DIGIT news comments on the mthree Diversity in Tech Report 2024, read the full article below.
“While this year’s research reveals a marked step in the right direction for diversity in tech, the data indicates that some challenges remain and there is still work to be done,” said mthree’s Khadijah Pandor.
The latest findings from mthree’s fourth annual Diversity in Tech report indicate notable strides in the UK’s tech industry toward a more inclusive and diverse workforce.
The organisation’s “temperature check” on diversity in tech reveals both encouraging progress and persistent challenges, as firms work to build teams that reflect society’s diverse make-up.
Below we’ll break down the report’s key data and statistics.
Positive Trends in Gender, Ethnic, and Socio-economic Diversity
The research shows marked improvements in key diversity metrics. The percentage of organisations reporting gender diversity challenges fell sharply, from 40% in 2023 to 26% this year.
Similarly, ethnic diversity issues reported by companies dropped from 41% to 24%, and challenges related to socio-economic diversity decreased from 34% to 26%.
This shift is also felt by young tech professionals, with almost half (45%) describing their teams as “very diverse,” a 6% increase over last year. Furthermore, 77% believe that their employer has effective diversity initiatives in place, while 43% report seeing a noticeable rise in diversity efforts compared to past years.
While the data highlights progress, it also underscores areas where the tech sector still falls short.
Despite the advances, 60% of tech companies admit they continue to struggle with diversity within their teams. More concerning is that over half (54%) of young tech workers report feeling uncomfortable at work due to aspects of their identity, whether related to gender, ethnicity, or socio-economic background.
Although this figure is down slightly from 60% in the previous year, it highlights that there’s still plenty of work to be done in this regard.
Perceptions of the tech industry also present obstacles, particularly among young talent. Tech’s reputation as a male-dominated field continues to deter over a third of prospective entrants (39%).
Concerns around ethnic diversity have also risen among young tech professionals, climbing from 8% to 14%.
Talent Retention and Engagement
The report reveals that many tech companies have implemented new strategies to improve retention and engagement among diverse hires.
The use of mentorship programs, for instance, has increased from 51% to 68%, and feedback from diverse hires is now incorporated into onboarding processes in 44% of firms, up from 33% previously. As a result, the number of companies struggling to retain talent has dropped from 59% to 40%.
Organisations offering reskilling and upskilling opportunities have experienced substantial gains in employee retention and engagement, with retention rates climbing from 56% to 72% and engagement from 37% to 62%.
Remote and hybrid work have become key enablers of diversity in tech, particularly in relation to gender and ethnic representation.
Currently, 53% of young professionals in tech work in a hybrid arrangement, while 19% work fully remotely. Remote and hybrid models provide flexibility and mitigate financial and logistical challenges associated with commuting, thereby making tech roles more accessible to a wider range of candidates.
Approximately 54% of employers credit remote work with enabling more diverse recruitment strategies, while 53% believe it has expanded their talent pool. Furthermore, 72% of businesses report that flexible work arrangements have positively impacted gender diversity, with 49% seeing gains in ethnic diversity, 37% in socio-economic diversity, and 31% in neurodiversity.
Among young professionals, 96% say they have benefited from hybrid work, and 55% find that it makes roles more financially feasible.
Industry-Wide Recruitment-tactic Shifts
The industry’s approach to recruitment is also evolving to attract a more diverse workforce. In a break from tradition, 39% of companies now consider candidates from all universities equally, up from 23% in 2023. The data suggests that tech employers are increasingly open to applicants from a range of educational backgrounds, with many moving away from degree prerequisites entirely. The percentage of firms that always require a bachelor’s degree has dropped from 50% to 40%, while 52% only “sometimes” require one, compared to 48% last year.
This trend reflects a broader shift toward prioritising skills over formal education. As companies look to close skills gaps, especially in areas like software engineering, data science, and cybersecurity, reducing degree requirements opens doors for talented individuals who may not follow traditional educational paths. A significant number (35%) of firms easing degree requirements say that doing so aligns with their diversity goals.
Leveraging Data for Diversity and Inclusion Initiatives
This year’s report shows that data-driven diversity efforts are gaining traction within tech. In the past, demographic data often served solely for compliance or tracking purposes. However, this year, 58% of decision-makers are actively using workforce demographic data to guide recruitment strategies aimed at building diverse teams, representing a 10% increase over last year.
For the first time, the majority of tech businesses use workforce demographic data to inform diversity programs, emphasising the sector’s commitment to addressing diversity challenges. Where 13% of businesses in 2023 reported knowing that diversity issues existed but lacked clarity on how to address them, that figure has now dropped to just 3%, suggesting that knowledge and tools for supporting diversity have become more widely accessible.
Rising Demand for Entry-Level Talent and Skills Gaps
Despite these advances, the tech industry continues to face challenges recruiting entry-level talent with specific technical skills.
The report highlights software engineering, data science, and cybersecurity as the most challenging areas for recruitment, with 62%, 47%, and 41% of companies, respectively, reporting shortages in these fields.
Furthermore, nearly a third of companies (31%) express concerns over soft skills gaps, particularly communication and problem-solving abilities, which have been exacerbated by the impact of remote learning and social media on the “Covid generation.”
In response, many companies are diversifying their recruitment strategies and investing in targeted training programs to equip new hires with the skills needed to succeed in the workplace. Employers are also increasingly loosening qualification requirements, with 42% considering dropping degree requirements entirely for certain roles over the next 12 months.
The tech industry’s journey toward inclusivity is far from over, but mthree’s report shows that progress is underway. Diversity initiatives are now widely recognised as essential drivers of innovation and competitiveness, with 48% of companies identifying diversity as a crucial factor in boosting creativity.
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Additionally, 61% of businesses are actively linking their diversity programs to the expansion of their talent pools, compared to 47% last year, highlighting the role diversity plays in meeting recruitment goals.
The report also suggests that diversity and inclusion have become central to companies’ operational strategies. This year, only 5% of companies reported uncertainty about their diversity challenges, down from 13% in 2023.
As the tech industry continues to adopt a proactive approach to building diverse teams, it is likely that diversity will remain a business priority rather than an afterthought – what the practical outcomes will be for people of diverse backgrounds will actually be, time will tell.
