Women make up just under one in three workers in the tech industry or around 29% of all tech workers.1 However, as the percentage of women in tech continues to rise, employers and consumers alike are beginning to realize the many benefits women can bring to this arena.
The Valuable Roles Women Play in Tech
Tech companies thrive on new, innovative ideas, which means a homogenous workforce can actively work against this innovation. Without new ideas and fresh perspectives, companies can struggle to thrive. Here are just a few ways women can serve as assets to their tech employers.
Better Finances
Several Credit Suisse Research studies have shown that companies with women in leadership positions tend to outperform other companies, with one study finding a 26% difference in performance over six years.2 The more women holding leadership positions in tech companies, the better the likelihood of improved financial performance might be over the long term. With more than 6 in 10 tech startups failing, having the female perspective might improve the situation.3
Design Improvements
Men are not the only users of tech. This means that a male-centric focus on product design and utilization may leave a substantial portion of the user base with unmet needs. Male-designed products may not adequately consider the needs or wishes of female or nonbinary users. By including women in production and marketing decisions, tech companies might capitalize on the specific areas in which a sizable portion of their customer base spends money.
Diversity of Ideas
Just as male-designed products may not adequately account for the needs and wishes of non-male users, the broader range of ideas from a diverse workforce may boost innovation and enhance a company's ability to adjust quickly to solve problems. Research shows that diversity among innovation teams may lead to better decision-making overall, helping companies remain competitive in the challenging advancements of technology.4
Gender diversity may help bring an organization's vulnerabilities and weaknesses to light, as well as helping uncover potential opportunities and areas for growth. And as an additional benefit, these gender-diverse teams may make better decisions when compared to less-diverse groups.
Why the Tech Industry Needs Even More Women
With these potential benefits of a gender-diverse tech workforce, women need to reduce the 20+% gender gap in the tech sector. Increasing the proportion of female tech workers to 50% may allow more organizations to address the needs of expanding markets, enhance their creativity and innovate. By encouraging girls and young women to pursue opportunities and education in coding, engineering, and other STEM-centric pursuits, you may be able to spark a lifelong interest in these expanding areas.
1 ncses.nsf.gov/pubs/nsb20201/u-s-s-e-workforce
2 www.credit-suisse.com/about-us-news/en/articles/media-releases/42035-201207.html
3 https://www.embroker.com/blog/startup-statistics/
4 www.forbes.com/sites/eriklarson/2017/09/21/new-research-diversity-inclusion-better-decision-making-at-work/?sh=58ac7cf14cbf#4bae55904cbf%E2%80%93
Important Disclosures
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
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