More than half a million Australian women could be quickly transitioned into the tech sector and play a key role in tackling the burgeoning talent gap, new economic modelling has found.
The ‘Women in Tech: How Skills and Talent Diversity Drive Business Success’ report by RMIT Online and Deloitte found that the largest single opportunity to close the country’s tech skills gap is women.
According to ACS’s Australia’s Digital Pulse report last year, the tech workforce needs to encompass 1.3 million people by 2030 – an extra 300,000 people – to meet “current business demand”, equating to 52,000 new workers per year.
The new report identifies the reskilling and upskilling of women working in tech-adjacent roles as a potential key driver of meeting this lofty goal.
“Australia’s tech talent shortage is a growing challenge, and reskilling women presents a practical, high-impact solution,” RMIT Online CEO Nic Cola said.
“Gender representation drives profitability, innovation and performance.
“With over 600,000 women in roles that could transition into tech with the proper training, the opportunity is clear.”
According to the modelling, there are 661,000 women in Australia who could transition into the tech sector with six months of short courses or on-the-job training.
This is based on the overlap of their skills with occupations in the tech sector.
The study identifies women in occupations with a 60 to 75 per cent overlap with three or more tech jobs as being able to move into these roles within six months.
Currently, women make up 44 per cent of the Australian workforce but fill just 30 per cent of the tech positions.
Recent gender pay gap data has also revealed a stark difference in what many women are paid in tech companies compared to men, partly due to a lack of gender diversity when it comes to more senior positions.
A huge economic opportunity
Australia could land a $6.5 billion boon to the economy if these women are enticed to move into the tech sector, with medium-sized businesses gaining a potential $278,700 annually, according to the economic modelling.
The study also found that women who do reskill in tech may earn an extra $31,100 per year in their new role, representing a salary increase of more than 30 per cent.
A survey of more than 430 Australian business leaders was also undertaken as part of the report, with findings suggesting that tech companies which improve their gender diversity will also boost their bottom lines.
Well over half of the respondents said they have experienced improved team dynamics and performance as a result of having better diversity, while just under 60 per cent have seen improved creativity and innovation.
But more needs to be done to improve conditions in the tech sector for women and ensure that once they transition into it, they stay working in it.
Recent research has suggested that women are facing negative biases, burnout and a lack of women in leadership roles, leaving them on the brink of leaving the tech sector for good.
‘Businesses can’t do it alone’
Nearly 70 per cent of the survey respondents said that the tech sector should do more to encourage women to enter the tech field, while 68 per cent said the government could also do more to improve gender diversity in the sector.
“Businesses can’t do it alone,” Cola said.
“The data shows an urgent need for greater collaboration between industry, educational institutions and government to accelerate upskilling efforts to attract women into tech.”
The report recommended tech firms employ fair and inclusive hiring processes, offer reskilling and upskilling opportunities to potential hires, and investigate other ways to encourage workers to make the transition.
This “near tech” workforce was also identified by the ACS Australia’s Digital Pulse report, with estimates there are a total of 1.1 million workers with similar capabilities that could be reskilled into the tech sector.
As part of a budget submission last year, ACS recommended paying a stipend of at least 23,000 to incentivise people to move into tech roles.
