Diversity & Inclusion In Tech

Diversity & Inclusion has been a hot topic since 2020. Black Lives Matter protests catapulted inequality into the light, compelling many organisations to reassess equity and diversity in their own organisations. For many industries, perceptions around diversity and inclusivity versus the realities are confronting, no more so than for the tech industry.

Diversity is critical in any modern workplace. Not only is it a key component of innovation, creating an environment of broader perspectives and divergent thinking enables organisations to create better, safer and more inclusive products and services.
A 2020 report from McKinsey found companies with a more diverse talent pool perform better, have more engaged employees, have lower attrition rates and hire better talent than companies that do not prioritise diversity and inclusion.

In fact, DCA and University of Sydney Business School Inclusion@work Index 2021, found that employees who are part of diverse and inclusive teams are:

• 4 times less likely to leave their job in the next 12 months
• 10 times more likely to be very satisfied
• 4 times less likely to feel work has a negative or very negative impact on their mental health.
• 5 times less likely to experience discrimination and/or harassment
• 11 times more likely to be highly effective than those in non-inclusive teams
• 10 times more likely to be innovative
• 6 times more likely to provide excellent customer service
• 4 times more likely to work extra hard

Yet despite the undeniable benefits of a diverse and inclusive workplace and impressive forward strides towards more diversity and inclusivity within the Australian tech sector, BIPOC workers, women, and LGBTQ+ employees still face discrimination, underrepresentation, and inequality.

So why is diversity, equality and inclusion still seem like such an uphill battle for the tech industry? After all, Nike has been talking about this for the last 25 years, celebrating disabled athletes, female participation in sports and notably building an advertising campaign around the outcast NFL player Colin Kaepernick, who protested against racial injustice in 2016.

Whilst there are many factors that contribute to the unique challenges faced by the tech industry, when it comes to diversity and inclusion, a good place to start exploring them is at the top.

Executive Endorsement

Analysis by USA Today highlighted that at the executive level, more than 83% of executives are white, and 80% are men, compared to the overall private sector where 71% of executives are men and 83% are white.

In Australia, a study by Watermark Search of 300 ASX listed companies, found that 69% of all board-level appointments in 2021 were male. Only 5% were under the age of 50.

Whilst the BLM events of 2020 might suggest attitudes for change are shifting, it seems that much of this is driven by Gen Z and Millennials. According to a study by McKinsey, 75% of Gen Z consumers will boycott companies that discriminate against race and sexuality across advertisement campaigns. Perhaps a by-product of the digital age, Millenials and Gen Z-ers, more exposed to larger social issues, have grown up surrounded by the internet and social media and are therefore seen as more socially aware. Suggesting perhaps the divide is generational.

David Willetts, author in 2010 of The Pinch: How the Baby Boomers Took Their Children’s Future – And Why They Should Give It Back, a book that sparked a flood of furious debate. “The charge,” he declared, “is that the boomers have been guilty of a monumental failure to protect the interests of future generations.”

Black Lives Matter protests, the MeToo movement and increased awareness around LGBTQ+ rights have resurrected the discussion on disparities in pay, opportunity and success that underrepresented groups face in the workplace. However, the onus remains with organisations to be the agents of change. Perhaps the biggest step-change may come as the baby boomers step down from leadership roles, pathing a new path for more inclusive and diverse leadership from more socially savvy Gen Z and Millennials.

The Gender Gap

In the short term, it’s not only attitudes that are shifting. The STEM Equity Monitor 2021, a national data report on Australian girls’ and women’s participation in science, technology, engineering and mathematics (STEM), showed notable improvements for girl’s and women’s representation and participation in STEM study and careers:

• Since 2015, the proportion of women enrolled in university STEM fields of education (undergraduate and postgraduate) increased by 2 percentage points. This reached 36% in 2019 (more than 81,000 women), up from 34% in 2015 (70,000 women).
• The proportion of women working across all STEM-qualified industries has continually increased from 24% in 2016 to 28% in 2020.
• The proportion of key management personnel and senior managers who are women has also continuously increased from 18% in 2016 to 23% in 2020.

These promising statistics breathe a hopeful wind of change into the air, yet women made up less than a quarter of students studying STEM in 2019 (22% of enrolments and 24% of completions of total STEM VET and university enrolments). Five years after graduating, men with a STEM qualification were still 1.8 times more likely to be working in a STEM-qualified occupation compared to their women peers.

Barriers to entry

Encouraging as these statistics are, as the industry booms, limited access to technology and education for minority groups continues to be a barrier to entry for those looking for a career in tech. Whilst the rise of digital technology is creating new jobs and new possibilities for the type of work we do and how it’s done, many disadvantaged students have limited access to computers or the internet at home.

Only 68% of children aged 5 to 14 in Australia’s most disadvantaged communities access the internet at home, compared with 91% of students from the most advantaged communities. Without the internet to research and complete studies, disadvantaged students fall further behind.

A report published by the NSW Council of Social Services (NCOSS), which surveyed 730 people living in low-to middle-income households in NSW, found that almost 15 per cent of those surveyed said they had to go without internet or voice calls in the past 12 months because they could not afford to pay their mobile phone bill. A further 29 per cent reported they had to limit their mobile phone use because of financial stress, while 16 per cent said their phone did not have any data allowance.

No doubt, these issues have been compounded by the COVID-19 pandemic, with many universities and education centres forced to deliver online and remote learning programs. But without further support, the shortage of tech talent is likely to become more pronounced over the coming years as a result.

Tech Start-Ups forging the path forward for DE&I

Those fortunate enough to be actively employed in the tech sector are beginning to see positive changes in the workplace. Perhaps this is indicative of Australia’s burgeoning Tech Start-up scene, with over 17.7K+ Tech startups, including 2.3K+ public ones mostly located in Sydney & Melbourne. Investment in Australian tech start-ups is significant, with more than $1.1 billion announced in the space of eight days in mid-September 2021. In an interview with SmartCompany, Tech Council chief executive Kate Pounder says Australia is in the midst of a “tech boom” that is adding thousands of jobs to the economy.

Hungry for tech talent and agile enough to pivot quickly to meet shifts in employee sentiment, many of these tech start-ups are perhaps better attuned to the expectations of today’s employees and are making diversity, equity and inclusion (DEI) a core part of their business model and critical in enabling them to achieve scale. Fast growth and financial success are likely to light the path towards equality, as many of the existing big tech companies have business models that perpetuate inequality. This is perhaps because such cultural shifts require time to implement and embed for large enterprises.

The current state of play

The Australian Workplace Equality Index National Engagement Survey 2021 of over 2880 participants from organisations across the Technology sector, found that despite the complexities and challenges around successfully implementing DE&I initiatives, the technology sector is performing better than most.

Of the total participants, 326 identified as being part of the LGBTQ community. And whilst the tech sector differs from the national mix in a number of significant areas:

• The tech sector has more men than women (55% vs 43% whereas the national mix is 43% 54%)
• The tech sector also appears to be under-represented by Aboriginal and/or Torres Strait Islanders, people living with disabilities and mature age employees. It has a higher representation of people of colour and those who have a CALD background.

However, on closer examination of the state of LGBTQ workplace inclusion, the tech sector is enjoying better performance than the national results:

• 70% of respondents in the sector thought an organisation's positive track record in this aspect of inclusion would positively influence them to join the organisation. (59% nationally)
• 86% thought that Initiatives in this sea have been regularly communicated during the year (n: 75%)
• 74% stated that awareness or ally training was made available throughout the year (n:59%) and 54% had attended such training (n:35%)
• 69% claimed jokes and innuendo were called out and addressed (n:57%)
• 10% witnessed of negative behaviours/mild harassment which was 14% nationally.

If these statistics weren’t encouraging enough, the business case for implementing DE&I is equally promising with 90% of the professionals feeling productive at work (n:88%) and 86% feel engaged (n:81%). Health and wellbeing indicators are also higher than average.

Furthermore, communication about inclusion as it relates to sexuality and gender diverse employees is notably better in the technology sector, across all areas but especially in the recruitment process (72% vs 53%)

Executive endorsement in the tech sector is also significantly better (86% vs 67%) as is network promotion (86% vs 68%), training promotion (75% to 57%). Perhaps the most positive statistic is that 81% felt managers would address negative commentary and jokes (n: 66%).

The great resignation

Of course, this doesn’t mean the industry can rest on its laurels. The impending threat of the 'Great Resignation' could well be a catalyst to fairer, equal opportunities and support. It’s very much a candidate market in Australia and jobseekers are discerningly seeking out environments where they can thrive. They are increasingly selective about where, how and with who they choose to work. As good people leave, one might expect business leaders to focus on becoming increasingly people-first, empathetic and invest in DE&I initiatives and programs to empower and retain their workforce. Organisations that don’t provide mentorship and coaching, career mobility opportunities, actively offer support for underrepresented and minoritised groups, fair compensation, and work-life balance will struggle to attract and retain good people.

The impact of Hybrid-working

This is perhaps most pronounced for women who wish to continue to work from home now COVID-19 restrictions have lifted. It’s inevitable that as hybrid-working models become the norm, those who choose to stay at home are likely to be women with children who potentially risk having fewer opportunities and advantages in the workplace due to less visibility in the office.

A recent study from Gartner suggests that the way forward for organisations that want to boost and retain diverse workforces must work to identify the needs of different types of employees, as well as make significant investments in programs to meet employees' needs and expectations. The rise of hybrid and remote work can make this more difficult, as teams might be spread across the country or world, but managers still need to make the right investments in diversity and increase their cadence of communication with team members.

Tech as a tool for DE&I

Unsurprisingly, demand for D&I tech has grown significantly in recent years. The current market size is estimated to be $313 million, up from $100 million in 2019. In part, fulled by the rapid growth of the number of DEIB tech vendors entering the market. In 2021 alone, this number increased by 87%, with a total of 196 vendors in the market for 2021, compared with 105 in 2019. Similarly, the number of HRTech vendors offering features with a D&I focus has increased by 136% over the same time period. Technology itself could be the tool that enables the Australian technology sector to create more diverse and inclusive workplaces, especially where remote of hybrid-working is concerned.

How we can help

Marlin Human Capital aims to partner with all of our candidates throughout their career growth. We offer guidance, counselling, and career support throughout the entire job search process. We partner with organisations that embrace Diversity & Inclusion, ensuring your career ambitions are supported and encouraged.

We recognise that being a leading executive search firm isn’t just a two-way street, but a crisscrossed network of opportunities to support our clients and our candidates. We don’t just help companies hire the best candidates—we help the people we know grow into the best candidates. We guide our candidates in discovering new capabilities and competencies, exploring new approaches to challenges, and bolstering their weaknesses. Diversity isn’t just a KPI or vanity metric at Marlin Human Capital. Cultural diversity is a powerful tool in creating a more balanced company culture. Knowing how to bring that diversity to you means that we need to understand your culture intimately. For this reason, our approach involves a close working relationship with our clients in order to empower the right diversity and inclusion practices from the initial brief right through to the final appointment.

Contact us for a confidential discussion with one of our expert team. When partnering with Marlin Human Capital, rest assured you are guaranteed absolute professionalism and discretion.

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