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State of Tech 23 | Global Gender Report

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Understanding the roots of the Gender Problematic

Sexes and Genders to understand diversity

To gain a better understanding of gender and its intersection with technology, it is important to first explore the origins and evolution of this concept and how it has contributed to advancing women’s rights worldwide.

It is crucial to differentiate between gender and sex, despite the common tendency to use these terms interchangeably. Therefore, before delving into the topic, it is important to clarify the distinction between these two terms:

Sex

In social sciences, the term ‘sex’ refers to the biological categories of human beings. Determining a person’s sex involves examining various biological and anatomical features, such as visible genitalia, internal sex organs, secondary sex characteristics, chromosomes, and reproductive capabilities.

Despite the apparent binary nature of sex, there is actually significant ambiguity and diversity within these categories. Hormonal influences can lead to atypical development, resulting in the development of sex organs and secondary sex characteristics that are typically associated with the opposite sex. Some individuals may have body features associated with one sex category and chromosomes associated with another, regardless of whether they are clothed or unclothed.

The biological categories of male, female, and intersex can have a broad range of manifestations in our bodies.

Gender

Gender is a term coined by social scientists to describe the cultural roles that are assigned to individuals based on their biological sex. These roles determine different behaviours, relationships, responsibilities, and rights for people of different genders. Unlike sex, which is biologically determined, gender is socially constructed, and therefore, there is no such thing as ‘biological gender.’

Developing a gender identity takes time and is a communal effort that involves education in both public and private spheres. Individuals learn cultural norms and values, gender representations, taboos, and religion, among other things, through a process of enculturation. Gender roles are not inherited or innate, but are learned through socialisation, particularly during childhood.

Gender categories are culturally constructed and can vary widely across different societies and change over time. This means that the specific expectations and behaviours associated with gender roles are culturally determined and can differ from one society to another, or evolve over time within a society. This means that the specific expectations and behaviours associated with gender roles are culturally constructed and can vary between societies or evolve over time within a society. 

As the World Health Organizations claims, gender is just one piece of a discrimination puzzle where every piece intersects with the other, making social analysis more complex:

“Gender-based discrimination intersects with other factors of discrimination, such as ethnicity, socioeconomic status, disability, age, geographic location, gender identity and sexual orientation, among others. This is referred to as intersectionality”. 

Gender as a conceptual category began to be used by social scientists in the 1950s and 1960s to differentiate it from the category of ‘biological sex’ and to gain a deeper understanding of how culture, religion, society, and education play essential roles in defining and imposing gender identity, gender roles, and gender expression.

Genderbread.org provides resources to make the concepts of gender, sex, and sexuality more accessible. For instance, one can be born with the biological characteristics of a female but have a gender identity culturally associated with men, a public gender expression of masculinity, and be attracted to both men and women.

Image Source: Ginger Bread

Gender identity encompasses a wide range of possibilities, including non-binary, agender, transgender, cisgender, genderfluid, and many others. This expansive range of gender identities highlights the diversity of human experiences and challenges the notion that one’s biological sex can define their entire being.

In reality, the fact that someone is born with male or female genitalia does not provide meaningful information about their gender identity. Unfortunately, societal norms have often relied on binary gender categories to simplify and categorise individuals, overlooking the rich complexity of human identity.

Sexism and its social consequences

With these words, Wikipedia summarises what Sexism is: 

“Sexism is the prejudice, stereotyping, or discrimination based on one’s sex or gender. Sexism can affect anyone, but throughout history it primarily affected women and girls. It has been linked to gender roles and stereotypes, and may include the belief that one sex or gender is intrinsically superior to another.

Extreme sexism may foster misogyny, sexual harassment, rape, and other forms of sexual violence. Discrimination in this context is defined as discrimination toward people based on their gender identity or their gender or sex differences. A notable example of this is workplace inequality. Sexism may arise from social or cultural customs and norms”.

Gender discrimination is a term used to describe situations where individuals are treated differently based on their gender. Typically, those who have historically held power (often men) are given better treatment than those who have historically been marginalised (often women). This discrimination can have negative impacts on how individuals develop their careers, navigate their workplaces, and how laws and policies are created to support different gender groups.

Our societies teach us, through a multitude of mechanisms, what is deemed appropriate or inappropriate behaviour, what we should study, what career paths we should pursue, and how we should imagine our future based on our gender. Unfortunately, women and men are often perceived as possessing different capabilities or skills that are deemed more suited for certain positions at work.

This has resulted in men studying certain careers while neglecting others that are traditionally associated with women, and vice versa. Consequently, certain careers and jobs have become dominated by men, while others have become dominated by women.

To see this more clearly, let’s take a look at some numbers: 

Some female-dominated jobs:  

  • 97.78 % of nurses and assistants are women. 
  • 95,65% of legal secretaries are women. 
  • 89,09% of dancers and choreographers are women. 
  • 88,45% of receptionists are women. 

Image Source: Zippia

Some male-dominated jobs:  

  • 99,19% of vehicle technicians, mechanics and electricians are men. 
  • 98,97% of carpenters and joiners are men. 
  • 96,4% of electrical and electronic technicians are men. 
  • 95,38% of telecommunication engineers are men. 

Image Source: Zippia

The disparity between certain jobs being dominated by one gender is a result of enculturation and education within our specific contexts. However, these realities can be changed if we challenge the invisible social norms that dictate which jobs are suitable for men and women. This will require the implementation of new policies, different role models, and a better-designed education system.

Despite progress, women are still paid less than men, with a global estimated gender pay gap of 20%. Job segregation and wage discrimination contribute to this problem.

Let’s see some of the factors causing the gender pay gap:

  • Women tend to work in underpaid sectors compared to men.
     
  • Women are not occupying enough leadership positions and are not being promoted as much as men.

  • There is gender wage discrimination making women in every country earn less than men for the same work.

  • Women pay a big professional price for getting pregnant, as they are often expected to prioritise caregiving responsibilities over their careers. This can result in women gradually stepping back from their professional roles to become full-time caregivers, mothers, and homemakers, while also being responsible for their children’s health and education.

Patriarchy, Feminism and Women’s rights

To gain a deeper understanding of the gender gap, women’s rights, gender inequality, and gender discrimination, it’s essential to first comprehend the underlying causes of this global problem. Gender Studies provides an analytical framework that helps us understand the social system of patriarchy, in which men hold primary power and authority over women, both in private and public spheres.

This system is characterised by a set of norms and practices that sustain and reinforce male dominance and control over women’s lives, attempting to exclude them from full participation in political and economic activities.

Gender Studies are traditionally studied in social science and humanities specialisations, addressing issues such as gender identity, sexuality, feminism, queer studies, and men’s studies. It explores the intersection of gender and sex with politics, race, ethnicity, social class, or nationality.

Several classic authors have contributed to our understanding of the roots of gender inequality and the feminist movement worldwide, including Simone de Beauvoir, bell hooks, Judith Butler, Donna Haraway, and Angela Davis.

Contemporary authors such as Kate Manne, Chimamanda Ngozi Adichie, Jane Pilcher, Rebecca Solnit, and Fatema Mernissi have also made significant contributions to feminist literature. Additional feminist literature authors can be found on this list.

Around the world, women have faced restrictions, control, and supervision by men, preventing them from driving, opening their own bank accounts, dressing as they like, or having access to healthcare or voting rights. Thanks to the feminist movement and women fighting for their rights, many rights have been won, but inequalities still exist in many countries, including developed ones in the West.

A historical perspective can help us understand where we stand today and how much still needs to be changed. In this BBC video, you can see how the feminist movement helped women acquire more rights and what their status was like before.

Despite the progress made by the feminist movement, gender inequalities still persist in many countries, including developed ones in the West. These inequalities range from restrictive dress codes to limitations on women’s access to certain professions.

TRT World has produced a video that highlights how some countries still have laws that restrict women’s rights and freedoms, providing a current perspective on the ongoing struggle for gender equality.

Gender Inequalities

Gender inequality is a major injustice that affects our daily lives all around the world. The gender gap has a direct impact on overall economic growth, with only 50% of women participating in the labour force compared to 80% of men globally. The World Inequality Report 2022 examines other global inequalities, such as wealth, income, and ecology, which intersect with gender inequality in interesting ways. It is evident from various indices, reports, and studies, including historical ones, that gender inequality against women and in favour of men exists worldwide. In various areas, the gender gap can be observed in general terms. Additionally, the Covid-19 pandemic has had a regressive impact on gender equality in recent years.

According to McKinsey’s report: 

“Women make up 39 percent of global employment but account for 54 percent of overall job losses. One reason for this greater effect on women is that the virus is significantly increasing the burden of unpaid care, which is disproportionately carried by women. This, among other factors, means that women’s employment is dropping faster than average, even accounting for the fact that women and men work in different sectors”.

However, not all countries have the same level of gender inequality. The Global Gender Gap Index, an annual report published by the World Economic Forum since 2006, reveals that while every country has a gender gap, it is less pronounced in Iceland, with a gender parity rate of 90.8%, compared to Afghanistan, which has a rate of only 43.5%. These differences between countries have a significant impact on the way men and women experience various aspects of their lives, as measured by the index’s four sub-indices and 14 indicators:

  1. Economic Participation and Opportunity: 
    1. Labour-force participation rate. 
    2. Wage equality for similar work.
    3. Estimated earned income
    4. Legislators, senior officials and managers
    5. Professional and technical workers

  2. Educational Attainment:
    1. Literacy rate
    2. Enrolment in primary education
    3. Enrolment in secondary education
    4. Enrolment in tertiary education

  3. Health and Survival:
    1. Sex ratio at birth
    2. Healthy life expectancy

  4. Political Empowerment:
    1. Women in parliament
    2. Women in ministerial positions
    3. Years with female/male head of state (last 50)

The following graph illustrates 2022’s results across the 146 countries covered by the latest index: 

Image Source: Global Gender Gap Report 2022

As shown in the image above, the Global Gender Gap for 2022 is 68.1%, but there are significant differences between subitems: 

Economic Participation and Opportunity

This subindex presents the second-highest range of variation. In comparison to the previous year, there is an increased difference observed between economies, with the lowest score of 18% for Afghanistan and the highest of 88% for Laos. These figures demonstrate that global economic equality is highly unequal among different economies. On average, higher-income economies score 69%, upper-middle-income economies score 68%, and low-income economies register 66%. The least performing are the lower-middle-income economies, with a score of 63%.

Educational Attainment

In terms of the Educational Attainment subindex, scores appear to be relatively balanced, although there is a growing gap between countries towards the lower end of the spectrum. The performance of countries on this dimension varies significantly, with rates ranging from 48% to 100%. 29 countries achieved full gender parity on this subindex, including 17 high-income economies, three lower-middle-income economies, and nine upper-middle-income economies. On average, high-income and middle-income economies achieved a parity score of 99%, while lower-middle-income and low-income economies scored 95% and 81%, respectively.

Health and Survival 

The subindex of Health and Survival shows the most consistent performance, with minimal variation and the smallest global gender gap. Most countries on this dimension have nearly achieved parity, with attainment levels ranging from 93% to 98%. Throughout the entire index, 141 countries from all regions have closed at least 95% of their Health gender gaps, although no country has reached parity in 2022. Qatar, Pakistan, Azerbaijan, China, and India are the only five countries with gender gaps larger than 5%.

Political Empowerment

We find the biggest global gap in Political Empowerment, with an average global score of 22%. There is a wide variation in scores among countries, ranging from 0% in Vanuatu, indicating no parity at all, to 87% in Iceland, representing the highest progress achieved.

The subindex of Political Empowerment has not shown any progress compared to last year, with no significant changes in its three indicators. This subindex has the largest remaining gender gap of all subindexes, with a global average score of 22% and the widest range of variation among countries. 

Apart from Iceland, only 11 countries have closed more than 50% of their gap on this subindex: Finland, Norway, New Zealand, Nicaragua, Costa Rica, Rwanda, Germany, Bangladesh, Sweden, Ireland, and South Africa. 

Vanuatu, Kuwait, Brunei, Qatar, Iran, and Nigeria have more than 95% of the gap to close. About 39% of countries in the index performed above the subindex average of 22%, which is the same proportion as in 2021, indicating a significant skew of the distribution towards the lower end of the subindex. 

The following graph depicts the indicators for each world region categorised by subindexes. On average, North America and Europe have achieved higher levels of parity in 2022, whereas South Asia, the Middle East, and South Africa exhibit lower levels of parity: 

Image Source: Global Gender Gap Report 2022

According to the Global Gender Gap Report 2022, these are the years to focus on closing the gender gaps, although we hope that someday gender parity will be achieved worldwide: 

“Based on the evolution of the global average scores for each subindex over the past 16 editions for the constant sample of 102 countries, at the current rates of progress, it will take 155 years to close the Political Empowerment gender gap, 151 years for the Economic Participation and Opportunity gender gap, and 22 years for the Educational Attainment gender gap. The time to close the Health and Survival gender gap remains undefined as its progress to parity has stalled”. 

Examining the top 10 countries with the smallest gender gap in the world, as outlined in the Global Gender Gap Report 2022, can offer valuable insights. While the global south generally performs poorly, there are a few noteworthy exceptions that demonstrate how political action can rapidly address gender inequality.

This is the case of Rwanda, ranking 6th worldwide (ranking better in Political Empowerment), where after the 1994 genocide and under the presidency of Paul Kagame, started to rebuild the country, as they didn’t have enough men to support the country’s economy, carried out aggressive reforms to include women in many spheres of public life. 

For instance, they reserved 30% of parliament seats for women. Despite this progress, women in Rwanda still face high levels of sexual violence with inadequate legal protection. In 2015, 21% of women experienced physical and/or sexual intimate partner violence over the course of 12 months, and in 2010, 54% of Rwandan women claimed: “to have been in a partnered relationship and survived intimate partner violence”. 

The example of Rwanda serves as a useful illustration that the gender gap is merely one component of gender equality, which in turn is a fundamental aspect of human rights.

Image Source: Global Gender Gap Report 2022

The Gender Snapshot Report 2022 provides insight into the global progress towards achieving gender equality in various aspects of life and sheds light on the various forms of violence against women that continue to hinder their advancement.

Image Source: Gender Snapshot Report 2022

Further information about gender inequality can be found in the United Nations’ Sustainable Development Goals 2030, which includes «Gender Equality» as its fifth goal. This goal aims to address the various violations of women’s rights that occur across the globe by setting objectives aimed at reducing inequalities and promoting gender parity for girls and women.

These Gender Equality objectives help us understand some inequalities lived by millions of women all over the world: 

  1. End all forms of discrimination against all women and girls everywhere.

  2. Eliminate all forms of violence against all women and girls in the public and private spheres, including trafficking and sexual and other types of exploitation.

  3. Eliminate all harmful practices, such as child, early and forced marriage and female genital mutilation.

  4. Recognize and value unpaid care and domestic work through the provision of public services, infrastructure and social protection policies and the promotion of shared responsibility within the household and the family as nationally appropriate.

  5. Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.

  6. Ensure universal access to sexual and reproductive health and reproductive rights as agreed in accordance with the Programme of Action of the International Conference on Population and Development and the Beijing Platform for Action and the outcome documents of their review conferences.

  7. Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance and natural resources, in accordance with national laws.

  8. Enhance the use of enabling technology, in particular information and communications technology, to promote the empowerment of women.

  9. Adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and the empowerment of all women and girls at all levels.

As a window to the future, this UN Women video illustrates the technological advancements expected to occur before global gender equality is achieved.

Gender Gap. How big is the gender gap in the digital tech industry, and how is it affecting the sector?

According to the Bridging the Digital Gender Divide Report produced by the OECD, gender-based digital exclusion has many possible causes rooted in social, cultural, political or economic behaviours: 

“Hurdles to access, affordability, (lack of) education and skills and technological literacy, and inherent gender biases and socio-cultural norms, are at the root of gender-based digital exclusion. Enhanced, safer and more affordable access to digital tools is critical, as are policy interventions addressing long-term structural biases”.

Addressing gender disparities is not only a matter of justice and equality, but it is also a crucial factor for the growth and development of economies worldwide. Research has shown that closing the gender gap can have a positive impact on GDP, increase productivity, and promote innovation.

Empowering women in the workforce can lead to higher levels of consumer spending, better decision-making processes, and more inclusive and sustainable societies. Therefore, investing in policies and initiatives that promote gender equality is not only morally imperative but also economically beneficial. IMF affirms that: 

“We know that in countries with greater gender inequality just closing the gap in women’s labor force participation could increase economic output by an average of 35 percent […] In Norway, the expansion of universal childcare increased the likelihood of mothers’ employment by 32 percentage points”.

The Gender Employment Gap Index (GEGI) was established by the World Bank to quantify the potential benefits of gender equality in the workforce worldwide. According to the GEGI, if the gender gap were closed and both males and females had equal access to paid employment, GDP per capita could increase by almost 20%. This would have a greater impact on developing countries, where the gender gap is wider, compared to developed countries, where the gap is smaller.

To know more about the Digital Economy and the Digital Divide, dive deep here:
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The Digital Economy

The Digital Divide

According to ITU, 57% of women access the internet worldwide, compared to 62% of men, which leaves a 6% internet use gender gap. And in Least Developed Countries: “only 19% of women used the Internet in 2020, compared to 86% in developed countries in 2019”. 

ITU establishes four kinds of global digital gender divide: 

  1. A gap in access and use of the Internet.

  2. A gap in digital skills and use of digital tools. 

  3. A gap in participation in STEM (science, technology, engineering and math fields). 

  4. A gap in tech sector leadership and entrepreneurship. 

Let’s examine each one of them more deeply.

Gender Access and Use of the Internet Gap

The connectivity of men and women to the internet is crucial for the growth of the digital economy. The following chart provides insights into how people globally are accessing the internet. Europe tops the chart with the highest share of internet users (89% female/90% male), followed by The Americas (83% female/83% male) and CIS (Commonwealth of Independent States) (83% female/84% male).

In developed regions, there is gender parity in internet usage. However, in developing regions, internet usage is comparatively lower, and the gender gap is higher. For instance, there is a 10% internet access gap in the Arab States, a 6% gap in the Asia Pacific, and an 11% gap in Africa. This digital divide needs to be addressed to ensure equal opportunities for men and women in accessing the internet.

Image Source: Statista

While significant progress has been made in increasing global internet access, the World Wide Web Foundation’s analysis of 2020 data reveals that almost half of the world’s population remains offline, with women in developing countries constituting the majority of the offline population. This reinforces gender disparities in digital access.

According to the Economist Intelligence Unit‘s country-level analysis, men are 21% more likely than women to be online, and this disparity increases to 52% in the world’s least developed countries.

Achieving universal internet access, a Sustainable Development Goal, will be impossible without narrowing this gap.

Gender Digital Skills Gap

Although Europe has one of the highest global access ratios to the internet and better internet connectivity, the European Digital SME Alliance reported that Europe only has 18% of ICT specialists in the job market and just 20% of graduates in ICT subjects.

On a global scale, women’s representation in different ICT specialisations is concerning:

“Gender inequalities are most pronounced in disruptive tech skills, which are strongly requested in emerging sectors like AI, robotics and cloud computing. According to the World Economic Forum, women make up only 26% of AI jobs globally. The situation is even more dire in cloud and data, where the numbers are 15% and 12% respectively”.

In accordance with the “I’d blush if I could: Closing gender divides in Digital Skills through Education” UNESCO’s report: 

“Today, women and girls are 25 per cent less likely than men to know how to leverage digital technology for basic purposes, 4 times less likely to know how to programme computers and 13 times less likely to file for a technology patent. At a moment when every sector is becoming a technology sector, these gaps should make policy-makers, educators and everyday citizens ‘blush’ in alarm”.

With the continuous growth of the Digital Economy, possessing digital skills has become essential for upskilling or reskilling in almost every sector. It has become increasingly crucial for individuals to fully participate in social, financial, health, education, and labour markets.

Gender STEM participation gap

While women and men have achieved a relatively balanced representation in undergraduate careers (45%-55%), postgraduate courses (53%), and PhD studies (43%), they still only make up 35% of all students in STEM fields (Science, Technology, Engineering, and Mathematics).

This is concerning because as the digital and global economies continue to grow, STEM fields are becoming increasingly important, and women’s under-representation in these fields could lead to a lack of access to high-paying jobs in the future.

It’s essential to encourage more women to study STEM for both their professional future and to reduce the gender gap. However, this requires changing the perception of STEM careers as traditionally male-dominated fields. Research has shown that these fields are often stereotyped as being for men, which can discourage women from pursuing them.

A clear example of male dominance in STEM fields can be seen in the map below.

Image Source: World Bank

Naturally, the gender gap in STEM fields has nothing to do with women’s intellectual ability to excel in these areas. Instead, it stems from a lack of self-confidence, male stereotypes associated with these fields, and a pervasive male-dominated culture. The following graphic illustrates the percentages of women in different STEM fields in the US between 1990 and 2020:

Image Source: Zippia

The following image is a graph illustrating the gender gap in STEM fields in the UK:

Image Source: STEM Women

The ICT (Information, Communication, and Technology) industry in the EU is composed of only 17% women. When it comes to women’s participation in ICT degrees, Women in Tech provides the following statistics:

“Women account for a mere 16% of those who earned a Bachelor’s degree in computer and information sciences, 21% of Engineering and Engineering Technology graduates, 27% with an Economics background, and 38%, Physical Sciences degrees recipients respectively”.

To help us gain a better understanding of the issue, we will present a few statistics shared by Zippia regarding women in STEM and ICT fields.

  • Women hold fewer than 20% of leadership positions in the tech industry; only 19% of senior vice presidents and 15% of CEOs in the tech industry are women.

  • 39% of women in tech say that they see gender bias as an obstacle to getting a promotion.

  • 34% of Apple’s workforce is female, while only 24% of its technical jobs are held by women.

  • Women in tech were almost twice as likely as men in the same industry to leave their jobs, be laid off, or be furloughed during the Covid-19 pandemic.

To know more relevant statistics and data of women in STEM, please visit this page. 

Gender Tech Leadership and Entrepreneurship gap

The gender gap in the technology industry leadership is gradually decreasing, particularly among the largest corporations. While women have historically been underrepresented in technical and leadership positions, their representation is now increasing at a faster rate: 

Image Source: Deloitte

You can find 100 noteworthy female leaders in technology to keep an eye on in 2023 on the Women Tech Network page, which adds a personal touch to the statistics.

BCG affirms that as women progress towards leadership positions, they encounter obstacles that are typically not experienced by men. These challenges include extended leaves of absence due to caregiving responsibilities, a lack of supportive role models and peers, and greater pressure to prove their skills, particularly in the field of technology.

Consequently, women often feel the need to work harder than their male counterparts to receive the same level of recognition.

Also, when pursuing a promotion, women and men behave differently. Men rely more on their confidence, and women more on external sources. 

Image Source: BCG

The Women’s Entrepreneurship Report 2021/22 by Global Entrepreneurship Monitor reveals that women constitute 40% of global early-stage entrepreneurs. However, men tend to start more businesses than women, as illustrated in the chart below.

Image Source: GEM

And for the potential reasons behind female founder statistic, the Women’s Entrepreneurship Report explains:

“Women and men tend to start businesses for different reasons, with job scarcity being the most reported startup motivation for all entrepreneurs. Globally in 2021, women were more likely than men to report key motives for starting a business being to make a difference (52.9% women vs. 51.0% men) or due to job scarcity (72.5% women vs. 67.2% men). Meanwhile, men were more likely to report starting a business in order to build wealth (56% women vs. 63.3% men) or to continue a family tradition (32.9% women vs. 35.7% men). These gender differences were generally consistent across national income groups”.

When it comes to businesses started across various industry sectors, and gender worldwide, the disparity between low-middle-income countries, upper-middle-income countries, and high-income countries is notable.

One key observation is that women’s participation in ICT startups is significantly lower than men’s globally (2.7% compared to 4.7% for men), despite the fact that the ICT sector garners the majority of venture capital funding both in the US and worldwide.

Recommendations from our Gender Experts

Despite living in different regions of Europe, South America, and North America, our experts shared similar experiences and challenges faced by women in their respective countries. They also discussed similar approaches to addressing these challenges.

Social media has played a crucial role in connecting people and amplifying social movements. The fight for gender equality is no different. Women around the world can now access information, share their experiences and struggles, and join global social movements more easily than ever before. This has been demonstrated by the #MeToo movement, which originated in the US and has since spread globally, highlighting issues such as sexual abuse, harassment, and rape culture.

The feminist protests in Chile in 2020, where women united to fight against gender inequality and shared their message with the world through their popular song «A Rapist in Your Path«, serves as another recent example of women fighting for their rights and publicly protesting their situations.

In this section, we will summarise the opinions and insights of experts in the field of gender and technology. From our conversations, we have gained valuable insights into the current state of gender equality in the tech industry, the challenges that women face, and the steps that can be taken to promote diversity and inclusion in this field. Let’s take a closer look at what our experts have to say.

Highlights from our Gender Experts. Problematics and Possible Solutions.

1. The Gender Gap begins in childhood

The roots of gender division and discrimination can be traced back to the home environment where girls were traditionally taught to be caregivers and housewives through various means, such as playing with dolls, kitchens, and baby toys, while boys were encouraged to be strong providers and problem-solvers through toys such as cars, robots, and legos. This early conditioning can influence their future career paths and job preferences.

For example, girls who were encouraged to care for babies may develop an interest in nursing or become mothers themselves, while boys who played with legos may develop an engineering-oriented mind for problem-solving and construction. Although toys are not the sole determinant of future career outcomes, they serve as a tangible example of how gender roles are reinforced early on in life.

Possible solutions: 

Our experts propose a potential solution to this issue by advocating for a change in how we educate our children. By breaking down social constructs surrounding gender, we can help our children escape the limitations imposed by gender roles. It is important to encourage the development of children’s personalities and interests beyond traditional gender categories.

 

2. Women are less self-confident when applying for a job

Men are more likely to apply for a job even if they do not meet all the requirements, whereas women tend to only apply if they are certain they meet at least 90% of the qualifications. 

This discrepancy may be attributed to differences in socialisation, where men are encouraged to be confident risk-takers, while women are often more cautious. While the accuracy of this statistic is debated, it is commonly cited to illustrate the issue. Additionally, some HR professionals may ask inappropriate questions to women, such as about their marital status or plans for having children, which can introduce bias into the selection process and create anxiety for women about their family and career choices.

Possible solutions:

Overcoming self-confidence issues during the job search process could be facilitated by more transparent and flexible job offers, as well as impartiality in the selection process, regardless of gender. Women often fear biased hiring processes, which could be addressed by ensuring more realistic job descriptions and using neutral gender language. Additionally, human resources professionals could promote equality by

implementing maternity and paternity leave policies that support both men and women in their caregiving responsibilities.

3. Women are held back from risk

When men and women collaborate in group activities, men tend to warn women about the risks that some activities may pose, so they take those perceived as riskier activities and let women do other types of work more related to organising, design, details, or handwriting. 

Possible solutions:

Childhood education is the key to avoiding stereotypical ideas about women and men in the workforce, their capabilities and their strengths. Promoting assertive communication, expressing one’s boundaries and seeking for supportive networks are also crucial to ensure everyone feels safe in the workforce.  Having the right emotional tools to confront reality is also beneficial, but we don’t live in a perfect world, and jokes, mockery, and other forms of humiliation exist. 

4. Women’s associations and communities are a big help

Women can benefit greatly from having a network of other women who share the same professional experiences and can offer mutual support. Such a network can help women to gain self-confidence, explore new career opportunities, feel safe and navigate the male-dominated digital job market.

Innovative initiatives like creating a «safe space» can empower women to discuss negative experiences they may face in their workplaces. If a woman reports misconduct from a colleague and her concerns are dismissed or ignored, she is more likely to feel vulnerable and unsafe in her job, and may ultimately choose to leave the company.

Possible solutions:

creating more women-led associations and communities like Women in Tech and similar groups could be a helpful step. These communities can provide a safe and supportive space for women to connect with one another, share their experiences, and gain valuable insights into the tech industry.

Women in Tech and similar groups have been successful in creating a sense of belonging for women in the tech field. By connecting with like-minded women, members are able to find inspiration and motivation and gain confidence to pursue their professional goals. They can also access resources, tools, and mentoring programs specifically designed to support women in tech.

5. Internships, Scholarships and Quotas are good

To increase women’s participation in the tech industry, schools, universities, and companies should provide opportunities such as internships, scholarships, and quotas. These initiatives help women to feel encouraged and included in the field and demonstrate that there are resources available to support them. By offering these opportunities, women can gain valuable experience and develop the necessary skills to pursue careers in tech. It also sends a message that diversity and inclusion are essential values to these organisations.

Possible solutions:

Offering scholarships and mentorships for women in tech is an effective way for companies to address the gender gap in the industry. Not only does it provide financial support for women who may not have had access to such opportunities otherwise, but it also offers guidance and support from experienced professionals.

Companies should continue to prioritise these initiatives as they not only provide benefits for the individual women who receive them but also for the company itself. By increasing the diversity of their workforce, companies can benefit from different perspectives and experiences, leading to more innovation and better problem-solving.

Moreover, mentorship and scholarship programs also serve as a way for companies to show their commitment to gender equality in the tech industry. It’s not only about filling diversity quotas but about creating an inclusive environment that values the contributions of women in tech. By investing in women’s education and professional development, companies can help to break down barriers and encourage more women to pursue careers in tech. 

6. Role models are a huge boost

The underrepresentation of women in STEM and ICT fields has resulted in a lack of visible female role models in the industry. This poses a significant challenge for women who may struggle to identify with and relate to the experiences of male counterparts, leading to a reduced interest in pursuing a career in tech.

To address this issue, companies can take steps to actively promote and celebrate the achievements of women in tech, highlighting their contributions and sharing their stories as role models. Encouraging and supporting women to become mentors can also help to establish a network of female leaders in tech, providing guidance and inspiration for the next generation of women in the industry.

Possible solutions:

While promoting women’s associations and organising events to meet role models is a good start, it is important to recognise that this alone may not be enough to address the lack of women role models in tech. Companies can take an active role in promoting diversity and inclusion by ensuring that women are well-represented at all levels of the organisation.

This can include creating mentorship and sponsorship programs that pair junior female employees with senior leaders, promoting women to leadership positions, and offering training and development opportunities to help women advance in their careers.

Additionally, it’s important to encourage more women to pursue careers in tech by offering scholarships, internships, and other programs that provide them with the skills and knowledge they need to succeed. By providing these opportunities, companies can help women gain the confidence and experience they need to become role models for future generations of women in tech.

7. Life-work balance is important 

As women continue to be the primary carers in many societies, and they are typically the ones who take time away from work to care for their children, they require better work-life balance solutions. Remote work, flexible work, or hybrid work may be viable options. 

Possible solutions:

On the one hand, a solution to this problem is encouraging men to take the same responsibility at home. This is a social effort as it entails enormous educational and cultural shifts. Companies can ensure female and male employees can access family-focus flexibility and maternity and paternity leave. 

A word of inspiration from our Gender Experts

If you’re a woman interested in a career in the digital market, our expert’s advice is to take the risk and go for it! The technology industry can be a difficult and competitive field, but it can also be extremely rewarding and exciting, and there are numerous opportunities available for women who are passionate about technology and innovation. 

These are the top tips shared by our experts for getting started in the digital market:

  • Focus on developing your skills and knowledge: Take courses, attend workshops, read books and blogs, and practice coding and other tech skills independently. This will help you build a strong foundation of knowledge and expertise, making you a more competitive candidate for jobs in the industry.

  • Build a strong network: Networking is key in the tech industry, and building connections with other professionals in the field can help you learn about new opportunities, get advice and support, and connect with mentors and sponsors. Attend industry events, join online communities, and connect with other women in tech to start building your network.

  • Be persistent and resilient: The tech industry can be tough, and there will be setbacks and challenges along the way. But don’t let these discourage you! Be persistent in pursuing your goals, and don’t be afraid to ask for help or advice when you need it. Remember that setbacks and failures are a natural part of the learning process, and that every challenge is an opportunity to grow and improve.

  • You belong in Technology. You belong in your Engineering and Computer Science class. Even though you don’t see many of you around you in these spaces, please know: we are here and united.

  • Find your tribe. Find your community of women in STEM, Tech, and in Digital. We can only change our environment if we pave the way. The field might be lonely, but we can only change the environment. One day at a time, one position at a time.

  • Advocate for yourself and others: Finally, don’t be afraid to advocate for yourself and for other women in the industry. Speak up about your achievements and successes, and don’t be afraid to ask for promotions, raises, or other opportunities. And remember to support and uplift other women in the field as well, whether through mentorship, sponsorship or simply by being a supportive colleague.

Table of Contents

Understanding the roots of the Gender Problematic

Sexes and Genders to understand diversity

Sexism and its social consequences

Patriarchy, Feminism and Women’s rights

Gender Inequalities

Gender Gap. How big is the gender gap in the digital tech industry, and how is it affecting the sector?

Gender Access and Use of the Internet Gap

Gender Digital Skills Gap

Web development

Gender STEM participation gap

Gender Tech Leadership and Entrepreneurship gap

Recommendations from our Gender Experts

Highlights from our Gender Experts. Problematics and Possible Solutions.

A word of inspiration from our Gender Experts

SPAIN

Gender gap. How big is the gender gap in the digital tech industry, and how is it affecting the sector?

Spain is the sixth country with the highest gender equality indices among European Union countries, according to the annual classification presented by the European Institute for Gender Equality (EIGE). In the past year, we have moved up two positions and are almost six points above the European average, but full equality is still far away.

Like many other industries, the tech industry in Spain has historically suffered from a significant gender gap: women have been underrepresented in technical and leadership roles, and this has led to a lack of diversity in the industry as a whole. 

The technology sector in Spain is rapidly growing, with over 530,000 people directly employed in the industry. According to the Mujer y Tecnología report by Experis,  the number of positions for technology professionals doubles every two years, making it one of the most in-demand sectors in the country. However, the report highlights that there is still a significant gender gap in the industry, with only 20.6% of employees being women. This is below the ratio of women in the active Spanish population, which is 32.2%. The report also proposes solutions to address this issue, including the need for at least half of the 240,000 qualified professionals the industry expects to hire this year to be women, increasing their representation in the sector.

The report «Mujeres e Innovación», by the Spanish Observatory for Women, Science, and Innovation, data suggests that one out of every three Spanish companies had female ICT specialists, while only 6% had at least 50% of their specialists being women: 

Image Source: Ciencia.gov.es

According to the Yo Trabajo Gratis report by UGT (“I work for free”), in the EU, women, on average, earn 13% less per hour than men. This equals one and a half months of salary per year (47 days of pay). In Spain, women earn 9.4% less than men in compensation per hour. That amounts to 34 days per year that they work for free. Starting from a wage gap of 16.2% in 2010, it increased to 18.7% in 2012 but decreased to 9.4% in 2020.As a result,  Spain ranks eighth in the lowest wage gap in hourly salary among its European neighbours: 

Image Source: UGT

The Spanish government is taking steps to close the gender pay gap through the Real Decreto 902/2020 on equal pay between women and men. This law allows individuals to know about the pay gap and wage discrimination that exists in the workplace, intending to correct and eliminate it through mandatory pay records in all companies in the country, regardless of size, and salary audits that must be negotiated within equality plans. This move towards greater transparency is expected to help close the gender pay gap in the country.

The gender gap is rooted in education

The gender gap in the technology industry often starts long before women enter the workforce. One of the key factors is the underrepresentation of women in technology-related education and training programs. This can limit the pool of qualified female candidates for technology jobs and perpetuate the gender imbalance in the industry. According to this UNESCO report, only 35% of students enrolled in higher education STEM-related degrees are women, and only 3% of female higher education students study Information and Communication Technology (ICT) subjects.

The «Data and Figures 2020-2021» report by the Ministry of Education and Vocational Training found that in the 2019-2020 academic year, women made up 55.3% of all enrolled students. Although the gender distribution in different areas of education is varied, the biggest disparities can be seen in Engineering and Architecture fields. The report supports this finding, revealing that just 29% of students enrolled in engineering programs are women, and an even lower 13.4% in computer science university degrees.

According to a 2022 report Titled Radiografía de la brecha de género en la formación STEAM (“Examining the Gender Gap in STEAM Education») by the Spanish Ministry of Education, science is studied much more by women than men in Spain. More women are enrolled in biomedicine (75% of students are women), medicine (68.7%), biochemistry (65.8%) and biotechnology (61.7%), although in high school, only 5% of women say they will dedicate themselves to «professions in the field of science and engineering, while the percentage of boys is 15.3%».

The absence of women is noticeable in careers such as computer science, dominated by men (87% of males), telecommunications (77%), industrial (74%) and physics (73%). According to official data, they are equal in chemistry, with 51% women. 

This graph illustrates the number of female students studying STEM-related degrees in 2020: 

Image Source: El Correo

The chart demonstrates that among STEM (Science, Technology, Engineering, and Mathematics) degrees, those in the technology field, including Computer Science and IT, have the lowest representation of female students.

Evidence suggests that the underrepresentation of women in STEM fields has nothing to do with their ability or performance. According to the Fundación “La Caixa” in a report titled “El ámbito de las STEM no atrae el talento femenino” (The STEM field does not attract female talent), women who enrol in STEM degrees at universities have a lower dropout rate compared to men, with the gap being between 2-6 percentage points. Additionally, academic performance, measured by the percentage of approved credits compared to enrolled credits, has shown that women in STEM outperform men in most subjects. In the academic year 2019-2020, women passed around 88% of the courses they enrolled in compared to 80% for men. 

The Spanish government is questioning why new generations continue to choose similar career paths as previous generations. According to the Ministry of Education in the Radiografía de la brecha de género en la formación STEAM, this is due to a differentiated socialisation of boys and girls, along with strong gender stereotypes and biases that reinforce a segregated model where boys are expected to invent and calculate. In contrast, girls are expected to care for and attend to the community’s well-being. This bias can be seen in the percentage of women choosing degrees in areas such as Nursing or education. The document concludes that girls start to shy away from these disciplines in elementary education, and that’s when action must be taken.

The startup ecosystem needs more women

The Covid-19 pandemic has significantly impacted women entrepreneurs in Spain, causing a decline in their ability to start and grow businesses. The economic turmoil brought about by the pandemic has resulted in a reduction in available funding and investment opportunities, making it harder for women to launch new ventures. As a result of these challenges, Spain has dropped from 9th place to 15th place in the MIWE2021, a report that analyses the conditions for female entrepreneurship in 65 economies worldwide. This decline highlights the challenges women entrepreneurs in Spain continue to face and the need for greater support and resources to help them overcome these challenges and succeed in their ventures.

According to the SouthSummit Entrepreneurial Map 2022, women only make up a small part of the Spanish startup ecosystem, precisely 20%, a figure that has not changed in the last eight years. More alarming is the fact that six out of ten startups are founded solely by men, and only 6% have been launched solely by women.

In the report, data shows that 51% of women are serial entrepreneurs compared to 62% of men. Additionally, 42% of women state that they have failed in a previous entrepreneurial venture, and only 24% indicate that they have successfully sold a startup, 9% less than men. What’s more, 39% of female founders don’t remain in the management team over time.

As for the sectors with the highest female presence, the 2022 ranking has changed compared to 2021, with health taking the top spot, followed by social impact and fintech. An analysis by Oliver Wyman showed that Spain was the country with the most female fintech startup executives in Europe, at 25%, which is higher than the average of 20% across the continent. Despite this, the percentage is still far from gender parity in a traditionally male-dominated sector.

Regarding the reasons behind starting a business in the SouthSummit report, more women cited recognising an opportunity in the market as their motivation. At the same time, men tended to give the response: «I’ve always wanted to be an entrepreneur».

Image Source: South Summit

The W Startup Community created the first ever female entrepreneurial research in Spain, titled “El emprendimiento digital femenino en España” (Female Digital Entrepreneurship in Spain), focused exclusively on understanding why and how women start businesses in the digital tech industry. 

The research found that the profile of women who venture into the digital field in Spain is quite broad, although the largest concentration is under these characteristics: 

  • Between 35 and 45 years old, highly qualified (with a university degree and a Master’s or PhD). 

  • With professional experience, employed by a third party at the time of venturing, with at least 15 years of work experience. Having reached a position of responsibility in the business world, as a middle manager or even in top management. 

  • She feels that she has enough capabilities to venture (82.6%) despite improving her knowledge of creating and managing businesses. 

  • Some female entrepreneurs (44.1%) acknowledge that they decided to venture to improve family life with personal and work life. The majority have done so, however, to increase their independence. This is what they call the #motherfounders movement, mother entrepreneurs.

One of the biggest challenges they face is funding. The following graph illustrates how the primary source of financing was the entrepreneur’s family and friends (62.1%).

Image Source: W Startup Community

A Business Angel was involved in 11.2%, while only 8% involved a bank. In a much smaller measure, financing was obtained from another private company (5%), national public funds (5.6%) or European funds (4.3%). The participation of venture capital funds was the lowest (3.7%), which can be partly explained by the early stage in which most of these companies are, but also by the configuration of Spanish entrepreneurship ecosystems. Of those who received funds from a Business Angel, all except one were men, probably because they are the majority in general terms.

GERMANY

Gender gap. How big is the gender gap in the digital tech industry, and how is it affecting the sector?

The tech industry in Germany employs around one million people, but just 17% of tech jobs are held by women, despite the fact that women make up nearly half of the country’s workforce. This disparity between the number of women working in the tech industry compared to the overall workforce is referred to as the Gender Gap.

The lack of representation of women in technology is not just a problem for companies and their diversity and inclusion initiatives. It starts long before people enter the workforce and is already evident in students’ career choices. According to data from Erudera, Women made up nearly 35% of students in STEM courses at German higher education institutions during 2021, despite being 52% of higher education overall. 

Negative stereotypes can play a significant role in preventing girls from pursuing careers in STEM fields, including in Germany. The stereotype that STEM fields are only for men or that women are not as naturally gifted in these areas can create a self-fulfilling prophecy and discourage girls from pursuing STEM degrees. Girls may also experience a lack of female role models in STEM or face gender bias in the classroom or workplace, further hindering their interest and involvement in the field. Addressing and combating these harmful stereotypes is crucial in promoting gender equality and encouraging girls to pursue careers in STEM. 

These stereotypes are vital to understanding women’s underrepresentation in the tech industry and their overall perception of tech, and the role it plays in their lives. According to the Digital Gender Gap study, women tend to achieve a lower level of digitalisation than men, which can limit access to information, hinder job opportunities, reduce efficiency in various industries, and contribute to the digital divide between different socioeconomic groups. Additionally, lower levels of digital literacy can lead to increased vulnerabilities to cybercrime and misinformation. Bridging the digital divide and promoting digitalisation is essential for ensuring a level playing field and equal opportunities for all. Differences in digitalisation (or self-perception of digitalisation) become apparent at young ages:

Image Source: Digital Gender Gap

This digitalisation divide can impact how people feel towards studying STEM-related degrees and pursuing a career in the technology industry. This divide, unfortunately, is not only limited to self-perception in younger ages, it continues throughout higher education, and it’s also apparent when women join the workforce.

One of the Key Opinion Leaders, N. is the CEO and founder of a platform that connects women across the IT industry and provides initiatives for female founders. Regarding women entering the tech industry, she points out:

Soundbite:

“women in particular, …especially if they are career changers coming from anything but computer science, computer engineering as a background, they should be aware because they will be confronted with… and a lot of those challenges are not the things that you read about on LinkedIn (…) I mean, it’s a lot of complicated, systemic bias, and problems like that… I feel like women have to be made aware of before they get into a tech company and feel like they’re the only ones that are experiencing some of these pressures”. 

N. also mentions how women in the German tech scene hardly have any role models representing women in leadership roles. The lack of role models in the industry severely impacts how young girls perceive tech and the possibilities they have. 

According to a European survey by Microsoft, most girls become interested in STEM at the age of 11 but reconsider when they are 15. Surveyed girls named “a lack of female role models” as the main reason they didn’t pursue a career in the sector. Moreover, 60% of participants said they would feel more confident pursuing a career in STEM fields if they knew men and women were equally employed in those professions. 

N. talks bout how superstition in the industry plays a significant role in how women are perceived in the industry: 

Soundbite:

“There is a lot of scepticism about letting women make decisions in strategic, or leadership decisions because usually there has been no woman doing that before and once again superstition risk aversion. Why would you start? If you in successful in the past with no women, nowhere doing anything of note, Maybe you don’t actually need women in those roles. Why should you change things, right? It’s not broken. No need to fix it”.

When women overcome these initial access barriers and pursue a tech career, they can still face significant challenges within the sector. One of these challenges is a gender-based pay gap. In late 2019, a Honeypot study revealed that the German gender pay gap in the tech industry is one of the worst in Europe, with only Greece, Poland, Estonia, Slovakia, Lithuania, and the Czech Republic having a lower ranking. To be exact, male tech workers in Germany earn, on average, almost 15,000€ more per year than their female counterparts. 

This pay gap is not exclusive to the tech industry, as 2020 data suggests that Germany remains among the EU states with the highest pay disparity: 

Image Source: https: Destatis

There are two leading social reasons why women earn less, and in Chapter 8 of this volume, titled Gender Equity in STEM in Higher Education, authors Jennifer Dusdal and Frank Fernandez use the engineering sector in Germany as an example. Some researchers believe that pay disparities are due to the gender makeup of certain professions, with women earning less in male-dominated fields and more in female-dominated fields. Others believe that women earn less because they tend to work part-time. Studies have shown that in Germany, the pay gap between women and men is smaller when limited to full-time employees, and German women appear to be more willing to choose part-time jobs. The Covid-19 pandemic exacerbated the shift towards female part-time work. 

Women can also face social and cultural challenges once they enter the tech industry. As N. explains, they may face bias and myths about their performance, criteria or skills: 

Soundbite:

“Women entering the tech sector hearing … you know…  you’re not technical enough, you’re not strategic enough, you’re not analytic enough, You know, these general terms with no examples provided that are thrown around to basically say You’re not like the man or the man who’ve done this role before you, But there’s also women that I’ve had come back and tell me they’re being told You know you’re too technical. You don’t have a business understanding, you really won’t move up because you don’t have an understanding of business like the men who You know, I mean, I’ve had both”.

Facing academic, social and workplace challenges contributes to women exiting the tech industry earlier and more frequently than men. By the age of 30, only 20% of women in the EU are still working in the IT profession for which they have been educated; by the age of 45, the figure is as low as 9%, according to data from Third Equality Report of the German federal government. 

Female tech founders face different challenges, but they are still significant and relevant for the overall state of the industry. According to the Female Founders Monitor 2022, the share of female founders in Germany has risen to 20%, and 37% of founding teams currently include at least one woman – but they remain significantly underrepresented. For example, only 6% of female founders are active as business angels. The Female Founders Monitor also found that Female teams have a stronger focus on sustainability as part of their corporate strategy, and 61% say that their startups are committed to social entrepreneurship.

This overall map represents the Gender Gap in entrepreneurship from the Female Founders Monitor 2022:

The percentage of female founders in the German startup ecosystem has increased by 7.5% since 2013. Despite this progress, 63% of startups still only have male founders, indicating that there are still structural barriers in place and much work to be done in areas like networks and balancing work and life.

Data from the Gender Diversity in German and French Startups suggests that women are highly underrepresented as founders in all startup categories. 

Funding is also a concern for Female Founders, as women-led start-ups in Germany have an 18% lower chance of acquiring investor funds after their foundation. In the third round of financing, the probability of success is even 90% lower.

According to a 2019-2020 Boston Consulting Group study on German Startups Diversity, statistics demonstrate that there are still significant structural barriers in place for women in the startup world and that more work needs to be done in areas such as networks and work-life balance. Unfortunately, Germany lags behind other countries, such as France and the United Kingdom, regarding gender diversity in the startup world. At the present rate, the BCG study suggests that parity will not be reached in the German entrepreneurial ecosystem until 2139. 

In Germany, start-ups founded by women face a significant disadvantage in securing funding compared to those founded by men. According to the BCG report, female start-ups are 18% less likely to receive funding, receiving 25% less funding from prominent investors, 40% less likely to secure series-A (second round) funding, and a staggering 90% less likely to secure series-B (third round) funding.

The average funding received by female start-ups in Germany is also lower, coming in at 3.1 times less than that obtained by male-led start-ups, which is a broader gap compared to the UK (1.3 times) and France (2.5 times). This disparity is even more pronounced regarding valuation, with female start-ups valued 16.4 times lower than their male counterparts when raising seed funding.

The Female Founder Monitor expands on this funding disparity, adding that female teams are slightly less likely to secure funding (62% vs 64%). Still, the amount of funding they receive is vastly different. On average, female teams plan to raise external capital at a lower rate than male teams (65% vs 70%) and aim to raise smaller amounts. Female teams have a more cautious approach, targeting an average capital demand of €1.6 million, which is three times less than that of male teams.

Image Source: 2022 Female Founders Monitor

The absence of women in the tech sector, both in key leadership positions and technical roles, is detrimental not only to the industry but also to the economy’s potential growth. The homogeneity in the tech industry has been shown to be a hindrance to innovation and foster a less inclusive culture. For these reasons, the tech industry must take a proactive approach to promote diversity and inclusivity to build a workforce that reflects society’s rich diversity in the future.

PORTUGAL

Gender gap. How big is the gender gap in the digital tech industry, and how is it affecting the sector?

Portugal’s tech industry is becoming a more favourable environment for women in technology. Data from the job platform Honeypot shows that the pay gap for women in technology in Portugal is smaller than the overall gender pay gap in the country. This means that for women, pursuing a career in technology in Portugal is less financially risky than in other countries. 

The tech industry has a well-documented issue with gender inequality, including a lack of representation of women in leadership positions and a gender pay gap, so despite Portugal’s leading role in female tech, there are still many systemic industry-level biases that we need to reduce in order to reach true equality. 

Pioneers, a study conducted by Portuguese Women in Tech, looked at Portugal’s tech scene from a female perspective. According to the research, most Portuguese women in the industry work in management-related roles (13%), data-related roles (12%), or consulting (12%). Only 0.8% are tech investors, and only 1% are founders or co-founders of tech companies. 

Most of them earn a monthly salary between 1,000 and 1,499 euro, and 45% of respondents stated that a slow salary progression and low chances of career progression is the main reasons they consider leaving their jobs.

Ines Santos, a Portuguese Women in Technology co-founder, talks about how there is still a long way to go before parity is achieved, and the situation of women working in technology is not ideal.

Soundbite:

“you need to be aware even a lot of people think that things are getting better but that’s not necessarily the case. Within terms of percentage, it was the case, So right now in Portugal, the latest data that I have is like 14. I think it’s 14.4% of the professionals in it. I think it’s 14.4% of the professionals in it. ”

According to a Landing.jobs 2022 report, women’s representativeness has increased from 12.5% in 2021 to 18% in 2022. Although positive, the data still shows a significant imbalance in the tech scene. This chart shows gender distribution in Portugal’s tech companies:

This gender imbalance is not just an issue that affects the technology industry; it is a social and cultural concern that starts long before people enter the workforce. 

In Portugal, according to the OECD, women already account for 57% of all students attending higher education in the so-called STEM (Science, Technology, Engineering and Mathematics) courses. The number decreases as the courses become more specialised. 

Regarding education, Ines Santos says:

Soundbite:

«we don’t see a lot of girls going to or pursuing, like a tech university, the degree. Because and I think the reason is that they don’t understand what actually means or what it is to work in technology«.

She also points out the importance of role models and how close they can be to inspiring us to pursue technology careers:

«what it means to work in technology impact that can technology can have because I think we can have a very positive influence. On them. And I think parents also need to be really aware of like the opportunities of the job market… we need to provide as much information as possible, so they can have, then have made the best decisions….»

This graph 35 maps out the representation issue in the industry and notes that the less one feels they are being represented, the more they feel the environment isn’t inclusive. This leads to a lack of integration and feelings of not belonging: 

The problem seems to be not only in the area of inclusion or lack of industry knowledge as part of the socially learned barriers of expectations of where women should be. Within the industry, other barriers slow down their career development, all of which are related to a lack of representation and the feeling of not belonging. In Pioneers, 55% of respondents said they work in departments with only 2 women or fewer for every 10 men, and 10% of the workers are the only women in their departments. 

In the same way, the study points out that 47% of students don’t feel they are part of an inclusive environment, and many of the study respondents reported feeling unrepresented and discriminated against in a recruitment or promotion process. Reaching almost half of the sample surveyed, 49% have felt discriminated against in job promotion processes. 

In the following graph, we can see a list, in ascending order, of the positions in which women are most represented in the tech labour market. Women are represented in many roles, with a higher percentage in leadership positions, at 13%. This is followed by data and consulting roles, with around 12%. While 13% of the surveyed population are in leadership positions, the remaining percentage does not work in leading teams or managing people.

To face these challenges, Portuguese Women in Tech is working hard to educate girls, women and the general population in tech, diversity and equality. Some of their actions are at a corporate level, working to ensure that awareness of gender equality spreads and helping companies realise they must consider inclusion and diversity in their selection processes.

Soundbite:

«We are also working with technology companies to really help them to be more diverse and inclusive. I think they can go a long way right now. They’re much more aware of what’s going on. And they’re doing like intentionally creating initiatives to really, and to try to understand how to make sure that everybody feels welcome.” 

Their goal is to inform companies about discrimination and lack of representation in order to help close the gender gap and also organise actions to deal with day-to-day issues that can detract from an inclusive and comfortable environment for all workers.

Soundbite:

«create mentoring and sponsorship programmes to really support women so that they are like they are inside the company and make sure they advance in their careers. And a third thing is, really make sure that the hiring processes are not biased …. change the job offers, women only apply to one job offer. If they have 100% of the skills, many men applied. Apply, if they have 40% of the skills, and, from talking to a lot of tech companies, I know a lot of the times what happens is like they try to hire unicorns, but they don’t exist, but what it means is that women don’t apply for that job. The work is not only in terms of inclusion and dissemination, there is also a lot to be done in terms of training female talent…»

Another of the most significant issues to deal with before we can close the gender gap in tech is understanding the gap in salaries. Men still earn 16% more than women in tech jobs, and Portuguese Women in tech have different initiatives to promote the reduction of the gender gap in terms of wages. The most notorious one is the PWIT Salary Transparency Project, a community-driven database that offers nonfiction video professionals timely insight into constantly evolving hiring trends and pay parity practices.

The main takeaway to understand when discussing the gender gap is that it’s not a women-only problem; it results in a lack of diversity in the workforce. The gender gap is a systemic issue that must be addressed from many different angles: private and public efforts, education and, of course, social and cultural biases and stereotypes. All members of society and tech players are affected by the results of the gender gap, as its consequences go beyond “simple” workplace problems. 

When women are underrepresented in the tech industry, the perspectives, ideas, and experiences that they bring to the table are not being utilised. This can lead to a lack of innovation, as well as a lack of understanding of the needs of diverse groups of customers and users. The tech industry is becoming a massive wealth generator for Portugal, and it can’t continue growing and adding value to the economy if we don’t actively work towards closing the gender gap. 

FRANCE

Gender gap. How big is the gender gap in the digital tech industry, and how is it affecting the sector?

The French tech scene is growing rapidly and experiencing an unprecedented talent shortage. The industry is optimistic about its growth, and the support from public and private initiatives is making the sector flourish. Despite all the positives, less than 20% of the French tech scene is female. The sharp contrast between the booming sector and the slow incorporation of female talent into a “male-dominanted” industry is what we call The Gender Gap. 

The underrepresentation of women in technology is a global issue that starts in education, social misconceptions around technical careers and stereotypes about women in the workforce. This issue affects the tech industry across fields and sectors, roles and countries. 

The French tech industry has seen a slight improvement over the last two years, and according to the Gender Scan 2022 study, only 17% of the tech workforce was female in 2020. Still, the data is alarming for both female employees and founders.

According to data from the Social and Economic Performance of French Digital Start-ups Report, 12% of french tech startup founders are women and only 11% hold a leadership role such as Chief. Not only are there fewer women leading the industry, but also the revenue received by their startups is lower compared to male-founded ones, which means that female-founded startups are less likely to attract investment. 

Source: Barometer 2021

 

According to a study by Boston Consulting Group (BCG) and SISTA called Quelle place des femmes à la direction des entreprises de demain – French Tech 120, only 22% of women hold management positions in the French Tech 120 startups (FT120). These startups are the 120 most relevant startups selected by La French Tech, which, according to the association, can become world-leading companies. 

The same study reveals that the figure drops to 18% in companies considered “Next 40” (large companies in the ecosystem with the potential to enter the CAC 40 stock index). 

What’s more, the number is even lower if we focus on the core executive leadership positions (CEO, CTO, CFO, CPO, COO, CRO): in the case of the Next 40, women hold only 9% of positions.

The study also found that 25% of FT120 companies have no women in management positions, with 13% having no women managers in the CAC 40.

Some strong initiatives work towards improving parity in the industry. For example, starting in 2023, companies applying to join the French Tech Next 40/120 will receive gender equality monitorisation, and they must commit to providing the results of their gender equality index, as well as actions to improve it. 

La French Tech created a Parity Pact in 2022, and so far, more than sixty-seven startups of the French Tech 120 have signed it.

Startups that sign it commit to several actions in pursuit of gender equity, some of them are: 

  • to reach a minimum threshold of 20% of women sitting on the company’s board by 2025, then 40% by 2028.

     

  • to train 100% of managers on the challenges of diversity and the fight against discrimination and harassment.

     

  • to guarantee that 100% of the job descriptions published by the company are aimed at both female and male profiles.

     

All of the actions found in the Party Pact are aimed at fighting gender biases, actively encouraging companies to give leadership opportunities to women and committing to creating a future industry that can move past its prejudice. 

Another critical set of challenges to address that aren’t easy to quantify and translate into figures is the emotional challenges women face in the industry: the feeling of not belonging, the pressures of the importer syndrome or the challenge of proving stereotypes wrong. One of our interviewees point out that:

“It’s not always easy being a woman and a «career shifter» when trying to feel and be legitimate and progress. It’s hard to say because most women in our tech team are junior or «converted» profiles, so in a way, all women in our team have imposter syndrome, and are not (yet) promoted”. 

According to the Gender Scan 2022: “46% of women in tech say they have experienced sexist behaviour” such as gender-related mockery.

 

Source: Gender ScanTM, 2022 of Global Contact


Some of our interviewees point out that female representation in the tech industry is improving. For example, one person we talked to claims that although feeling that they work in a male-dominated environment, “I’m also in an industry that is very “masculine”. But I know the top management has diversity in mind and for example, our «Product» team is led by a woman and has more women than men”.

The underrepresentation of women in the tech industry, both in leadership roles and technical positions, is not only a problem for the industry itself but also for the economy as a whole. Studies have shown that diverse and inclusive teams are more creative and innovative and that companies with diverse leadership teams perform better financially. The underrepresentation of women in the tech industry has been linked to a lack of innovation and a less inclusive culture. It’s crucial that the industry as a whole takes a proactive approach to address these issues to ensure that the workforce of the future is truly diverse and inclusive.

THE NETHERLANDS

Gender gap. How big is the gender gap in the digital tech industry, and how is it affecting the sector?

The technology industry has long been seen as a male-dominated field due to gender stereotypes, but there is now a shift towards breaking these stereotypes in the workplace. However, the representation of women in tech remains unequal to that of men, and this difference in gender representation is what we call the Gender Gap. 

According to the Dutch D&I in Digital Benchmark, by DiversityHero, an initiative that has mapped diversity in the Dutch digital sector for the first time, the overall representation of women in the digital industry is 38%. When it comes to IT operations, the share of women drops to 13%. The Dutch D&I in Digital Benchmark challenges companies to strive for the policy target of 50% women in ICT by 2030. 

The number of female representation varies wildly, as other organisations consider women’s participation in the industry a lot lower. For example, Equals Amsterdam claims that women only make up 18% of the overall tech industry.

In different roles, the percentage of women varies. For example, data from DiversityHero shows that women are more represented in UX and Ui design and QA than in IT or web development: 

Image Source: Diversity Hero

When it comes to leadership positions, only 36% of women hold a management position in the industry, of which 25% are CEOs, according to DiversityHero. 

Female entrepreneurship in the Netherlands is also lower than male entrepreneurship, although data seems to indicate the numbers are up. According to the “Think Bigger” report, women have been increasingly embracing entrepreneurship in recent years. Female participation in early-stage entrepreneurial activity has risen from 2% to 8% of the adult population between 18-64 years old since 2005.

At the start of the 21st century, women were only half as likely to be involved in early-stage entrepreneurship, but now they account for two-thirds of this activity. This trend aligns with the growth in the number of self-employed women, which has almost doubled since 2003, while the number of self-employed men has only increased by 60%.

Image Source: Thinking Bigger Report

Secrecy regarding diversity, equality, and inclusion does little to alleviate the situation. In a 2020 report by Equileap, where they analysed gender inequality across industries, they found that 88% of Dutch firms do not disclose gender-based pay information. Almost all of the companies in the dataset (99%) have not disclosed any strategy for closing the gender pay gap.

Additionally, 21% of these companies do not publish gender diversity data, indicating a trend of secrecy or disregard for this sensitive issue. Considering the gender gap in the Netherlands also manifests itself in a pay gap, hiding information about equality practices can only contribute to increasing stereotypes, myths and inaccurate information about women’s role in the workforce. 

Sifted, in collaboration with Teachleap.nl, suggests that the solution to increasing gender diversity in the industry is not only to recruit women into entry-level positions but also to promote them to leadership roles, such as middle management and company management, and provide access to investment opportunities.

In Amsterdam, a network of organisations and communities exists with the goal of promoting workplace equality and diversity. These groups host events and launch initiatives aimed at supporting female entrepreneurs and professionals in realising their dreams and career aspirations by providing resources and encouragement.

A curious campaign launched in 2022 called Mijn naam is Peter, by Women Inc, with the purpose of drawing attention to the unequal gender division in the dutch workplace. With a LinkedIn name change, they intended to indicate that the female presence is so low in the tech industry that there are more men called Peter than women CEOs.

A broken pipeline

In a 2018 research study, McKinsey claims a self-perpetuating system explains the inequality in the Dutch labour market, resulting in untapped female potential. In the Netherlands, there are firmly held societal views and norms that significantly impact the education and career choices of women and men and often result in women getting stuck in an unequal position in the market: 

In the same report, data shows that “female-dominated industries” such as healthcare or education are typically full of women working part-time, and this seems to be a typically Dutch phenomenon.

In the Netherlands, 70% and 48% of roles in healthcare and education, respectively are filled by women working on a part-time basis. What’s more, 57% of women who work part-time attribute it to unpaid care duties, housework, and informal care, compared to only 27% of men. Expensive childcare and unpaid household duties are significantly relevant to women’s choice of work. 

The Gender Gap influences a women’s tech career in an intersectional way. First, looking at the number of women who choose a STEM (science, technology, engineering and mathematics) degree is essential.

The Netherlands has one of the lowest share of women in STEM in Europe. During high school, women are less inclined to enrol in STEM courses, yet they perform as their male classmates both at high school and university levels. Improving study success in STEM higher education could also help the labour market shortage for STEM graduates.

The shortage of female role models in STEM has perpetuated the male-dominated nature of the field and created a notion that women do not belong in science and technology. This lack of representation leads to a lack of motivation and inspiration for girls to pursue STEM careers. Raising awareness and showcasing successful women in STEM can help change this perception and encourage girls to consider a future in this industry.

Stereotypes and sexism also discourage girls from pursuing STEM, as the baseless idea that women are less intelligent in these subjects negatively affects their self-image and influences them to choose more «feminine» career paths.

Gender-based job stereotypes persist, and they can severely influence a person’s choice of career path. Sahar Yadegari, director of VHTO, an organisation aimed at promoting gender diversity in STEM, stated that «many companies are not yet prepared for diversity. They want women on their team, but only if they fit the mold of being ‘one of the guys.'»

Even when women in the Netherlands choose to study a STEM degree, there is less progression into technical careers, with only 29% of women with a technical degree having a career in technology, compared to 47% of men. 

The next image represents the STEM education pipeline in the Netherlands, according to a PWC report: 

The digital tech industry needs women to grow

In a McKinsey report called “Building a world-class Dutch start-up ecosystem”, where they explore some key actions to elevate the Netherlands’ tech landscape, they cite “increasing the number of female founders” as an important transformative action. 

Promoting structured mentoring programs and networking events, increasing public awareness of gender bias in funding processes, and promoting more diversity in venture capital could lead to an additional 115-170 start-ups in the Netherlands being founded each year by 2030.

McKinsey makes a strong case for labour parity showing data that proves parity isn’t just a “women problem”. It’s, in fact, an economic problem: female workers are contributing less to the country’s Gross Domestic Product (GDP) compared to men (in part due to part-time jobs). If women joined the labour market at the same rate as men, they could add over €100 billion to the country’s GDP. 

Nancy Poleon, the founder of the personal branding programme BrandedU, discussed the state of female presence in the dutch tech scene in the panel “Are we equal yet?”. Regarding encouraging women to pursue leadership roles in tech, she mentions:

«You’ve got to go out there and tell your story so you can be visible. And you’ve got to tell it in a way that’s confident. Because the truth is: without confidence you will miss opportunities. A Hewlett Packard internal report found that men apply for a job or promotion when they meet 60% of the qualifications, but women apply only if they meet 100%. So most women don’t even have the confidence to try!”

PWC suggests several strategies to integrate women into the tech industry. These include focusing on education, hiring and training women in tech roles, promoting inclusive environments through changes to gender stereotypes, equal recruitment practices, and eliminating sexist language.

Image Source: PWC

In the Netherlands, several initiatives aim to bridge the gender gap in the technology sector by offering different approaches. These include establishing networks for women in the industry (such as Equals), reskilling female talent, sharing success stories to create female role models, providing information to increase understanding and change mindsets about tech industry jobs, and raising awareness in businesses about creating inclusive and unbiased recruitment processes.

Platforms like  Dutch women in tech (DWTI) can share stories that inspire and educate the industry to understand how vital diversity is for the sector’s growth. 

UK

Gender gap. How big is the gender gap in the digital tech industry, and how is it affecting the sector?

With an industry that employs almost five million people in the UK, only 17% of tech occupations are taken by women, yet women account for 49% ok UK’s workforce. This enormous difference in the data between women working overall and women working in the tech industry is what we call the Gender Gap. 

The underrepresentation of women in technology is an issue that starts before people are ready to join a company; it’s already an issue by the time students are prepared to choose a career pathway. 

According to the Women In STEM 2019 “Understanding the gender imbalance in STEM” report, 35% of STEM (science, technology, engineering and mathematics) students in higher education in the UK are women. From 2015 to 2019, we can see an increase in the number of women graduating from STEM, but considering the more rapid growth in the number of men graduating from these subject areas, the percentage of women has fluctuated very little and staggered. 

Percentage of Males and Females graduating from STEM subjects :

In a 2017 research report, PwC UK found three main themes that help understand the gender gap in tech, where it starts, and how we can address it effectively. 

  1. Girls are less likely to study STEM subjects at school – and this gap continues through to university. Understanding what is behind girls’ decisions not to choose STEM subjects in school is incredibly complex. Part of the issue could rely on the lack of motivation from the tech industry itself, which is failing to show young girls there is space for them. Another issue that plays into this is teachers’ lack of understanding of the tech industry and the jobs or outcomes a career in the sector can provide. The result is that girls are not getting the correct advice or inspiration from the school itself. In this study, 33% of male respondents say they’ve had a career in technology suggested to them, compared to just 16% of females. 

  2. Females are less likely than males to consider a technology career: when girls in school look ahead and plan their future, most don’t seem to consider tech an option. In the research, 53% of girls say their preferred career was a factor in their choice of A-Levels, compared to just 43% of boys. Without the proper guidance and advice, girls planning for their future careers can choose subjects that are unrelated to tech early on.

     

  3. A shortage of female role models is a significant barrier – as is a lack of understanding of how technology can enable women to change the world. Representation is critical to imagining yourself in the future and feeling inspired to follow a path others have shown you. In this study, when asked to name a role model who has inspired them to pursue a career in technology, 83% of female respondents said they couldn’t think of anyone. 

The result is that women are underrepresented in the tech industry across fields, are less likely to occupy leadership roles and receive less funding to build a business. In the UK, female talent receives 4% less salary on average than men. The UK tech workplace equity report by Hired does a great job translating this statistic into comprehensive data:

“These figures are even more impactful when translated into cash value. The average salary offered to male tech workers is £66,000 and the average salary offered to women is £63,000. The gap between these figures is a jarring £3,000, which is £250 pounds less in their paycheck every month.”
The UK Tech Workplace Equality Report.

This graph, from the same study, helps put the economic gender gap into perspective:

And, according to WomenTech Network, we are still various generations away from closing this gap. Women are less likely to join tech careers and, at the same time, are given fewer opportunities to stay or grow. 

Gender imbalances, toxic work culture or direct discrimination are systemic issues in the industry that contribute to women deciding not to stay in the tech sector or not advancing in their careers. A survey found that 20% of female respondents have resigned from a role because of discrimination or harassment and in an industry where 3 in 5 women have felt discriminated against in the workplace because of their gender, it becomes clear the issue is largely impacting the industry itself. 

A member of a leading tech organisation that empowers women and girls to join the tech industry, S.M., has first-hand experience fighting gender imbalances as a tech founder and software developer. S.M. now leads a successful team of women offering IT and development services, and their clients are usually other female-led companies. A core mission of S.M’s brand is contributing to a female tech community where supporting others’ growth means actively addressing the gender gap and the lack of diversity in the industry. 

“We all thrive in a community where more women start a business or are happy in their job. I don’t want to have a company in an industry where I’m the only woman and (…) most women I know would agree. We all need to feel a sense of community and togetherness because we know that that is how we grow, feel safe and inspire other people”.

According to the Hired report, women are currently underrepresented in most areas of the digital tech industry. As S.M. describes, the lack of women in the industry deters others from joining as the social and emotional incentives might not be there for them. 

Graphic from The UK Tech Workplace Equality Report

S.M. also spends a lot of her time mentoring women entrepreneurs, career changers and STEM students. Is in her mentoring role that S has gained an in-depth understanding of the challenges women face in her industry. 

“There is a lot of hypocrisy in tech, lots of companies say they are inclusive but you look at management and there are no women (…) they only talk about other men. It’s a hard climb and ofter women don’t even get the chance”

She talks about her role as an empowerment mentor: helping women gain confidence to apply to jobs, ask for the salary they want, speak up when they face harassment or other issues and start their own companies. She recognises that many of the great issues women face in tech are systemic and can’t be solved by women’s individual choices, but that helping other women face up these challenges is how she can contribute to making the industry a better place. 

As S.M. points out, the lack of women in tech, both in leadership positions and technical roles, undermines not only the industry but also the economy’s potential. The lack of diversity in the tech industry has been linked to a lack of innovation and a less inclusive culture. This is why it is crucial that the industry as a whole takes a proactive approach to address these issues to ensure that the workforce of the future is truly diverse and inclusive. 

USA

Gender gap. How big is the gender gap in the digital tech industry, and how is it affecting the sector?

Diversity, equity and inclusion (DEI) is a concern in the US tech industry. Based on data from the U.S. Equal Employment Opportunity Commission (EEOC), compared to the total US workforce, the tech industry employs a smaller proportion of Black Americans (7.4% versus an average of 14,4%), Latinx Americans (8% versus 13.9%) and women (26% versus 49%).

Image Source: CompTIA Cyberstates 2022

The importance of an organisation’s reputation regarding DEI is gaining weight year-over-year due to a rise in social awareness. However critical social awareness may be to transform the industry, inclusion and diversity are also intelligent business choices: data proves that diverse companies are more likely to outperform their competitors financially.

Despite companies and governments making an effort to reduce the diversity gap, there’s still a long way to go, and there are many hurdles to overcome. According to The State of Diversity in Tech Report by Dice, perception of a lack of leadership opportunities and salary and benefit inequities are the most common causes of discrimination. In Dice’s report, 48% of participants in the study claim they feel that they are not fairly compensated compared to others in the same occupation with their same skill set. 

Focusing on gender as a factor of discrimination, women carry out only 26% of tech occupations, compared with 49% of women representing the total US workforce. This fact gives a general glimpse of the Gender Gap existing in the tech industry, where women are highly underrepresented. 

The Gender Gap influences a women’s tech career in an intersectional way. First, it’s essential to look at the number of women who choose a STEM (science, technology, engineering and mathematics) degree. Based on data from the Integrated Postsecondary Education Data System (IPEDS), women represented 45% of STEM majors in 2020. However, only 22% earned degrees in engineering and 20% in computer science. In the US, women’s limited access to STEM degrees is not a new phenomenon: a report titled “Why so few?” examines data from over two decades to understand the factors that can explain why women are systematically tracked away from science and math throughout their education. 

According to the American Association of University Women AAUW, study after study finds out that women have the ability and high test scores in STEM subjects, but even so, women are pushed away from these fields. They explain the underrepresentation is mainly because of structural and cultural barriers. Let’s take a closer look at the entry barriers women face in STEM:

  • There is a lack of female role models. Historically STEM fields have been male-dominated, which has created a taboo for women working as scientists and technologists. It’s like they don’t exist in the collective mental framework. The consequence of this lack of role models is that girls don’t have people like them to admire, which causes a lack of motivation and inspiration to pursue a career in STEM. Letting schoolgirls know they have a future in this industry is an important step forward. 

  • Stereotypes and sexism push girls away from STEM. Without any scientific basis, there’s an idea of women being less intelligent than men, primarily related to STEM subjects. This misconception significantly impacts girls’ self-image and determines their career aspirations through more “feminine” degrees.  A study by Wiley, reveals that 44% of the female respondents between 18 and 28 years were never given any information or resources to help them learn about tech career opportunities, compared with the 33% of males. 
  • STEM environment is hostile for women. Women who consider taking STEM subjects at school or having a related degree suffer from isolation and microaggressions, such as underestimating their opinions only for being a woman. These situations act as additional stressors that end up with many women dropping out of these lines because they feel they don’t fit in. 

Because of these obstacles, girls are less likely than boys to consider a career in technology. One of our Key Opinion Leaders, Ember., told us about their experience growing up in a male-dominated environment:

Soundbite:

“my first computer class was AP Computer Science in Senior High School and already by then it was very male-dominated. My school was like very good and I definitely tried to get more girls and non-binary people into tech but Even by high school, it was seen as a boys thing. And honestly, I think that attitude actually probably starts elementary school, girls are not expected to be the ones hacking around or in Robotics club or even, you know, messing with more of the hardware stuff and that just continues all throughout. And by the time you’ve graduated, the number of women who’ve stuck it out and you have really like dealt with the microaggressions, dealt with the fact that sometimes You’re the only non guy in the class and the guys don’t know how to react to that. So they’re going to be creepy and of course, you know, 18, 19, 20 year old dudes who maybe don’t have social skills and Really don’t know how to deal with the fact that there’s a member of this foreign species in the class. But yeah. IT people and so it I think it’s just pipeline problem” .

Nevertheless, all kinds of organisations have launched action plans to empower women through STEM degrees and are reaping up their labour. Based on data from the National Science Foundation, more women than ever are earning STEM degrees and catching up to men.

Also, as more Gen Z women enter college and the workforce, we will see an increase in the percentage of females earning  STEM degrees and being interested in tech careers, as Gen Z is one of the first generations considered “digitally native”. 

Once students finish their degree, it’s time to get their foot in the door of the job market. Here women experience more difficulties being hired for entry-level technical positions. This phenomenon is known as the retention gap. One example of this gap is that only 38% of women who majored in computer science are working in the field, compared to 53% of men – this happens at a similar rate with engineering degrees.

Regarding under-represented minority groups, they represented about 9% of the nation’s top computer science programs, but large tech firms employed only 5%. The lack of employment diversity in the tech industry has often been attributed to a lack of applicant diversity and self-selection of minorities away from STEM fields. However, this argument denies the responsibility of employers to hire and retain talent. 

Image Source: Statista

After getting past the hiring hurdles, women face another challenge in their professional careers: the glass ceiling. This metaphorical invisible barrier hinders women and minorities from advancing in a profession. A fact that reinforces this barrier is that 66% of women state that they see no clear path for advancement or improvement within their tech careers. For many women, it comes to a stage when their careers come to a standstill. The data provided by McKinsey & Company shows that while 48% of women account for entry-level hires, they just account for 40% of first-level managers. This bottleneck continues to increase as it gets higher in the corporate rank, as shown in the image below.

Image Source: Leanin

For Black women and Latinas, this broken rung is even more decisive.

According to Leanin, for every 100 entry-level men who are promoted to manager, just 68 Latinas and 58 Black women are promoted; this number is even lower for Native Hawaiian, Pacific Islander, and Indigenous women. Also, people with disabilities face more barriers to advancement and get less support from their managers. 

This glass ceiling, called the broken rung, connects directly with wage inequalities.

On average, women in the tech industry are offered a salary of 3% less than men for the same job, at the same company, with the same experience. 

Another important piece of data is that women are more likely to leave their companies, according to the McKinsey Report on Women in the Workplace. This study points to an unfavourable environment for women inside companies, summed up by the barriers they already face to achieve being there. 

In this  Wiley report, 68% of participants surveyed claim they have felt uncomfortable at a job due to their gender, ethnicity, socio-economic background or neurodevelopmental condition. Moreover, 50% wanted to leave a tech job because the company culture made them uncomfortable. Because of this, the option of working remotely is essential to women. The possibility of hybrid and remote work has delivered tangible benefits for many women, making work and life balance much more effortless. 

The Women Tech Network predicts that at the current pace of change, it will take 133 years until the gender gap is closed. Companies need to take action and implement programs to improve their DEI policies to build a stronger industry. According to McKinsey & Company, “diversity is especially crucial in these roles to help debias the technologies that make up an ever-present evolving component of modern life”. Counting with employees of different backgrounds, experiences, and ideas helps to breed higher quality products. 

Women entrepreneurs in the US face many challenges of their own, and according to a report by The Silicon Valley Bank, more than half of the country’s startups lack women on their boards. Only 14% of startups have a female CEO, and if the startup founder is a man, it’s less likely to have a woman in the COO role or leading HR marketinentrepreneurseams. Unfortunately, female founders are slightly less likely to rely on VC and more so on friends and family. 

México

Gender gap. How big is the gender gap in the digital tech industry, and how is it affecting the sector?

The existence of a gender gap virtually in every aspect of human life is an undeniable truth, and its elimination is a challenge for our society as a whole. As pointed out by the United Nations in the Sustainable Development Goals agenda:

«Gender equality is not only a fundamental human right, but a necessary foundation for a peaceful, prosperous and sustainable world.»

Despite it being a fundamental right and having the potential to benefit all of society, progress hasn’t gone according to expectations, and there is still a lot to be done. Even more so after the COVID-19 pandemic, which represented a step backwards in what had been achieved so far:

«There has been progress over the last decades, but the world is not on track to achieve gender equality by 2030.»

The digital and tech sector has received much attention in recent years as potential leverage to reduce the gender gap. According to a 2018 report from the OECD called “Bridging the Gender Gap Divide”, digital transformation:

«(…) provides new avenues for the economic empowerment of women and can contribute to greater gender equality. The Internet, digital platforms, mobile phones and digital financial services offer ‘leapfrog’ opportunities for all and can help bridge the divide by giving women the possibility to earn additional income, increase their employment opportunities, and access knowledge and general information. We need to seize this opportunity to foster greater gender equality in the labour market, boost economic growth and build a more inclusive, digital world.” 

When assessing the gender gap in the digital and tech industry, it has most commonly been defined and measured as the percentage difference between men’s and women’s usage of ICTs, such as the Internet. In 2019, for example, at a global scale, 48% of women were able to use the Internet compared to 58% of men.

The importance of assessing this indicator is evident: A lack of connectivity results in reduced access to fundamental services such as banking transactions, medical information, education, job opportunities, and even entertainment, just to name a few.

At the beginning of 2022, the Centro México Digital (CMD) and the Confederación Patronal de la República Mexicana (COPARMEX) presented a study called «Gender Gap in ICTs» to help diagnose and assess these matters in the country and also widen the comprehension on the gender gap in Mexico. One of the most significant results shows that Mexico’s gender gap, based on its most commonly used definition, was 1.5 percentage points and well below the global gap, even the one in developed countries (as seen in the graph below).



CMD and COPARMEX decided to go beyond the self-complacency of looking at this indicator:

«(…) this national average hides differences between federal states, urban and rural areas, as well as between age, access location and socio economical level. It does not reflect gaps in time spent and type of usage being done by women either».

Having access to the Internet goes well beyond just being a user. It also implies owning a device from which you can connect to the Internet, the type of device itself and the location where the person is connecting to the Internet from. Considering these additional connectivity aspects (such as device, location, etc.), the gender gap would increase to 5.2 percentage points, 3.46 times higher.

This assessment would worsen even more when looking at the gap in each federal state, which showed how uneven the country is. For example, while Durango has the smallest gap with 0.7 percentage points, Nuevo León has the highest with 10.2. Furthermore, when opening the scope to rural areas and lower income levels, the gap widens even more.

Another example: according to Metas 2025 (Goals 2025), defined by the Commission of Broadband for Sustainable Development (Comisión de Banda Ancha para el Desarrollo Sostenible), at least 75% of women should be Internet users in developed countries, 65% in developing countries and 35% in the least developed countries. In Mexico, 71% of women are Internet users. But when each federal state analyses this, inequalities appear, as seen in the following graph.

Besides access (5.2 percentage gap), the study also measured affordability (10.23), usage (2.4) and digital skills (2.9). The following graph shows the components of each indicator, reflecting how nuanced this measurement is and, so, the importance of having a deeper understanding of the gender gap situation in Mexico.

Regarding digital skills, men perform better than women in general, from the most basic ones, such as sending an email, to the most complex, such as understanding specialised programming languages. This gap becomes even wider with women over 36 years old. In contrast, the opposite happens with women between 16 and 25, signalling an opportunity to help girls develop even further in these competencies and motivate them to pursue a related career.

STEM careers (Science, Technology, Engineering and Mathematics) are not the most popular. According to the OECD, only 32% of students starting university choose a related career. But, then, of course, this aggravates when looking at data specifically from women, which account for only 12% of graduated students, according to McKinsey. The World Economic Forum’s 2020 report also points out that STEM education and abilities reach 14.46% of women vs 37.63% of men. This stems later to the labour force as only 10% of women who graduate in this type of careers enters it.

Although the number of women working in all areas of professional development is increasing — at 2018 they accounted for 44% of the economically active population according to the National Institute of Statistics and Geography (INEGI – Instituto Nacional de Estadística y Geografía) — their participation on the ICT industry reaches only 17%. 

Globally,  their participation is around 28%. This means that from around the 752 thousand mexicans working in an ICT related job inside the country, 127 thousand are women.

When looking at leading positions, a woman manages only 9% of digital and tech companies, and 23% of them have a woman co-founder.

A female participant that works as a recruitment expert in digital and tech profiles in the LATAM region told us that, based on her four-year experience in the field, it is more common to see men with more experience and in higher positions than women:

«To be honest … people who have more experience are usually men … they have more positions of management or heads than women … I don»t have the data but that’s my impression«.

Another female participant, a Key Opinion Leader from Mexico who works as a product designer and design system manager at a very important bank in the country, talks about the industry and design processes in a podcast. She explains that there might be different degrees of gender gaps in other areas of the industry. She believes there is a more significant gender gap in web development and marketing than in UX/UI areas.

Ironhack’s Country Manager in Mexico, Candy, says that less than 30% of tech students in the country are women, a percentage which is in line with what happens in the rest of the world. She believes that women in Mexico do not have the baseline conditions that allow them to study:

«The first one is financial independence. Women, we don’t have financial independence in Mexico. You depend on someone else … your family or your partner … also if you have a family, because we live in a machista country, that means that you would need three jobs: the job to pay for your bootcamp, doing your bootcamp and doing your home activities like taking care of your child. So the conditions do not, in general, allow women to have the time to do a bootcamp«.

A similar opinion is supported by experts who commented on the results from CMD. For them, the salary gap between men and women, which is 13 percentage points, has much to do with inequality in the country. Other data shows that Mexican women of all socio-economical levels dedicate more than 30 hours to non-payed domestic work and care. At the same time, in the case of men, it is around 10 hours (INEGI – Instituto Nacional de Estadística y Geografía).

In 2019, women’s participation in Mexico’s workforce was 45% compared to 77% from men. This was among the lowest percentages from the OECD countries (OECD – The Organization for Economic Cooperation and Development). Also, 61% out of the 4.7 million people older than 15 years that are illiterate are women. Women’s lack of access to education and the workforce leaves them vulnerable to wide salary gaps, access to leadership roles or advancing their careers at the same speed as their male co-workers. The digital tech industry in Mexico isn’t exempt from salary gaps: a male software developer can earn 26% more than a woman, despite having the same experience and knowledge.

The COVID-19 pandemic worsened this situation. In 2020, Mexico ranked 25th in the World Economic Forum’s gender gap global index out of 153 countries. But around mid-July of that same year, Mexico lost a total of 1.1 million employers because of the pandemic. By 2022, Mexico had descended to the 31st position in the index.

Although the landscape can seem discouraging, the existence of a gender gap means a lot of work to be done and many opportunities to be opened for women that can result in positive outcomes, specifically in the digital and tech industry. For example, closing the gender gap in STEM careers is estimated to sum over 800 million dollars to the Gross Domestic Product (GDP) of the country. Also, export companies owned by women can be 1.2 times more productive than those led by men, and companies with a female CEO employ 7 percent more women than those managed by men.

One example of an inspiring initiative that has been done in relation to women in the digital and tech industry recently in Latin America is the Women in Digital award (Mujeres en Digital), organised by the Asociación Lationamericana de Internet (ALAI) with the support of other organisations. Its purpose is to highlight the role of women inside the digital ecosystem. The news was launched on the 8th of March 2022, a significant global date for the women’s movement.

On this first occasion, the winner of this recognition was Salma Jalife Villalón, president of the Centro México Digital (CMD), which she created in March 2021 to promote a Digital Transformation that centres on people and Small and Medium Enterprises (SMEs). CMD has published different studies and reports about the digital and tech industry, one of them focusing on the Gender Gap. Salma is an extraordinary leader that has done a lot to visibilize women’s role in the economy and what is needed to reduce the gender gap.

Another example has to do with local organisations such as COPARMEX (​​Confederación Patronal de la República Mexicana), which, inspired by these events and information, have taken actions such as giving scholarships to women to facilitate remote work, workshop implementation to develop digital skills and the promotion of a salary pact with different organisations; which shows the importance of such initiatives to generate change.

Also, there is NIÑASTEM PUEDEN, a network integrated by women in the tech industry who come from STEM backgrounds and wish to promote this field of study among young Mexican students; and Codigo X, a programme aimed to consolidate efforts at the national and international levels in the industry, civil society, academia and government and promote the inclusion of girls and women in ICTs.

Another positive aspect of the digital and tech sector has to do with its perception of being a more open-minded space for women to develop. Carlos and Maria, graduate students from Ironhack, who’ve already had some experience working, describe the digital tech industry as very modern and inclusive. They do recognise that men still have an easier path than women, but that it is less so in the digital tech industry compared to more traditional careers.

BRAZIL

Gender gap. How big is the gender gap in the digital tech industry, and how is it affecting the sector?

Despite numerous efforts in some sectors to promote equity and inclusion, there is still a tendency to think of technology as a typically masculine industry; socially learned preconceptions of what is typically masculine and what is typically feminine have had a significant impact.

According to Brasscom, 424,000 women will be working in the tech industry in 2021, accounting for 39% of all professionals in the sector. Still, only slightly more than 20% will be in tech-related positions.

The majority of them work in support or administrative roles. Women outnumber men in administrative and call centre HR positions, with 65.4% being female. Women make up 55.2% of the finance industry, while men make up 44.8%: sales, marketing, and legal account for 52.5% of the total. 

Image Source: Brasscom

Mariana Carvalho is the co-founder of Brazilians in tech, and organisation that connects and supports Brazilian women who are studying and working in technology-related fields. She explains how women have actively participated in the tech industry for decades, but they are usually diminished by male counterparts who hold most of the decision-making power. More specifically, in Brazil, she adds: 

“We also ome from a place where women didn’t have access to their finances until 1964, in Brazil. Until 1963, women didn’t have the right to have a Document ID. Without a Document ID, women couldn’t open a bank account, relying on partners and fathers to detain the power of their finances. Financial independence is a new concept for women in general.”

Many social preconceptions have shaped the incorporation of women in the technology sector, and stakeholders are working hard to make the industry a model of inclusion and diversity, but there is still much work to be done.

According to the Brazilian Association of Information Technology Companies (Brasscom) «women still represent only 20% of the country’s technology professionals, and 21% of technology teams in Brazil have no female representation. That is despite the predictions from Brazil’s Institute of Applied Economic Research (Ipea) that women should outpace men in terms of participation in the Brazilian workforce in the next decade».

Not only is there a lack of gender diversity in technology teams in Brazil, but the teams also continue to embody stereotypical ideas of those who work in the technology industry, predominantly composed of men and white individuals.

A report by diversity initiative Preta Lab in collaboration with consulting firm ThoughtWorks found that 68.3% of technology departments in Brazil are comprised of men, and 58.3% are made up of white individuals. 

The lack of diversity in the Brazilian tech landscape is urgent, as the industry continues to grow and demand more professionals, it becomes crucial to welcome more people. 

Image Source: Pretalab Report 2022

The representation of black women in IT teams in Brazil is alarmingly low, with only 11% of teams comprising black women. Additionally, the Preta Lab report found that one in three participants does not have a black person on their team.

This lack of diversity is not limited to gender but also extends to the black population in Brazil. As a result, tech teams in Brazil need to reflect the country’s population as a whole.

The problem of underrepresentation and lack of diversity in tech teams in Brazil has gained significant attention in the media and public eye. Mariana Carvalho commented on a viral photo depicting a team consisting mostly of white men.

“One famous startup here posted a photo with the team. It’s a big startup, it’s XP and they posted a photo of the employees and there were no black people. And the term we use is they were canceled in social media. So they were famous topic for weeks” .

The concept of creating a welcoming and inclusive work environment is essential for any company that wants to prioritise diversity and equality. By fostering a culture of respect and inclusivity, companies can ensure that all employees feel valued and empowered to contribute to the company’s success.

This, in turn, leads to a more productive and positive work environment where employees are motivated to do their best work and feel a sense of belonging. Moreover, an inclusive work environment is essential to creating more inclusive products and services. When teams are diverse, they bring a variety of perspectives and experiences, which can lead to more innovative and thoughtful solutions that cater to a wider range of customers.

Bridging the gap in any organisation requires a multifaceted approach. Providing information and education about diversity and inclusion is essential, but it is equally important to implement clear policies that outline specific measures and strategies for creating an inclusive workplace.

By establishing actionable steps and setting clear goals, organisations can create a supportive environment that fosters a sense of belonging for all employees. These efforts can also improve the organisation’s reputation and help attract a more diverse pool of candidates.

Ongoing monitoring and evaluation of the policies and strategies can ensure that progress is made towards creating a more equitable workplace. About this, Carvalho adds :

“Many organizations are already implementing guidelines, and programs and tracking KPIs to change their environments to have a more diverse and inclusive environment for women in the digital space; however, if this is not done with intention, it is hard to change. Leaders need to be intentional when implementing programs, male leaders need to sponsor and advocate for underrepresented groups in their companies. also, mentorship and sponsorship programs so women can shadow other women in their organizations also, establish quotas for underrepresented groups”.

Tech education and women entering the workforce:

Regarding gender stereotypes and how young women choose their career paths, Mariana Carvalho explained:

“Lack of influence and encouragement from families and parents. The patriarchy ideas: women go to Nursing school, and men go to Engineering school. Girls are taught to be perfect, boys are taught to be courageous. If we don’t change how society teaches girls and boys how to approach life, passions and careers, it is challenging to change how to create and increase the pipeline to have more women in the tech/digital world”.

The effects of gender stereotypes are apparent in the underrepresentation of women in STEM fields. Preconceived notions regarding traditional gender roles continue to play a significant role in career selection, with women being encouraged to pursue soft-skill careers associated with home care while men are more likely to pursue hard-skill careers, including those in STEM.

These stereotypes continue to impact career selection, as evidenced by the low number of women in STEM fields. Research shows that in 2019, 74% of STEM graduates were men, and 26% were women. The representation of women in the STEMs is lower than that of men, but the presence of white women in the STEMs  is much higher than that of black and mixed-race women.

Image Source: Women in STEM Labor Market in Brazil

Mariana Carvalho believes that great efforts are due to attract more female interest to STEM-related fields, and she suggests some essential initiatives: 

“Investing in programs at the university level to encourage women to do Research, Development, Internships, and travel abroad for education (a partnership between organizations and the public sector to achieve this goal)” .

It is not just the lack of women in STEM that is a problem, but also the challenges they face when applying for jobs or working in the field. Women often encounter biases that hinder their progress and success. To address this issue, promoting inclusive work environments and reducing biases in the hiring process is crucial. Creating policies that support diversity and inclusion can help attract and retain female talent in STEM fields.

Moreover, organisations can provide training to help employees identify and overcome unconscious biases and ensure that recruitment and promotion processes are fair and transparent. By fostering a supportive and inclusive work culture, we can create a more equitable and diverse STEM industry.

Mariana Carvalho points out:

«Job descriptions are not inclusive. A study by Openreach showed that bias in job descriptions could deter 50% of candidates from applying for STEM (Science, Technology, Engineering and Mathematics) jobs. Changing job descriptions to more inclusive language increased applications from women by more than 200%”.

To reduce bias in the interviewing process, it is crucial to explore alternative approaches that can promote diversity and inclusivity. One such approach is to conduct anonymous interviews, which can be especially effective for women interviewees who may be subject to gender bias. By anonymising the interview process, candidates can be evaluated solely on their qualifications and experience rather than their gender or any other personal characteristics.

New technologies can also play an important role in reducing bias in the interviewing process. For instance, some companies are using artificial intelligence (AI) to screen resumes and identify top candidates based on their skills and qualifications. This approach can help to eliminate unconscious bias by removing personal information such as name, age, and gender from the screening process.

Mariana Carvalho uses this example:

“Jobecam is a software company that helps Brazilian recruiters hire candidates efficiently and without bias”.

Creating more inclusive spaces in the workplace is crucial to attracting and retaining women employees. One effective strategy is promoting work-life balance and quality of life, which has been identified as a major factor affecting women’s participation in the workforce. Traditional gender roles that associate women with home and childcare responsibilities can hinder women’s growth and retention in the workplace.

Providing flexibility for women employees is essential to ensure they can balance both their personal and professional lives. Organisations can implement policies such as flexible working hours, remote work, and job sharing to accommodate the needs of women employees. These strategies not only benefit women but also promote a healthier work environment for all employees.

Female leadership

The disparity between male-only and female-only founded companies is significant, with the number of companies founded solely by men almost 20 times greater than those founded exclusively by women, according to data from the Female Founder Report, by Distrito.

Despite research demonstrating the positive impact of female leaders in the innovation ecosystem and within companies, the growth of startups co-founded by women remains slow and limited in scale, with little progress seen over the past decade. This slow growth rate, regardless of the absolute number of female founders, means that achieving parity is unlikely, given the size of the disparity between male and female-founded companies.

While men continue to dominate the startup market, recent studies have shown that diversity is becoming an increasingly important issue for innovation companies. According to research, although the majority of startups are founded by men, 71.3% of these companies now have women on their staff, accounting for 41.9% of total employees. Furthermore, the study found that 22.2% of employees are black or brown, while 6.6% are aged 50 or over.

Despite the growing recognition of the importance of diversity, however, the research also revealed that many companies are failing to take action. While 60% of those surveyed agreed that supporting diversity is crucial, a significant 58.2% admitted to not having any action or selection process in place to promote diversity. This indicates that more work is needed to ensure that startups prioritise diversity and take active steps to promote inclusivity in their hiring and management practices.

Encouraging and attracting women to the technology industry involves more than just providing training and empowerment to occupy technology-specific positions. It also involves creating opportunities for women to assume leadership positions within the industry.

When women hold leadership positions, they become role models for other women who aspire to build careers in technology. Having more women in leadership positions also promotes diversity, as they bring different perspectives and experiences to the decision-making process.

When women are underrepresented in leadership positions, it can perpetuate the cycle of gender imbalance within the industry. Women may not see themselves reflected in leadership roles, which may lead to a lack of motivation to pursue such positions. Moreover, without female leaders driving change, there may be a lack of understanding of the unique challenges and barriers that women face in the industry.

“Role models that can encourage other women to be seen and heard in these positions” ,

said Mariana Carvalho. 

EUROPE

Gender Gap in the European tech ecosystem

The European tech industry is facing significant challenges when it comes to gender diversity. Despite the efforts of many organizations to promote gender equality in the workplace, women continue to be underrepresented in the tech sector. The lack of diversity in the industry not only limits opportunities for women but also leads to a lack of diverse perspectives and creativity, hindering innovation. 

The Regional Gender Equality Monitor, created by the European Commission, utilizes two indices – the Female Achievement Index (FemAI) and the Female Disadvantage Index (FemDI) – to assess gender equality across regions. These indices analyze 33 indicators across seven domains, including Work & Money, Knowledge, Time, Power, Health, Safety, Security & Trust, and Quality of Life.

Image Source: Cohesion Data

Currently, the indices indicate the following trends, as pointed out by the key findings which are still being worked on:

  • On average, women in more developed regions are able to achieve more and are at less of a disadvantage, while most women in less developed regions face big challenges.

  • Within countries, women in capital regions tend to achieve more and are at less of a disadvantage.

  • In general, regions with a lower female achievement index have a lower gross domestic product per capita, while regions with a higher level of female achievement have a higher level of human development.

  • Finally, the quality of government is higher in regions where women achieve more.

There are huge differences in gender equality between different European countries. 

While some European countries have made significant strides in promoting gender equality, others continue to lag behind, according to The Gender Equality Monitor. For example, in countries such as Finland, Denmark and Sweden, gender equality is relatively strong, with women occupying a high percentage of leadership positions and having a smaller gender pay gap.

In other countries such as the Czech Republic, Slovakia, and Romania, gender equality is less well-developed, with women facing bigger barriers to entering the workforce and experimenting a bigger pay gap. 

In countries with strong gender equality, women tend to have better access to education, healthcare, and other social services. This can lead to higher rates of economic growth, greater political stability, and a more equitable distribution of resources.

Image Source: Cohesion Data

The countries ranking highest in the Female Achievement Index are Finland, Denmark, Sweden, Austria, and Luxembourg. These countries have made significant progress in all seven domains studied and demonstrate greater gender equality. 

Image Source: Global Europe

On the other hand, the top five countries in the Female Disadvantage Index, which reflects the extent of structural disadvantages faced by women, are Finland, Sweden, Denmark, France, and Spain. These countries offer women better opportunities for education, work, access to power positions, health, safety, and quality of life.

The 2021 Women in Digital Scoreboard by the Commission shows that there is still a gender gap in specialist digital skills, with only 19% of ICT specialists and one-third of STEM graduates being female.

The Digital Compass aims to reach convergence between women and men in having 20 million employed ICT specialists in the EU by 2030. However, there is a smaller gap for internet and internet user skills, with 85% of females using the internet regularly compared to 87% of males. Women in Finland, Sweden, Denmark, Estonia and the Netherlands are the most digital while Romania, Bulgaria, Poland, Hungary and Italy have the lowest female participation in the digital economy and society.

According to Web Summit, women continue to face discrimination in the workplace. The survey revealed that nearly two-thirds (67%) of women feel that they are paid less than their male colleagues in the last 12 months, a significant increase from 2019, when 46.4% felt they were paid fairly. Additionally, half of the women (49.5%) surveyed reported experiencing sexism in the workplace.

Gender Equality is a crucial objective in the UN’s Sustainable Development Agenda to achieve by 2030. However, despite the efforts, progress has been slow, and gender parity may not be achieved for another 286 years. The Gender Snapshot Report 2022 highlights the global status quo of gender equality and exposes the types of violence that continue to hold women back.

Image Source: UN Women

THE AMERICAS

Tech Gender Gap in The Americas tech ecosystem

A study by the Inter-American Development Bank (IDB) reveals that women’s participation in digital transformation in Latin America and the Caribbean is limited by a lack of digital skills and competencies, with access to financing being one of the main barriers for female entrepreneurs in digital fields. 

The study recommends specific public policies to reduce the gender gap in digital business transformations and highlights the need to change the culture through awareness campaigns and equitable early education in STEM, foster a culture of self-empowerment and ongoing training in digital technologies, and legal reforms to distribute family responsibilities more evenly among capable adults. 

The IDB study also recommends companies develop gender equality policies, consider implementing flexible or hybrid work mechanisms, create mentoring programs, and adopt upskilling and reskilling measures for women in digital fields.

Women investors and founders in early-stage tech are underrepresented in Latin America, as they are global. Latin America’s lack of diverse representation among decision-makers has ramifications for entrepreneurs, as startups with global women co-founders captured only about 12% of VC funding in 2019. 

To recover from the pandemic and build stronger, more inclusive economies, Latin America should focus on increasing women’s labour participation. 

It’s predicted that Latin America could increase GDP by 14% over the next five years by better-incorporating women into the workforce. Some measures are already underway, such as the Women Empowerment Principles and Gender Impact Investment. However, challenges remain, including limited credit history and the gender wage gap. While the number of tech companies with women in executive positions is increasing, more needs to be done to advance women’s inclusion.

The Gender Equality Observatory for Latin America and the Caribbean shares different indicators of gender equality for the region.  

Let’s look at some of these indicators: 

1. People without incomes of their own

This indicator is the ratio of the total female/male population aged 15 and above with no incomes of their own and who are not studying, compared to the total female or male population aged 15 and above who do not study exclusively. This ratio is expressed in percentages and is further broken down by age and area of residence.

The analysis of this indicator reveals that women’s economic autonomy is still limited in many countries in the region. While the participation of women in the labour force has increased over the years, in 2019, almost one-third of women in the region did not have their own income and were dependent on others, usually men.

This lack of economic autonomy means that women have limited decision-making power in household money administration issues and are more vulnerable to economic shocks and dependent on others for their basic needs.

This highlights the need for policies and programs that promote women’s economic empowerment, such as improving access to education and training, increasing women’s participation in the labour market, promoting entrepreneurship and financial inclusion, and addressing gender-based discrimination and stereotypes. 

By increasing women’s economic autonomy, not only can their own well-being be improved, but also that of their families and communities, contributing to more inclusive and sustainable development in the region.

Image Source: United Nations

 

 2. Child marriage

The child marriage indicator measures the proportion of women aged 20-24 who were married or in a stable union before turning 18. Child marriage is considered a violation of human rights and puts children, particularly girls, at risk of harm and limits their development. 

This harmful practice is associated with negative outcomes such as early childbearing, lower participation in the labour force as adults, lower education levels achieved, and a greater risk of experiencing gender-based violence.

The child marriage indicator is part of Sustainable Development Goal (SDG) 5, which aims to achieve gender equality and empower all women and girls by eliminating harmful practices such as child, early, and forced marriage and female genital mutilation. 

The analysis of the indicator reveals that in the region, one in five women is affected by child marriage, with the highest prevalence in Suriname, Nicaragua, Honduras, Belize, the Dominican Republic, and Guyana. However, there are some countries with lower percentages of child marriage, such as Costa Rica, Argentina, Peru, and Jamaica.

Image Source: United Nations

 

3. Teenage maternity

The indicator measures the percentage of young women aged 15 to 19 who have given birth to at least one child at the time of the census. This indicator is used to assess the prevalence of teenage pregnancy, which is considered a persistent problem in the region. 

Although the overall fertility rate in the region is declining, the rate of teenage maternity remains high and is one of the highest in the world, with Latin American and Caribbean countries having a teenage maternity rate of over 12%.

This rate is mainly composed of adolescents with lower incomes and lower levels of education, indicating that the problem disproportionately affects disadvantaged groups. 

Teenage pregnancy can have serious consequences for the health and well-being of young women, as well as for their social and economic opportunities, as they may face barriers to education, employment, and full participation in society.

Image Source: United Nations

 

4. Women’s deaths at the hands of their intimate partner or former partner

This indicator tells us the number and rate of women who are killed by their intimate partner or former partner. The data includes the absolute number and rate per 100,000 women aged 15 and over. This issue is a serious violation of women’s rights and a major public health concern in Latin America and the Caribbean. 

The Dominican Republic, Uruguay, and Honduras are the countries with the highest rates of women’s deaths at the hands of their intimate partner or former partner, with rates equal to or greater than 1.0 per 100,000 women. 

Guyana, Antigua and Barbuda, and Grenada have the highest rates of women’s deaths at the hands of their intimate partner or former partner in the Caribbean, while Jamaica has recorded the highest absolute number of victims. It is important to address this issue to ensure the safety and well-being of women in the region.

Image Source: United Nations

Women in the United States earn an average of 82% of what men earn, and the gender pay gap has remained relatively stable over the past 20 years. The wage gap is smaller for workers aged 25 to 34, where women earn 92 cents for every dollar earned by a man in the same age group. 

Women are overrepresented in lower-paying jobs relative to their share of the workforce, but their increasing presence in higher-paying jobs traditionally dominated by men has contributed to narrowing the gap. 

The reasons for the gender wage gap include women being treated differently by employers, women making different choices about how to balance work and family, and working in jobs that pay less. Working mothers are more likely to feel pressure to focus on responsibilities at home than working fathers.

Mothers are less likely to be in the labour force than women without children and, when employed, work fewer hours per week on average. Conversely, fathers are more likely to work longer hours and receive a “fatherhood wage premium,” which increases the gender pay gap. The pay gap also varies widely by race and ethnicity.

The gender pay gap has closed more among workers without a four-year college degree than among those who do have a bachelor’s degree or more education. Women have increased their share of employment in higher-paying occupations, such as managerial, business and finance, legal, and computer, science and engineering (STEM) occupations. 

However, women are still underrepresented in managerial and STEM occupations. Looking across racial and ethnic groups, a wide gulf separates the earnings of Black and Hispanic women from the earnings of White men.

Image Source: US Census Bureau

Deep Dive

The Digital Economy

To visualise the distribution of the Global GDP (Gross Domestic Product), this graph by Visual Capitalist helps us greatly. As we can see, only US and China together account for 42% of the Global GDP. This data point tells us about the unequal distribution of countries’ richness worldwide. 

It also points out the most powerful global economic players in the world. Looking at the American continent alone, we discover great differences. North America, for example, accounts for 27,9% of global GDP, while South America accounts just for 3.4%, and the Caribbean and Central America for only 0.6%. 

Image Source: Visual Capitalist

The term Digital Economy was coined in the mid-90s by the Canadian finance expert Don Tapscott in a book of the same name, as the internet began to transform how businesses and consumers interact. This term refers to the impact on the global economy of all digital activities, from e-commerce to digital banking or online education. 

The World Bank estimates that the digital economy contributes 15% ($14.5 trillion) to the global GDP in 2021 and is predicted to keep growing, reaching 20,8 trillion in 2025. This percentage shows the importance of this industry on a global scale in a 100 trillion global GDP market. 

In general, the global economy post-covid era has benefited greatly from the Digital Economy, as it helped the economy grow and boosted digital life. This study on the Impact of the Digital Economy on Economic Growth shows how countries along the “Belt and Road” have generally benefited from the digital economy: 

“there exists an obvious regional imbalance […] Specifically, East Asia, Southeast Asia (especially for Singapore), and Central and Eastern Europe have relatively high levels of digital economy, while most countries in West Asia (except for Israel), Central Asia, and South Asia are still lagging behind. (2) The digital economy has a significantly positive effect on the economic growth in countries along the “Belt and Road.” It can stimulate economic growth by promoting industrial structure upgrading, the total employment and restructuring of employment. (3) COVID-19 has generally boosted the demand for digital industries in countries along the “Belt and Road,” and its impact on digital industries from the demand side is much larger than that from the supply side. Specifically, the digital industries in Armenia, Israel, Latvia and Estonia have shown great growth potential during the epidemic. However, COVID-19 has also brought negative impacts to the digital industries in Ukraine, Egypt, Turkey and the Philippines”. 

The digital economy needs good internet infrastructure to work, but isolated digital marks are not enough to decide if a country is more developed digitally than others. That’s why the Dutch VPN company Surfshark created the Index of Digital Quality of Life (DQL). After analysing 117 countries discovered that 7 of the top 10 countries are in Europe. The other three are Israel, the first one; Japan, the 8th; and South Korea, the 10th. 

This index looks at 5 indicators to determine the rankings of the countries:

  1. Internet affordability. 
  2. Internet quality. 
  3. Electronic infrastructure. 
  4. Electronic security.
  5. Electronic government.

Image Source: Surfshark

The size of a country’s GDP doesn’t always equate to a high level of Digital Quality of Life. This is evident in the graph below, which illustrates significant disparities between the GDP of various regions and their digital security.

Image Source: Surfshark

Impact of Covid-19 on the Digital Economy

The Digital Economy was growing at 6,8% rate every year before the Covid-19 pandemic, much faster than the 1.7% growth of the overall economy. It’s believed that Covid-19 has accelerated digital transformation by almost four years. 

For the Trade and Development Board of the United Nations, this pandemic has raised, as never before, the question of sustainability and equal access to the digital economy: 

“Moving forward, digitalization can be an important element in supporting economic recovery and contributing to long-term inclusive and sustainable development […] the decades prior to the pandemic were characterized by increasingly unsustainable trends”. 

The pandemic is seen as an opportunity that has highlighted the weak spots of the digital economy and will help us build a better digital life in the future:

“Recovery from the pandemic can help reshape the global economy in order to accelerate achievement of the Sustainable Development Goals. The pandemic has posed an enormous challenge to development aspirations. It is a stark reminder of shared vulnerabilities and demonstrates the need for real change. Nonetheless, it can also be an inflexion point to alter course and build more resilience into the future”.

It’s not a surprise that most companies that saw significant growth during the pandemic and in the post-covid era are directly related to the Digital Economy, such as Apple, Microsoft, Alphabet, Tesla, Amazon or Nvidia. Other sectors like consultancies, pharma, diagnostics and retailers have also benefited, while oil and gas companies were among the worst affected by it.

The OECD (Organisation for Economic Co-operation and Development) points out how Covid-19 is an opportunity to make a “greener, more inclusive and more resilient tomorrow”. The digital and green transformations are bringing about rapid changes in the world of work, which significantly impacts workers and employers alike. On the one hand, new technologies are creating opportunities for greater efficiency, productivity, and innovation. But on the other hand, they are leading to job displacement and insecurity for many workers.

This graph illustrates how labour shortages have increased after Covid-19: 

Image source: OECD

The OECD has started the “Covid-19 Recovery Dashboard” to help revive the economy after the impact of the pandemic: 

“As countries begin to emerge from the most acute phase of the COVID-19 pandemic, policymakers and citizens need tools to monitor efforts to revive economic activity and fulfil the shared commitment of OECD Member countries to build back better. This means addressing structural inequalities, accelerating the green transition, and strengthening resilience in the face of future challenges. A quality recovery would help set the world on course for mid- and long-term agendas and facilitate progress towards the SDGs”.

They offer 20 indicators to help address and monitor the progress of recovery: 

Image Source: OECD

Economy slowdown

The economy is experiencing several factors that are slowing it down, including tightening financial conditions due to higher-than-expected inflation, especially in major European economies and the United States.

According to IMF, The global economy is expected to slow down in 2023 due to the fight against inflation and Russia’s war in Ukraine, which has also contributed significantly to damage and slowed down the economy worldwide but is expected to rebound next year. However, this outlook is less negative than predicted by the OECD in the previous forecasts and could mark a turning point for growth and declining inflation. 

Despite these challenges, there were some positive developments, such as better-than-expected adaptation to the energy crisis in Europe, strong labour markets, robust household consumption and business investment, and the reopening of China. In addition, global financial conditions have also improved due to the decreasing inflation pressures.

As a result, the growth forecasts for 2022 and 2023 have been slightly increased, with global growth expected to slow to 2.9 per cent in 2023 before rebounding to 3.1 per cent in 2024. The tension between US and China increased, and their relationship deteriorated due to their “trade war”, though trade between them hit new records in 2022. 

 The chip shortage has impacted large consumer electronic products such as smartphones, computers, graphic cards, game consoles and car production. This shortage has been caused by several factors, including high demand for electronic devices since Covid-19, lockdowns and restrictions in the Asian companies in charge of production, transport slowdowns and 5G overlapping technologies.

This slowed down the delivery of consumer products and increased consumer price. TSMC, the largest semiconductors supplier in the world, with 28% of production capacity, has been increasing chip prices between 10% and 20% in the past two years and will raise them by 3% – 6% in 2023. The forecast is that the chip shortage will end in 2024.

The car industry, one of the most impacted by this chip shortage, has increased, on average, the price of a new car by 16% in two years (2020-2022). This is because the average car needs around 100 chips on board, and “many vehicles require thousands of semiconductors to control safety features, electrical and powertrain systems, infotainment, connectivity, and more”. 

border-radius:20px;Image Source: Jabil

Europe and the US have signed the “Chips Act” to help the semiconductors industry be more resilient in future supply chain disruptions. 

Inflation, Purchasing Power & Consumer Confidence

2022 has been a year of continuous global inflation, and it is forecasted that in 2023 it will continue but slow down some points. According to the IMF, global inflation is projected to have reached its highest point in late 2022 but is expected to remain elevated in several regions throughout 2023. However, IMF predicts that the worldwide inflation rate will decrease to 6.6% in 2023 and 4.3% in 2024, following an 8.8% rate in 2022.

Image Source: Advisor – Visual Capitalist

Inflation is the increase in the general price level of goods and services over time. As the prices of goods and services increase, the purchasing power of a given amount of money decreases. This means that people can buy fewer goods and services for the same amount of money. 

Inflation can be particularly harmful to people who have fixed incomes or fixed interest rates. It can also negatively impact low-income households, as they may struggle to afford essential goods and services when prices rise. Overall, inflation can lead to a reduction in the standard of living for many people, as it can erode their current income and make it more challenging to afford the goods and services they need. This has a direct effect on consumer confidence. Consumer confidence refers to the level of optimism or pessimism that consumers feel about their current and future financial situation, as well as the overall state of the economy. The consumer confidence index measures how confident people feel about spending their money on goods and services.

High consumer confidence usually indicates that people feel optimistic about their financial situation and are more likely to spend money on discretionary goods and services, such as travel and entertainment. Conversely, low levels of consumer confidence can signal that people feel uncertain or pessimistic about the economy and are more likely to save their money or spend it on essential goods only. 

The following graph shows how the confidence levels have dropped significantly from mid-2021 to 2022. Any level below 100 means lower confidence, and above 100 means higher confidence. 

Image Source: OECD

To put it into perspective, in this US Consumer Confidence Index, we can see how levels have dropped, but compared to the 2007 financial crisis, the drop is much smaller. However, the significant fall started with covid-inforced global lockdowns and was the biggest one of the decade; now are experiencing the effects of the post-covid era and a more complex world due to the war in Ukraine. 

Image Source: The Conference Board

The Great Resignation

The Covid-19 pandemic has had a significant impact on the workplace, with one of the most notable social effects being the Great Resignation, a term coined by Anthony Klotz in May 2021. This movement, which originated in the US and had a particularly significant impact there, has now spread to many parts of the world.

According to Klotz, the Great Resignation movement emerged during the Covid-19 pandemic as individuals placed more emphasis on work-life balance, job satisfaction, and remote work. In the US alone, approximately 47 million people resigned from their jobs voluntarily in 2021, and another 46.6 million followed in 2022.

Employees found it easier to resign from their jobs if they were not receiving a decent wage, suffering from burnout, or feeling excessive pressure. The pandemic provided people with a great opportunity to upskill or reskill, as they had more time to reflect on their professional goals and desired job positions.

As workers became more discerning, companies felt compelled to re-evaluate their job offers and improve the quality of their positions. People resigned from their jobs to find better work, start their own businesses, or acquire new skills. Employers in low-wage sectors are struggling to fill their open positions.

The following graph illustrates the significant increase in the number of quitters in 2021 compared to previous years.

Image Source: SHRM 

Digital Consumer Behaviour

In recent years, the rise of the digital landscape has fundamentally changed the way consumers interact with technology. The COVID-19 pandemic has had a significant impact on our digital lives, and as a result, consumer behaviour has shifted, with a greater emphasis on online experiences and digital engagement From social media and e-commerce to mobile apps and virtual assistants, digital channels are now an integral part of everyday life. 

In this uncertain social context, brands and consumers were forced to adapt alike and rapidly adjust their expectations and behaviours. As a result, consumers developed new habits that hastened the growth of existing social and online shopping trends. These trends, which had been gaining traction for some time, were significantly accelerated due to the pandemic.

Phygital is our new reality

Although the growth of e-commerce was already on an upward trajectory before the COVID-19 pandemic started, 2020 witnessed the largest annual increase in online sales to date. According to the Stackla post-pandemic survey, 67% of participants reported an increase in online purchasing since the pandemic began, with 27% citing a significant increase.

Younger consumers, in particular, demonstrated a marked preference for online shopping. Now, with the Covid-19 pandemic no longer representing a novelty, we can safely say online shopping is not a trend anymore, and it’s here to stay. 

Image Source: Nosto 

Online shopping was already popular before the covid-19 pandemic accelerated our need to buy goods online. Safety issues, social distancing and a shift in how consumers perceived their own personal shopping experiences increased online shopping dramatically.

However, the interesting part of this trend is how much has seeped into our shopping reality, and e-commerce continues to be the go-to shopping strategy for millions of people worldwide. In a report by Netelixir in 2021, surveyed participants were asked to select their preference between online shopping or in-store shopping, and 54% indicated they preferred to shop online. 

In this ChannelAdvisor 2022 report on Consumer Behaviour, data suggests that consumers spend the same or more online than they were a year ago, and inflation and rising costs aren’t influencing their shopping habits.  According to the ChannelAdvisor survey, 23% of consumers spend less money online than they were 12 months ago, 31% spend more than 12 months ago, and 46% spend roughly the same amount.

Another critical insight from this study is that consumers’ digital journey is becoming more complex and multifaceted, and they are interacting with numerous touchpoints throughout the browsing and buying process. This trend is particularly evident among younger consumers, who exhibit greater agility in digital spaces and are more likely to engage with multiple channels before making a purchase: 

Image Source: Channel Advisor

Whether this is a positive or negative thing depends on how businesses and consumers adapt to this evolving landscape. On the one hand, the use of multiple touchpoints and channels can offer consumers more options and convenience, enabling them to find what they want and make purchases more easily.

On the other hand, the complexity of this journey can create challenges for businesses seeking to understand and engage with their customers effectively across multiple channels. Ultimately, the impact of this trend on the overall buying experience will depend on how well businesses are able to navigate and optimise the complex digital landscape.

According to the data by ChannelAdvisor, the touchpoints that are most relevant to the shopping journey vary across countries. The following image shows data from the most relevant countries: 

The Covid-19 pandemic has not only led to a surge in online shopping but has also resulted in an increase in other online activities, such as online gaming and consuming media content. According to a report by Stackla, 72% of respondents have reported an increase in their social media usage since the onset of the global pandemic. For Gen Z specifically, this percentage is even higher, with 79% of respondents reporting an increase in social media time and 46% stating that the increase was significant.

Even if online shopping and social media use are still growing trends, not all our internet habits are continuously on the rise. According to GWI, the daily average time people spend online has almost returned to pre-pandemic levels, even in internet growth markets. The decrease in online time is noticeable in regions like the Middle East & Africa and Latin America.

The reduction is attributed to a lack of free time, and fewer people use the internet daily than during lockdowns. This suggests that traditional online activities have plateaued while foundational internet behaviours are changing. With concerns about the prevalence of misinformation online and its potential impact, people are becoming more mindful of their online activity. In addition, social media has been linked to increased anxiety and stress, which may lead some to limit their time spent scrolling through feeds. 

Image Source: GWI

As our online experiences evolve and become increasingly entangled with our in-person needs and expectations, phygital solutions are becoming the go-to trend for brands to provide experiences that merge physical and digital realities.

This includes initiatives such as buy online, pick up in-store (BOPIS), curbside pickup, virtual try-ons, and augmented reality shopping. By integrating these experiences, retailers are able to provide a seamless and personalised shopping journey for consumers, ultimately enhancing their overall experience and increasing customer loyalty.

Phygital solutions aren’t just a fad, they represent the new dawn of our shopping and social daily experiences, and it becomes harder to differentiate between online and offline needs. As Leta Capital claims in their 2021 State of Phygital report, “The digital economy will start cannibalising itself unless it expands offline”. 

The digital economy, which refers to the economic activity that results from billions of everyday online connections among businesses, people, devices, data, and processes, may become unsustainable and self-destructive if it relies solely on online interactions.

To avoid this, it’s necessary to expand the digital economy offline by adopting phygital solutions that bridge the gap between the physical and digital worlds, creating a seamless and integrated experience for consumers and businesses. This approach can help to enhance customer engagement, create new business models, and improve customer experiences by combining the convenience and accessibility of digital technologies with the sensory and emotional aspects of the physical world.

The 2021 State of Phygital report identifies a shift from the Information Revolution to the Phygital Revolution, which combines macroeconomic and technological factors into a new world order. Despite the rapid progress of Information Technology, it cannot rescue the offline economy, leading to a possible cannibalisation of the digital economy.

The authors suggest that technologies like Augmented & Mixed Reality, IoT, and 5G will unite under the Phygital umbrella and cause a global redistribution of wealth and assets, leading to a dramatic disruption of the offline world and opening the gateway to the offline economy for digital enterprises.

Me, myself, and I

Brand loyalty has decreased in recent years, with consumers now having access to more options and information than ever before. This has led to a surge in personalisation strategies as brands seek to engage customers and build stronger relationships with them.

Personalisation can take many forms, from customised product recommendations to targeted marketing messages, but the goal is always the same: to create a more tailored and relevant experience that resonates with consumers and keeps them coming back for more. By leveraging the power of personalisation, brands can establish deeper connections with their customers and differentiate themselves from the competition in an increasingly crowded marketplace.

Consumers’ digital behaviour across all industries is greatly influenced by their desire for personalised and niche content. This trend is significantly impacting traditional media and entertainment consumption habits. According to McKinsey’s data, consumers now view personalisation as the default standard for engagement:

Image Source: McKinsey

This is consistent with Stackla’s data, which claims that 31% of users leave an e-commerce site without making a purchase because the experience wasn’t personalised enough. In Stackla’s survey, 88% of participants say authenticity is important when deciding which brands they like and support, and 50% claim authenticity is very important to them.  

Image Source: Nosto

The report suggests that users consider User Generated Content (UGC) the most authentic content. In the view of consumers, user-generated content holds 8.7 times more impact than influencer content and 6.6 times more influence than branded content. In addition, a significant 79% of people have reported that user-generated content has a substantial impact on their purchasing decisions.

According to McKinsey, 76% of consumers consider receiving personalised communications important when considering a brand, and 78% of consumers are more likely to repurchase from a brand that provides personalised content. Personalisation is a powerful tool for building long-term customer loyalty, as it generates data from recurring interactions, allowing brands to design even more tailored experiences. This leads to a flywheel effect that results in increased customer lifetime value and loyalty.

Despite the importance of customisation for users, companies are struggling to adapt to this trend. According to Twilio’s State of Personalisation 2022 report, less than half of companies personalise communications based on real-time customer behaviour.

And data from Cheetah Digital suggests that brand personalisation efforts and user privacy concerns are deeply linked: about half of the consumers (49%) are frustrated by irrelevant content or offers, 41% receive messages that don’t reflect their wants and needs, and 31% feel that a brand has not recognised their shopping or loyalty history.

Additionally, 35% of consumers feel frustrated when receiving messaging based on information that hasn’t been shared directly with the brand. Relationship marketing depends on personalisation, meaning that brands must deliver value, relevancy, and meaningful experiences based on individual preferences and data, not on third-party or inferred data that may have been collected by tracking or other means.

Deep Dive

The Digital Divide

There are huge differences and inequalities around digital access worldwide, known as the Digital Divide. In general, people who live in urban areas, or more developed countries, or that are younger, or have better education, have more possibilities to have access to a device that connects to the internet, to know how to navigate through the internet, to be able to pay the internet bill or to communicate and access information. 

ICT (Information and Communication Technologies) play a critical role in modern societies as they allow people worldwide to communicate and access services like healthcare, education and employment. There are a lot of people that are not so lucky to access this digital world, as they suffer from Digital Poverty. This doesn’t only mean not having internet access but also old devices, bad connectivity and insufficient infrastructure. 

According to the World Economic Forum, 2.9 billion people (1 third of the population) have never connected to the internet; they lack the opportunity to engage online with the digital economy. 96% of them live in developing countries, and only 53% of the connected world’s population has access to high-speed broadband. 

Indeed, internet users around the globe are continuously increasing, but still, just 55% of the world population is using mobile internet, despite there’s 95% coverage. What’s more, 40% of the global population covered by a mobile broadband network are not using the internet. This is because other gaps are preventing them from doing so.

People in more developed countries usually take internet access for granted as they are surrounded by all kinds of devices, have good infrastructure and can afford to pay the bills, but actually giving access to democratic internet access is not an easy task for a country, as it’s developed in the ITU Global Connectivity report. 

The global Digital Gap hides a lot of other gaps, such as:

  • The Gender Gap: Although this gap has been narrowing globally, 62% of men still have access to the internet versus 57% of women. In less developed countries, this gap is larger (31% men vs 19% women).

  • The Urban-Rural Gap: People living in urban areas around the world are twice as likely to connect to the internet than those in rural areas (76% vs 39%).

  • The Generational Gap: Globally, young people (15-24 years old) are more likely to connect to the internet than all the other generations. 71% of them use the internet versus 57% of all the other age groups. 

Image Source: ITU

  • The Coverage Gap: Refers to the number of regions worldwide having the necessary infrastructure to connect to the internet. 95% of the world has mobile broadband connectivity; slowly, the other 5% of the poorest countries and regions are getting access too.

  • The Usage Gap: This refers to a lack of sufficient digital skills to be digitally independent. In numbers, 40% of the global population accessing the internet is not going online. This gap is 8 times bigger than the coverage gap.

  • The Access Gap: This term is related to Digital Poverty since many people don’t have enough resources to access the digital world, affordability being the main factor, and if they do, they use shared computers/devices and low-speed bandwidth. Also, a lack of literacy and digital skills.

Image Source: GSMA

  • The Digital Trust Gap: This term refers to the online fear of being victims of fraud or scams, often based on previous bad online experiences. In the physical world, trust is based on knowing who we are talking to and their real identities, plus that we can see and touch the products or spaces we are willing to consume. This is much more difficult in the digital world, and building online trust, and real identities is a must. 

To counter these digital gaps, we need a strong collective effort from many stakeholders. Almost every country is doing their share to bridge this gap, as we can find some public and private initiatives are trying to bridge it. 

The Eddison Alliance is a World Economic Forum initiative to “tackle shortfalls in access to affordable online technology and participation in the digital economy around the world”. With their 1 Billion Lives Challenge program, they are trying to: 

“We are bringing together digital inclusion commitments from governments, companies, and other organizations globally. We aim to improve 1 billion lives through affordable and accessible digital solutions across health, finance, and education by 2025”. 

Another example is the global non-profit organisation Internet Society, as they are “committed to closing the digital divide by bringing together the people and technology needed to give everyone the access they want”, or the Close the Gap Foundation. 

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The Study

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What is this study about?

Ironhack is the second biggest school in the world, with more than 10.000 students. They have 10 campuses and since Covid, have started an online teaching program. They are specialized on digital technologies, and their main focus is to reduce the gap between supply of workforce and the demand of the companies.

From 2023 on, they want to start publishing reports to position themselves as thought leaders in tech areas. They have contacted us to help them build this reports. We’ll start building the State of Tech in 2023 report, to be ready this January. If the relationship goes on, they will need another report on september.

IRONHACK wants to use this report as a source of knowledge to build “hero content” for their communication channels throughout the year.

Thanks to this efforts, they expect to:

  1. Drive brand awareness online.
  2. Establish their brand as thought leader in the tech industry recruitment space.
  3. To show how well they understand the skills gap in the sector.
  4. To gain more lead for the top of the funnel.
  5. To drive more traffic to their website.
  6. To nurture their funnel, resulting in more apps.

Audience of the contents of this report:

  1. B2C: Career changers and recent grads, looking to understand the viability of a career in tech, the long term benefits of getting into tech and what kind of jobs are out there in 2023. They should come away from reading the report feeling motivated to get into tech, with an idea of what job they want and how to get it.

  2. B2B: Hiring managers and recruiters, looking to understand the skills and current pools currently available in the market. They should come away from reading the report feeling more certain of the kinds of profiles they should be looking for.

The study includes: 

  • 9 Reports on the State of Digital Tech 2023, in 9 countries. 
  • 1 Global Report on the State of Digital Tech 2023. 
  • 1 light Gender Report.
  • 1 Global Survey about the State of Digital Tech 2023.
  • 109 Interviews

Interviews: 

  • 9 Ironhack Local Outcome Managers
  • 9 Gender Experts
  • 18 Ironhack Students
  • 18 Key Opinion Leaders (KOL)
  • 27 Chiefs
  • 27 Career Changers

Discover more about this study in the Research Proposal. 

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The Survey

The Survey was intended to be delivered in for this research through LinkedIn Ads, but after designing the campaigns and test-launching it, we noticed bad results in terms of Survey submissions. 

The Survey strategy is being rethought at the moment. 

You can access the ongoing Survey here.