The technology industry has a retention problem – women are leaving their tech careers in droves. 

What we know about women in technology careers 

Australia’s technology workforce has grown to be the size of our seventh largest employer, yet gender diversity remains a weakness, with around 1 in 4 workers being women. Despite efforts to increase women’s enrolment in STEM fields, in the last 21 years, the number of female software engineers has increased by just 2% globally.  

However, what is most concerning is that the turnover rate is more than twice as high for women as it is for men in tech industry jobs. And with 50% of women leaving their tech jobs by the age of 35, the industry finds itself deprived of mature diverse talent. 

Tech careers should be advantageous for women 

The Technology Council of Australia shared some promising insights, finding that: 

• Women are under-represented in the sector, but they are well rewarded. 
• Women are most likely to enter the tech sector as an early/mid-career transition between 25 and 30 years of age. Joining at this stage can help women accelerate their earnings, increase their superannuation, and gain valuable new skills.   
• Despite the relatively low share of women working in the industry, the gender pay gap in tech is half that of other highly paid sectors, such as finance or professional services. 
• The low share of women suggests an opportunity for more women to enter the sector, especially via reskilling, to help with the post-pandemic recovery. 

Despite its promising career opportunities, women are still leaving the industry in droves. 

Our Roundtable explored several possible causes that may need attention, but we’ll focus on these three in this roundup: managing the pay gap, encouraging career progression, and creating a sense of belonging. 

1. Managing the pay gap for women in tech 

The Technology Council of Australia finds the gender pay gap in tech to be half that of other highly paid sectors. Our Roundtable participants shared this sentiment, celebrating proactive strategies like: 

• large organisations using remuneration committees 
• conducting quarterly market overviews to benchmark against the industry, and making considerations to measure salary by tenure when it comes to women and minority groups who are known generally not to speak up and ask for their worth in salary negotiations 
• reviewing all pay grades and streamlining salaries based on role responsibilities. 

While the tech industry is seen to have less pay discrimination based on gender, the opportunity to increase those earnings with career progression could be a factor. 

Takeaway: Are your women workers being recognised and rewarded fairly? 

2. Encouraging career progression 

According to the Department of Industry, Science and Resources, just 23% of senior management and 8% of CEOs in STEM-qualified industries are women. With 50% of women leaving the tech industry before 35 years of age, it’s little wonder. 

Girls in Tech explored unequal career progression (‘the broken rung’) in a study conducted with McKinsey & Company. They argue that women in technical roles need early career promotions because they’re less likely than men to win them, contributing to why many are exiting the field. 

One Roundtable member suggested that we need to better educate current senior leaders on why we need more female leaders and what’s holding them back from progressing into leadership positions. Additionally, there needs to be a greater push for women to pursue STEM education earlier (instead of transitioning mid-career by reskilling), which could help them progress further and potentially encourage them to stay in the industry longer. 

Another member supported the call for greater education and awareness, sharing a cycling anecdote about headwinds and tailwinds to explain the situation. 

They explained that women who are trying to be something succumb to environmental headwinds that make it harder for them to get where they want to go. Whereas the people who are supported by favourable tailwinds are often ignorant to their privilege, and need to be enlightened as to what their environment has created for them (i.e. their success isn’t about being more qualified). 

Takeaway: What and where are your headwinds? 

3. Creating a sense of belonging in a male-dominated industry 

With so many women leaving the tech field by 35 years of age, we wanted to explore how to improve their sense of belonging. Psychological safety was flagged as essential to succeed in creating belonging, with the group discussing Employee Reference Groups (ERGs) as one possible solution. ERGs, especially those with a focus on women in leadership, provide a clear signal that your organisation wants minority groups to have a voice. 

Additionally, the tech industry has a culture problem that may not always be conducive to the life and career needs of women workers. 

One Roundtable participant shared one of her earlier career experiences when she was a new mum. When her baby was a few months old, her employer told her she would be relocating to the US, only to then return to Australia and find out that she would be commuting between Sydney and Melbourne regularly. This was not conducive to the lifestyle needs of a new mum, so while she did it for a while, she didn’t stay.  

This experience led the group to question whether a shift in life and career needs (and the lack of employer support during that shift) was contributing to turnover. And if women desire more flexibility and work-life balance because of caring roles in the home, is career progression the trade-off? 

Takeaway: Are you seeing any trends with visibility, flexibility, and promotions? 

Help your women tech workers thrive 

Women are leaving the technology industry for several reasons – including these three discussion areas. We see enormous potential for women workers to fill skills gaps and help with the post-pandemic recovery, but tech employers need to step up and address known issues. Workplace environments that make women feel overlooked, invisible, and discouraged by the lack of flexibility and support won’t be able to retain their talents at a time when they’re most needed.