Breaking Down Barriers_Why Diversity and Inclusion Are Essential for the ICT Industry

November 1, 2024

The importance of diversity and inclusion (D&I) in the workplace can no longer be downplayed, particularly in the Information and Communication Technology (ICT) industry. Once seen as mere buzzwords, diversity and inclusion have now become cornerstones for success, fostering creativity, innovation, enhanced problem-solving abilities and helping to attract and retain staff. The result is that more and more organizations are realizing that shifting towards a more inclusive culture is critical for their long-term success and growth.

The ICT industry has made significant strides in adopting diversity and inclusion as a vital part of its recruitment and business strategies. There is, however, still a long way to go. Research consistently highlights the underrepresentation of women and the lack of ethnic, age, and disability diversity within the sector. In order to stay competitive and innovative, the ICT industry must make greater efforts to embrace a workforce that reflects the diverse world it serves.

Here, we explore why diversity and inclusion are imperatives not only from an ethical standpoint but also essential for the industry’s continued business growth and success. We will draw insights from industry leaders, share best practices, and highlight actionable steps that organizations can take to foster a more inclusive environment.

Diverse teams perform better. Research has consistently shown that the greater diversity in a company, the better its financial performance. The advantage is not modest. According to McKinsey & Company’s latest research, companies with a well-established commitment to diversity were far more likely to outperform, with the top twenty-five percent of most ethnically-diverse companies 39% more likely to financially outperform than the bottom twenty-five percent. While for gender, the top 25% saw a financial advantage of 27% on average. Overall the picture is even starker. The 25% least ethnically and gender diverse companies were 66% less likely to financially outperform compared to those in the top twenty-five percent. This clearly shows that diversity is not just a “nice to have” metric—it is a financial imperative, especially in highly competitive sectors like ICT where businesses have to work hard to get ahead.

One reason for the boost diversity gives companies is its direct impact on innovation. A workforce composed of individuals with different genders, ethnicities, ages, and abilities brings a variety of perspectives and ideas to the table. As Carlos Terra, Head of Expertise and Solutions Center for North and Latin America at Orange Business, an arm of the French Telecom giant explained in a 2023 interview, “A truly diverse environment allows us to combine and benefit from different cultures, types of thinking, and viewpoints, focusing on what we can do together to support company goals.”

The impact of diversity on innovation is especially visible at a management level. In terms of innovation revenue, the amount of revenue generated from new or enhanced products and services, the effects can be profound. A study by Boston Consulting Group, found that companies with above average diversity in their management teams generate 19% more innovation revenue compared to those with below average diversity.

By bringing together individuals from different backgrounds, organizations can leverage creative problem-solving and generate ideas that would otherwise remain untapped, especially in the development of products and services. In the ICT industry, where innovation is the cornerstone of success, building diverse teams clearly makes sense.

As with innovation, having access to a range of ideas and approaches enables organizations to approach challenges from different angles, leading to quicker and more effective solutions when problems arise.

But other factors are at play too. In a less diverse work environment where employees don’t feel they belong or have a voice, staff are far more reluctant to share their ideas. This means opportunities and potential solutions are missed and individuals fail to reach their full potential. In a workplace where everyone feels included and valued, however, employees are much more likely to share their ideas openly, allowing organizations to discover and use creative solutions. Since a large part of what the ICT industry does is related to predicting, preventing and solving problems, the sector should focus on creating an inclusive culture that allows all voices to be heard.

In an industry experiencing a significant skills shortage, attracting and retaining top talent is essential for continued growth. A diverse and inclusive workplace is a powerful tool for attracting and retaining skilled professionals. Research shows that companies with strong diversity initiatives are more likely to attract top talent and experience lower turnover rates. One study by Deloitte, reported that 7 out of 10 workers aged in the 18-40 year old demographic said they were more likely to stay at a company for over 5 years if it had a diverse workforce. Another survey by Glassdoor found that for 76% of employees, diversity is a must in any company they work for.

Carlos Terra of Orange concurs. His company has made a commitment to increase the proportion of women in technical roles to 25% by 2025. He argues that for Orange diversity isn’t just a goal, it is a strategy, “An inclusive workplace can be the difference between losing out on a talented IT specialist”.

By showcasing diversity as part of their company culture, organizations can appeal to a broader range of candidates, ensuring they attract and retain the best talent.

From communication to commerce, the products and services developed by the tech industry shape society and touch every part of our lives. That’s why it is crucial for the teams behind these technologies to reflect the diversity of the communities they serve.

A lack of diversity within ICT can lead to products and services that fail to meet the needs of their diverse user bases. By creating inclusive environments and fostering diversity at all levels, companies help to ensure that their products are accessible, effective, and impactful for everyone.

ISF NET has promoted diversity in the workforce for over 20 years, beginning in 2005 with the launch of its Target 5 Employment Scheme which created jobs for social groups that frequently find themselves excluded from the labor market in Japan. This has been expanded and refined over the years and has now become the Target 30 Employment Scheme. The underrepresented social groups supported by the scheme reflect not only general concepts of diversity such as gender, ethnicity and disability, but also represent specific social issues in Japanese society. These include employing socially withdrawn people of whom there are an estimated 1.7million in Japan, often working-age men, people over 65 who are post-retirement age but want to continue working, and carers looking after sick or elderly family members.

These goals are achieved by providing flexible work environments that support the particular needs of each employee. That includes enabling people to travel remotely from any location, flexible working hours, and a range of employment patterns. Raising awareness is also important and we have ongoing programs that help to break down barriers, eliminate discrimination and bias, and generate understanding among our staff.

The journey towards diversity and inclusion in the ICT industry is an ongoing one. While progress has been made, there is still work to be done. Industry leaders must take a proactive approach in creating diverse workforces and fostering inclusive environments that allow all employees to thrive.

For companies looking to strengthen their D&I efforts, awareness is key. Understanding unconscious bias, treating employees as individuals, and valuing their contributions irrespective of differences are critical steps in creating a more inclusive workplace.

If your organization is ready to break down barriers and take diversity and inclusion to the next level, consider the following steps:

• Start with Awareness: Educate employees about unconscious bias and the benefits of diversity through training and workshops. This ensures that employees understand the importance of diversity and helps to eliminate incorrect preconceptions and prejudices.
• Promote Inclusive Leadership: Encourage leaders to be open-minded, value diversity, and foster a culture of inclusion across their teams. This helps to create a diverse and inclusive culture in the company.
• Implement Clear Initiatives: Develop specific programs to support diversity goals, such as gender balance in technical roles or mentorship programs for underrepresented groups.
• Measure Progress: Use benchmarks and surveys to assess the effectiveness of your D&I programs, your staff’s perception of them, and continuously improve.

By embracing diversity and inclusion, the ICT industry can build stronger, more innovative, and ultimately more successful organizations.

ISF NET provides a range of services in Japan to help companies wishing to employ disabled people who require specialized support in order to work. We have over 20 years experience supporting employment for people with physical, mental health and intellectual disabilities. From consultations and training through to recruitment and work environment design, we can help make your workforce more diverse and inclusive. Contact us now for more information.

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