The tech industry continues to be a male-dominated one, with women constituting approximately a quarter - or less -of the workforce in most IT companies, including Apple, Google, Intel, and HP. For instance, according to Statista, women constitute only 27 percent of Microsoft's workforce and 26 percent of Cisco's labor force.
There is enough evidence to suggest that gender diversity promotes productivity, innovation, problem-solving, and revenue for tech companies.
Five reasons to hire more women in tech
Here are five reasons for IT managers and CIOs to prioritize gender diversity in tech:
Higher revenue: A Morgan Stanley study of over a thousand tech companies showed that firms with high gender diversity earn 5.4 percent more revenue each year compared to those with less gender diversity. IT companies also earn greater returns when they employ more women across all levels than firms in other industries. The researchers attribute this to greater innovation, increased productivity, better risk management, and higher employee retention. All these factors combine to give the IT company an edge over its competitors.
The revenue growth is more pronounced when more women are in top management positions in tech companies. According to a McKinsey analysis, top gender-diverse companies that have women in executive roles have 25 percent higher chances of experiencing above-average profitability. The more the representation of women in senior roles, the better the company's performance.
Innovation: Enhancing gender diversity leads to better innovation, which in turn, is linked to improved financial performance. A Boston Consulting Group study found that boosting the representation of women in leadership teams enhances innovation. Companies with the best gender diversity generated 34 percent of their earnings from innovative products.
Creativity: Gender diversity can also lead to diversity in thinking, with women bringing different thought processes and skills to the table. Studies show that diverse teams develop innovative ideas and unique perspectives that foster creativity. Women see and approach problems differently, and the contrasting approach can ensure no blind spots are ignored.
Design better products: IT companies that are looking to design products or services for a global audience need to gain an in-depth understanding of the target market that includes women. For instance, a 50-year-old man cannot build the right product for a 16-year-old girl when he is unable to understand the requirements of the target customers. Diverse tech teams can build better female-oriented tech products that cater to the unique needs of women.
Improved economy: When IT companies experience better performance, the success translates into higher profits, investment, job growth, and progress. These factors directly impact the success and performance of the nation's economy.