Bias and lack of flexibility hindering diversity, finds DSIT

A lack of access to flexible working and unconscious bias are among the barriers preventing underrepresented groups from going into technology roles, according to research conducted on behalf of the Department for Science, Innovation and Technology (DSIT).

In the subsequent report assessing what is inhibiting diversity in the technology sector, DSIT broke the sector down into subsections – industry, entrepreneurship and skills – to describe the various barriers preventing underrepresented groups from engaging with and working in technology.

When it comes to tech industry careers, unconscious bias in the hiring process, lack of representation across job levels, and a lack of flexible working arrangements were identified among the challenges that need “considered and sustained efforts” to address.

“While the UK tech industry has progressed, a more strategic and unified approach is required to dismantle deeply embedded barriers to inclusion,” the report stated. “Through accountability, structural change and a commitment to fostering a genuinely inclusive culture, the tech industry can not only enhance diversity but also foster innovation, ensuring that the UK remains competitive in the global tech landscape.”

A lack of inclusive culture in tech workplaces is often cited as a reason many individuals from underrepresented groups avoid or leave tech careers, and certain cultures, such as the “tech bro” culture mentioned in DSIT’s report, often perpetuate bias when it comes to hiring.

Though many may not be aware of their biases, it’s not uncommon for people to hire others who are similar to themselves, and since the industry predominantly comprises white men, this leads to more white men being hired.

Once underrepresented groups make it to the workplace, practices in place can make it more difficult for them to thrive. DSIT’s report cited research from UK Finance, which found underrepresented groups were more likely to leave roles in technology as a result of poor management, bullying, stereotyping and sexual harassment than others, and Tech Talent Charter  (TTC) research that found a lack of flexible working arrangements was leading women to leave the tech sector.

DSIT’s report also claimed that those from underrepresented groups have fewer opportunities for promotion throughout their careers. Women only made up a quarter of CIO positions in FTSE 100 companies in 2023, and TTC found that ethnic diversity among its signatories drops to 14% when looking at leadership roles. This, together with the other issues mentioned, prevents diverse talent from being hired, retained and promoted throughout the tech industry.

There is no silver bullet for solving these issues, and recommendations made in DSIT’s report need to be implemented both by companies and by the government to make the industry more accessible to diverse talent.

The report put an emphasis on the need for measurement and accountability within firms, suggesting strategies such as clear and transparent organisational frameworks to make progression paths clearer, counting diversity, equity and inclusion (DEI) metrics as part of an organisation’s performance, and making reporting on DEI progress mandatory.

The government and policymakers also have a role to play by ensuring future legislation encourages changes that address some of the challenges highlighted by DSIT, such as offering flexible working, equity in the workplace, and helping those from low-income backgrounds progress at the same pace as their counterparts.

But efforts in many cases are being dialled back as a result of political climate and budget cuts, and current attempts to fix the problem are disjointed. “For true, lasting change, industry must move from one-off initiatives and seeing (and funding) DEI as a marketing exercise. It must also accept it is not enough to ‘fix’ under-represented individuals – it must fix cultures, processes and systems,” the report warned.

Many of the other suggestions for addressing a lack of diversity in technology roles, such as an emphasis on inclusion, training, upskilling and role models, are also commonly proposed as ways to make the tech talent pool more diverse.

The landscape of technology skills across the UK is similar to that in the tech workplace, with barriers to skills also contributing to a lack of diversity further down the pipeline.

Even basic digital skills required for everyday life are lacking in the UK, and companies claim to struggle to find people with the skills they need to fill roles.

For women and other underrepresented groups, it can be even harder to gain the skills recognised as useful for tech roles, with the report claiming non-traditional routes into tech are frowned on in many cases, leaving these individuals with lower-paid, entry-level positions.

The report said: “There is also the economic risk that, without being able to staff the growing technical needs in the UK economy, companies may look to offshore more advanced digital roles, impacting the entire tech workforce.”

There are good frameworks in place that are beginning to improve things, said DSIT, such as the apprenticeship levy and the implementation of Skills England, but lifelong learning is also an important strategy to implement across the UK’s tech skills pipeline, and “competency frameworks” will help companies and individuals know what skills are needed for certain jobs.

Helping those from underrepresented groups gain the skills and qualifications needed for a career in tech, through mentorship or funding, could also level the playing field.

Without continued commitment, there is a risk that underrepresented groups may disengage from the sector, potentially leading to a contraction of the talent pipeline, reduced innovation and broader economic challenges

Outside of corporate tech, entrepreneurship can offer opportunities for those from underrepresented groups to avoid some of the barriers presented by more traditional jobs. However, the way funding is structured means it also suffers from bias. The report highlighted research from the Department for Business and Trade and British Business Bank showing a significant lack of funding for startups led by women or teams made up of people from ethnic minorities.

The report also stated that these biases, as well as difficulty accessing relevant and specific advice and resources, also make it more difficult for people from different parts of the UK, differently abled founders, or neurodivergent individuals to find investment.

“Simply put, founders from underrepresented groups currently have too little capital and access to viable growth environments. Progress in this regard is slow, which impacts the overall economic opportunities for growth,” claimed the report.

The investment infrastructure in the UK needs to work to tackle these biases, but the report also called on those responsible for policy development to create funds for underrepresented groups and mandated reporting within the venture capital industry to measure and hold investors accountable for investment decisions.

When it comes to progress already made to increase the diversity of all aspects of the technology sector, the report stated that existing initiatives, whether looking at careers, entrepreneurship or skills development, are too generalised, too disparate and too focused on just women rather than diversity as a whole.

Not surprisingly, there were common themes throughout when it came to tackling the barriers to entry for women and other underrepresented groups, including collecting data to properly monitor progress, creating accountability for those responsible for teaching, hiring and funding tech talent, and a coordinated approach between industry, the government and the education sector.

The report said: “Without continued commitment, there is a risk that underrepresented groups may disengage from the sector, potentially leading to a contraction of the talent pipeline, reduced innovation and broader economic challenges.”