With International Women’s Day here, the tech sector stands out for its stark shortfall in female representation, having seen a marginal increase of only 3% since 1984, moving from 32% to 35% over four decades. This is despite an improving economy, growing at an annual rate of 3.1%, and the rising demand for skilled workers in the tech sector.
Yet, the shortage of qualified candidates and the lack of investment in a diverse workforce are causing real and tangible business impacts. Recent research indicates that companies with the most diverse workforces outperformed those with the least diverse ones by an average of 29% annually. Moreover, with over half (59%) of businesses still struggling to retain diverse tech talent, there’s a clear disconnect between company intentions and effective outcomes. So, the question stands, how can businesses actively champion women in tech?
How to Build a Gender Diverse Workforce
Investments in raising the percentage of women in the workforce have three drivers: brand recognition among employees and society, improved innovation through increased diversity, and a reduction of the tech skills gap by broadening the recruitment base. Although investment programs for women in tech are becoming more fruitful, there’s no single approach that has proven successful in driving women into STEM (Science, Technology, Engineering and Mathematics). Therefore, for an organization investing in raising the percentage of female tech professionals, multiple approaches are required.
Reimagining Recruitment
Skills-based hiring is a recruiting methodology that emphasizes the specific skills a candidate possesses rather than prioritizing qualifications, like a degree, professional certificate or length of experience. Skills-based hiring is centered on the idea that true competency lies in the practical abilities and demonstrable skills an individual brings. Traditional hiring methods usually rely on narrow criteria like educational background, job descriptions and titles, limiting diversity when recruiting. Skills-based hiring instead actively seeks candidates based on their competencies. Therefore, emphasizing skill-based hiring over traditional pedigree-based approaches will widen the talent pool from which organizations draw their workforce and is a new way to tackle the skill shortage that many companies have been facing for the last few years, particularly in the tech sector.
Employing Tech as an Equalizer
As digital transformation is implemented to restructure working life, the inclusion of all groups in the development of technology and the adaption of high-tech to the needs of enterprise becomes crucial. Modern technologies, such as Artificial Intelligence (AI), can also be leveraged to mitigate biases in hiring and promotion, encouraging a gender-balanced workforce.
AI allows recruitment practices to rely on the specific skills necessary for a job role rather than considering identifiers like gender, names, titles and education. AI hiring via next-generation HR technology can pinpoint language and gender-coding in job descriptions so organizations can leverage inclusive, gender-neutral dialects.
In this way, AI in hiring can also complement an organization’s diversity, equity and inclusion, (DEI) programs by mitigating the likelihood of unconscious bias in recruitment processes and improving the candidate experience. By allowing organizations to target a candidate’s potential over their previous roles, companies not only equalize the playing field for women but also open their doors to a broader pool of candidates.
Innovative Retention Strategies
Once businesses have recruited women into their workforce, they must ensure they’re engaged meaningfully within a workplace where they can thrive. Although salary continues to be the main driver that pushes employees out the door, a multitude of factors also influence employee satisfaction. For example, employees also highly value feeling happy and stable in their current position and being content with their work-life balance.
Furthermore, women must be offered growth and learning opportunities. It’s no secret that women are underrepresented in leadership positions. When women don’t see adequate opportunities for progression, they’ll more than likely look for opportunities to grow elsewhere. Companies need to double down on internal mobility and reskilling with a focus on development and mentorship.
Flexibility at work is also key for women who are balancing caregiving responsibilities and childcare obligations. The COVID-19 pandemic has emphasized the importance of being kind and empathetic, leading to a rise in flexible work arrangements such as remote and hybrid work models. Continuing to offer this as an option is essential to attract and retain women to the workforce.
The Future of Women in Tech
Businesses must implement these practices to balance gender diversity and promote inclusion to ensure women are represented and valued within the workforce. They must also prioritize creating abundant opportunities for women to pursue careers in technology or risk a continued shortage of skilled workers and a real impact on their bottom line.
By focusing on upskilling and professional development of the women currently within their company and offering them the flexibility they need to balance family with career development, businesses can create workplaces that are more welcoming and supportive for women. Similarly, when recruiting external talent, utilizing modern technologies, such as AI, can potentially help decrease innate bias, allowing businesses to access and ascertain diverse talent, which will increase innovation, creativity, and strategic thinking.
As International Women’s Day 2024 is celebrated around the world, now is the perfect time to recommit to addressing gaps, continue to focus on creating a gender-diverse workforce and dedicate ourselves to building a better work environment for women.
Jennifer Henderson is NTT DATA’s Senior Vice President of Global Talent Acquisition.