In the past, the realm of technology stood as an impenetrable fortress where women seldom gained admission. However, with changing times, the number of women venturing into the technology field has seen a constant increase over recent years. Armed with skills and determination, they are challenging the norms and reshaping the industry landscape.
Nevertheless, the picture isn’t entirely bright in this digitized world. Even though women’s representation across different professional sectors has surged significantly, they represent a smaller fraction of the technology sector. Despite commendable efforts from corporations, governments, and myriad organizations aiming to redress this imbalance, the goal of establishing gender balance in the tech workforce remains a distant dream.
The Sobering Reality: The State of Gender Disparity in Tech
Zubr Capital, a private equity firm focused on investments in private fast-growing companies in the TMT sector, conducted research examining the trends and figures related to women’s participation in the tech sector. We scrutinized gender diversity data, hiring practices, and advancement opportunities.
Our journey began with a single, simple question – has the situation improved over the last half-decade? Armed with statistics and multiple annual reports on the topic, we aimed to track the progress made over the last five years. To our surprise, we found out that the situation with gender inequality in the IT sector is still quite difficult.
Recent surveys paint a sobering picture of gender bias in the tech industry. In 2019, 52% of women reported having faced workplace discrimination at least once. Fast forward to 2024, the situation deteriorates further, with a shocking 76% identifying themselves as victims of gender bias. That’s a massive 24% surge in just five years.
The scenario worsens as 78% of tech women feel a need to outdo men to validate themselves. In 2022, tech hiring bias escalated with 38% jobs solely reaching out to men for interviews. UK’s data reveals that nearly 3 in 5 women encounter workplace gender discrimination, predominantly due to not being taken seriously (74%). However, it’s important to end on a hopeful note here. It is worth noting that the survey results look like this also because women’s awareness in IT is growing. Whereas in 2019, many women specialists perceived inequality as the existing order of things. Today, more and more women realize this situation is far from normal. They refuse to be silenced and are more willing than ever to voice their experiences and demand change.
The gender wage gap is especially stark in Europe, with Germany serving as a worrying example. Men in technology roles earn approximately €15,000 more per year than their female counterparts, making it one of the worst gender pay gaps in Europe. Despite small strides ahead in the UK, where the wage gap got reduced to 4%, the overall picture remains not too encouraging.
Adding to the concerning statistics is the inequity women in tech face when it comes to fundraising. Startups led by women often perceive fundraising to be an uphill battle compared to their male counterparts. The venture capital scene is no different. In 2022, female tech founders received a paltry 1.9% of venture capital funds. Startups with entirely female teams managed to raise just $3.1 billion, a meager 1.8% of the total venture capital – the lowest since 2016. This amplifies the need for change. If our aim is to better aid female founders in their endeavors, we need to not only acknowledge their plights but also highlight their successes. By showcasing the successful cases of startups led by women, we can promote female leadership visibility, thus inspiring future generations of female innovators.
A Ray of Hope: Signs of Progress in Gender Balance
There are glimmers of hope piercing the gloom. Women now hold 29% of technical roles in the UK, a slight improvement from 24% five years ago, according to The Tech Talent Charter. In senior tech roles, women now make up 21%. In addition, the number of female developers has marginally increased, with 23% of 17,000 surveyed indicating a growth from 19% in 2021. Another bright spot comes from the European Union, with women representing 52% of the 76 million people occupying tech and science jobs. Progress, while slow, is not absent.
Another promising stride is the rise of women into executive positions. They now represent 21% of senior tech roles, a commendable improvement over the years. The number of female tech CEOs is also gradually increasing, with 17% of tech firms now helmed by women. Yet, the gender imbalance remains stark at the top, with most tech giants still lacking female representation. Notably, only 2 of the 50 largest tech firms have female CEOs, underlining the persistent gap. Regrettably, the percentage of women dwindles as the career level rises.
There is further promising news. In 2023, the quit rate among women hinted at a lower trend. Despite still heightened at one in three, the number has softened from the 47% rate in 2019, according to The Tech Talent Charter. While work-life balance remains a crucial factor in women leaving tech positions, the reduction in the quit rate suggests that industry changes may be working. Caution is advised, however. The ongoing struggle with retention and work-life balance indicates there’s much left to improve.
Why is gender diversity important in today’s corporate world?
It’s not about “more women for women’s sake”. Rather, it’s a strategic approach to create a more productive and innovative workforce. Women leaders, according to Barbara Annis (Gender Intelligence expert), not only enhance brand reputation but also reduce staff turnover.
The Catalyst report reveals an interesting fact: organizations with a diverse gender mix in management and board positions outperform others financially. A McKinsey report also predicts that advancing women’s equality could add a staggering $12 trillion to GDP by 2025 (Holly Grogan 2016).
It’s not just about financial results. Gender diversity improves corporate oversight and boardroom involvement. With different viewpoints and market insights, gender-balanced teams solve problems more efficiently, suggests Gallup Research (Gallup Report 2014).
Female-led companies have shown greater performance with a surprising revelation from Shark Tank’s Kevin O’Leary: 95% of the women-led companies he invested in met their financial targets. These female-led companies also excel at employee engagement and job satisfaction. They inspire belief in their products or services and communicate effectively about their corporate mission and strategy.
In conclusion, gender diversity enhances productivity, fosters innovation, and influences better decision-making. A commitment to gender diversity is not just fair, but it’s a smart business that benefits employees and organizations alike.
Unraveling the Puzzle: Why Gender Diversity in Tech Is Fading
Why are we seeing diminishing gender diversity in tech despite the known benefits?
Clear and familiar reasons exist for declining gender diversity in tech: tech careers have longer education and professional training periods. This often results in women in tech having children later, with higher rates of childlessness. Additionally, women often bear the brunt of domestic responsibilities, causing many to work part-time or abandon their careers. A third of UK women in tech were considering leaving their jobs in 2023, pointing towards the critical role of work-life balance as a factor in their career choices.
Yet, this is only part of the problem.
Microsoft’s recent survey sheds light on this, revealing that although girls develop a tech interest around 11, it often fades by 15. The study attributes this shift to a lack of female role models in technology. This absence can lead young girls to perceive the tech industry as an unwelcoming territory, irrespective of their skills or enthusiasm.
Women who boldly venture into tech careers often find their initial apprehensions reinforced. The tech world is still, disappointingly, a predominantly masculine domain. Traditional associations linking masculinity with technology shape an unsupportive workplace culture where women often feel excluded. Disturbingly, many report disrespectful behaviors, sexual harassment, a bias in performance evaluation, and undue attention based on appearance.
Such experiences serve to discourage female participation. Surprisingly, ‘imposter syndrome’ affects 8 out of 10 women, making them feel as if they’re fooling everyone with their success and continually worrying about being ‘found out.’
This ‘imposter syndrome’ leads to a confidence crisis. It’s noteworthy that women usually apply for roles only when they believe they fulfill at least 90% of the criteria, while men may apply regardless of meeting the requirements.
A lack of self-assurance seems to be the root cause of pay disparity. Alarmingly, women tend to earn less simply because they ask less, with a staggering 67% of women negotiating lower salaries compared to their male peers (Shitanshu Shekhar Srivastava 2019).
Beyond Recruitment: Retention and Mentorship for Women in Tech
It appears, that gender diversity in tech extends beyond simply hiring more women. It’s a two-fold operation. Merely recruiting women is just half the battle. Equally essential is retaining this talent. Without retention, there’s no true progress.
Boosting women’s confidence is important in bringing and keeping women in the tech industry. This empowerment helps them climb to leadership positions, showing a vital change to a more female-focused environment. Women seek workplaces that provide support and encouragement. Furthermore, they value leadership that offers guidance and mentorship. They appreciate knowing upfront if their superiors and colleagues are genuinely interested in their career growth.
Implementing mentorship programs is one of the practical measures that companies can take to spark this transformation. The lack of successful female role models in tech is a considerable barrier for those striving to break through. The prevalent image of male-centric teams in leading tech companies often acts as a deterrent. However, the formation and expansion of women-centric groups and networks can rebuff this trend. These platforms enable women to engage with fellow professionals in the tech sphere, providing them with access to vital resources, tools, and mentorship initiatives.
As we look ahead, the availability of more role models will serve as unspoken mentorship to a larger number of female employees.
In general, the institution of mentoring, supportive environment and solidarity contributes to the fact that girls in the IT field begin to feel more confident. It is extremely important that such communities appear, strengthen and carry real value, rather than a formal approach.
A Shift in Perception: Understanding Gender Imbalance in Tech
As a final reflection, a particularly intriguing piece of insight has emerged from a survey conducted by Women in Tech that has not yet received the attention it deserves. In 2019, the majority of female respondents (40%) stated that the gender imbalance in tech could likely be traced back to inherent natural perceptions. However, by 2023, the perspective had significantly changed, with a dominant 56% attributing the gender imbalance to societal factors and a result of employer bias.
This striking deviation in opinions signals a broader change in how the issue of gender imbalance is perceived. The understanding is growing among women that this imbalance is not an inevitable, ‘natural’ condition, but rather a product of cultural stereotypes that can and should be unlearned and resisted.
About the Author
Darya Ksianzova is a Brand Manager and Environmental & Social Manager in Zubr Capital Investment Company. Expertise: Brand strategy creation, communications with investors, and brand strategies of the Fund’s portfolio companies. Mentor Women in Tech in Warsaw.
