The Gender Gap Paradox: Tech’s costliest blind spot

Recently, I have been invited to join a panel discussion on the Gender Gap, focusing on some of its less conventional aspects. This invitation, along with my personal experiences and a desire to build on the insights from my previous article, Women Leading the Way, prompted me to write about it.

In discussions about the tech industry, we occasionally encounter voices that downplay the existence of gender disparities, or even suggest that women have somehow gained the upper hand.

This is often driven by unconscious biases and a lack of awareness about the structural barriers women face. Resistance to change also plays a significant role, as some individuals perceive efforts to address the gender gap as disruptive or unnecessary. Additionally, flawed data analysis, such as overemphasizing surface-level metrics while ignoring deeper inequalities, can lead to the mistaken belief that the problem has already been resolved.

Yet, in today’s global economy, women’s empowerment and inclusion remain critical drivers of organizational innovation, economic growth, and social progress.

As I explored in Women Leading the Way, women’s contributions consistently lead to better decision-making, greater productivity, and long-term resilience.

Despite these clear benefits, the technology sector across Europe, particularly in Switzerland and Italy, still grapples with a persistent gender gap. This is evident in the limited female representation in STEM roles, particularly in leadership positions, and the pressing Gender Pay Gap.

This gives rise to what can be provocatively called the Gender Gap Paradox: despite women often earning less than their male counterparts, tech companies continue to favor male hires, effectively overlooking a “more affordable” yet equally skilled pool of female talent.

And no, I’m not writing about this because I see myself as a champion for women’s rights or because my family is overwhelmingly female, dog included! Rather, it’s because I personally find working with women a rewarding experience.

I’ve often observed in them traits like sensitivity, a natural inclination toward empathy, and other qualities that foster empowerment in teams and organizations. As someone who strongly advocates for empowerment in general, this is why I care about addressing the Gender Gap and its broader implications.

Understanding the Gender Gap and Gender Pay Gap

The gender gap in tech reflects systemic issues of representation, compensation, and career advancement for women across Europe and beyond.

Despite differences in context and intensity, countries like Switzerland, Italy, and others in the EU face shared challenges: persistent stereotypes, underrepresentation of women in STEM, and significant pay disparities.

Exploring these trends highlights the critical need for cultural and structural shifts to bridge the divide and unlock untapped potential.

European Context

Across Europe, women remain underrepresented in tech roles. According to Eurostat(2023), women constitute approximately 19.4% of ICT specialists in the EU, and only about one-third of STEM graduates are female (European Institute for Gender Equality, 2020 and UNESCO Institute for Statistics ,2023).

Simultaneously, the European average gender pay gap stands between 11% and 12%, meaning that, on average, women are paid less for performing the same roles.

Logically, one might expect that lower average compensation would incentivize firms to hire more women. Yet, bias and stereotypes persist, obstructing what could otherwise be a purely market-driven solution.

Switzerland

Switzerland, known for its strong economy and innovation, still faces a substantial gender gap in tech. According to the Swiss Federal Statistical Office FSO , women account for fewer than 20% of senior ICT positions.

The Swiss gender pay gap stands at approximately 18.3% (Eurostat, 2021), underlining that female professionals, even when similarly qualified, tend to earn less.

瑞士苏黎世联邦理工学院 and EPFL studies note that although Swiss universities produce highly skilled female STEM graduates, many do not advance into leadership roles.

Instead of leveraging this talent, companies often default to hiring male candidates, failing to capitalize on cost or skill advantages.

Italy

In Italy, women represent 16-18% of ICT specialists (Eurostat, 2021), and the gender pay gap averages 4.3% (European Commission, 2022) one of the lowest in Europe.

The 意大利米兰理工大学 SDA Bocconi School of Management indicate that women occupy fewer than 15% of top tech leadership roles.

Even with a smaller gender pay gap than the European average, biases and cultural factors result in fewer women hired and promoted, demonstrating that cost savings alone do not mitigate persistent stereotypes.

The Leadership Gap: barriers to advancement

A central dimension of the gender gap in tech is the difficulty women face in advancing to leadership roles.

While many European countries promote STEM education for women, the glass ceiling often appears when transitioning to managerial or executive positions.

Research from 麦肯锡 and the World Economic Forum consistently shows that women are less likely to hold senior tech positions, receive promotions to management at the same rate as their male peers, or influence strategic decision-making.

This leadership gap stems from multiple factors:

• - Stereotypes and Bias: Hiring managers may unconsciously perceive men as more “technically competent” or “leadership-ready,” even when profiles are identical
• - Lack of Role Models: While it’s often said that fewer women in leadership limits the availability of mentors or examples for aspiring female professionals, this isn’t entirely true. As I highlighted in Women Leading the Way, with examples like Indra Nooyi and Sheryl Sandberg , there are countless women breaking barriers and paving the way for others. The real challenge lies not in their absence but in amplifying their stories and achievements, making them visible and accessible to inspire the next generation of leaders
• - Work-Life Balance Pressures: Inflexible work arrangements and lack of support for family responsibilities disproportionately affect women, discouraging many from pursuing or remaining in higher-level roles.

These challenges align with the insights shared in Women Leading the Way, which highlighted that empowering woman in leadership leads to more innovative solutions, balanced decision-making, and better organizational performance.

The paradox is that failing to promote women into tech leadership not only forgoes these proven benefits but also perpetuates a scenario where talent is underutilized and undervalued.

From Paradox to Progress

Overcoming the Gender Gap Paradox is not just an ethical imperative; it’s a pathway to substantial economic gains.

Multiple studies have quantified the transformative impact of empowering women.

Globally, the McKinsey Global Institute estimates that achieving full gender equality could add up to USD 28 trillion to annual global GDP by 2025.

Focusing on Europe, various analyses offer concrete figures:

Europe in general

According to the European Institute for Gender Equality , improving gender equality could increase the EU’s GDP per capita by 6.1% to 9.6% by 2050.

With the EU’s GDP estimated at roughly EUR 16 trillion in 2022, this translates into an additional EUR 1 to 1.5 trillion.

Some studies project even higher figures, estimating that bridging the gender gap could unlock between EUR 1.95 to 3.15 trillion for the European economy over the coming decades.

These numbers underscore that inclusive practices aren’t merely social enhancements; they are powerful economic levers.

Switzerland

While Switzerland already ranks high in competitiveness, research suggests that closing the gender gap could generate billions of Swiss francs in additional annual GDP.

With Switzerland’s GDP at roughly CHF 800 billion (around EUR 750 billion), these gains could account for significant growth, potentially increasing annual economic output by 12% or more.

These improvements stem from higher labor force participation, increased women-led innovations, and enhanced decision-making within businesses.

For a nation renowned for efficiency and precision, utilizing untapped female talent is an obvious step to reinforce its leadership in innovation and growth.

Italy

Italy’s economy, approximately EUR 2 trillion, stands to gain substantially from empowering women.

Achieving global gender parity could generate economic benefits exceeding six times Italy’s entire GDP.

Estimates by organizations such as Euractiv suggest that gender inequalities cost Italy around EUR 80 billion annually.

Closing this gap could inject tens of billions of euros back into the Italian economy each year, enhancing competitiveness, productivity, and the country’s potential as a leading European tech hub.

These figures reaffirm the critical connection between women’s empowerment and economic advancement.

Empowered women drive diverse thinking, strengthen organizations, and foster healthier, more prosperous communities.

Addressing the Gender Gap requires dismantling biases, ensuring equitable hiring and promotion, and instituting transparent compensation policies.

By shifting from paradox to meritocracy, Europe, including Switzerland and Italy, can fully capitalize on its talent pool, driving innovation, competitiveness, and sustainable growth for generations to come.

How to bridge the Gender Gap (and Pay Gap)

Besides traditional strategies like diversity quotas, equal pay legislation, and mentoring programs, innovative approaches are emerging that tackle these issues from fresh angles.

These solutions leverage technology, modern leadership practices, and cultural shifts to create meaningful progress:

Reverse mentoring

This flips the traditional mentoring dynamic by pairing junior female employees with senior male leaders. Through these relationships, male leaders gain first-hand insights into the challenges faced by women in the workplace, fostering empathy and sparking actionable changes in policies and behaviors.

VR-based awareness and training

Immersive Virtual Reality experiences simulate workplace biases and gender inequalities. For instance, participants can experience the challenges of being overlooked or underpaid from a female perspective. This cutting-edge training builds empathy and drives behavior change faster than conventional methods.

Blind recruitment and AI-powered hiring

By anonymizing candidate data during the hiring process and leveraging AI to screen resumes objectively, organizations can mitigate unconscious bias and focus on skills and qualifications. This ensures that talent is evaluated fairly, regardless of gender.

Skill-based compensation models

Transitioning from tenure-based to skill-based pay structures ensures that employees are compensated for their contributions and capabilities. This approach inherently promotes pay equity by aligning compensation with measurable outputs.

Return-to-tech programs

These initiatives are designed to re-integrate women who have left the workforce due to caregiving responsibilities or other personal reasons. Focused on upskilling and leadership development, they ensure that companies retain valuable talent and diversity in leadership pipelines.

Gamified inclusion goals

Using gamification to motivate teams to meet diversity and inclusion targets can drive engagement and accountability. Teams could earn rewards or recognition for achieving measurable milestones, such as hiring more women in tech roles or reducing pay disparities.

Equity-linked incentives for gender balance

Organizations can tie equity or profit-sharing programs to achieving gender parity in pay and leadership. This creates a direct financial incentive for companies to close gaps and foster inclusivity.

Flexible Career Tracks and Nonlinear Growth

Designing career paths that accommodate life changes, such as caregiving, ensures women can progress without penalty. Flexibility in promotions, project leadership, and work schedules can help retain talented women.

These innovative solutions go beyond compliance or surface-level fixes, targeting systemic issues with fresh, forward-thinking approaches.

When combined with traditional strategies, they offer a powerful toolkit for achieving a more equitable and inclusive workplace.

In this episode, we explored the persistent gender gap and pay gap in tech across Europe, Switzerland, and Italy.

We examined the structural barriers, biases, and economic implications while highlighting innovative solutions to bridge the divide.

Closing this gap isn’t just a matter of fairness, it’s a pathway to unlocking untapped talent, driving innovation, and fostering sustainable growth.

Join me on this journey as we delve deeper into how diversity and inclusion, combined with leadership, coaching, and mentoring, can create a dynamic and thriving professional environment, driven by the strength of collaboration and equality.