It goes without saying that technology adoption is only set to intensify in the years to come. Society has placed itself on a trajectory where a digital-first, computer-run world is inevitable.
Changes in the world of business in particular are among the most important.
Technological advancement has been monumental in revolutionizing the way companies operate, from automating data entry to streamlining communication. The way in which organizations opt to manage the industry today—- and plan for tomorrow — will be a defining factor in our ability to innovate and grow the economy.
In search of insight into this issue, experts from Brookfield Institute partnered with several major research companies to explore the scope of Canada’s current tech market. Their new report, titled Further and Further Away: Canada’s unrealized digital potential, addresses the various labour market issues at play in the technology industry today, and provides helpful insight as to how we can move forward.
Let’s review some of the report’s most important findings.
Equity — or lack thereof
While there has been some broad progress on the issue of gender equity in the professional world, Brookfield’s report posits that the tech industry may be an exception.
According to data from 2016, women are starkly less likely than men to become a worker in the field at a chance of only 4.91. This is compared to men, who have maintained a 20 percent likelihood of building a career in tech since 2001. Women have actually seen their numbers decline over this same period, from 6.29 to 4.91.
Brookfield notes that the gender participation gap outlined here is larger than that of tech workers who do not have a university degree.
Pay gaps and penalties
Even in cases where they do get into the industry, female professionals still don’t earn as much as their male counterparts.
The pay gap we’ve seen in the general workforce is compounded to the point where women make an average of $3.49 per hour less compared to men. They may earn even less if they fall into specific subgroups, as well.
Brookfield makes a point of outlining the drastic impacts intersectionality can have on compensation, citing that having a visible minority identity (averaging across all identities) may lower one’s pay by as much as $3.89 per hour.
According to the findings gathered, an immigrant woman with a visible minority identity and no university degree in Canada would be expected to make $8.94 per hour less than her white, male, non-immigrant counterparts with the same educational background in tech. Add a university degree to the man’s resume and the gap widens to a massive $18.50 disparity.
Researchers also say that there seem to be new inequities arising that didn’t exist mere decades ago. Back in 2001, there was no observable pay gap between immigrant and nonimmigrant tech professionals. Fast-forward to 2016 and the latter group makes an average $5.70 more per hour.
This trajectory is one of the most concerning outlined in the report. When controlling the factors of experience, education, gender and origin, the immigrant pay penalty does the most damage.
While women’s pay gap may be increasing, the statistics show that immigrants are even worse off. This could be attributed to a range of factors, such as the lack of experience immigrants may have when entering the Canadian labour force and the difficulty they face in gaining access to networks and resources.
Digital intensity
When it comes to pay in proportion to work intensity, Brookfield reports that things are a slightly more fair, even playing field.
Between 2001 and 2016, tech professionals with jobs that required the highest level of ‘digital intensity’ saw a larger salary increase than those that did not, at 32 to 14 percent. This suggests that those who are willing to take on the most intensive and complex projects may have an easier time in earning higher salaries, while those who take on lower-tier gigs often have to settle for less.
This is generally a good thing if you’re already deep into the tech industry, but isn’t so great when you consider the long-term outlook for digital intensity as a whole.
With an analysis of all 500 Canadian occupations from 2001 to 2016, the report found that roles predominantly associated with routine work have seen a decrease in digital intensity over the years. This signals an increased efficiency on the part of tech employers, where certain tasks that don’t require as much skill or complexity can now be automated with the help of machines and algorithms.
The report does mention, however, that those with higher cognitive demands have seen an increase in digital intensity during the same time period. This suggests that there’s still a need for tech professionals with the right skills and training, but it’s also important to note that these roles may require a higher degree of education and experience, as well.
Salary Gap Calculator
While digital intensity is certainly important to review in this report, Brookfield Institute’s findings regarding demographic pay gaps are ultimately the most pressing.
As part of the report, Brookfield also released a Salary Gap Calculator to help Canadian workers of all backgrounds compare their own salaries to the average.
With further research and advocacy, they hope that this resource can help tech professionals gain a better understanding of their worth in the labour market, and potentially even close the gaps that are still present today.
After all, “if we are to build an economy that works for all, we can’t afford to exclude anyone from the tech workforce,” said Viet Vu, report author and Manager of Economic Research at the Brookfield Institute.
Get more information on Brookfield Institute’s report and read the complete findings
