Even in a rapidly evolving job market, businesses consistently grapple with the critical challenge of finding and retaining top-tier technical talent. In today’s competitive landscape, overlooking any potential talent pool is a strategic misstep. Yet, many companies are still lagging in diversifying their recruitment strategies, missing out on significant pools of skilled technical professionals.
While diversity remains a broad concern across industries, the tech sector faces a particularly acute shortage of diverse talent. For example, in 2021, statistics revealed a concerning trend: entry-level engineering and product roles saw 14 percent fewer women, and first-level manager positions had 15 percent fewer women compared to nontechnical roles.[1] Similarly, research indicates that Black professionals, despite representing 13 percent of the overall labor force, constitute only 4.5 percent of software developers.[2] This disparity highlights a significant gap in representation within the tech industry.
The root causes of this underrepresentation are multifaceted, ranging from subtle biases to systemic issues. Factors such as poorly constructed job descriptions and ineffective interview techniques contribute to the problem. Furthermore, ingrained management practices related to accountability and goal setting can undermine even the most well-intentioned diversity, equity, and inclusion (DEI) initiatives.
Addressing the diversity opportunity within technical talent—encompassing socioeconomic, educational, and neurodiversity—is not merely a matter of social responsibility; it’s a fundamental component of a successful talent strategy for any company with serious technological ambitions. Organizations with diverse leadership teams consistently outperform their less diverse counterparts and demonstrate a greater ability to attract top talent.[3] In fact, highly sought-after technical professionals often prioritize inclusivity and may decline job offers or even avoid applying to companies perceived as lacking in this area. Experience shows that no single action can fully resolve this complex issue. Instead, a sustained and multifaceted approach is essential. While significant progress is still needed, seven key practices are emerging that are demonstrating a positive impact on fostering DEI in tech talent acquisition and retention.
1. Embedding DEI into the Core of Your Talent Program
Many companies express a desire to enhance the diversity of their tech teams. However, DEI initiatives often become relegated to secondary tasks, added onto already demanding workloads. Some organizations have even attempted to incentivize recruiters with bonus points for diverse hires, but these efforts have largely fallen short.[4] The result is that DEI efforts frequently lose momentum and fail to achieve meaningful change.
To prevent this, companies must ensure that a senior technology leader is directly responsible and accountable for integrating DEI into the overarching talent management strategy. While HR can provide crucial support, it should not lead these initiatives. HR departments typically lack the deep understanding of specific tech needs and the established credibility within the tech community necessary to drive effective DEI strategies in this specialized field.
The designated DEI tech leader plays a pivotal role in weaving DEI considerations into the fabric of a company’s talent management processes. This can involve incorporating DEI Key Performance Indicators (KPIs) into the standard talent dashboards used by leadership, rather than creating separate DEI-specific reports. It also means including DEI goals in employee performance reviews and integrating DEI perspectives into all training materials. The crucial element is to make DEI an intrinsic part of the daily business operations, not a detached or supplementary program.
2. Data-Driven DEI: Identifying Issues and Setting Clear Goals
Transparency, grounded in data, is essential for pinpointing and addressing DEI challenges. However, surprisingly few companies are fully transparent in this area. A recent study revealed that only 55 percent of companies in the Russell 1000 disclose even basic racial and ethnic diversity data, and a mere 11 percent report more comprehensive EEO-1 data or intersectional data that considers factors like sex and gender in combination with race and ethnicity.[5]
A fundamental first step is to gather comprehensive data related to the recruitment, performance, and retention of diverse talent. While initial data sets may not be perfect, they provide crucial visibility into the current DEI landscape and establish a benchmark for tracking progress. This data-driven approach is vital for fostering accountability.
One software company successfully improved its understanding of diversity by encouraging employees to self-identify across various dimensions, including race, ethnicity, age range, gender identity, LGBTQ+ status, military service, pronoun preference, and caregiver status. This initiative led to a 50 percent increase in people managers identifying as underrepresented races and groups. Making this data accessible to all employees fostered transparency and allowed everyone to monitor progress alongside leadership.
Furthermore, companies need to move beyond broad, generic DEI goals, such as “prioritizing diversity” or “increasing diverse talent.” Research on effective goal-setting frameworks, like Objectives and Key Results (OKRs), emphasizes the importance of goals that are clear, specific, transparent, and regularly updated.[6]
Digital-native tech company GitLab serves as a compelling example of best practices. GitLab not only publicly shares its DEI goals but also publishes its diversity data, DEI dashboard, and regular updates on its progress toward achieving its objectives.[7] This level of transparency and commitment sets a high standard for the industry.
Visual representation of the tech talent landscape, emphasizing the importance of diversity, equity, and inclusion in talent acquisition and retention strategies.
3. Tailoring Your Approach to Resonate with Diverse Talent
Just as customer-centric businesses prioritize understanding customer needs, recruiters must deepen their understanding of what matters most to diverse tech professionals. Leading companies are refining their Employee Value Proposition (EVP) to address core DEI considerations. This includes highlighting opportunities for career advancement and emphasizing work-life balance to appeal to dual-career couples and single parents. It also involves showcasing diverse employees in all company communications and marketing materials.
These adjustments can have a significant impact on attracting diverse talent. Heather Mickman, CIO of Gap, Inc., shared how seeing a predominantly female executive team on Gap’s leadership page positively influenced her decision to join the company. “I thought to myself, ‘Wow, you don’t see that very often. I think this is a company I want to work for.’”
Organizations should adopt a test-and-iterate approach to their EVP materials. Gathering feedback from internal affinity groups or partnering with diverse professional communities can provide valuable insights, as the priorities of different communities can vary significantly.
Job descriptions are one area where targeted adjustments can yield surprising results. A financial services company realized that while its overall EVP promoted inclusivity, its digital job descriptions did not reflect this commitment. By rewriting its technical EVP and job descriptions to emphasize career growth and inclusion, the bank saw a 40 percent increase in applications and a doubling of qualified candidates from diverse backgrounds.
Similarly, copper-mining company Freeport-McMoRan demonstrates a tailored approach by offering a careers page specifically designed for military personnel and veterans. This page features a customized EVP that affirms the company’s support for veterans and military service, along with detailed information on how the company facilitates the transition from military to civilian careers. The page also includes functionality that allows veterans to search for roles based on their military titles or codes.
4. Expanding Your Sourcing Network for Broader Reach
Companies need to re-evaluate their talent sourcing strategies and expand beyond traditional recruitment channels and institutions. For example, Carnegie Mellon School of Computer Science stands out for its near-equal gender representation, with women making up almost 50 percent of its student body.[8]
One retail company discovered that a significant portion of its new hires—approximately 40 percent—came from the same six or seven universities, and less than 30 percent were from underrepresented groups. This narrow sourcing approach resulted in a lack of diversity among its early-career technical talent. To address this, the company partnered with an early-career sourcing organization and broadened its recruitment efforts to include a wider range of universities, community colleges, and non-traditional learning environments. As a result, around 70 percent of its early-career technical talent now comes from a more diverse set of schools, and the overall diversity of incoming talent has increased to over 50 percent.
Several organizations specialize in connecting companies with diverse talent pools and providing necessary training, including Canvas, Career Karma, Joonko, Mogul, and Speak_. These platforms are valuable resources for finding candidates from multicultural professional groups, women’s networks, and vocation-focused communities like technical colleges, alternative high schools, and coding communities that serve underrepresented groups from diverse socioeconomic backgrounds.
Supporting DEI-focused nonprofits, organizations, and coding academies that promote digital literacy and tech skills is another effective strategy. This approach is particularly important given that women constitute only 19 percent of computer science undergraduates, and Black students just 9 percent.[9] Gainsight has launched a program called CS YOU that offers internships in SaaS customer success management to underrepresented groups, including people of color, LGBTQ+ individuals, stay-at-home parents, military veterans, and people with disabilities. Following training, Gainsight assists program participants in finding placements within tech companies.[10]
Reaching out to diverse tech talent earlier in their academic or career journeys is also proving successful. This can involve sponsoring STEM scholarships for diverse students and creating programs like sponsored hackathons that provide underrepresented talent with opportunities to learn more about tech careers. IBM, for instance, is collaborating with 13 Historically Black Colleges and Universities (HBCUs) to establish a new Quantum Center, providing students with access to IBM quantum computers, educational resources, and research opportunities.[11] Similarly, tech giants like Netflix are partnering with HBCUs to offer coding boot camps for students.[12]
One convenience retail and food company engages with affinity groups for people of color to connect with first and second-year university students. By building early relationships through campus clubs, mentorship programs, and regular events, the company fosters a pipeline of diverse talent.
Expanding the geographic scope of recruitment is also crucial. While recruiting in established tech hubs like the San Francisco Bay Area or growing centers like Austin may seem natural, companies are increasingly recognizing the value of broadening their search to include a wider range of cities to attract more diverse talent. A report by Digital Planet in partnership with Tufts University identified Atlanta, Memphis, and Greensboro–Winston-Salem as having the highest representation of Black technical talent.[13] Furthermore, Greensboro–Winston-Salem, Houston, and Nashville were recognized as top performers in Black STEM diversity, measured by the ratio of Black representation in the STEM talent pool compared to the overall Black representation in the metro area.
5. Preparing Candidates for Interview Success
Candidates from diverse backgrounds often have less experience navigating the typical tech interview process, which can put them at an immediate disadvantage. For example, approximately 50 percent of Black engineers have had only one technical interview prior to seeking employment.[14]
Many companies rely on coding challenges to assess candidates’ skills. While these can be useful, inconsistencies in their application can create bias. Testing platforms may offer hundreds of different coding challenges, but often the same challenges are not used for all candidates applying for the same role, and sometimes the challenges are not directly relevant to the actual job responsibilities. Furthermore, these challenges may prioritize syntax and formatting over problem-solving structure and responsiveness. Negative interview experiences disproportionately impact diverse talent. A study by interviewing.io found that women are seven times more likely to withdraw from the interview process after perceiving their performance negatively.[15] This underscores the importance of adequate preparation for diverse candidates; without it, they are more likely to self-select out of the process if they feel unprepared for technical assessments.
Andrea Guendelman, founder and CEO of Speak_, notes that “Tech company interviewing techniques can be mystifying to students whose educational and social networks give them little advance warning of what is to come.”
To address this, companies can take several proven steps: publicly outline their recruitment process and provide preparation tips on their websites (GitLab’s process is a good example [https://about.gitlab.com/handbook/hiring/interviewing/]), offer links to videos explaining specific tech interview techniques (like group coding exercises), personally review the interview process with candidates to answer questions, and establish gender-neutral or gender-inclusive dress codes.
6. Mitigating Unconscious Bias in Recruitment
Unconscious bias can undermine even the most proactive sourcing strategies. Addressing it requires a deliberate and thoughtful approach to identify and mitigate bias at every stage of the recruitment process. LinkedIn data indicates that recruiters are 13 percent less likely to open a woman’s profile compared to a man’s.[16] One retailer recognized this challenge when developing programs to support early technical careers for diverse individuals. As the VP explained, “We had to first get comfortable using the right language—such as our use of pronouns, being gender neutral, and removing references to war and aggression—to talk about identity before we could even approach these communities of talent.”
Effective interviewer training is a crucial starting point. Many interviewers form a lasting impression of a candidate within the first five minutes of an interview, often influenced by unconscious biases. Training interviewers to clearly define objective criteria for each role and to utilize assessment grids to systematically track observed behaviors and responses during interviews can help reduce bias.
One government agency tackled unconscious bias by providing DEI training for interviewers and strategically recruiting through professional networks that cater to veterans, women, Hispanic and Latino professionals, and other underrepresented groups. These focused efforts enabled the agency to successfully close talent gaps within its projected timelines.
Unconscious bias can also manifest in how candidates are evaluated—specifically, prioritizing current skills over future potential. Given the rapid pace of technological change and the varying curricula of undergraduate technology programs, hiring managers may inadvertently undervalue candidates whose skill sets are slightly outdated or who lack specific specialized training. Companies may need to invest in upskilling programs for recruiters and hiring managers to enhance their ability to identify candidates’ underlying technical capabilities, even when their current skills require some updating.
7. Cultivating an Inclusive Culture for Retention
The benefits of recruiting diverse talent can be negated if new hires do not feel a sense of belonging and value within their teams. Several interventions have proven effective in fostering a more inclusive culture and improving retention rates:
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Educate Leaders in Collaborative Problem Solving: Provide training for managers, tech leads, and product managers in collaborative problem-solving techniques. Specific approaches, such as building on positive contributions and pair programming, can foster psychological safety within teams. Train leaders to recognize work habits that may be less familiar to some diverse talent, like using whiteboards for group coding challenges, and offer guidance and support.
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Improve Career Advancement Opportunities: Data reveals that only 52 women are promoted to tech manager roles for every 100 men, compared to 86 women for every 100 men in managerial roles overall.[17] This disparity, often referred to as the “broken rung” in the career ladder, contributes to women leaving tech careers. Providing skill-building opportunities and structured professional development guidance can ensure that diverse employees have the necessary skills to advance. Regularly review company policies to identify and remove any barriers to career progression. For example, in the wake of the pandemic, one large insurance company re-evaluated its work-from-home policies to prevent unintentionally disadvantaging employees working remotely.
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Vary Established Practices: Small adjustments to routine practices can make a big difference. Offer diverse food and drink options beyond typical tech-centric choices like pizza and beer for team gatherings to acknowledge varying preferences. One leading tech company discovered that developers’ preference for dimly lit workspaces made many women uncomfortable. Simply increasing the ambient lighting improved morale and engagement for all technical staff without negatively impacting productivity.
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Publish and Enforce Codes of Conduct: Clear codes of conduct are essential, but consistent and swift enforcement is equally critical. Prompt and constructive responses to inclusion-related issues signal that the organization genuinely values inclusivity.
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Support Affinity Groups, Sponsors, and Mentors: Provide funding and recognition to affinity groups, sponsors, and mentors. Affinity groups can become vital support networks, offering early-career technologists a space to seek advice, access targeted micro-training, receive help with goal setting, and build connections within the broader organization. One retailer effectively connects early-career technical talent, including interns, with its affinity groups. These groups can also contribute valuable insights to improve tech talent processes. Sponsors and mentors play a crucial role in proactively sharing opportunities and providing senior-level advocacy to ensure diverse technical talent is assigned to high-profile IT projects. Many companies assign “buddies” and mentors from similar backgrounds to offer ongoing support and guidance.
The scale of change needed to meet the evolving demands for new roles and skills in the tech industry is unprecedented. This presents a significant opportunity for companies to integrate DEI goals into their core strategies for attracting technical talent. Closing the diversity gap in tech is not only a moral imperative but also a critical business imperative for sustained success and innovation.
