What Can Technology Companies Do to Foster Diversity?

In today’s global business landscape, diversity has become a key part of what is considered good corporate governance, and, as a result, companies are expected to increase diversity in the boardroom and C-suite. We see this with technology companies that have become global brands themselves. Highly visible tech notables such as Apple, Facebook, Google and Yahoo, long considered among the world’s most innovative companies, are bringing the issue of gender and minority diversity in science, technology, engineering and mathematics (STEM) to the forefront.

With a strong track record for diversity within our own Technology Practice, this is an issue of particular concern to Russell Reynolds Associates. In fact, 2014 was our most successful year to date in diverse recruiting, with more than 40% of our U.S.-based chief information officer/chief technology officer searches completed with a diverse candidate.

Still, in spite of all the strides, there is no doubt that much work remains. Fortune magazine recently ranked the diversity of 14 leading tech companies, and the results were revealing:

• Leadership teams from all 14 companies are predominantly male.
• Google’s executive team is 79% male, while Facebook and Yahoo are tied at 77% each, and Apple’s leadership team is 72% male dominated.
• Looking at the ethnic diversity of leadership teams, the stats show us that these companies are made up of anywhere from 60% to 80% white executives.
• Blacks and Hispanics are significantly underrepresented at below 10%, while Asians hover in the 20% to 30% range.[1]

Twitter itself admitted in a blog post: “We are keenly aware that Twitter is part of an industry that is marked by dramatic imbalances in diversity—and we are no exception.”[2] At Google, Laszlo Bock, Senior Vice President of People Operations, said, “Put simply, Google is not where we want to be when it comes to diversity.”[3]

The good news is that many of these companies understand the need for change from the top down. This is seen in our own work at Russell Reynolds Associates, and it is reflected in the industry. Apple, for example, has made a concentrated effort to increase gender diversity on its board, as well as on its leadership teams, appointing Susan L. Wagner to the board of directors and hiring Angela Ahrendts as Senior Vice President of Retail and Online Stores and Denise Young Smith as Vice President of Worldwide Human Resources.

Experts predict that future American jobs will be in the STEM-related industries. While the companies are taking major leaps forward in minority representation, the question remains: How do we get the other half of the workforce into these companies?

Foster a Culture of Diversity

There are a few key elements to success that can help companies when searching for diverse candidates to fill leadership positions. For starters, companies should look inward, creating a corporate culture and making a strong commitment—from the top down—to true diversity, recruiting and fostering female and minority talent to fill boardroom and executive team positions.

Cast a Wider Net

In addition, if organizations dedicated to diversity are serious about effecting real change, they need to be more flexible about the credentials they require. Studies show that female and black directors are far more likely than their white counterparts to hold multiple board seats, suggesting that companies are looking at the “usual suspects” when seeking to increase boardroom diversity. However, this does not mean lowering the bar on qualifications—far from it. We found that female and minority directors’ academic credentials (M.B.A.s, J.D.s and Ivy League degrees) match and often exceed those of their male/white counterparts. Companies willing to cast a wider net will likely find themselves with candidates who bring additional competencies and perspectives, as well as energy and drive.

Seek Out Wide-Ranging Skills

Finally, it is important for an organization to balance professional competencies with experiential requirements. As well as functional or regional expertise, it is critical to include other competencies such as conceptual thinking, resilience and the ability to manage ambiguity that can add value.

The bottom line is this: Diversity matters. Having a broad range of collaborative attributes at the boardroom and leadership levels, rather than overlapping or redundant qualities, helps provide good corporate governance and strategic oversight. Companies with leadership that is able to collectively draw upon a broad assortment of competencies, priorities and insights are inherently more nimble in navigating complex business environments with wide-ranging, multiple constituencies. Diversity of perspective leads to more innovation, better risk management, and stronger connections with customers, employees and business partners.

Russell Reynolds Associates' Eric Sigurdson recently moderated a panel on the topic of "Bridging the Gap: Attracting and Developing Women Technology Leaders" at the Chicago Tribune's Executive Club of Chicago. Click here for coverage.

[1] Mangalindan, J.P., “How tech companies compare in employee diversity,” Fortune, August 29, 2014. Retrieved from https://fortune.com/2014/08/29/how-tech-companies-compare-in-employee-diversity/

[2]Van Huysse, J., “Building a Twitter we can be proud of,” Twitter, July 23, 2014. Retrieved from https://blog.twitter.com/2014/building-a-twitter-we-can-be-proud-of

[3] Mangalindan, J.P., “How tech companies compare in employee diversity,” Fortune, August 29, 2014. Retrieved from https://fortune.com/2014/08/29/how-tech-companies-compare-in-employee-diversity/