Research consistently shows that women improve business profitability, employee retention, and innovation. While organizations still have significant work to do to close the gender gap in technology, more leaders recognize its importance than ever before.
The Business Case and the Human Case
Businesses that prioritize diversity, equity, inclusion, and belonging (DEIB) see measurable benefits. Those benefits include stronger performance and better talent retention. Those gains grow when DEIB efforts reach leadership. Greater representation remains essential to closing the gender gap.
Corporations have made headway in better representing and retaining women in the workplace. However, there’s been a slower pace of change in leadership roles above middle management. “The biggest obstacle to women on the corporate ladder is a ‘broken rung’ in the first step up to the manager level. For every 100 men hired or promoted to manager, there are only 72 women—and only 58 black women.”
The Value of Women in Leadership
But the payoff is significant when women hold those executive roles. “In organizations where 50% or more senior leadership positions are held by women, they’re more likely to offer equal pay… female employees are more likely to stay with the company longer than a year, report higher job satisfaction, and feel the company is trustworthy.”
In fact, the diversity of perspectives and experiences that comes with greater gender parity is increasingly driving stronger financial performance. “[C]ompanies in the top quartile for gender diversity were 25 percent more likely to have above-average profitability than companies in the fourth quartile.”
Women improve retention, productivity, profitability, and shareholder value. Their influence on organizations extends well beyond those measurable outcomes. One in five firms with revenue of $1 million or more is woman-owned, and 30% of all new businesses are women-owned. These businesses employ more than 10 million workers and generate over $1.8 trillion in revenue. Their economic influence is difficult to overstate.
McKinsey Global Institute estimates that closing the gender gap could add $12 trillion to global GDP. Although the digital gender divide continues to limit access to critical skills and technologies, women remain a powerful force in the global economy.
Amplified Divide in Tech
For women in technology industries, the gap to overcome is wider. HNM CEO and Founder Heather Moyer recently joined a panel on “Female Leadership in Male-Dominated Industries” at the Association for Corporate Growth’s CapCon23. Women’s labor force participation has grown significantly over the past 50 years. Progress in technology careers has not kept pace. Even more concerning, many women in these roles are choosing to leave the industry.
“In a 2020 study conducted by GLF, researchers found that in 70% of telecommunications organizations, fewer than 30% of technical roles are held by women.” And this imbalance persists globally. The World Economic Forum confirmed this through LinkedIn, finding that “[f]emale employees account for only 26% in data and AI roles, 15% in engineering and 12% in cloud computing jobs.”
Why Women in Technology Leave Careers
Accenture’s recent data tells a similar story. The ratio of women in technology has declined over the past 35 years. Half of the women who enter the field leave by age 35.
A 2022 report from McKinsey points to some reasons for this decline: “only 86 women are promoted to manager for every 100 men across every industry, but when isolated for tech, that number drops to 52 women for every 100 men.”
In telecommunications, utilities, and IT, the gender gap persists across the chain. “Women remain underrepresented in ICT jobs, executive leadership, and academic careers.
But as Morgan Forbes, Division Director, HNM Systems, notes, these industries are advancing in the right direction. “Diversity and inclusion continue to be at the forefront, and the industry is evolving in terms of women infiltrating male-dominated ranks. We are seeing an increase of women in high-ranking and C-suite leadership positions.”
A Bridge Forward
In a 2018 report from the Organisation for Economic Co-operation and Development (OECD), partnership and collaboration are key to accelerating progress. The OECD argues that organizations can narrow the gender gap by empowering women and encouraging men and women to work together.
HNM’s Moyer agrees, making the point that women should especially absolve themselves of the pressure to bear the burden of closing the gap on their own. “Women must lean into their confidence and be able to ask for help, but they must also be free from judgment and exploitation for being human.”
What’s more, she says, is that women in technology shouldn’t worry about abandoning who they are to succeed in what might have been a man’s world. “Use those qualities that make you the woman you are as your strength. They allow you to lead authentically and cultivate trust, so trust yourself to know and have what it takes to succeed. That includes saying No.”
Building Momentum
Emily Murphy, Vice President of Operations at HNM Systems, says, “As opportunities for women in technology continue to become more prevalent, it’s a great time for women to expand their footprint in fast-paced, always-evolving, innovation-driven industries. At HNM, we pride ourselves on being a diverse supplier for our customers and on identifying new opportunities in tech for the most qualified candidates.”
Celebrating success and creating opportunities for others will help sustain this progress. Moyer encourages business leaders to celebrate the success of minority employees, suppliers, and partners. Doing so creates a lasting ripple effect. “We’re grateful for positive feedback and referrals from all our clients who value our diversity, and we’re especially privileged to have some of our Fortune 100 customers who position us for success by introducing us to buyers, supporting us through RFPs, and more.”
Women entrepreneurs are the fastest-growing segment of the U.S. economy. Yet only one in four startups has a female founder.37% have at least one woman on the board of directors. 53% have at least one woman in an executive position.
Getting a business off the ground continues to be more challenging for women. “Women-owned start-ups receive 23% less funding and are 30% less likely to have a positive exit compared to male-owned businesses.”
Women in Technology is Good for Business and Humankind
Supporting and elevating women in leadership benefits businesses in measurable ways. “[I]t’s not just about helping women have engaged, rewarding careers. There is also a clear business case for making our organizations more gender-inclusive and equitable.” The World Bank estimates that eliminating discrimination against women could increase productivity per worker by as much as 40%.
Beyond Business Performance
In some ways immeasurable, however, are the downstream economic and social impacts of gender equality efforts, from accelerating economic recovery to addressing global poverty, hunger, and housing instability. “Empowering women and girls helps expand economic growth, promote social development, and establish more stable and just societies.
Woman-owned and equity-focused technology companies have an especially important role to play. Women and girls still face significant barriers to participating in the digital economy. “[H]urdles to access, affordability, lack of education as well as inherent biases and sociocultural norms curtail women and girls’ ability to benefit from the opportunities offered by the digital transformation.”
These gains matter far beyond individual organizations. They help strengthen entire industries and economies. “Gender equality is not only a fundamental human right. It is also a keystone of a prosperous, modern economy that provides sustainable inclusive growth.”
