. A candidate from a big-name bank or brokerage lands in front of you and before you know it, that brand prestige colours how you see everything else. I’ve done it myself, assuming capability purely because of where someone has worked.
When I strip that away and look purely at behaviour, delivery and mindset, I often find the story is more complex. Big brands produce great people, but not every person from a big brand fits every team. In New Zealand’s financial services and insurance markets, culture fit and ethical alignment often matter just as much as credentials.
My new rule of thumb is simple: assess each competency in isolation, not in the glow of reputation.
Seeing What You Want to See
Confirmation bias is the one I’m learning requires the most discipline. Once you decide someone is the right fit, your brain starts collecting proof to back that up. I’ve noticed it in client debriefs too, we all tend to downplay red flags because we’ve already built the story we want to believe.
To stay balanced, I’m learning to bring other voices into the process. A colleague who hasn’t met the candidate can often spot what I’ve missed. In a tight market like New Zealand’s, where risk and compliance and general insurance broking roles carry high stakes, being aware of this bias protects your reputation as much as your client’s.
Why a Specialist Recruiter Helps
This is exactly why using a specialist recruiter makes a difference. At Tyler Wren, we live and breathe insurance, financial services, wealth management, risk and compliance, and life and health insurance.
Beyond that, our specialist teams cover public practice accounting, legal jobs in New Zealand, legal roles in Australia, accounting recruitment in Australia, and risk and compliance roles across Australia.
Because we understand both the technical and regulatory landscapes, we can separate genuine capability from surface-level polish.
We’re not immune to bias, but we build safeguards into our process, structured interviews, collaborative assessments and evidence-led shortlisting. Our goal is to manage risk for both client and candidate, support long-term fit, and maintain trust in a market where reputation is everything.
If you’re hiring, you can search for talent, refer a friend, or learn more about our team. If you’re exploring your next move, our salary guide is a great place to benchmark your value.
Working with a recruiter who knows your sector means you’re not just hiring on instinct, you’re hiring with insight.
What I’m Learning Overall
Biases like emotional coherence, the halo effect and confirmation bias are part of being human. The goal isn’t to eliminate them, it’s to notice them before they drive your decisions.
For me, this awareness is changing how I interview, how I refer candidates, and how I debrief with clients. It’s making recruitment more grounded, more transparent and ultimately more effective.
Because in this industry — whether it’s general insurance broking, financial services, risk and compliance, legal or accounting, success is built on trust. Balancing instinct with evidence is what keeps that trust strong.
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