Tech’s DEI Illusion

Authored by

Janet M. Stovall, CDE
Here’s why the tech industry’s DEI efforts are falling short and what HR leaders can do to build a truly inclusive workforce.

The tech industry is known for innovation, disruption, and transcending barriers. But when it comes to diversity, equity, and inclusion (DEI), progress is stagnant — or worse, regressing, as I wrote recently in Built In. Although the industry has made lofty promises and heavy investments, the DEI needle hasn’t moved from the status quo.

Recent statistics back up this assertion. For example, only 22% of high-tech roles are held by women, a figure that hasn’t changed significantly since 2005. And only 5% of tech CEOs are women. Although Blacks and Hispanics make up 11.6% and 20% of the total U.S. workforce, respectively, they hold only 7% and 10% of tech jobs. It’s clear that the tech industry isn’t reflecting the diversity of the customers they serve.

Why tech’s DEI efforts are falling short

Even with the best intentions, traditional DEI approaches are falling short for three major reasons:

  • Equating activity with progress. Initiatives like diversity recruiting goals, employee resource groups, and DEI training are important, but they don’t make a strategy. Real DEI progress requires a shift in mindset, from seeing diversity as a problem to recognizing it as a solution. Only through long-term commitment, training programs that drive large-scale behavior change, and embedding DEI into an organization’s systems and culture can true progress be made.
  • Focusing on representation over inclusion. Traditional DEI efforts fixate on mirroring demographic compositions. Yet, to create an inclusive environment, diverse perspectives must not only be heard but also valued and integrated into decision-making. It’s about moving from bodies in the building to brains in the business.
  • Not connecting DEI to business outcomes. DEI is often considered a “feel-good” initiative, separate from business goals. Programs are implemented without clear leadership, metrics, or ways to tie DEI to profitability and innovation. Instead, organizations should set clear expectations, provide their teams with resources, and hold leaders accountable for DEI success.

If not handled with care, AI has the potential to exacerbate current DEI shortfalls. Biased data sets, combined with a lack of diverse perspectives when AI programs are being developed, can create systems that continue or even worsen social injustices.

Coding a more inclusive future

Luckily, HR leaders in the tech industry have the power to influence policies, shape culture, and champion systemic change. Here’s how:

  • Make the business case: The language of tech revolves around metrics, data, and return on investment, so showcase DEI’s abilities to drive innovation, product development, and market expansion. Measure the impact of diverse, inclusive, and equitable teams on key performance indicators like revenue growth, employee retention, and customer satisfaction.
  • Unblock the talent pipeline: In the hiring process, instead of focusing on pedigrees and traditional recruiting avenues, partner with organizations that develop tech talent from underrepresented communities. Prioritize skills and potential over distinguished degrees or past employers. Create paths for nontraditional talent to enter the tech workforce, such as apprenticeships and internship programs.
  • Foster inclusive leadership: Commit to inclusive leadership development initiatives that emphasize bias reduction, allyship, and creating psychologically safe team environments. Promote mentorship and sponsorship programs that link senior leaders with underrepresented talent, offering guidance, support, and advancement opportunities.
  • Establish equitable systems: Thoroughly assess all HR processes, including compensation, performance management, promotion, and succession planning, for potential biases. Apply data-driven strategies to guarantee fairness and equity through every phase of the employee lifecycle. Consider tools to mitigate bias and promote objective decision-making, such as blind resume reviews, structured interviews, and standardized performance evaluations.
  • Create a culture of transparency and accountability: Set clear DEI objectives that are linked to business outcomes. Monitor progress with transparency and hold leaders accountable for delivering results. Foster a culture of open dialog and continuous learning that empowers people to recognize challenges, learn from mistakes, and celebrate successes.

The future of the industry involves building a truly inclusive workforce that harnesses diverse perspectives to develop tech solutions that benefit everyone. We have a choice to make: Will we create a more just and equitable future or amplify the mistakes of our past? The answer lies in our shared commitment to finally cracking the code on DEI.   A version of this article appears in Built In. To read the full article, click here.

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