Using biased criteria for diversity hiring can lead to a situation where diverse candidates are treated as second-class citizens, leading to poor retention rates. This creates a cycle where attempts to fix the problem with more biased criteria only exacerbates the issue. The speaker, as the leader of the firm, discusses and addresses this problem, highlighting the fallacy of assuming that the only way to bring in diverse people is to make race and gender criteria, which is objectively untrue.

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