Data from Grant Thornton's Women in Business 2024 survey suggests that we are far from achieving equality between men and women in senior management positions within the technology sector. Globally, women hold 32% of senior management positions in the technology sector, which is below the global average of 33.5%, and below other industries such as professional services (36.2%), asset management (35.5%), and healthcare (37.7%).
The fast-evolving field of artificial intelligence (AI) makes gender inclusivity in tech more critical than ever. Without prioritizing inclusivity, future generations risk being left behind. Generative AI, with its wide range of workplace applications—including recruitment, performance evaluations, compensation, and workplace analytics—could increase global GDP by 7%. In doing so, it will revolutionize our working lives. However, new inventions often exclude women if they are designed by all-male teams.
Unchecked biases in AI systems can exacerbate gender inequality. These systems learn from data, and if the data isn’t representative of all demographics, AI outcomes will be biased. Therefore, it’s essential to include more women in AI development teams and senior management to help recognize and address these biases at an early stage. To foster gender equality, companies should focus on three key areas: early career development, retention, and transparency.
Women and technology – the beginning of a career
To cultivate a strong pipeline of female leaders in technology, companies must prioritize the needs of young women entering the industry. A flexible working environment is key to achieving this. According to Grant Thornton’s Women in Business 2024 data, 53.8% of mid-market global technology companies have adopted hybrid work models, surpassing the global average of 45.2%. By contrast, only 36.7% of these companies require employees to work primarily from the office, compared to 47.0% globally.
However, hybrid working can pose challenges for women early in their careers if not well-managed. It’s not enough to simply adopt a hybrid model; leaders must intentionally nurture remote talent and avoid purely transactional relationships, especially with junior employees. Senior executives can support younger women by being visible, acting as role models, and providing mentorship opportunities.
Retaining women in the tech industry
The tech sector faced mass layoffs in 2023, with over 263,000 jobs lost globally. In such an environment, tech companies must ensure that layoffs don’t disproportionately impact women. Yet, only 22.3% of tech companies measure turnover by gender, according to Grant Thornton. Without tracking this data, it is unlikely companies will take sufficient steps to secure a gender-diverse leadership pipeline.
Transparency in the technology industry
The tech industry consistently records one of the largest gender pay gaps, with women in Europe earning 26% less than men on average. Despite this, only 40.4% of tech companies currently measure gender pay inequality, which is below the global average of 46.8%.
Such a significant wage gap is likely to discourage women from pursuing careers in tech. Demonstrating progress in closing the pay gap is crucial for attracting top female talent, fostering gender diversity, and improving business outcomes. For companies in the tech industry, disclosing and addressing pay disparities is a vital first step toward solving this issue.
Why is urgent progress towards equality in the tech industry needed?
As new technologies emerge, particularly AI, it’s more critical than ever for tech companies to strive for gender equality in leadership. Diverse teams are essential for developing unbiased, inclusive technologies. To achieve this, companies must make concerted efforts to promote women into senior management roles, track gender-based turnover, and commit to greater transparency.
Focusing on these three areas—creating opportunities for women at the start of their careers, measuring turnover by gender, and closing the pay gap—will be crucial for building a tech industry that prioritizes gender equality.
If you have questions or want to get more information about this topic, please contact our Grant Thornton experts.