Why DEI Matters in Tech
The conversation around DEI has moved from the sidelines to center stage, especially in the tech industry. With its power to drive innovation and influence global trends, the tech sector has both a unique opportunity and responsibility to lead in DEI initiatives. Historically, the industry has struggled with diversity, as underrepresented groups have often faced significant challenges. However, companies now recognize that embracing DEI isn't just a moral choice; it’s a strategic advantage. We will explore the many ways DEI benefits the tech industry and society, using real-world examples and insights from industry leaders.
The video below, 5 Ways Tech is Racist and How to Solve That, highlights how the tech industry has struggled with DEI initiatives and offers potential solutions to change this narrative.
The Benefits of DEI in the Tech Industry
Continuing to look at the benefits, we see that Diverse teams bring a wide range of experiences and perspectives, fueling creativity and enhancing problem-solving abilities. When people from different backgrounds collaborate, they identify unique solutions that a more uniformed team might overlook. This diversity of thought is crucial in tech, where rapid innovation drives success. A study by McKinsey & Company found that companies with greater ethnic and cultural diversity are 33% more likely to outperform their less diverse peers. In fact, companies in the top quartile for diversity outperformed those in the bottom quartile by 36% in terms of profitability in 2019, slightly up from 33% in 2017 and 35% in 2014.
"We found that companies in the top quartile outperformed those in the fourth by 36 percent in terms of profitability in 2019, slightly up from 33 percent in 2017 and 35 percent in 2014" (McKinsey & Company, 2020, Diversity wins: How Inclusion matters).
Specifically looking at the tech industry, according to Forbes, we can see companies that prioritize diversity and inclusion have been shown to outperform their less diverse counterparts by 33%.
"Companies with more culturally and ethnically diverse executive teams were 33% more likely to see better-than-average profits. In McKinsey’s previous study—conducted with 2014 numbers—that increase had been 35%. At the board of directors level, more ethnically and cultural diverse companies were 43% more likely to see above-average profits, showing a significant correlation between diversity and performance" (Forbes, 2018, More Evidence That Company Diversity Leads To Better Profits).
Improving Employee Satisfaction and Retention
DEI initiatives contribute to a positive work environment where employees feel respected, valued, and supported. This leads to higher job satisfaction, reduced turnover, and stronger loyalty. Employees are more likely to stay at a company where they feel they belong and where their identities are respected. Furthermore, a culture that promotes inclusion attracts top talent, giving the company a competitive edge.
Inclusive workplaces also foster psychological safety, encouraging team members to voice new ideas and take creative risks without fear of discrimination or bias. This dynamic not only boosts employee morale but also enhances productivity and innovation.
Making a Social Impact
By prioritizing DEI, tech companies can contribute to economic growth and social mobility for underrepresented groups. This has far-reaching effects on communities, as tech jobs are often high-paying and offer opportunities for skill development. DEI initiatives help create pathways for individuals from diverse backgrounds, reducing economic inequality and promoting broader social change.
Why Change Was Needed: The Struggles of Black Americans in Tech
While it's inspiring to see the progress made so far, it’s crucial to understand the need for these changes. In Charlton McIlwain's article, "Of Course Technology Perpetuates Racism. It Was Designed That Way", he emphasizes how technology has historically perpetuated discrimination. He writes, "Both wreak physical and psychological violence. Both disproportionately kill and debilitate Black and brown people. And both are animated by technology that we design, repurpose, and deploy." Whether it's facial recognition, social media, or automated risk profiling, technology has often targeted marginalized communities, doing more harm than good when designed with biased frameworks.
For example, facial recognition technologies have been created to identify suspects based on skin color, while credit scoring algorithms have unfairly impacted Black communities, preventing access to housing, loans, or jobs. This highlights the pressing need for the tech industry to address these issues with intentional DEI strategies.
"We often call on technology to help solve problems. But when society defines, frames, and represents people of color as “the problem,” those solutions often do more harm than good." - Charlton McIlwain
In addition to this, the internet has expanded access to information and social connection, but it also provides fertile ground for “cyber-racism.” According to researchers Ana-Maria Bliuc, Andrew Jakubowicz, and Kevin Dunn from The Conversation, organized groups and individuals use online spaces to promote divisive, racially motivated messages, often radicalizing isolated individuals. This communication “undermines the social cohesion of modern multicultural societies,” fostering mistrust and occasionally contributing to violent acts by those who become influenced and motivated by these online communities (Bliuc, Jakubowicz, & Dunn).
How to Expand the Benefits of DEI in Tech
Building on DEI success in tech requires both technical and behavioral changes. Technical actions include creating fair hiring, fostering diverse leadership, and designing products with a broad user base in mind. Behavioral strategies focus on cultivating a DEI-centered culture, educating teams on bias, and promoting inclusion through training. These efforts help tech companies better represent society’s diversity, maximizing DEI’s positive impact on both workforce and society.
Practical Tips for Fostering DEI in Tech
To promote DEI in the tech industry, HR professionals can work toward bias-free recruitment processes and collaborate with diversity-focused organizations. Managers can support DEI by fostering growth opportunities, offering mentorship, and providing leadership training for underrepresented employees. Employees, in turn, can advocate for inclusive practices, engage in DEI training, and approach different perspectives with respect. Collectively, these efforts, whether small or large, help build a more supportive and inclusive environment in tech, where diversity can thrive.
The tech industry holds significant power to drive societal change. By prioritizing DEI, tech companies can foster environments that welcome all voices, making a positive impact on society. Diversity, Equity, and Inclusion aren’t just buzzwords, they are foundational principles for a healthier, more innovative, and more equitable industry. As you consider the role of DEI in your own career or organization, remember that each step toward inclusivity brings us closer to a more just world.
Word Cited
class sources:
Bliuc, A.-M., Jakubowicz, A., & Dunn, K. (2018). Racism in a networked world: How groups and individuals spread racist hate online. The Conversation.(https://theconversation.com/racism-in-a-networked-world-how-groups-and-individuals-spread-racist-hate-online-109072)
McIlwain, C. (n.d.). Of course technology perpetuates racism; it was designed that way. NMD Projects.(https://nmdprojects.net/teaching_resources/mcIlwain_tech_perpetuates_racism.html)
Garibay, M., Obadia, R., & Reed, K. (2024). AI algorithms and bias: Rethinking fairness in the digital age. Journal of AI Ethics, 4(2), 45-68. (https://link.springer.com/article/10.1007/s43681-024-00485-8)
Fry, E. (2020, August 12). 5 Ways Tech is Racist and How to Solve That. YouTube. (https://youtu.be/mWyVCpKKB8o)
additional sources:
Diversity Wins: How Inclusion Matters, www.mckinsey.com/~/media/mckinsey/featured insights/diversity and inclusion/diversity wins how inclusion matters/diversity-wins-how-inclusion-matters-vf.pdf
Strauss, Karsten. “More Evidence That Company Diversity Leads to Better Profits.” Forbes, Forbes Magazine, 21 June 2018, www.forbes.com/sites/karstenstrauss/2018/01/25/more-evidence-that-company-diversity-leads-to-better-profits/
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