In our previous blog post, we discussed how gender diversity in the tech sector has been impacted by the pandemic and how diversity efforts may shift and adapt in the future.
Another area impacting diversity in the sector is hybrid working, which is becoming increasingly common in tech roles in both the UK and the US – interestingly, this is causing demographic shifts in the sector as more new roles are created specifically for hybrid workers.
With increased flexibility as a result of hybrid working, the sector is becoming more accessible than ever, particularly with the use of asynchronous communication across teams.
How is hybrid working affecting the diversity of the tech sector, and why should it be on the agenda for tech businesses?
According to the Office for National Statistics, the UK created an additional 58,000 tech and IT jobs between July and September 2021, with women making up the majority of new roles.
With 1.6m employed in the UK’s information and communications sector between July and September this year, there has been an increase of 69,000 compared to the same period in 2020, and an even greater increase than pre-pandemic employment levels (1.4m).
Technology was the third-fastest growing sector for jobs in the UK overall and third-fastest for the creation of jobs for women – of the new tech jobs created, 71% were secured by women.
Ethnic diversity is increasing at a much slower pace, though there has been a 3% increase of minority representation in tech since 2015, with representation of ethnic minorities in tech estimated at 19%.
Statistics around other areas of diversity still have significant gaps, such as disability representation – though progress is moving positively in areas such as gender diversity, albeit slowly, in other areas there are still sizeable and concerning gaps.
One of the reasons cited for an increase of diverse demographics in the tech sector is the added accessibility and flexibility of hybrid working.
There are a number of benefits that arise from increased accessibility and flexibility that may be appealing to demographics considering entering the tech sector:
- Employees have a greater level of control over their own schedules
- Those with additional personal responsibilities and commitments (e.g., parents and carers) can adjust their working day around their commitments
- It opens up the talent pool to those who may be unable to afford living closer to cities/central locations or those who struggle with daily commutes
Common barriers faced by minority groups – rigid schedules, dress codes, location requirements – can be removed by hybrid working.
The reason why hybrid working may make tech roles more appealing to groups that previously were hesitant to enter the industry is because it gives them the freedom to work around their requirements and commitments.
Given that work-life balance is consistently ranked as one of the best benefits for tech candidates, implementing hybrid working may be the answer that many tech businesses and the sector at large were looking for.
Whilst a common argument against hybrid working is that it can impact communication, there is evidence that it can actually help with employee retention.
Hybrid working will often rely on asynchronous communication – sending a message without expecting an immediate response – which has been found to have a number of advantages:
- Greater productivity due to greater control over workday structure
- Higher quality of communication as there is a longer period to form thoughtful responses
- Time zone equality, meaning that nobody is at an informational disadvantage because of the time zone that they are working in, making it easier to create a diverse team from multiple locations
The last point is particularly important when keeping in mind the skills shortages facing the tech sector – if the talent pool can be increased by implementing hybrid working, many tech businesses can benefit from both the talent and skills diversity.
A major roadblock in the tech sector making improvements in its diversity efforts is the geographic concentration of tech companies.
In the US, this is a significant issue. 75% of venture capital funding is concentrated in just three states – New York, California, and Massachusetts.
As a result of this, tech companies face the problem of attempting to hire talent outside of these locations, which is made more difficult by the fact that candidates, particularly when from underrepresented communities, may struggle to move away from support systems and more affordable costs of living, and the cost of living increasing in areas with a high concentration of tech workers.
Removing geographic specificity and bias is likely to lead to more inclusivity and accessibility.
Research conducted by Harvard Business Review in collaboration with the Mastercard Center for Inclusive Growth found that states with affordable cost of living and high concentrations of Black, Lantinx, and female graduates with STEM degrees – like Florida or Georgia – offer unique opportunities for companies looking to close the diversity gap.
With so much uncertainty and change still occurring in response to the pandemic, the tech sector has continued to thrive, but this is not without challenges.
This makes diversity a higher priority than before if tech businesses wish to keep up with other industries, find candidates to fill skills gaps, and make good on diversity commitments.
It is important that businesses understand the value of hybrid working as it relates to diversity efforts.
Research has pointed towards the difficulties that tech businesses are facing, with 51% of business leaders reporting that they struggle to recruit diverse entry-level tech talent and 68% feeling that there is a lack of diversity in their workforce.
If the sector can adapt to the positive changes that are emerging, such as the greater number of women in tech, then other areas of diversity can begin to improve considerably.
Much emphasis has been placed on the benefits that can be offered to candidates in the wake of talent shortages, and hybrid working is a great offering that can have abundant positive implications for the sector at large.
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