Industry leaders acknowledge that the Data and Analytics industry has made significant strides in promoting diversity within ranks, but pay gaps to remain a woeful reminder of inequality
Global leaders in Data and Analytics recruitment brand Harnham, recently released the third report on State of Diversity in Data & Analytics. The information touches upon the steps taken to increase or the lack thereof, to better racial and gender diversity and inclusivity in the data and analytics industry. The results were based on data collected from 3000 respondents in the organization’s Annual Salary survey.
Need for diversity and inclusivity
C-suite executives worldwide agree that racial and gender diversity and inclusivity play a significant role in pushing the organizations towards higher profitability. A diverse workplace has a better employee satisfaction rate and better chances for practical, innovative solutions. Whereas organizations that consider diversity as a mere box-ticking factor, will not observe the same success level.
Leaders say that organizations that promote racial diversity and inclusivity in the C-suite saw a 35% rise in their financial returns. This increase is even more prominent when one of the executive board members happens to be a woman. Female leadership contributes to better performance in both productivity and financially. Gender and racially diverse workforce promote sensitivity in the organizational ranks.
The gender divide in the ranks
Gender divide has been studied for years, especially in the industries requiring STEM education. Concentrated efforts have been made to increase female employees’ count in roles requiring STEM, right from the formative years. Considerable improvement has been observed. More women have completed their STEM degrees as compared to men in recent years. Sam Jones, Senior VP & Partner East Coast USA, Harnham says that “Fortunately, we are beginning to see some progress, with entry-level roles dominated by minority and female candidates, accounting for 62% and 31% of professionals at this level, respectively.”
However, the number of women employees in the Data & Analytics industry globally, decreased from 31% in 2018 to 29% in 2019. All significant roles saw a decrease in the numbers of female employees. Data and Science and Data & Technology, the two major domains in Data & Analytics, have a skewed gender ratio, with 84% and 83% male employees.
Digital Analytics saw a better average with 40% of women’s roles, and Marketing & Insight came a close second at 38%. Women fare better at entry-level jobs with 2:1 leading over men.
Bridging the pay gap
Despite an increase in the number of women leaders and female employees, the pay gap has surprisingly widened. Male professionals are paid 17% more on an average in the Data & Analytics industry. The highest difference was in the Advanced Analytics & Insight department, with a gap of 21%. However, the same field has the highest number of female employees in the industry.
Data & Analytics industry is a demanding field with a high level of innovations, and consequently, 54% of its workforce is below 35 years of age. The age gap is more prominent in the Data & Technology and Data and Science. Data & Analytics has only 3% of employees over the age of 55. Jones says, “It’s not uncommon to see this trend in disruptive and forward-thinking professions as many hiring managers hold an unconscious bias that equates youth with innovation.”
While the Data & Analytics industry is more diverse than the other sectors, the representation of People of Color still leaves much to be desired. The industry workforce has only 3% African American employees. Hispanic/Latin representation is at 6%. The fields with the least number of African American professionals see the highest metrics for entry; this suggests for better and increased access to STEM education.