Did you know gender diversity in the workplace can positively impact the economy while simultaneously benefiting your company’s SDGs?
Companies that embrace gender diversity attract consumers and talent. Inclusivity fosters an environment that utilizes various perspectives to optimize processes, encourages more innovative solutions, and assists in more informed decision-making.
Co-founder and CEO of CultureAlly, Ashley Kelly, explains that “ethically diverse companies are 35% more likely to have financial returns above their industry medians”.
How much more money can a company make with gender diversity in the workplace?
Companies with higher gender diversity in the workplace are highly profitable. A 2018 McKinsey report found that corporations that embrace gender diversity on their executive teams were 21% more likely to experience above-average profitability with a 27% likelihood of outperforming their peers on longer-term value creation.
Why is gender diversity in the workplace more profitable?
Gender, ethnic, and cultural diversity have been shown in numerous reports to be directly correlated to financial performance. Why is this? Well, one suggestion can be that companies that value diversity attract unique talent that can only be found in a team with varying skills, perspectives, backgrounds, and values, resulting in a competitive edge in aspects such as customer relations, decision-making, and employee satisfaction.
What kind of economic benefits come from having a diverse executive team?
Having a diverse executive team brings in fresh perspectives, which often helps organizations gain a competitive edge and makes for greater resiliency. These kinds of benefits can be seen in studies of companies with gender diversity in the workplace, showing that they more often bring in greater earnings and long-term value in economic profit.
But the harrowing reality is that the gender gap still exists – and is especially prevalent in the realm of STEM. The underrepresentation of women in STEM fields is a well-documented phenomenon. Despite advancements in education and societal attitudes, women continue to be disproportionately represented in STEM careers. Studies show that women make up less than 25% of total people employed in STEM careers. Women are not only extremely underrepresented in the field but are also frequently faced with unfair biases and disadvantages when it comes to thriving in the field.
Women and girls possess unique perspectives and experiences that need to be recognized to truly realize the ubiquitous goals of a more socially inclusive and sustainable future.
Statistics you need to know about the Gender Gap in STEM
The gap in STEM careers is evident in the data:
- 27% of STEM workers in the US were women.
- Only 35% of STEM students in the UK are women.
- Women make up less than 25% of people employed in STEM careers worldwide.
- Only 15% of total management roles are held by women
The reality is that they are often overlooked in the field – being published and paid less than men overall. On top of that, there is a lack of confidence in women in STEM careers. Women are less likely to be confident in their skills to take on a STEM role compared to men. A survey by Randstad compared the percentages of participants who feel confident in their profession:
Computer Science
- 23% women
- 43% men
Engineer
- 21% women
- 40% men
Scientist
- 29% women
- 40% men
Several factors contribute to the gender gap in STEM careers. One primary factor is the longstanding cultural and societal stereotypes that associate STEM fields with masculinity. From a young age, girls are often exposed to subtle biases that suggest certain subjects are more suitable for boys, perpetuating the notion that STEM is a male-dominated domain. Additionally, the lack of representation of women in STEM roles can act as a deterrent, as aspiring female scientists or engineers may struggle to find relatable role models.
Another significant factor is the persistent gender bias and discrimination that women face in educational and workplace settings. Women in STEM often encounter gender-based stereotypes and biases, impacting their confidence and sense of belonging. Unequal opportunities, biased hiring practices, and workplace cultures that highlight gender stereotypes all contribute to the perpetuation of the gender gap in STEM.
Benefits of Gender Diversity in the Workplace
Closing the gender gap in STEM careers is not just a matter of equality; it also brings about numerous benefits for individuals, organizations, and society as a whole.
Moreover, closing the gender gap in STEM careers can help alleviate the shortage of skilled professionals in these fields. With an increasing demand for STEM expertise globally expanding, considerations towards the entire talent pool become imperative for meeting workforce needs and driving technological advancements.
Empowering women in STEM also contributes to economic growth. Closing the gender gap in STEM education has a positive effect on employment. Total long-term EU employment would rise by 850,000 to 1,200,000 by 2050.
Closing the gap also presents benefits in creating an inclusive and healthier workplace. According to a 2022 study led by social psychologist Mansi P. Joshi, Ph.D., the mere presence of female leaders is more likely to see fairer treatment in the organization and greater projected salary and status.
Diversity is More than Gender and Race
One common misconception about diversity and inclusivity is that it only refers to skin color or gender. The issue is that this idea of diversity insinuates that diversity is a checkbox that needs to meet a certain quota for your company to be recognized. The reality is that diversity entails more than what meets the eye; it includes a diversity of skills, values, and perspectives. When hiring with diversity valued, there should be attention to what cultural, educational, and social views they utilize to solve problems.
“It is only when we acknowledge diversity and inclusion to be more than a checkbox in the hiring process that we can open our eyes to their power to revolutionize our businesses and transform our society into creations of which we can collectively be proud in front of our future generations.”
Ronnie Sheth, CEO, SENEN Group – “Building Inclusive Employment Practices: Addressing Biases and Promoting Diversity” CEO/C-Suite Summit Austin Technology Council 2023
The 4 Pillar Framework to Diversity
Here at SENEN, we implement a RAGS (race, age, gender, skills) framework for diversity. The RAGS framework ensures that there is a healthy mix of varying backgrounds that can bring immense value to your organization and profitability.
- Diversity of race – people from different cultural and ethnic minorities offer different approaches to tasks and problem-solving.
- Diversity of age – older and newer generations have varying experiences based on the social norms of their times, with different social values that help shape how they process things.
- Diversity of gender – ensuring that your team values perspectives from all genders.
- Diversity of skills – hire people from various industries and educational backgrounds since they all bring unique perspectives that can be valuable for your company to appeal to a wide range of customers.
You can learn more about promoting inclusivity in employment practices in ATC’s episode here.
How to Close the Gap
Addressing the gender gap in STEM requires a multifaceted approach that targets various levels of influence, from early education to workplace policies. Here are some key solutions to bridge the gender gap:
Early Education and Encouragement
Schools and educational institutions can implement programs that challenge gender stereotypes, provide equal opportunities, and highlight the diverse and exciting aspects of STEM careers. Encouraging interest in STEM subjects among girls can lay the foundation for future success.
This is especially important because girls are often overlooked in school settings. Doctor Katherine Stuart van Wormer highlights this stating, “Greater exposure to high-achieving boys in high school negatively impacts girls’ science and math grades, according to recent findings from the National Bureau of Economic Research.” Girls instead should be encouraged more in these subjects. This can be through representation in school settings or mentorship programs.
Within a workplace setting, companies can incentivise learning by providing access to a variety of education outlets such as Linkedin Learning, Coursera, Masterclass & more. Allocating an hour or more a week of company time for your team to explore their interests freely allows for your team to let their diversity flourish, and results in a better work-life balance that encourages innovation and prioritizes creative problem-solving.
Mentorship and Role Models
Establishing mentorship programs and promoting visible female role models in STEM fields are vital. Women who have succeeded in STEM can serve as inspiration and guidance for aspiring professionals, helping them navigate challenges and build confidence.
Monday Girl is a prime example of an organization that demonstrates this. Monday Girl is a women-led digital networking platform. They offer private memberships, partnerships, and mentorships revolutionizing how women build their networks.
Women in Data is another example. Women in Data is a diverse community of over 50,000 women in the tech industry. The community was created in light of gender equality in the world of data.
Addressing Unconscious Bias
Organizations should actively work to eliminate unconscious bias in hiring and promotion processes. Implementing blind recruitment practices, where personal information such as gender is withheld during the initial stages of recruitment, can help mitigate bias. Training programs that raise awareness about unconscious bias and promote inclusive workplace cultures are essential for creating environments that support diversity.
Tokenism is the antithesis of diversity. Keeping true to diversity is remembering that it’s not about the numbers, it is about the culture. Diversity is about hiring people from a variety of backgrounds, racially, ethnically, socioeconomically, by gender or class. It is also critical that everyone on your team is treated equally and valued. Falling into tokenism depreciates the hiree and strips you of opportunities of truly hire valuable assets to your team.
Flexible Work Policies
Many women face challenges in balancing career and family responsibilities, which can contribute to the attrition of women from STEM careers. Implementing flexible work policies, such as remote work options and family-friendly schedules, can help retain female talent and create a more inclusive work environment.
For instance, in Sweden, parents are entitled to a 480-day paid paternal leave when a child is born or adopted. This work-life balance approach is an example of how the country is pushing for gender equality. This has worked well for their economy; even though the annual average work hours are 18% less than the OECD average, their productivity is still comparable to other countries in the EU.
Advocacy and Policy Changes
Governments, industry leaders, and advocacy groups play a crucial role in driving policy changes that promote gender equality in STEM. This includes advocating for equal pay, supporting family-friendly policies, and fostering inclusive workplace cultures.
The UN’s SDGs advocate for this kind of action. Specifically, SDG 5 is to achieve gender equality and empower all women. They push for legislated gender quotas to ensure equality in politics through representations in parliament.
The African Institute for Mathematical Sciences (AIMS) is an excellent example of an institution that advocates for gender equality in STEM. AIMS is Africa’s largest network of post-graduate training in mathematical sciences, valuing excellence equity and inclusion, pan-Africanism, and integrity.
Conclusion
The gender gap in STEM careers is a complex issue with deep-rooted causes, but its resolution is imperative for fostering innovation, addressing workforce shortages, and promoting economic growth. By addressing cultural biases, providing equal opportunities, and implementing policies that support work-life balance, and gender diversity in the workplace, society can create a more inclusive and diverse STEM landscape. Closing the gender gap in STEM is not just a matter of fairness; it is an investment in the future that benefits individuals, organizations, and society as a whole. Continuing to take steps in this direction would also aid companies reach their SDG goals, empowering overall social equity.
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