Making the tech industry more inclusive is not just an ethical issue. Diversity is essential for businesses that want to stay relevant to their customers. It helps companies to grow and prosper financially. A more diverse workforce means diverse opinions, backgrounds, and perspectives, which helps to eliminate coding bias, defective products, and unpopular services. Moreover, there is a large pool of talent that companies cannot ignore in the highly competitive job market of the IT sector.
With the help of Gabriella Bódi – founder of [eureka] Consulting and Games, a consulting company for organizational development and corporate gamification, and Head of HR group at the Equalizer Foundation, which works to create gender equality in the workplace – we explore the complex issue of diversity, equity, and inclusion in business and tech. Gabi also give talks and participate in round table discussions at conferences or company events to raise awareness of the importance of diversity, equity, inclusion and belonging.
Q: Your company and the foundation are international, and you work mainly in the CEE region. What DEI initiatives focus on in Central Europe, and why have they become increasingly important?
Central and Eastern European countries have a lot of history in common, and they also share future challenges. European societies are becoming more and more diverse. It is both a challenge and an opportunity, and businesses can increase their competitiveness by managing diversity and inclusion in a well-designed way.
Combining different dimensions of diversity is vital to achieving positive financial impact – the most valuable combination is the inclusion of women and international board members. Most Central and Eastern European companies are open to addressing diversity even though employees are the drivers of initiatives, and this also comes with its unique challenges as companies focus mainly on gender-equal career development. Nationality comes second, while little attention gets paid to age, which is a rather unwise approach given the challenges of an aging society. Many companies are not yet aware of the professional and financial benefits of the international or multicultural talent pool, and few companies have started to measure the business impact of initiatives.
Q: How far behind is the IT sector in terms of diversity compared to other industries?
Statistics and comparisons between countries globally can help to illustrate how considerable and systematic the under-representation of women in technology is. Even countries with a good gender balance in the overall workforce have not achieved good figures for the representation of women in technology jobs.
By 2022 women made up just 22% of the workforce in tech companies in Europe. Overall, more than half of female technologists surveyed reported experiencing some form of gender discrimination, compared to only 10% of men. Gender discrimination does not only apply to regular employees. Even though gender-diverse executive teams are 21% more likely to experience above-average profitability, the data shows that the higher up the corporate ladder you go, the fewer women there are. This gender imbalance happens in open offices, boardrooms, and executive offices. Women in technology leadership roles accounted for 16% of such positions in 2019, although only three percent of all CEOs are women. There are even larger gaps in ethnicity and race than gender.
The European Parliament has formally adopted the new EU law on gender balance on corporate boards. By 2026, companies will need 40% of the underrepresented sex amongst their non-executive directors or 33% among all directors.
Q: What is the value of diversity in the tech sector?
There are many benefits of DEI initiatives. If equality, diversity, and inclusion initiatives at the senior management level are supported, adequately resourced, and reflected in workplace culture and strategy, then we can expect:
- greater innovation
- improved productivity and performance
- recruiting and retaining better talent
- higher well-being of the workforce.
It enables access to new customer groups by better understanding customer preferences and needs. Improves brand reputation in the eyes of consumers and (prospective) employees and strengthens organizational culture and corporate values.
Q: The talent shortage in the IT sector continues. Can DEI initiatives help companies to fill in empty positions?
In short, yes, but the glass ceiling for women and minorities needs to disappear within tech companies. In addition to hiring more women and setting up quotas, companies need to focus on the talent already in the organization.
A recent survey of women working in tech industries found that most (60-69%) don’t see a clear path to furthering their careers. Another survey cited gender as the main barrier to promotion. The second most frequently cited barrier is the lack of mentoring. Almost half of women experience this problem. Men have their own groups and hangouts in the workplace, and unwittingly these practices lead to women being sidelined and unsupported in their work tasks.
Q: What should companies focus on when they start to address diversity?
DEI initiatives need to be comprehensive programs with clear commitments and communication.
Some of the most important aspects are:
- Gaining the support and active involvement of senior management.
- A formal assessment of the situation within the organization.
- Establish a diversity program with targeted objectives, capacity, budget, and timeframe.
- Develop KPIs to capture, monitor and measure the right mix of diversity and inclusion dimensions to meet the needs of the business.
- Develop training based on the business needs.
- Promote open communication throughout the organization.
- Implement a speak-up culture and develop a well-functioning system.
- Promote mentoring and develop employee networks.
- Start long-term planning for diversity from the early stages of recruitment, and build talent, middle and senior management into the process.
- Learn from best practices in the CEE region and beyond with the help of experts and consultants.
- Pay attention to typical breakpoints in the program and career path, like maternity leave, part-time work, and daycare.
- Communicate publicly and internally why diversity and inclusion are crucial and a success factor for your company and business.
Q: What difficulties do companies face when they start to take diversity seriously?
Internally, companies are still facing negative attitudes towards diversity among employees, while externally, the struggling economic recovery is hampering many companies’ recruitment efforts. Looking ahead, companies face the challenges of an aging workforce, a shrinking pool of skilled talent, and managing a multi-generational workforce. However, if organizations can “keep their eye on the prize” – keeping diversity and inclusion efforts at the top of their priority list – they will weather these challenges and stay ahead of the competition.
Commitment from the organization’s senior management is necessary for successful diversity management and inclusion efforts. However, many initiatives show that diversity campaigns, working groups, and networks are driven by employees. Many times without the support and commitment of senior management (sponsorship). This results in lower impact and effectiveness, which quickly discourages even initially motivated organizers, and many initiatives discontinue before they can show significant results.
The globalization of business has created a sophisticated, complex, and competitive environment. To succeed, companies must constantly create new products and services. And the best way to develop new ideas is through a diverse and inclusive workforce. A diverse and inclusive workforce is necessary to stimulate innovation, foster creativity and drive business strategies. A diversified voice leads to new ideas, services, and products and encourages unconventional thinking. Successful companies today no longer see diversity and inclusion efforts as separate from their other business practices and recognize that a diverse workforce can differentiate them from their competitors by attracting top talent and winning new customers. And while diversity and inclusion efforts are the norms in progressive companies, organizations still face external and internal challenges in implementing these policies and procedures.
Diversity is already a boardroom issue but has yet to become mainstream in European organizations. The tremendous benefits of diversity are already being recognized, such as the link between diversity, creativity, and innovation, reduced absenteeism and turnover, and increased customer loyalty.
