Diversity in Tech Pays Dividends: Why are Inclusive Workforces a Smart Business Decision?

Studies continue to show that companies prioritizing diversity through their ranks experience increased financial success, from profitability and revenue generation to new clients and market share. But that’s not all. Workplace diversity also drives cultural impact, enhancing decision-making, talent pools, retention efforts and innovation. Considering its overall positive influence, including on the bottom line, it’s striking how much the technology sector has struggled when it comes to diversity and inclusion. Ethnic minorities only make up about 30% of the IT labor force, and this figure is even smaller for women in tech. What are the challenges specific to diversity in the IT industry, and what solutions can be leveraged to improve it? Companies have a golden opportunity to take advantage of change-making benefits when committed to building diverse workforces. Let’s explore how.

Advantages of a Diverse Workforce

The push for corporate diversity reached a fever-pitch as organizations were forced to reckon with their own shortcomings amid the global pandemic and injustices exposed against members of vulnerable communities. Organizations felt compelled to not only show solidarity on social media and marketing campaigns, but also by investing in Diversity, Equity, and Inclusion (DEI) programs to help establish a paradigm for long-term sustainability. This has not come without its fair share of criticism, which has recently turned many DEI initiatives into a hotbed political issue, leaving some programs subject to defunding or abandoned altogether. Despite the noise, one thing is clear — companies that have diverse workforces outperform their counterparts in a number of key areas. Here’s a few:

• Smarter Decision-Making – Diversity brings together people of unique perspectives and backgrounds which helps illuminate natural blind spots, leading to a more comprehensive understanding of challenges and solutions. This goes a long way towards improving decision-making throughout an organization, breaking apart the limitations of narrow echo chambers and unchecked biases. As such, inclusive workforces make more than 87% better decisions compared to non-diverse organizations, leading to increased creativity, problem-solving, and innovation.

• Talent Pool Expansion – Especially in the tech industry where staffing shortages are widely reported, focusing on diversity dramatically expands the pool of applicants able to contribute to organizational success. This ensures the best available talent, despite race, gender, age, orientation, etc., have an opportunity to prove their value. 

• Increased Retention – According to Pew Research, one of the top reasons employees leave their companies is disrespect. Non-diverse workplaces often have tendencies towards discrimination and microaggressions, making it difficult for many, especially those from marginalized backgrounds, to fully embrace. A culture of diversity is more welcoming, prioritizing respect of everyone’s background and perspectives, producing deeper commitment across the board. 

• Financial Success – Companies that embrace gender and ethnic diversity are 39% more profitable and 70% more likely to capture new business. This means diversity has ramifications beyond optics, it pays real dividends in increasing financial returns and driving business growth. This extends to executive boardrooms and leadership teams, as organizations with diversity at the top surpass their counterparts in revenue and profits.

Considering the vast benefits organizations can expect to enjoy when instituting diversity and inclusion as pillars of their company culture, let’s shift focus towards the challenges preventing many in the tech industry from experiencing these competitive advantages.

Challenges to Diversity in the Tech Industry

Diversity in the technology sector has continued to prove difficult, even as more organizations acknowledge the importance of DEI practices. As the field continues to advance with increased digital transformation and next-gen capabilities, what’s keeping the tech industry behind when it comes to diversity? This sector has a storied history of being male-dominated and ethnically underrepresented, which despite significant efforts from major tech companies such as Microsoft, Google and Salesforce, has barely made a dent in the overall numbers. The issue is multilayered, requiring a holistic approach to truly rectify. Provided are some of the IT industry’s primary challenges to becoming better about diversity.

• Narrowed Focus – When sourcing for IT professionals, organizations often select candidates from elite institutions or top companies, drawing a stern barrier for historically marginalized job seekers. For non-traditional applicants, this can prevent valuable skillsets from being acknowledged because of background preferences and overly restrictive candidate pools.
• Outdated Hiring Requirements – In similar fashion, hiring criteria requiring outdated or out-of-scope qualifications can stifle diverse candidate pools. This inadvertently disqualifies candidates who may otherwise be qualified, and encourages a limited pool of qualified applicants.
• Leadership Commitment – Company culture is established from the top down. Far too often, IT orgs lack leadership figures committed to diversifying their workforces. Whether the reason is inconvenience or lack of perceived value, when decision-makers for hiring and promotions are not dedicated to diversity, it fosters a culture of homogeneity.
• Unconscious Bias – Critical decisions can be impacted by personal biases and lack of awareness, which further exacerbates the diversity gap. More understanding and acknowledgement of these biases is needed to overcome gender and ethnicity disparities that continue to keep the tech industry largely insulated.
• Education and Skills Gap – Educational institutions struggle to keep pace with the rapid advancement of the tech industry, producing many under skilled job seekers entering the IT market. This represents an additional hurdle for diverse candidates, widening existing discrepancies while also creating new ones.

As this only represents a handful of the challenges preventing more diversity within the tech sector, it becomes clear why the industry continues to struggle with inclusivity. It takes a concerted effort across numerous focal points to meaningfully address the diversity gap in tech.

Steps in the Right Direction

The good news is proven solutions exist for bridging diversity gaps and creating more inclusive work environments in tech. With focused attention on inclusive practices, organizations can better shape their workforces and reap the myriad of benefits that come with diversity. This should not be viewed as an easy, quick fix, demanding across the board buy-in from C-suite executives to recruiting teams alike. Let’s explore several recommendations to help organizations begin or strengthen their commitment to building diverse workplaces.

INCLUSIVE RECRUITMENT

Revising hiring processes with inclusive practices helps eliminate biases and attract a more diverse range of talent. By implementing strategies such as blind recruitment, diverse interview panels, and targeted outreach to underrepresented groups, organizations can create a more equitable hiring environment. These efforts not only help in identifying the best candidates from diverse backgrounds but also contribute to a more welcoming workplace culture.

DIVERSITY PROGRAMS

Implementing initiatives to promote enterprise-wide diversity recognizes that varied perspectives are crucial in building inclusive workplaces. These initiatives include leadership development programs for underrepresented groups, setting diversity goals in hiring and career advancement, and fostering an inclusive culture through transparent dialogue and corporate communications. By embedding diversity into every level of the organization, companies create a more inclusive environment that reflects the diversity of their customers and communities.

TRAINING, EDUCATION, MENTORSHIP

To enhance company diversity, organizations can invest in training, mentorship, and education programs that support the growth and development of diverse talent. These programs include diversity and inclusion training for all employees to raise awareness and reduce unconscious biases, mentorship programs that connect underrepresented employees with senior leaders for career guidance, and educational opportunities such as workshops and partnerships with diverse institutions. By prioritizing these efforts, companies not only create a more inclusive work environment but also ensure that diverse voices are empowered to thrive and contribute to the organization’s success.

EMPLOYEE RESOURCE GROUPS

Employee Resource Groups (ERGs) are vital in fostering a supportive and inclusive workplace by offering advocacy, networking, and community for employees from diverse backgrounds. These groups provide a platform where individuals can connect, share experiences, and collaborate on initiatives that promote cultural awareness and inclusivity within the organization. ERGs also play a crucial role in advising leadership on diversity-related matters, driving company-wide initiatives, and influencing policies that reflect the needs of underrepresented employees. By empowering ERGs, companies not only enhance employee engagement and retention but also strengthen their commitment to a diverse and inclusive workplace.

Diversity Impacts Innovation

Another surprising benefit that comes from diverse workplaces is its influence on innovation and problem-solving. When diverse teams collaborate, they are more likely to challenge the status quo and develop unique solutions that drive business growth and competitiveness. As a result, organizations that prioritize diversity are better equipped to adapt to changing markets and meet the needs of a evolving customer base.

When teams consist of individuals from different cultures, experiences, and viewpoints, they bring a broader range of ideas and approaches to the table. This diversity of thought leads to enhanced creativity, as team members are more likely to challenge conventional thinking and explore novel solutions. Diverse teams draw on their collective knowledge to approach problems from multiple angles, fostering an environment where unique and innovative ideas can flourish.

Moreover, diversity improves team performance and problem-solving capabilities. Teams that are inclusive of different backgrounds tend to be more dynamic and adaptable, leading to better collaboration and communication. This improved synergy enables teams to tackle complex challenges more effectively, as they can leverage their diverse skill sets to find comprehensive solutions. In turn, companies that prioritize diversity are not only more innovative but also better equipped to respond to the evolving demands of their industry, driving sustained success and competitiveness.

Contact Us

At Seneca Resources, we understand the importance of finding the best qualified talent in the IT marketplace. This means helping clients identify candidates regardless of background, ethnicity, gender, etc. and finding the best fit for any given role. As such, Seneca recognizes diverse candidate pools as the source of the best talent in the market, expanding the opportunity for historically underrepresented communities to provide their expertise equally and alongside more traditional candidates. This comprehensive approach is a key step in building diverse organizations and improving inclusivity throughout the tech industry.

To address your IT workforce needs and build diverse teams of skilled talent, partner with Seneca Resources. Contact us at 703-390-9099 or info@senecahq.com.