Women in Tech

A PwC UK research report Women in Tech Time to close the gender gap Realising the potential of females to change the world 78% of students can’t name a famous female working in tech 3% of females say a career in technology is their first choice www.pwc.co.uk

Contents Introduction 1 Three key themes emerging from our research 5 Our call to action: four steps to take 11

Despite decades of progress towards workplace equality, women remain woefully underrepresented in the UK’s technology workforce. The figures speak for themselves: 1 according to the Women’s Engineering Society (WES), just 15% of the people working in STEM (Science, Technology, Engineering and Mathematics) roles across the UK are female – and only 5% of leadership positions in the technology industry are held by women. What’s more, the imbalance doesn’t appear And behind the sobering statistics, it seems Only likely to be redressed any time soon: the there are wider societal problems at play. 4 5% UK’s future pipeline of technology talent A study by the Organisation for Economic is also heavily skewed towards men, with Co-operation and Development (OECD) Only women accounting for just 15.8% of the found that girls still lack the confidence to of leadership positions UK’s current generation of engineering pursue high-paid careers in science and and technology undergraduates². This lack technology, despite their school results 15% in the technology industry of a strong tech talent pipeline is starting being as good as – or better than – those are held by women to impact organisations. Our Global CEO achieved by boys. 3 Survey reveals that two thirds of UK CEOs say recruiting people with digital skills is of people working in STEM difficult, compared with only 43% of CEOs roles in the UK are female in the US and just 24% in China. CEOs say that STEM skills are also harder to recruit in the UK than elsewhere. 1 http://www.wes.org.uk/statistics 2http://www.wes.org.uk/statistics 3www.pwc.com/davos 4Source: http://www.bbc.co.uk/news/education-31733742 1 PwC

Impacts beyond the workplace Again, the statistics tell their own story. So, what does this persistent gender In our study, 50% of the females we imbalance mean? In our view, the gap interviewed say the most important factor between men and women studying when choosing their future career is and working in technology isn’t just “feeling like the work I do makes the world unjustifiable in societal terms, and a better place/has a wider impact”. The unfair with regard to female skills and corresponding figure for men is only 31%. participation in the workforce. It also In fact, females rate the opportunity to means that – as our personal and working make the world a better place as the second lives become increasingly shaped by most attractive attribute of a career, with technology – technology products and only “having interesting work” ranking services are being developed and delivered higher for them. based on the perspectives of only one half of the population, and not designed with the needs of everyone in mind. Women make up half of consumers and technology companies need to reflect this in their workforce designing those products. A further impact of the gender gap is that it’s preventing women from playing their full role in shaping the future of our society – or in realising the powerful potential for technology to make the world a better place. Our research shows clearly In our study that improving the world is seen as a more important goal by females than males . Working in technology can provide women 50% of the females we interviewed say the with a way to do this. most important factor when choosing their future career is “feeling like the work I do makes the world a better place/has a wider impact” Women in Tech – Time to close the gender gap 2

A missed opportunity …and for the UK as a whole for businesses… As well as having a negative effect on The gender imbalance in technology doesn’t individuals and businesses, the gender gap just represent a missed opportunity for in technology also has implications for the women and society, but also for businesses. productivity and competitiveness of the UK There’s a growing body of evidence – economy as a whole. If half the population supported by everyday experience in is being overlooked as a source of organisations across the country – that technology talent, then the UK is effectively having a more diverse workforce, including trying to compete internationally with one an equitable gender balance, makes for hand tied behind its back. So for the UK’s a better business. This reflects the wide businesses and economy to realise their full range of benefits that flow from workplace potential, it’s vital that we build up a strong diversity, ranging from the ability to engage pipeline of women in technology. customers more effectively by mirroring wider society, to enhanced abilities in areas Again, recent PwC research underlines the where women are especially strong, such as point – and illustrates the challenge faced problem-solving and emotional intelligence. in all industries, our own included. Our “Women in Work6” report shows that the Put simply, diversity is a business advantage. professional and technical services sector, And other research studies by PwC confirm of which PwC is a member, has the fourth- that the benefits of diversity include having highest gender pay gap of all industries at a head-start when it comes to attracting the 23%. If UK businesses are able to attract best technology talent. Indeed, our recent more women into higher-paying sectors report – “The Female Millennial – The such as technology, this will help reduce the 5 gender pay gap – and also increase female new era of talent” – finds that creating economic empowerment, to the benefit of and supporting a diverse workforce is a the UK economy and society. prerequisite for winning the battle to attract today’s top female recruits. In the study, 83% of British female millennials stated that they actively seek out employers with a strong of British female record on diversity, equality and inclusion 83% millennials stated that – and while they say employers talk about they actively seek out diversity, 66% do not feel opportunities are employers with a strong equal for all. record on diversity, equality and inclusion 5Sources: http://pwc.blogs.com/press_room/2015/03/british-female-millennials-are-the-most-confident-and- ambitious-of-any-generation.html and http://www.pwc.com/femalemillennial 6Source: PwC Women in Work Index www.pwc.co.uk/womeninwork 3 PwC

Our “Women in Technology” root causes and identify potential solutions. research The research approach, methodology What’s clear is that the gender imbalance and sample are summarised in the in the UK technology industry is a major accompanying information panel. In the problem with multiple impacts. Given this rest of this report, we examine the findings context, we decided to conduct a research in detail – and draw out some conclusions study to investigate the issue, analyse the and suggestions on the best way forward. Research approach, methodology and sample The “Women in Technology” study was conducted on PwC’s behalf by the respected research house Opinium. It involved a survey of 2,176 students across the UK between 27 January and 6 February 2017. These respondents included: 542 554 548 male pre-university students female university 532 female pre-university students students male university students The overall gender split of the survey sample was Respondents were sourced from the UCAS database 1,102 females and 1,074 males. For the purposes and from a link sent out by PwC to members of its of the study, pre-university students are defined network. The interviewees’ views and perceptions as those currently studying for A-Levels, BTEC on a range of issues were elicited and recorded, and or equivalent and planning to begin a university the results analysed. course in 2017. Women in Tech – Time to close the gender gap 4

Three key themes emerging from our research 83% A close analysis of the findings from our study reveals three key themes – each with major implications for future efforts to close the gender gap in technology. of males are studying STEM subjects at school compared to 64% of females “I chose not to pick a science-based subject 1 as I feel that is not my strong point. Although I did well at science when doing my GCSEs I acknowledged that it becomes increasingly Girls are less likely to study STEM difficult at A-Level, which is why I chose subjects at school – and this gap other subjects.” continues through to university Female pre-university student Our research confirms that the gender bias starts in school and carries on through every stage of girls’ and women’s lives. Both before university and at university, more boys than girls participating in our research are studying all STEM subjects with the exception of biology. Overall, 83% of males are studying STEM subjects at school, compared to 64% of females. This breaks down to 17% of the males studying physics, compared to 7% of females. The corresponding breakdown for maths is 28% male and 20% female. A similar divergence emerges at university, where over half (52%) of males are studying a STEM subject, compared to only 30% of females. The biggest gap is in engineering – a subject being studied by 13% of male university students we surveyed and only 2% of females. Maths is being studied by 6% of males and 4% of females. For female students, chemistry and maths show the biggest drop-off between A-levels and university, whereas for males the biggest drop-offs are in biology and maths. 5 PwC

A variety of barriers and influences So, what factors are putting girls off STEM subjects? Our research shows that their main reasons for not choosing to study STEM topics include: being better or gaining better grades in humanities or other essay based subjects; not finding STEM subjects as interesting; STEM subjects not being relevant to the career they plan to choose; teachers not making STEM subjects appealing; and the need to get the highest possible grade, as this influences both university entrance and future career options. A further finding is that girls are more influenced than boys by their likely choice of future career when choosing A-Level subjects. Some 53% of girls say their preferred career was a factor in their choice of “Although heavily involved in STEM subjects A-Levels, compared to just 43% of boys. So girls are at a younger age, I was discouraged by the thinking ahead – but the future they’re envisaging sexism that surrounded me when I took part for themselves doesn’t usually involve a career in competitions and conventions.” in technology. Female pre-university student 52% of males are studying a STEM subject at university, compared to 30% of females Women in Tech – Time to close the gender gap 6

Only 27% of female respondents say they would 2 consider a career in technology, compared to 62% of males Females are less likely than males to Figure 1: Thinking about your future career plans, would you consider a career in technology?7 consider a technology career The STEM gender gap at school and university carries 45% 42% on through to girls’ career choices. Only 27% of our 40% female respondents overall say they would consider a career in technology, compared to 62% of males. And 35% only 3% of females say a career in technology is their 30% 28% first choice, against 15% of males. Similarly, 5% of 26% 26% females say technology is one of a number of choices 25% they could consider, compared to 19% of males. 20% 19% 19% 15% 15% 11% “I could pass exams in STEM subjects, but not to the 10% same grade as essay subjects. I also found that I did 5% 3% 5% 5% not enjoy the lessons to the same degree - I prefer 0% 0% subjects where it is about the arguments you make, Male Female rather than getting the ‘right’ answer.” Yes – this is my first choice Yes – it’s one of a number of choices I’d consider Female pre-university student Yes – it’s not my first choice but I would consider this No – probably not No – definitely not Don’t know Figure 1 illustrates the stark contrast between females and males in terms of their readiness to consider a career in technology. Indeed, 61% of females in our study say they’ve been put off a career in technology because they’ve been given so little information or advice about what working in the sector involves. At the same time, 26% of female students say technology is too male-dominated, and 20% that it’s not creative enough. 7Source: PwC Women in Technology research study 7 PwC

A vicious circle A lack of advice in schools on ...leaves girls with little understanding What’s clear is that there’s a vicious circle of technology careers… of what working in technology involves perception and reality in terms of gender imbalance. Despite such exciting opportunities, girls aren’t That schools are not yet providing the guidance young And that schools, universities and industry are considering technology as a career – partly because people need is further underlined by the fact that only failing to show young people – and especially girls nobody is putting it forward as a possible option. 19% of all students say they’ve learned about career – the realities of technology jobs and careers in While 33% of male respondents say they’ve had a opportunities in technology from their school. Indeed, today’s world. Technology careers are now highly career in technology suggested to them, the figure more have learned from using technology or their own creative, particularly around understanding people’s for females is only 16% – a glaring lack of advice research. However, the lack of encouragement means behaviour, and working out how to develop digital that’s helping to reinforce the stereotype of a male- females are not sufficiently inspired or interested to user experiences. dominated industry. find out for themselves: 31% of males have learned about technology from their own research, against Examples of technology being used to understand In cases where the suggestion of a technology career only 12% of females. emerging behaviours include the innovative customer is made to either gender, a teacher is the person most journeys that have been created in the retail sector likely to do so. But our research suggests that the and the new patient experiences being developed stereotype of technology as being “for boys only” is Only in healthcare. In term of the latter, women are more prevalent amongst teachers and schools, who are involved with healthcare than men – accounting for much less likely to suggest a technology career to 19% of all students say they’ve learned 8 77% of NHS employees – and, according to research girls. Just over one fifth (21%) of female students say about career opportunities in 9 from the US females make 80% of buying decisions more information would make them more likely to technology from their school about healthcare products and services. Combined consider a career in technology. with women’s greater desire to make a positive of male respondents difference to the world, these attributes suggest While say they’ve had a females are actually better positioned than men to career in technology create technology to help meet the healthcare needs of 33% suggested to them, citizens and customers. the figure for [I didn’t choose technology] females is “because I didn’t want to be in a male only dominated environment.” 16% “I prefer creative subjects to academic Female university student “There is a stereotype that empirical studies subjects, and the jobs in the STEM industry are male subjects only, and the institution do not appeal to me.” to which I currently belong perpetuates Female pre-university student this belief obliquely. I felt discouraged from taking the sciences.” Female pre-university student 8Source: http://www.nhsemployers.org/~/media/Employers/Publications/Gender%20in%20the%20NHS.PDF 9http://www.beckershospitalreview.com/hospital-management-administration/women-make-80-percent-of-healthcare-decisions.html Women in Tech – Time to close the gender gap 8

3 A shortage of female role models Figure 2: Please name a role model in technology who has inspired you to consider a career in technology is a major barrier – as is a lack of understanding of how technology can Alan Sugar Mark Zuckerberg Ada Lovelace Marie Curie enable women to change the world Alan Turing Richard Branson Ellen Pao Marissa Meyer Bill Gates Steve Jobs Grace Hopper Sheryl Sandberg When asked which individuals they would most aspire Elon Musk Tim Berners-Lee Margaret Hamilton to be like in their future career, 34% of all students Don’t know / no-one say a successful business personality/prominent person in the field they’re interested in, with little difference in terms of gender. But when asked to name a role model who has inspired them to pursue Female Male a career in technology, 83% of female respondents 83% 59% find it impossible to do so, against only 59% of males, showing a clear gender gap. Meanwhile, 66% of respondents overall are able to name a famous man working in technology, while only 22% can name a famous female who does this. And where students can suggest a role model in technology, the males who are mentioned are suggested by far more people than each female mentioned. Also, 12% of females say there aren’t enough good role models for them in tech, compared to only 8% of males. So it’s clear that females suffer from a dearth of female role models who’ve been successful in technology and whom they can aspire to emulate. Only 22% can name a famous female working in technology 9 PwC

Girls want to make the world a better place Technology, automation, gender – All of this points to a need for young people to be An equally significant gender difference that emerges and the future of work better informed about the disruptive impacts and from our research is that females are much more Alongside the findings on subject and career opportunities that technology is opening up in the 12 committed to choosing a career that enables them to choices, our research reveals some fascinating workplace. PwC’s “Future of Work” report found make a positive difference to the world around them. insights into students’ expectations for the future that over half (53%) of 10,000 adult consumers Overall, 40% of students say an important factor in of work in an era of increasing automation. surveyed across China, Germany, India, the UK their career choice is feeling that the work they do Fifty-five per cent of male and 46% of female and the US thought technology breakthroughs helps make the world a better place. But this figure respondents expect that their future career will would transform the way people work over the rises to 50% among females and falls to 31% among be overtaken by automation at some point in the next five to ten years. And with many traditionally males. In contrast, males are more likely to cite salary future – with 15% of all students expecting this male manufacturing jobs already having been as an important factor – with 44% of males saying to happen within the next 20 years, 21% after 20 automated, more female-orientated office and this, versus 32% of females. years, and 14% after they retire. Given that the clerical jobs are next in line. Both genders need to impact of automation is already starting to be felt, adapt to this reality – and a better understanding Girls’ greater desire to improve the world is a highly it’s interesting that so many students think it’s of technology will help them do this. significant finding. Technology now makes a huge still some years away. As well as recruiting people with digital skills, difference to individuals and societies the world Students also have mixed views on whether new organisations need to upskill their workforce to over, delivering dramatic improvements in people’s technology creates or destroys jobs. While 76% of be adaptive, creative and critical thinkers. With lives. For example, mobile technology is playing an all respondents expect new technology to make the current pace of technological change it is hard increasingly pivotal role in disaster relief efforts some jobs redundant, 58% expect it to create to predict what jobs will look like in the future, so 10 around the world , and developing countries are at new types of jobs and 63% expect it to change the it is important that employees are able to respond the forefront of using mobile health technologies, skills employers look for. to the next skills challenge. PwC’s Global CEO overcoming their relative lack of physical health 13 Survey revealed that the skills most in demand 11 infrastructure . Given females’ greater desire to Female respondents are slightly less optimistic are people-orientated skills such as adaptability have a positive impact, more understanding of than males that new technology will create new and problem-solving (98% of UK CEOs rate them transformational effects like these would encourage types of jobs, with 54% of females saying it would as important), leadership and collaboration (both more of them to get involved in technology as a career. compared to 62% of males. 96%) and creativity and innovation (both 93%). Those that can display these skills will be in “I do slightly regret not choosing a STEM subject, high demand. but I was put off it at school, and never told the of male and 46% of importance of studying sciences in particular female respondents at A-Level to boost my career prospects. I was 63% of students expect new expect that their future also never fully engaged in STEM subjects at technology to change the 55% career will be overtaken school – it was not made interesting and no one skills employers look for by automation at some encouraged me to pursue it, even knowing that I point in the future was very good at it.” 10http://www.bbc.co.uk/news/business-34715962 University student 11Source: http://healthmarketinnovations.org/blog/developing-countries-lead-way-mobile-health-technologies 12Source: http://www.pwc.com/gx/en/issues/talent/future-of-work/journey-to-2022.html 12www.pwc.com/davos Women in Tech – Time to close the gender gap 10

Our call to action: four steps to take Taken together, the three key themes emerging from our research point to four actions to boost the number of women working in technology. These are: 1 2 The technology industry could play a And this engagement needs to happen at a much As well as awareness, we need to greater role in educating students about earlier age, before students decide which subjects they increase access to technology careers technology and how it’s shaping the will take for GCSE. More interaction with technology Greater awareness of the technology industry and world we live in companies at school level will benefit both females the opportunities available is not enough unless all It’s clear from our research that students don’t and males and help to grow the pipeline of technology students feel that a career in technology is within have enough information about what working in talent that we need in the UK. The key is to ensure their reach. There needs to be a collective effort technology involves. that technology is presented to girls as a potential from the technology industry to create alternative career choice by people in positions of influence: today entry routes into the profession. Approaches might The technology industry could work with the it’s hardly even mentioned to them as a possibility. include increasing the availability of apprenticeships education system to develop technology teaching There is a real opportunity for the industry and in technology, technology companies partnering modules that can be delivered in schools by teachers education sector to work together to help build the with universities and offering shadowing and work or via virtual reality. These should be designed to technology skills the UK will need to prosper in the experience opportunities at younger ages. educate students on the emerging technology that future. Educating and inspiring all students about is reshaping our working and personal lives. It is technology careers at a much younger age will help important these modules particularly highlight how to future-proof young people with the skills needed technology can be a force for good, which should and help to build a rich talent pipeline. This will help inspire more females to take an interest in help ensure that no-one is left behind by the Fourth the subjects. Industrial Revolution. 11 PwC

3 4 You can’t be what you can’t see: The Help women to reach their full potential importance of visible role models at in the industry all levels We need to make sure that the technology sector To get more females interested in technology as a provides an attractive and inclusive working viable career option we need to give them access to environment and that people are able to reach more role models at all levels. We need to shout louder their full potential. So as well as attracting more about the role models already working in tech and females into the sector, we need to make sure that work harder to promote more women to top positions they can progress once they’re working there. in the industry so that they become more visible. This requires a dedicated focus. Technology organisations could set themselves gender targets and a programme of initiatives to support women to advance to more senior positions. This could include reverse mentoring, return to work schemes to get women into technology roles following career breaks and sponsorship programmes for high performing females. Women in Tech – Time to close the gender gap 12

For more information about this report, or if you would like to share your ideas for how we can get more women into technology careers, please get in touch. Jon Andrews Head of Technology and Investment [email protected] Laura Hinton Head of People [email protected] Sheridan Ash Women in Tech Leader [email protected] Please get in touch to discuss our research further, or to share your ideas on how we can get more women into technology careers. www.pwc.co.uk/womenintech 13 PwC

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