By 2021, this figure had risen to nearly 33%. But the tech sector appears to be really lagging behind: According to one report, only 29% of UK tech workers are female or non-binary, and even fewer belong to minority ethnic groups, at 25%. At more senior levels, these figures drop further to 21% and 14%, respectively.
The UK’s digital economy, recently named the most advanced in Europe, needs a tech sector with a diversity, equity and inclusion (DE&I) posture to match. A focus on DE&I can help close the skills gap that costs the digital economy £63 billion per year. Diverse thinking can also enable individual organizations to reach their full potential and outperform their competitors. However, improving DE&I is a complex and time-consuming process that requires significant investment, careful planning and firm commitment from company leaders. Culture change is slow, unconscious bias is rife and many hiring policies have not changed in years.
The case for diversity is well-proven
The moral and business case for improving DE&I in the workplace is well established.
Organizations should reflect the society they inhabit, but equity isn’t the only issue. Diverse teams and companies perform better because they bring different perspectives and ideas. Nearly a decade ago, McKinsey found that companies with diverse teams outperform their peers financially. A study of 366 publicly traded companies found that companies in the top quartile for racial and ethnic diversity were 35% more likely to achieve financial returns above their national industry average, and companies in the top quartile for gender diversity were 15% more likely to outperform.
The need for diversity is even more crucial in the technology sector. Despite a series of layoffs in 2022, the sector is growing rapidly and companies are struggling to find enough talent to meet demand. According to one estimate, 93% of UK companies report an IT skills gap, with many citing the rapid pace of technological change as a key factor. The most in-demand skills include AI (42%), IT support and troubleshooting (32%) and cybersecurity (30%).
There is a serious talent shortage in cybersecurity, with a current global shortage of around 4 million skilled professionals. In the UK alone, an additional 73,000 IT security professionals are needed. Encouraging more diverse candidates to pursue careers in technology and cybersecurity could help mitigate these skills challenges and promote DE&I. However, significant obstacles remain.
The Importance of Education
Our recent Advancing Digital Diversity survey looked at the barriers to careers in tech and found that education and stereotypes are two of the biggest obstacles preventing more people from choosing a career in tech.
When asked about the biggest barriers to pursuing a career in technology, respondents cited:
The need for a technology or IT related degree (49%) Lack of technology or IT education in primary and secondary schools (42%) Technology not being emphasized in schools as an attractive or exciting career path (41%) The cost of obtaining a technology or IT education (29%) Lack of understanding of the opportunities available (29%)
It’s clear that respondents’ formative years played a big role in their decision not to pursue a technology-related career, with many of them claiming that technology wasn’t promoted as an attractive or exciting subject at school, or even offered in the first place. However, this is changing: in 2023, there was a 17% increase in students choosing to study Computing at A-Level on the previous year, although the majority (85%) were male.
Many respondents also believed they needed an IT-related degree to get a tech job, even though many roles don’t require such qualifications. This misconception highlights the need for the tech industry to prioritize alternative routes and soft skills, such as critical thinking and problem-solving, in job searches. More companies are now offering apprenticeships and upskilling opportunities, often through fully-funded bootcamps such as School of Code, Code First Girls, Coding Black Females, and Tech Returners. Company-sponsored scholarships also help make higher education more affordable.
Explore the challenges facing minorities
The survey also found that barriers vary by minority group. For example, Asian women are more likely to cite a lack of technical education in primary and secondary school as the biggest obstacle to entering a tech career (49%) than respondents overall (42%). They are also more likely to cite a lack of understanding of available opportunities (33% vs. 29%), but less likely to see money as a barrier (22% vs. 25%).
Female respondents with an annual household income of less than £50,000 cited a lack of understanding of available opportunities as a barrier (38% vs 29%), but were less concerned about needing to live in a major city where tech companies are based (20% vs 28%). However, neurodiverse men cited a lack of technology education in primary and secondary school as their biggest barrier (47% vs 42%) and are more likely to see a lack of talent from similar backgrounds in the IT sector as a barrier (29% vs 19%).
Despite these challenges, many minority respondents expressed a willingness to change jobs to pursue a job in tech, including 90% of neurodiverse men, 73% of neurodiverse women, 81% of Asian men, and 86% of Black men and women.
It shows that if the tech industry can quickly address these perceived barriers, there is a huge opportunity to recruit from this diverse talent pool.
A stronger digital economy
There’s still a lot of work to be done to address the root causes of the skills shortage and DE&I deficit in tech. Our survey found that three-quarters (73%) of respondents believe the IT industry could do more to encourage job seekers from diverse backgrounds, rising to 83% of tech respondents and 90% of cybersecurity professionals. Solving this challenge will require collaboration between the tech ecosystem, the education sector and government.
We need more effective curricula, more extensive apprenticeships and scholarships, and more opportunities for hands-on experience to spark and encourage interest in technology. Creating a diverse talent pipeline requires an inclusive environment that welcomes people from all walks of life, gender, race, ethnicity, religion, disability, sexual orientation, and socio-economic backgrounds. The technology industry must be a place for everyone.
After all, many of the barriers to a career in tech simply don’t exist. The industry needs to work with governments and academia to dispel stereotypes, uplift the industry, and provide ample opportunities for those interested to participate. Only then can we build a more inclusive and thriving digital economy.
Theresa Palmer is Head of Diversity, Equity and Inclusion at BAE Systems Digital Intelligence.
