Harnham: ‘We’ve seen a worrying drop in the diversity of entry-level talent’

We need more women in the workforce, period.

And in recent years, data has shown that the stats have slowly surely risen, with McKinsey stating an increase for women in management, senior management, VP, senior VP, and C-suite positions.

But sadly, the same doesn’t appear to be true for 2023, according to new research from data recruitment company Harnham.

In fact, the research shows that the proportion of female professionals at entry level has fallen by more than half, from 35% last year to 11% this year. What’s more, the percentage of entry-level Black, Asian, and Minority Ethnic professionals has also plummeted from 42% to 12%.

“We’ve seen a worrying drop in the diversity of entry-level talent this year – which is a section of the workforce that has historically been one of the most diverse,” says David Farmer, CEO at Harnham.

Given that female representation at a junior level has been on a steady incline over the past few years, and considering the steps that we know that organizations have been taking, these figures mark a disappointing move in the wrong direction.

“Of course, it’s the implications for the whole industry that are particularly concerning. This section of the workforce is representative of its future, so it’s crucial that we are seeing year-on-year improvements, no matter how minor.

“After all, the data industry’s ability to operate as an innovative, forward-thinking sector is reliant on a constant stream of high-quality talent, and if, as employers, we’re failing to reach or retain any section of the population, our growth and success will quickly hit a ceiling.”

Why is the gender gap worsening?

Harnham’s research shows that the gender gap in the UK has increased significantly from 6% in 2022 to 16% in 2023 – more than doubling and topping the national average of 15%.

Likewise, in the US, the gender pay gap increased up to 11% from 10% the previous year – yet it still comes in lower than the national average of 17%.

When bonuses were taken into account, the report found a 9% decrease from the previous year, but the gap still remains significant at 15% – showing there’s a long way to go before gender pay equality is reached.

Farmer explains that this could be due to several factors, including that female professionals still seem to bear the brunt of childcare.

This is reflected by the fact that 19% of women who work in data had taken an extended break of three months or more to fulfill childcare duties, whereas only 3% of males took the same amount of time.

“The career trajectories of female parents may be being disrupted by these extended gaps, whether unintentionally or otherwise,” Farmer adds.

“A fact corroborated by our previous research revealed that between 2021 and 2022, female professionals’ parental responsibilities took home, on average, 14% less than male parents.”

Pay gaps are also intrinsically linked to representation, and unfortunately, there is still some way to go to reach equity at senior levels. While 29% of head of or director roles are occupied by White males, only 11% are held by Black, Asian and Minority Ethnic female data professionals.

“Employment offerings need to be reflective of the talent that we are trying to reach, and until we eradicate issues such as the lingering gender pay gap, we will never be able to realize our potential for equity, and more importantly, we will be failing to attract the best talent.

Ultimately, employment offerings must reflect the talent we aim to attract, and until we eradicate issues such as the lingering gender pay gap, we will never be able to realize our potential for equity. More importantly, we will be failing to attract the best talent.”

Unsurprisingly, the research shows that White Males still dominate the most senior positions in data, occupying 29% of head of or director roles. On the other hand, Black, Asian and Minority Ethnic Female data professionals make up 11% of the same position, meaning they are the least represented group.

Yet Farmer believes that there is promise, reflecting on the good work that the industry has done over the last few years, such as how women now make up 37% of mid-level roles and 35% of technical lead and manager positions.

Similarly, Black, Asian, and Minority Ethnic Males now make up 43% within mid-level data positions deeming them the best-represented group, with Black, Asian, and Minority Ethnic female data professionals are only just behind (42%), outweighing both female and male White professionals.

“The lesson here is two-fold; for one, quite simply, it proves that change is possible. When it comes to diversity it’s easy to lean on the excuse that progress takes time or is not viable but this is not the case,” Farmer concludes.

He added: “It also shows that when a high level of diversity at entry level is achieved, it is filtering through to higher roles.”