Women in SaaS: How to Diversify Your Team

In the technology space, particularly within Software as a Service (SaaS), there is a noticeable shortage of female talent. According to Harvard Business Review, only 16% of Sales Managers in the SaaS sector are female, significantly lower than the industry average of 26%. Across the broader tech workforce, only 19% are women.  

While there have been some efforts to improve gender diversity in SaaS in recent years, it’s clear that there’s still a long way to go to create a more balanced and diverse workforce in the technology industry. Overall, the percentage of female graduates with core STEM degrees is steadily growing. However, the split is still just 27%. Initiatives are being undertaken in the STEM fields to encourage female representation at all levels, including leadership positions.

With the industry dominated by males, companies are taking initiatives to attract more females, but why?

• Enhanced Reputation

  • Companies with a reputation for promoting diversity, equity, and inclusion often attract a wider pool of top talent.  More than 60% of female participants in a PWC survey said they looked at the diversity of the leadership team when deciding to accept a position with their most recent employer.

• Increase retention rates

  • Diverse environments create a more inclusive and welcoming culture for all employees. This can increase job satisfaction and a sense of belonging, thus increasing retention rates. A study by McKinsey found that companies with the highest levels of gender diversity had a 15% lower turnover rate for female employees and a 25% lower turnover rate for male employees.

• Improved decision-making

  • Research conducted by Forbes found that inclusive teams make better business decisions up to 87% of the time. Teams that follow an inclusive process make decisions 2X faster with half the meetings.

• Increased creativity and innovation

  • A study by BCG found that diverse management teams were more innovative than less diverse teams and were demonstrably more innovative in aggregate.

• Greater financial performance

  • A study by Credit Suisse found that companies in which women held 20% or more management roles generated 2.04% higher cash flow returns on investment than companies with 15% or fewer women in management roles.

It’s easy to see why more companies want a more gender-diversified team. However, women often face challenges within SaaS which their male counterparts do not.

Challenges Women Face in SaaS

1. Gender Bias

   Despite progress, gender bias remains a prevalent issue in SaaS and technology. Challenges like the gender pay gap and unequal career progression opportunities persist. Women tend to be concentrated in support and operational roles, with limited representation in sales and leadership positions.  

2. Age bias

   Females face a gender bias when they are younger, which males rarely do. Fear of females leaving to start a family is often why females are not hired, promoted, or given managerial positions.

3. Imposter syndrome

   Imposter syndrome is not exclusive to women, but it is something many women in the SaaS industry experience. Many women doubt their skills and qualifications, feeling less competent than their male counterparts. This self-doubt can also affect job applications, as women tend to apply only if they meet all the criteria, while men are more likely to apply if they meet only a portion of the requirements.

4. Lack of mentors and role models

   The scarcity of women in SaaS results in a lack of role models and mentors for aspiring female professionals. Having role models and a mentor is crucial for women looking to advance in their careers.

5. Limited flexibility

   Women often face barriers in SaaS due to little flexibility in working hours, remote work options, and challenges related to childcare and family responsibilities. This has led to career sacrifices and can impede career progression.

How Can Businesses Attract Female Talent in SaaS?

To create a more balanced and diverse workforce in SaaS, organisations need to take concrete steps to attract and retain female talent. Here are some recommendations:

1. Offer benefits that appeal to everyone

   Consider benefits that cater to the diverse needs of all employees. Maternity/ paternity policies, support for life events and healthcare options can significantly motivate women.

2. Use Gender-Neutral Language in Job Advertisements

   Job descriptions and advertisements should use language that appeals to both women and men. Focus on selling the role and opportunity rather than listing exhaustive experience requirements. Avoid generalised male-coded descriptions such as ‘competitive, aggressive, challenge, decisive, courage/ courageous, dominate, champion, driven, fearless’ in job ads.

3. Provide a Flexible Work Environment

   The changing work landscape, including remote and hybrid work options, can benefit working parents, particularly women. Flexibility should be based on work output and results rather than location.

4.  Encourage Male Advocacy

   Men should actively support and champion women in SaaS. Celebrating the achievements of women and giving them the credit they deserve can inspire more women to pursue careers in the industry.

5. Ensure a Diverse Interview Process

   Maintain a diverse interview and hiring process, including diverse interview panels and equal representation at various stages. This fosters a sense of belonging for women.

6. Implement Internal Mentoring and Development Programs

   Develop programs to support women at all career stages, providing access to training and technology events to keep them updated on industry developments.

The Value of Gender Diversity in SaaS

Increasing the presence of women in leadership positions has numerous benefits for organisations. A diverse leadership team enhances communication, collaboration, problem-solving, and innovation, improving business results and growth. Women often bring strong empathy to leadership roles, aiding in understanding employee and customer experiences.

In recent years, there has been a positive shift with more women participating in SaaS Marketing and Product Development. This has positively impacted the industry’s growth and progression.

Moving Forward

While there’s much work to be done to increase female representation in SaaS, progress has been made, and many organisations are actively working to attract and retain female talent. These efforts are essential in reducing the gender gap in the technology industry and ensuring that women thrive in historically male-dominated fields. Oakstone, among others, is committed to supporting these initiatives and promoting gender diversity.