It’s no secret that women are highly underrepresented in the technology industry. Whilst there has been an increase in the position of women in tech; a report by the IDC found an increase from 21 to 24% between 2018-2019 of women in senior leadership positions, the fact still remains that (in 2019) only 26% of the computing workforce were women.
Below we’ve emphasised why this needs to change, from a financial perspective, not just an inclusivity perspective, because having a gender diverse workforce is financially logical.
Every business wants the productivity of their employees to be sustained at a high level, because ultimately productivity leads to profit.
According to research conducted by Hive, although men and women both complete 66% of the tasks assigned to them, women work 10% harder accounting for the fact that they get given 10% more work than men and still produce the same output.
Having women in leadership positions within organisations can also increase profitability.
A global survey of 21,980 firms from 91 countries by the Peterson Institute for International Economics, found that a potential increase of 15% in profitability can occur:
“For profitable firms, a move from no female leaders to 30 percent representation is associated with a 15 percent increase in the net revenue margin.”1.
This increase in profitability could be explained by the fact that a diverse workforce leads to higher levels of innovation. Having a diverse team allows different perspectives to be brought to the table and ‘out of the box’ solutions to be found for problems.
Another global survey of 70 countries and 12,940 businesses by the International Labour Organisation discovered more than half (57%) of respondents agreed that initiatives surrounding gender diversity boost business results. With 54.4% stating improved innovation and creativity.
Retention of employees is a difficult and costly challenge; The Society for Human Resource Management predicts a cost between six to nine months worth of salary on average to replace an employee. Add on top of that the leave rate being almost twice as high for women in the industry, and the retention of female employees should become a priority.
So, how can you retain female employees in your tech team?
Having a gender diverse workforce can actually encourage engagement and retention of female tech professionals. This can be explained by the fact that having a diverse workforce means that processes and procedures are in place to accommodate their needs, for example adequate maternity leave and the ability for flexible schedules. A survey of female STEM students found when considering potential employers, diversity initiatives were important to 74% of respondents.
Having a gender diverse workforce will not only increase inclusivity in tech, it will also give you a competitive edge and more access to talent in the industry.
Are you a team leader looking for talented tech professionals to join your team? Speak with our specialist consultants today.
1. Noland, M., Moran, T. and Kotschwar, B., 2016. Is Gender Diversity Profitable? Evidence From A Global Survey. [online] PIIE. Available at: <https://www.piie.com/publications/working-papers/gender-diversity-profitable-evidence-global-survey> [Accessed 3 September 2020].