The economic impact of investing in Women in Tech

Despite strides towards gender parity, women are still woefully underrepresented in tech roles – even when the evidence shows that having women at the helm makes for a healthier bottom line and diverse teams are the catalyst for economic growth.

The current landscape

For those in tech and engineering, the sectors are renowned for their innovation and dynamism, and they significantly contribute to global economic development.

However, according to the World Economic Forum's Global Gender Gap Report 2020, women occupy only 14% of leadership positions in IT firms globally, and the 2022 EngineeringUK reports that just 16.5% of engineers in the UK are female. This is a disproportionately low representation of society considering women make up over 50% of the population. Further, the PwC’s ‘Women in Work Index’ reports that the UKs gender pay gap has now extended to 14.5% – the biggest drop experienced by ANY OECD this year.

This disparity not only hinders gender equality; it also restricts the industry's potential for growth and innovation.

Economic benefits of gender diversity

If we look at all of the research available, it consistently shows that gender diversity within organisations leads to better performance and innovation. A study by McKinsey & Company revealed that companies in the top quartile for gender diversity on their executive teams were 25% more likely to have above-average profitability than companies in the fourth quartile. This correlation underscores the value of diverse perspectives in driving financial success. Moreover, the greater the representation, the more likely the company is to outperform others.

In fact, in another study by McKinsey & Company, it found that advancing women's equality could add $12 trillion to global GDP by 2025. This is a substantial figure, and it highlights the untapped economic potential of including more women in the tech industry.

But how do we catch, harness, and retain all this potential?

Inclusive policies and practices

For companies and economies to harness the full benefits of gender diversity, it is crucial to implement inclusive policies and practices that encourage women's involvement in high-tech sectors.

Examples of such policies might include:

Gender-neutral recruitment: implementing unbiased recruitment processes to ensure a diverse candidate pool.

Flexible working conditions: offering flexible hours and the option to work remotely to accommodate different needs and lifestyles.

Professional development opportunities: providing mentorship programmes and training specifically designed to support women in tech.

Equal pay for equal work: ensuring that women are paid equally for their contributions.

Women in Tech highlighted four benefits of an inclusive workplace, which showcased that workplace inclusion leads to: a culture of innovation, greater productivity, a good reputation, better profits.

Several companies have set exemplary standards for promoting gender diversity in the workplace. For instance, Salesforce conducted an extensive audit of its pay practices and made adjustments to address any disparities, showcasing a commitment to equal pay for equal work.

Similarly, Intel invested heavily in initiatives to increase the representation of women in its workforce, including a $300 million Diversity in Technology initiative which aimed at achieving full representation of women and underrepresented minorities in its US workforce by 2020.

The way forward

The evidence showing that investing in women in tech is a strategic economic decision is overwhelming, and as the tech industry is a continually evolving being, the inclusion of women in all aspects of technology and engineering will be critical to unlocking innovation, driving growth, and fostering a more equitable and prosperous society.

Encouragingly, there is a growing recognition of the economic and social benefits of gender diversity in tech, whereby governments, corporations, and educational institutions are implementing policies and programmes to support women's participation in the STEM (Science, Technology, Engineering, and Mathematics) fields. However, there is still a long way to go, and whilst efforts are geared towards attracting diverse talent in STEM, this talent still needs to feel valued and nurtured in the workplace, and, ultimately, it needs to lead to a retention of women in the industry.

Commitment to change is key

The path to gender parity requires sustained effort and commitment from all stakeholders. By embracing diversity, fostering inclusive cultures, and investing in women's development, the tech industry can not only bridge the gender gap but also enhance its economic impact and drive innovation forward.

So, as we approach International Women's Day, it is important to reflect on the progress made and the journey ahead in achieving gender equality in tech – because the economic impact of investing in women in technology is clear, and the time to act is now, and by working together, we can create a more inclusive, innovative, and economically vibrant tech industry for everyone.