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Stemming the £3.5 billion female talent drain in tech

Water going down a drain, female talent drain concept

ARTICLE SUMMARY

Sheila Flavell CBE, President of techUK and COO of FDM Group, highlights the ongoing barriers women face, including pay gaps, limited advancement, and the female talent drain.

Sheila Flavell CBE is President of techUK, and both Chief Operating Officer and an Executive Board Director of FDM Group.

Sheila FlavellShe has spent 35 years operating within the international tech space. As a “woman returner”, Sheila is passionate about promoting diversity, equity, and inclusion in today’s workplace. She founded the FDM Returners Programme in 2015, which has since helped over 550 men and women return to work after a career break.

As a prominent female tech leader, Sheila understands the importance of being a strong role model and mentor for women. She has been key in driving FDM’s global expansion programmes, as well as establishing the company’s listing on the FTSE 250 in 2017.
Sheila continues to advise government committees on improving the digital skills shortage in the UK. Her work in championing gender diversity has helped FDM attain a zero gender pay gap consistently since reporting was introduced in 2017.
She was awarded Commander of the Order of the British Empire in the 2020 New Year’s Honours List, for services to gender equality in technology and services to graduate and returners’ employment.

Recent research reveals that between 40,000 – 60,000 women walked away from tech careers last year alone.

Not only is this a talent drain for the tech sector, but it also creates a £3.5 billion hit to the industry that could be prevented. As women leave the field, businesses lose access to diverse perspectives that lead to greater innovation and long-term growth that keep competitive in the rapidly evolving industry.

Why the workplace still fails women in tech

Despite growing awareness and efforts to improve diversity, the tech industry continues to fall short in supporting women. Barriers such as limited advancement opportunities, lack of representation in leadership, and exclusionary workplace cultures persist. However, the most enduring issue remains the gender pay gap, which reflects deeper systemic inequalities and reinforces the undervaluation of women’s contributions in tech.

The gender pay gap in tech stands at 16 percent in favour of men, higher than the UK national average of 11.6 percent. This gap isn’t just about starting salaries, it’s linked to slower promotion rates and underrepresentation in senior roles. Without targeted action to address these inequalities, organisations risk losing valuable talent and further contribute to the £3.5 billion economic hit to the industry.

Closing this gap requires more than policy. Organisations must commit to transparent pay structures, equitable promotion pathways and inclusive development, training and programmes.

Diverse talent drives competitive advantage

Diversity is a strategic advantage that drives innovation and opens access to 170 million emerging AI roles projected to transform the industry by 2030.

By embedding inclusive practices into their recruitment strategies, organisations can unlock a wealth of creativity, fresh perspectives and lived experiences that fuel innovation and lead to greater productivity.

Diverse teams are better equipped to challenge bias, ethical AI systems and respond to the needs of a global user base.

Closing the diversity gap

To withstand the rapid evolutions of the tech industry, organisations must upskill women through targeted training and inclusive development programmes, not just to meet diversity targets but to future-proof their workforce.

Equipping women with the right digital skills empowers them to thrive in high-impact roles, lead innovation, and shape the future of technology. These programmes don’t just benefit individuals, they strengthen organisational capability, close the gender gap, and ensure that the tech industry reflects the diversity of the world it serves.

Encouragingly, 36 percent of our global workforce identify now identify as female, up from 31 percent two years ago. This progress shows that change can happen when organisations commit to meaningful action, but progress must be sustained through inclusive hiring, career development and continued investment in digital upskilling.

By embedding these practices into long-term strategy, organisations can unlock valuable talent, drive innovation, and remain competitive in a rapidly shifting digital landscape.

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