DIVERSITY IN TECH: REASONS WHY IT MAKES SENSE
With companies increasingly prioritizing diversity in recent years, the concept remains largely abstract and leaves plenty of room for improvement in its execution, especially in tech and innovation spaces.
As studies continue to highlight the disparities between men and women in the tech industry, with men being four times more likely to get jobs in tech and earn significantly more, and just a hair over 7 percent of women landing executive roles, with less than 7% of that being women of colour, there is clearly more work to be done. Ideally, that work needs to start now if it hasn’t already as, in places like Canada, racialized populations will represent the overwhelming majority of the populace by 2031, according to Statistics Canada.
Diversity in hiring
Netooze maintains that a diverse workforce yields significant benefits beyond meeting DEI targets, with studies showing, as documented by Hervolution, a marked increase in innovation and development in STEM fields, for example, when there are different ethnicities, skill sets, ages, and gender identities involved.
According to McKinsey, companies that encourage and drive racial diversity among their workforce typically see a return exceeding 35% on their investments, underscoring the fact that diversity and inclusivity can be incredibly profitable. Janey Bannister, mentor for Elevate’s North program and managing partner for Real Ventures, said it best when she pointed out: “The numbers make it clear that backing women-led start-ups is a smart bet." Private tech companies led by women have proven to be more capital-efficient, achieving a 35% higher ROI. It’s not enough to say that gender equity is essential to your organization. you have to live it.”
When consumers can see themselves reflected in a company, they are more likely to create a connection with that company. This familiarity translates to that particular organization being 70% more likely to capture new markets. Former CFO of Square, Sarah Friar, cemented that sentiment when she said in 2018 at the Elevate Festival, “If you don’t look like your customers, how can you possibly understand their struggle. It’s good for business when you have more diversity.”
Additionally, diverse workforces strategically position companies to break down geographical limitations, as seen in cases where multilingual employees bridge the gap between a company and prospective customers who speak different languages.
Challenging biases, other benefits
An effective workforce is an educated one, and what better way to break biases and further educate a workforce than by exposing them to differing ways of life? A trait consistent with diverse workforces is that their members understand the value of rapport and breaking down media-propagated stereotypes. Not only does this empower these employees, but it creates a sense of community for them.
The benefits do not end there, and it is incumbent upon organizations to fast track their diversity initiatives to continue discovering the many ways having a diverse workforce benefits not just their image, but their bottom line.
Netooze® is a cloud platform, offering services from data centers globally. When developers can use the straightforward, economical cloud that they love, businesses expand more quickly. With predictable pricing, thorough documentation, and scalability to support business growth at any stage, Netooze® has the cloud computing services you need. Startups, enterprises, and government agencies can use Netooze® to lower costs, become more agile, and innovate faster.