A message on gender for startups

Tech companies love data. People in this industry thrive on it. So why are tech startups still overlooking the data that ties workforce diversity to bigger bottom lines?

This week, strangely inured as I am to the world of corporate finance, I covered for a client a seminar on workplace gender diversity.

A few facts (note, these are not new facts; they are old research that's been around for years):

• Companies that are gender-diverse outperform (i.e. are more profitable than) those that are not by 18-69%.*
• Australian companies with women directors outperform those that don't by 8%.*
• Companies that are gender-diverse tend to exhibit a broader culture of inclusivity, reflecting forward thinking, a lack of conservatism, and openness to new ideas. That, apparently, tends not to hurt profitability either.
• Many worthwhile and valuable equality-promoting measures don't cost the business anything. For example, mentioning "men and women" in a job ad has been shown to increase the diversity of applicants.

Diversity can mean competitive advantage. So why aren't startups, which have a massive opportunity to basically redefine what "business culture" is, what "work" is, and what "competitive advantage" is, doing more, er, work in this area?

Examples? With pleasure. I know startups that don't really like you working from home. Why not? Because they don't really believe that you'll do work there. I also know startups that assess performance, at least in part, on the basis of hours worked, not the quality of work outputs. 

These kinds of approaches and cultures actively work against inclusivity, productivity, and profitability. As proven by research.

I also know of startups that do have an inclusive approach. But it seems incredible to me that for tech businesses gender equality is as much of an issue as it is for traditional businesses. If you're reading this and saying, "but we just don't get women candidates," I say:

• recast your job ads
• make your recruiters work for their money and provide at least x (3?) worthy applicants from both genders for any role; if they can't, interview the top two from the underrepresented gender so you can get an idea of the skills and people your talent-search process is passing by
• ensure employees of both genders are on every candidate selection panel (Yes! Panel! If you're still hiring via single-person interview, it would seem you're running your business like it's 1999.)
• ensure pay equity

...as a baseline.

Come on, tech companies and startups. The data shows you're leaving money on the table** by not championing gender diversity, and building inclusivity into your culture. And for an industry that prides itself on intellect and logic and a love of smart, data-backed business decisions, that's nothing short of embarrassing.

*If you want research citations, let me know.
**To use the popular get-rich-quick-online terminology.