~ 4min read
The latest research from mthree’s Diversity in Tech report shows businesses are making real progress. As Becs Roycroft, COO of mthree, says, "diversity is no longer a box to tick – it’s a core business priority. We’ve seen a marked increase in companies making targeted efforts to build more inclusive & diverse teams, and the results are clear."
In this article, we highlight key findings from the report, showing where businesses are making a difference and the strategies that drive results.
A big change in how companies are addressing diversity comes from how they use DEI data. In the past, this data was mainly used for tracking and compliance. Now, however, companies are using it to guide recruitment and retention efforts. 58% of business leaders now use this data to direct their hiring strategies, which is a 10% increase from the previous year.
Tracking diversity data is essential for companies committed to improving diversity. This data can help with:
Identifying gaps and setting goals: Diversity data helps companies spot areas where representation is lacking and set clear goals to address those gaps. Without it, businesses can’t target their efforts effectively.
Measuring progress: Data allows businesses to track their diversity initiatives over time, ensuring they’re making real progress and can adjust their strategies if needed.
Improving retention: By analysing data on employee turnover and career growth, companies can identify if certain groups are underrepresented in promotions or are leaving at higher rates. This helps create better retention programmes.
Creating an inclusive culture: Diversity data shows how inclusive a company’s culture is by highlighting engagement and satisfaction levels across different groups. It helps identify biases and areas for improvement.
Ensuring accountability: Clear data ensures everyone in the company is accountable for diversity goals, from leadership to HR. It drives transparency and commitment to real, measurable change.
Another positive sign is the growing understanding of how to tackle issues surrounding diversity. Last year, 13% of businesses said they knew they had diversity problems but didn’t know how to address them. This year, that number has dropped to just 3%.
This drop shows that companies are more informed and better equipped with the tools they need to handle challenges around diversity. Whether they are using internal resources or seeking help from outside experts, businesses are now more prepared to take meaningful action.
The number of companies unsure about the diversity challenges they face has also dropped sharply. In 2023, 13% of businesses were uncertain about their diversity issues. This year, only 5% reported the same uncertainty.
This shift means that diversity is becoming a more central concern for many companies, as they now focus on creating solutions rather than just identifying the problems.
One of the most promising developments in diversity in tech is the broader approach businesses are taking. Diversity is no longer just about gender and ethnicity.
More companies are recognising the importance of socio-economic diversity as well. The numbers reflect this shift: the percentage of businesses struggling with gender diversity dropped from 40% to 26%, and challenges with ethnic diversity fell from 41% to 24%. Socio-economic diversity challenges also decreased, from 34% to 26%.
These improvements show that businesses are making real strides in their diversity efforts. By broadening their definition of diversity and using data to guide their actions, they are not only increasing diversity in tech but also creating more inclusive workplaces overall.
The research indicates that more businesses are likely to see improved performance as a result of greater diversity. Teams with varied backgrounds bring different ideas and approaches to solving problems, leading to more creative and effective solutions.
This is especially important in tech, where fast problem-solving and innovation are critical for staying competitive. According to Harvard Business Review, companies that embrace diversity are more likely to outperform less diverse competitors.
A diverse workforce also helps companies understand and meet the needs of a wider range of customers. This improves customer satisfaction and opens up new markets, making it a vital strategy for businesses looking to grow in today’s global economy. Job seekers are increasingly looking for employers who value diversity, and businesses that prioritise this are more attractive to top talent.
While there’s still work to be done, tech employers are clearly moving in the right direction. With the use of diversity data to shape recruitment efforts, and businesses taking a proactive approach, the progress is evident.
Understanding how to increase diversity in the workplace is no longer a mystery for most companies. By continuing to embrace diversity in all its forms—whether gender, ethnicity, or socio-economic background—the tech industry is setting an example for how diversity in the workplace can be achieved and sustained.
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If you’re looking to elevate the diversity within your workforce, mthree’s here to help. Our Hire Train Deploy model trains and places diverse emerging talent into your teams at the pace you need.
The stats shown in this article are taken from mthree's UK Diversity in Tech report. We saw similar trends in the US and Canada report. Download the US and Canada diversity reports here.
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