Everyone knows that many of the larger tech firms have recently released their employee diversity numbers.
Obviously releasing this data was a positive move that resulted in an expanded discussion around the need to increase the number of STEM women employees at tech firms. But what most analysts have missed is the realization that, almost universally, the response to this shortage of women in tech firms has been some variation of a long-term “increase-the-supply” solution. In my book, increasing the supply is code for “doesn’t increase your salary costs.” This is what would occur if every firm instead solved its shortage problem with a short-term solution. This would involve actively recruiting STEM women away from other firms, because that competition would have the effect of immediately driving up the salaries of women.