Resetting the Exodus: 50% of Women in Tech roles leave by Age 35, what does this mean for the Financial Services Sector?

I was delighted to recently host my first corporate event, exploring the stark reality that women are leaving technology roles at double the rate men are. 

As a member of Wo+Men@Nash (our gender Employee Resource Group) - and a politics university graduate - I've been an advocate for gender parity in all aspects of my life. As the dust settles from my recent panel discussion, the resounding echoes of concern linger. My position: change starts with one individual; we all have a voice; we have a duty to use it.

The exodus demands our attention.

Consider this: Closing the gender gap in tech not only addresses talent shortages but also fosters innovation, business performance, and overall company growth. Championing gender parity in the workplace isn’t just “the right thing to do”, it’s imperative for the future.

When I learned about the 50% attrition rate during a talk at the Women of Silicon Roundabout last year, it got me wondering. I work with companies that talk the talk on gender equality, but why are we still hemorrhaging so much talent?

It’s clear that collective action is required for meaningful change.

The statistics paint an alarming picture: women are leaving the tech industry at double the rate of men. Despite comprising 57% of the overall workforce, they represent only 22% of the tech workforce.

A key takeaway from the evening: the distinction between talent attraction and retention. Women hold 32.8% of entry-level technology roles, but only 10.9% of CEO or senior leadership positions. Has the focus on improved representation in graduate cohorts been at the expense of retaining them?

The departure of talent is happening somewhere in the middle. The Q&A discussion mentioned the absence of thought-through development plans, limited representation at executive level and maternity/paternity policies, as factors contributing to these pretty alarming retention rates.

Promotion bias exacerbates this issue, with managers favouring men, who hold 60% of managerial positions, leaving fewer opportunities for women to advance. As McKinsey’s 2023 report noted, for every 100 men promoted from entry level to manager, 87 women were promoted.

And this gap is trending the wrong way for women of colour: this year, 73 women of colour were promoted to manager for every 100 men, down from 82 women of colour last year. McKinsey's research reveals that despite their aspirations, women face significant obstacles in climbing the corporate ladder.

This bias is rooted in societal norms, as highlighted by Reshma Saujani, founder of Girls Who Code. From a young age, girls are conditioned to prioritise perfection over bravery, hindering their ability to take risks and self-advocate. This point was touched upon further during the evening; it was noted that societal pressure manifests in the workplace, perpetuating a culture where women feel compelled to conform rather than challenge. In banking, unfortunately, the system isn’t designed for passiveness. It’s very much a “if you don’t ask, you don’t get” culture. 

Company culture also plays a significant role. A staggering 76% of women in tech report experiencing gender bias or discrimination in the workplace. Women are twice as likely to be mistaken for someone junior and hear comments on their emotional state.

But it's not just about promotions and company culture: it's about pay too. The gender pay gap in the tech industry stands at a staggering 16%, significantly higher than the national average of 11.6%. Women earn up to 28% less than their male colleagues in the same tech roles, a discrepancy that's particularly pronounced in early career stages. Around 78% of large organisations admitted to having a gender pay gap in the technology sector.

Even in companies we often hold as paragons of the tech industry, such as Google and Apple, the statistics reveal glaring inequalities. Google reports that women earn 83p an hour for every £1 their male colleagues earn, and women's average bonuses are 43% lower than men's. Similarly, at Apple, women earn 74p for every £1 their male counterparts earn, with only 88% of women receiving bonuses compared to 94% of men.

It all sounds quite depressing doesn’t it? But the future is not all doom and gloom. Through my research I noticed a collective sense of hope for the future. The tech industry is facing a talent shortage, with McKinsey projecting an increase of the tech talent gap from 1.4 million to 3.9 million people by 2027. If Europe could double the share of women in the tech workforce to about 45 percent, an estimated 4 million additional women would be available – this would close the talent gap and benefit from a GDP increase of as much as €260 billion to €600 billion.

Addressing these systemic inequities requires a multifaceted and nuanced approach. Firstly, companies must acknowledge and actively combat gender bias and discrimination in the workplace. This includes implementing diversity training programmes, fostering inclusive company cultures, and promoting equal opportunities for career advancement.

Additionally, leaders must serve as champions for change, advocating for policies that prioritise gender equality and holding themselves accountable for creating environments where all employees can thrive.

As I reflect on the insights offered from our panellists, it's clear that the tech exodus is not a women's issue—it's a societal one. By dismantling barriers to entry, fostering inclusive workplaces, and championing gender equality, we can create a future where women are not only welcomed in tech but empowered to thrive.

A huge thank you to my panellists, Catherine, Rashada, Ed and Matt – I couldn’t have done it without you. I’m optimistic for the future and proud to be a part of this movement.

After all the only constant in technology, is change. If we’re not evolving, we’re losing.

About the Author 

Catherine Astier, is a Recruitment Consultant within the Financial Services team, at Harvey Nash. She primarily focuses on the contract market, helping to deliver exceptional talent to a range of our clients including: banks, insurers and investment managers. Outside her day-to-day cat is passionate about social issues and championing diversity in the workplace.