System reset: highlighting diversity issues in the technology industry
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1 System reset: highlighting diversity issues in the technology industry
2 We are delighted to bring this paper from EY Women in Technology, a group of likeminded men and women whose goal is to support women at all stages in their career to participate in technology disruption. We believe passionately that, in a world where 50% of the population are women, we must have diversity in design and development to meet the needs of all. This paper looks at some of the issues and disruptors within technology and suggests practical approaches for organizations who are looking to balance their skills, perspectives and leadership. The objective here is to influence changes within organizational systems and not the women themselves. We hope you enjoy this paper and look forward to welcoming you to our future events. Fiona Capstick Cheryl Martin Joint Chair and sponsoring partners of the EY Women in Technology group
3 The proportion of women in the science, technology, engineering and mathematics (STEM) field has remained stubbornly low and has even declined in some areas (in the US the proportion of Computer Science majors has dropped from 37% in 1984 to 18% today). This has led to women being underrepresented in these major fields particularly in decision-making roles. This small population of women in STEM is concentrated at the lower levels. Compared with men, fewer women become visible, prestigious, influential role models in this space. These findings suggest a systemic bias that needs to be addressed if true gender diversity is to be attained in the digital space. Less than 30% of leadership positions in popular technology companies are women
4 Why is gender imparity a problem? Several surveys recently conducted by EY show that gender diversity is acknowledged as key to promoting innovation but organizations have not yet achieved the level that is desired. Unconscious bias and lack of role models were frequently cited as possible causes. Our EY Women in Technology group identified five disconnects holding businesses back from realizing the benefits of gender diversity. 1 Reality: assuming that the issue is nearly solved even when their own companies show little evidence of progress Data: ineffective measurement on how 2 well women are progressing into senior leadership Pipeline: lack of pipeline creation for 3 women leaders Perception and perspective: men and 4 women viewing gender diversity differently at the outset Progress: lack of comparison of gender 5 parity progress across sectors with a view to keeping up with the best 2
5 The EY Woman. Fast Forward program, an accelerator for gender parity, pointed out that an organization with 30% female leaders could add up to six percentage points to its net margin. Even as disruption accelerates at a historic pace, there is clear evidence that gender diversity is vital for this process. An analysis of the S&P Composite 500 found that companies with higher female representation in top management roles display increased innovation intensity. The increased diversity translated, on average, to $40m more in market value as compared with businesses with less gender diversity. Similarly, the EY Women. Fast Forward program pointed out that an organization with 30% female leaders could add up to six percentage points to its net margin. Research 2 has also found that teams with more women are better at logical analysis, coordination, planning and problem solving. Despite this evidence of the benefits of gender diversity, many reports state that women are still substantially less likely to reach leadership positions as compared with men. Women also earn less than men while doing the same work. Taken altogether, these statistics suggest that it will take 169 years to achieve global gender parity Estimates predict it will take 169 years to achieve global gender parity
6 The effect of underrepresentation in technology The lack of female input in the design, build and decision-making stage of products, technologies and services shows up in myriad ways in our everyday life. A few of the more striking examples indicate just how pervasive gender stereotypes and lack of recognition of women s roles in society are, for instance: Ms Mrs Dr. The first voice 1 recognition software for the automotive industry did not work with female voices because there were no women on the design team. $$$$$ Executive A study found that 2 some search engines are six times more likely to show highpaying executive jobs to males, as compared with females. 3Early software for a major gym did not allow the title Dr. to be applied to a female. How do we help facilitate women enter into the technology sector so that this picture begins to change? Unfortunately, there are fewer women and girls studying technology now than there were in the 70s. Women are underrepresented at all stages in the technology pipeline. This is clearly reflected by less than a fifth of technical jobs being filled by females in many major technology companies. 4
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9 Why are we where we are today? Many factors contribute to this state of affairs, the top four being: 1 Workplace culture and perception The reality is that science and technology fields have changed, however, perception lags behind. Fifty percent of women leave STEM jobs at the height of their career on account of a hostile working environment. Once they identify the associated gender stigma, they lose faith and ultimately interest in the sector. 2 Lack of visible role models A recent study 3 of 450 executives found that 30% of their groups had no women in leadership positions. This sets up a feedback loop where fewer girls see people like them and choose not to come into the technology space. 3 Flexibility The misconception that productivity is linked to physical presence in the workplace persists and there is informal penilization for using flexible work systems. 4 Gendered expectations To achieve true gender equality, businesses need to recognize that all roles are equally important. A cultural shift is required, allowing men and women more freedom to define their roles in society. 50% of women leave STEM jobs at the height of their career on account of a hostile working environment
10 System reset: change the framework, not the women 1 Create awareness of gender throughout the decision-making processes Recognize and reward collective activities and success, instead of individual achievements to promote female leadership styles Eliminate brogrammer culture and make middle management more aware of the the challenges women face in combating disparity Monitor your organization s progress by looking at promotion stats year on year 2 Encourage mentoring in both directions Actively support STEM awareness programs Provide women with the right opportunities to meet the right people and foster employee networks to allow ideas from all levels and genders to circulate Provide opportunities for women to reverse-mentor and exchange perspectives 3 Promote flexible working and parenting roles Technology work has a profile that lends itself easily to remote working. The tools, the infrastructure and the role models already exist promoting them makes it a win-win situation and allows women to cope with nonstandard situations without losing out on career options Actively make sure women returning to work after a break (e.g. maternity leave) are not left behind in their career progression. Providing support and ongoing training can help women return more easily to the labor market Encourage longer, gender-neutral parental leave and open-ended role definition in families 8
11 Digital leader Emer Coleman, Technology Engagement at Co Op Digital London, UK: Mentors give you perspective, sponsors give you opportunities. Men in senior management in technology organizations must make a pledge to support women. By working on the systemic bias that prevents female leadership from achieving their full potential, all of us can play a part in making technology an area that women can thrive in. 9
12 EY key contacts Cheryl Martin EY WiT Leader and Executive Director Rahul Gautam EY Partner and WiT Sponsor Erol Mustafa EY Partner and WiT Sponsor Fiona Capstick EY WiT Leader and Executive Director Social media EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com EYGM Limited. All Rights Reserved. EYG no Gbl ED None In line with EY s commitment to minimize its impact on the environment, this document has been printed on paper with a high recycled content. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice. ey.com/uk
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