> You no longer are opting to choose based on cost/performance of the employee. are we seriously okay with this? Isn't that demoralizing to the new hire? Now every moment, they are wondering if they got hired because of who their parents are, versus whether they earned it or not.
If you're a white male who is honest with himself, you'll understand that being a white male carries with it a set of privileges.
Just consider: a white child is significantly more likely to go to a school with experienced teachers than a black child, more likely to take honors classes in high school, more likely to get into a good university, and when they graduate, are more likely to get job offers based on nothing more than their white male name[1].
Let's not fool ourselves: humans are not the coldly rational actors we like to think. Ignore the fact that I've already got a leg up on networking because my (white male) peers work the jobs I want to work. When it's time for me to go in for an interview for a software engineering position the odds are overwhelmingly high that every person who interviews me, from the team interview up to senior management, will look a lot like me. That goes a long way in me getting the job - our monkey brains are pretty well wired to look at someone that looks like ourself and think "yeah, he's a competent, trustworthy individual!"
So yeah, I don't think anyone's actually hired in the cold cost/benefit analysis you talk about. There's lots of chances for significant bias to creep in. In reality, if people were hired solely based on the criteria you talk about, and race/gender/... were not considered, I bet we'd see more diverse workforces than we have now.
If someone can figure out how to set up a blinded interview that would be interesting.
[1] http://www.nber.org/papers/w9873.pdf