It is estimated that the digital sector had contributed almost 160 billion British pounds in gross value added in the year 2023 (Statista, 2023). For future, the UK is set to be focused on AI, which is set to grow by 20 billion pounds by 2023, presenting new opportunities in the sector.

Despite the size of the market, the misalignment between workforce demographics and leadership representation not only raises ethical concerns but also impacts innovation and business performance.

Ethnic minorities comprise approximately 25% of the UK population and an even higher percentage in tech-heavy urban centres like London. However, their representation in senior technology leadership roles remains disproportionately low at 14% (TechTalent Charter, 2024). The underrepresentation is even more prevalent among Black professionals, who constitute only 5% of the overall tech workforce and a mere 0.7% of Black women within IT roles (Robinson, 2024).

Challenges Faced

The challenge extends deeper than just hiring practices. The digital sector’s leadership pipeline reveals systemic barriers that hinder progression. Traditional networks, often predominantly white and male, continue to influence senior appointments. Meanwhile, cultural biases in promotion processes and leadership development programs can unknowingly exclude talented individuals from minority backgrounds (psico-smart.com, 2019). People from ethnic backgrounds might not be able to progress because of ideals different from the West of assertiveness and individualism.

Another problem that persists is that the male-dominated culture and systemic issues such as microaggressions and discrimination disproportionately affect Black women’s career progression in the sector. The “diversity hire” stigma fosters a hostile work environment, hampering their sense of belonging and career aspirations (Robinson, 2024).

The Tech Talent Charter report highlights a disparity in senior tech roles, with 22% held by gender minorities compared to 14% by ethnic minorities (TechTalent Charter, 2024). While the UK government has mandated gender pay gap reporting to promote accountability and transparency, similar measures for ethnicity pay gap reporting are yet to be implemented (Trueman, 2023). This raises questions about whether the government prioritises addressing gender inequality over tackling ethnic disparities, despite both being critical issues for fostering inclusivity in the workplace.

Retention of diverse talent is a big challenge for the digital sector. Along with pay disparity and unequal opportunities, work cultures and discrimination are reasons why companies are struggling to retain them (Diversity in Tech, 2019). This problem in retention also leads to the limited representation of ethnic minorities in leadership positions.

However, forward-thinking companies are demonstrating that change is possible. Organisations implementing structured sponsorship programs, transparent promotion criteria, and inclusive talent development strategies are seeing meaningful improvements in leadership diversity. These companies report enhanced decision-making capabilities and increased innovation, directly linked to diverse perspectives at the top. According to Williams (2024), UK’s tech sector has witnessed significant changes where companies have reported that ethnic diversity challenges have decreased from 41% to 24%.

Strategies

Let’s discuss some strategies from both a business perspective as well as an inclusion and ethical perspective to overcome ED&I issues in the sector.

• From a systemic perspective, the government mandating ethnicity pay gap reporting for companies would ensure accountability and motivate companies to improve inclusivity. Providing incentives to companies would also aid the process.
• Focusing on a bottom-up approach by increasing awareness about STEM education will create a robust pipeline for future leadership roles. Starting mentorship programmes will help young talent enter the field and get an insight into the sector. Thus, for the sector to become more approachable, efforts need to be made at a school or university level.
• Currently 79% of employees feel uncomfortable disclosing ethnic diversity information, underscoring the need for psychological safety in the workplace (TechTalent Charter, 2024). Therefore, building trust and ensuring safety would encourage employees to disclose the data, enabling companies to track progress and designing targeted programmes.
• Developing sponsorship programmes where senior leaders actively take part in understanding challenges faced by employees, mentor them and advocate for inclusion at all levels would help in fair allocation of opportunities and encourage employees to continue in the field.

The future outlook for the industry

UK’s digital sector holds immense potential but has a critical diversity gap in senior leadership roles, further highlighting the existing systemic problems. While the industry is embracing new developments like Generative Artificial Intelligence and Machine Learning, it is falling behind in embracing its most critical aspect – people. Not integrating underrepresented groups in decision-making roles is not just ethically wrong but also a missed opportunity.

However, with the changing scenario and the right use of technology, biases can be eliminated while creating a safer environment for employees helping them achieve their full potential. Let’s strive for true inclusion in the digital sector which reflects the rich diversity of the nation.

Our initiative with the Mayor of London
The Greater London Authority (GLA), in collaboration with In Diverse Company, has introduced the Implementation Support Programme for Inclusive Employer Toolkits as part of the Mayor of London’s Workforce Integration Network (WIN) initiative. Tailored for businesses in London’s Creative, Health, Green Economy, Digital, and Hospitality sectors, this programme offers essential resources to enhance their EDI strategies, with a focus on empowering ethnic minorities and multi-marginalised groups.