Why diversity in tech teams is important
Diversity is key to driving organizational success, yet DEI initiatives have become a controversial topic. Learn how diversity in tech teams can help companies in a myriad of ways.
Diversity in tech teams is not just a nice-to-have -- it is critical for driving company growth.
Fostering diversity in tech teams brings together people with different backgrounds and experiences. One of the several benefits of improving diversity on tech teams is potentially improving recruitment as the challenge of attracting and retaining top talent in the tech industry persists. Forty-one percent of IT workers view a company's DEI efforts as "very important" when they're thinking about accepting a new position, according to the 2024 report "Diversity, Equity and Inclusion in IT: Creating Inclusive and Effective Strategies for All" by TEKsystems Inc., an IT services and talent management firm.
Prioritizing diversity can potentially increase employee retention as well. Seventy-seven percent of IT and HR professionals agreed that "diversity initiatives foster a stronger connection to company culture," according to the TEKsystems report.
Here are four more reasons diversity in tech teams is important.
4 benefits of a diverse tech team
A diverse team of IT professionals can lead to improved organizational performance. Other potential benefits can include the following.
1. Improved innovation and revenue
Companies that prioritize DEI initiatives can achieve better long-term business results.
Seventy-eight percent of respondents agreed that "diversity initiatives improve IT teams," and 75% agreed that "diversity initiatives positively impact IT project outcomes," according to the TEKsystems report.
Diversity can help improve companies' revenue as well.
Organizations in the highest quartile for gender diversity on their board are 27% more likely to outperform when it comes to revenue than companies in the bottom quartile, according to the 2023 report "Diversity Matters Even More" by McKinsey. And organizations in the highest quartile for boards with ethnically diverse members are 13% more likely to outperform with their revenue than companies in the lowest quartile.
2. Improved efficiency
Inclusive teams can lead to more effective problem-solving and better decision-making, ultimately resulting in better outcomes.
Forty-two percent of IT employees agreed DEI has increased the productivity of their group, according to the TEKsystems report.
3. Access to tech talent
Organizations that expand their candidate sourcing practices broaden their access to top talent, which can result in more diverse and inclusive teams. Giving employees the option of working remotely or under a hybrid model is one way companies are accessing a more diverse talent pool.
Eighty-six percent of respondents who increased their remote work options said doing so has improved their company's diversity, according to the "Diversity in Tech Report: 2024" report by Mthree, an IT consulting and services firm.
Remote work also makes jobs easier for people with disabilities because the option eliminates the need for those with mobility challenges to commute to and from the office.
Company leaders are also reducing the education requirements in job postings, which can help bring in a wider group of applicants.
The number of respondents that mandated a bachelor's degree for all tech jobs decreased from 72% to 54% in 2024, according to the report by Mthree.
Diversity is one of the aims of this initiative in tech and beyond.
Seventy percent of respondents who stopped requiring applicants to possess bachelor's degrees said they did so in an attempt to improve diversity, according to a 2023 survey of employers by Intelligent.com, an online magazine.
4. Decreased legal risk
Improving diversity can also help safeguard companies from legal risk.
Ageism continues to be an issue among STEM workers, according to an examination by the Equal Employment Opportunity Commission of what the EEOC calls "the high tech workforce," which it defines as "workers in 56 science, technology, engineering, and mathematics (STEM) occupations regardless of industry."
More than 19% of allegations submitted by workers against high-tech companies were claims of age discrimination, while 14.8% of the allegations in other sectors were age-related, according to the "High Tech, Low Inclusion: Diversity in the High Tech Workforce and Sector, 2014-2022" report by the EEOC.
As with other industries, retaliation charges are the type of charges that are filed most frequently in high tech, according to the EEOC.
"Given this, it is likely that discrimination in this sector is underreported due, at least in part, to workers' fear of retaliation," according to the EEOC report.
Emerging concerns about diversity in the tech industry
Over the past several months, various companies, including some tech organizations, have announced they are ending or reducing their DEI initiatives.
Thirty percent of American CEOs said they were moving forward with their DEI plans, while 35% said their company is temporarily halting or reconsidering its DEI goals, according to the "Vision 2024: Where is the World Going in 2024 and Beyond?" report by Teneo, a CEO advisory firm.
Organizations that stop or reduce their DEI programs may risk alienating their younger employees.
Seventy-seven percent of Gen Z respondents and 63% of millennial respondents said a company's DEI goals are a major consideration when deciding whether to accept a position, according to 2023 research by Eagle Hill Consulting.
Carolyn Heinze is a Paris-based freelance writer. She covers several technology and business areas, including HR software and sustainability.
