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McNair Center Women

Women in Top Tech Companies

In 2014, many of the top tech companies released information on their employee diversity demographics for the first time, bringing attention to the low representation of women in top tech companies. This post looks beyond these numbers. How are tech companies responding to this gender imbalance?

The top five tech companies by market cap are, in order: Apple, Alphabet (Google), Microsoft, Amazon, and Facebook. The gender balance of each company’s workforce is in the table below:

women-workforce-table
Sources are linked for Apple, Alphabet, Microsoft, Amazon, and  Facebook. Data on national averages can be found here and here.

All of these companies are seeking to improve their gender balance and support current women employees. Resource groups, family benefits and smart hiring practices are some of the most common solutions. Even when these efforts are made, the male-dominated work environments can be far from ideal for women at these companies.

Women Employee Experiences

Resource Groups

Resource groups can serve as valuable support networks for women employees. Each of the top tech five has at least one employee resource group for women (Apple: Women@Apple; Google: Women@Google, Google Women in Engineering; Microsoft: Women@Microsoft; Facebook: Women@Facebook, Amazon: Women@Amazon, Amazon Women in Engineering, Women in Finance Initiative). All of these groups share similar goals: empowering women in their workforce and providing networking opportunities.

Many of these resource groups also participate in community outreach, engaging young girls and women and creating programs to foster their interests in technology. (See Women in STEM: Closing the Gap for more information on how community outreach can help change the culture around women in STEM in the United States.)  After recognizing that underrepresentation of women in tech is related to the lack of educational STEM exposure and encouragement for women, Facebook created Computer Science and Engineering Lean-In Circles to support women in college who are interested in CS.

Conferences

Sponsoring women’s tech conferences, like the Grace Hopper Celebration of Women in Computing or the Women in Real Life (WiRL) Conference, is also common among these resource groups. Amazon even holds its own conference: Every year, the women’s resource groups at Amazon also team up to host AmazeCon, a diversity conference that focuses on the achievements due to diverse teams at Amazon. The conference draws thousands of experts and leaders to discuss the importance of diversity in creativity and accomplishments.

Microsoft has taken an extra step by creating an innovative program for women, Women Think Next. WTN is a “worldwide community for professional women,” bringing together women from varying fields and backgrounds to network and support one another.

The program is not limited to Microsoft employees. WTN encouraged any and all professional women around the world to join. Women Think Next holds an annual networking conference and provides resources for women throughout the year. The conference also serves as a recruitment event for Microsoft to hire women with strong skills.

Employee Complaints

Everything isn’t always as it seems on paper, though. The male-dominated work environments at these companies can be isolating for female workers. In 2015, Microsoft faced a lawsuit accusing the company of gender-discriminatory policies in employee reviews. In May 2016, a former Facebook contractor published a piece on the sexism she experienced while working on a project team. During September 2016, Apple received criticism in the media for a series of leaked emails that revealed the company’s unresponsiveness to concerns of women employees. Through these emails, women employees described the company’s atmosphere as “toxic,” including workplace harassment and gender discrimination.

It is important to note that these are all anecdotal experiences. Each company responded by emphasizing that they take complaints like these seriously. The sensitive nature of the companies’ investigations of these claims prevents more information from being public.

Work-Life Balance

In American society, women often face conflict between the gender norms surrounding women’s family responsibilities and a desire to pursue a career. Maternity and family leave benefits can be an important factor in a woman’s decision to stay with a company in the long run, especially after she has started a family.

Of all of the Organization of Economic Cooperation and Development member countries, the United States is the only one that does not mandate paid maternity leave. According to the most recent statistics, only 12% of Americans receive this benefit.

However, within the tech top five, they seem to go far and beyond this requirement. Below is a summary of the family leave benefits for the tech top five.

maternity-leave-chart
Sources are linked for Apple here and hereAlphabet, Microsoft here, here and here, AmazonFacebook, and National Standard

It is not surprising that these companies give generous benefits. Named the best place to work in the U.S. in 2015 by both Forbes and Glassdoor, Google is known for its employee perks. One of Google’s greatest strengths lies in its emphasis on self-study to determine workforce problems and find solutions. In 2007, Google’s People Operations (AKA Human Resources) department noticed that new mothers left Google at twice the average departure rate. In response, the company decided to lengthen paid maternity leave from 12 to 18 weeks. After this change, Google’s departure rate for new mothers dropped by 50 percent.

Controversial Benefits

In 2014, both Apple and Facebook received media attention for their announcements that they would pay to freeze U.S.-based employees’ eggs. Apple announced it as a new dimension to their support for infertility treatments. The move was met with mixed reviews by the media. NBC News praised it as a “game-changing perk,” but The Guardian denounced it as “unreasonable and illogical.” Supporters of the policy argue that it gives female employees more flexibility in their decision to have children. Critics claim that the policy sends the wrong message, implying that if female employees want to succeed at work, they need to delay motherhood.

Parental Equality

It is important to look not only at a company’s maternity leave policies, but at their parental and family leave policies as well. Studies of maternity and motherhood-related policies in other countries, like a mandated child care law in Chile and a reduced hours law in Spain, have shown that offering parental benefits only to women can lead to a decrease in salary and promotion rates of all women at a company, even those who don’t take advantage of them. One approach to combating these negative effects could be making these policies gender-neutral. This would allow for men to take advantage of these policies and reduce gender-discriminatory practices.

Hiring, Promotions and Pay

Facebook has received attention for its hiring point system. Facebook’s recruiters receive points for new hires, but based on the new recruits’ diversity, it can earn recruiters more points. White or Asian males only count for one point, whereas black, Hispanic, or female new hires count for two points. Higher point totals can lead to good performance reviews and bonuses for recruiters. This system incentivizes the creation of a more diverse workforce.

At Google, employee studies showed that women were less likely than men to submit their names for promotions. After Google brought this information to the attention of women employees, this discrepancy disappeared. Google now prides itself in the fact that they promote women and men at the same rates.

In August 2016, Apple announced plans to increase hiring of women and minorities. During the same announcement, they celebrated their official elimination of all gender pay gaps within the company. To maintain this, they have pledged to analyze and correct any gaps as they may arise in the future.

Amazon has also addressed its pay gap. Amazon boasts that women earn 99.9 percent of men’s salaries, explaining that the percentage fluctuates annually, so that it may not always reach a perfect 100 percent. However, Amazon has received criticism on its diversity reports for not including statistics on the percentage of women who make up their tech workforce. This discrepancy has led media to question whether Amazon has something to hide. Until Amazon releases more information, there is no way to know the state of female representation in their tech workforce.

What Does This Mean?

When compared to national averages, women are not as well-represented in the top tech companies. However, these companies provide benefits and services to their women and employees that are above and beyond the norm. Nonetheless, as the anecdotal experiences of the women at Apple, Facebook, and Microsoft have shown, a company can offer great benefits while still tolerating a discriminatory workplace environment.

Regardless, these companies need to develop new strategies  to address low women’s representation. Only time will tell how future policy, research, and incentives will impact women’s employment in the tech workforce.

Categories
McNair Center Small Business Women

Startups of the Season

While the holiday season approaches, educational toys are in high demand. Some of the most innovative new toys are produced by startups. For many of these toys, they began with an entrepreneur who saw a need to integrate play and learning.

According to the most recent statistics, the United States toy market is worth $21.18 billion. In 2015, the industry surpassed growth expectations, which is especially impressive when compared to the overall retail industry, which grew 0.7 percent less than expected. The toy industry’s prosperity is drawing in entrepreneurs who are enticed by potential for high earnings. Although there are many start-up-developed toys on the market, here are some that have received waves of public support.

Robot Turtles

In 2013, father Dan Shapiro decided to teach his four-year-old twins how to program. Improvising, he created a game using printed pictures from his computer, which led to the creation of Robot Turtles, a board game designed to teach preschoolers how to program. After noticing how much his children enjoyed the game, Shapiro took time away from his job at Google to develop the game full-time.

Robot Turtles utilizes kid-friendly challenges and elements that teach the fundamentals of computer programming while kids play. Children do not even need to be able to read.

After the idea was ready, Shapiro took the idea to Kickstarter, an online community that funds creative ideas. The site connects creators to backers who can provide funds to get a project off the ground. With Robot Turtles, Shapiro set a funding goal of $25,000 so that he could produce his first set of games. Support was incredibly strong, meeting this goal 5 hours after being released. In the funding period of 24 days in September 2013, Robot Turtles managed to draw in 13,765 backers. The most-backed board game in Kickstarter history, Robot Turtles raised a whopping $631,260 in that short period.

By August 2014, Robot Turtles was in every Target store in America. Now, Robot Turtles continues to thrive. An interactive eBook, coloring sheets, and other add-ons were developed to supplement the game.

Roominate

When Alice Brooks and Bettina Chen began their master’s program in engineering at Stanford University, they were two of the few women within their program.

In response to this gender gap, Chen and Brooks partnered up to create Roominate, a building toy designed for girls. Roominate sets include many modular and mechanical pieces that allow girls to explore their interests in design and engineering through play.

Roominate began on Kickstarter in 2012, raising $85,964. The project page highlighted their goal with bold lettering, “We believe that early exposure to STEM through toys will inspire change.”

Later, the product was also featured on Shark Tank, an ABC show where inventors pitch their ideas to successful investors in order to get funding, in September 2014. In the episode, investors Mark Cuban and Lori Greiner decided to partner with the organization.

After a few years with successful growth, Chen and Brooks took back to KickStarter in 2015 to fund development of a new product line for Roominate, “rPower,” featuring new modular wire pieces. This addition makes building and using the circuits easier for children. The Kickstarter campaign was extremely successful, raising over $50,000.

Roominate has grown quickly and is now found in over 5,000 retail locations around the world.

PopUp Play

Argash, https://commons.wikimedia.org/wiki/File:Austin_Evening.jpg
Home to PopUp Play, Austin is growing as a startup hub in the United States.

Home to PopUp Play, Austin is growing as a start-up hub in the United States.Not surprisingly, innovative Educational Toy start-ups can also be found in Texas. In Austin, married couple Bryan Thomas and Amelia Cosgrove have found a niche in harnessing children’s creativity.

PopUp play utilizes an iPad app to let children design the play fort of their dreams. The company then produces an assemblable fort out of corrugated fiberboard and delivers it in as little as a week. There are also plans to expand the iPad app so it can be used to supplement the play experience once the fort has been assembled. For example, the company is looking to develop a Submarine fort template along with a virtual periscope on the app to search the imaginary seas.

Like Robot Turtles and Roominate, PopUp Play found its start on Kickstarter. During a 32-day period beginning in May 2015, 135 backers provided $25,676 to help make PopUp Play a reality.

But that was just getting started. The team then began working with Capital Factory, a collaborative workspace and Accelerator Austin, Texas. They later also found allies in Techstars, an Austin Accelerator where they participated in a three-month mentorship program.

Since then, they have received waves of recognition, including being named one of the top 50 Best New Apps for Kids by Apple in 2015 and an American Airlines Innovator in June 2016. The company also won the top prize in its category in the South by Southwest Accelerator Competition in March 2016. This demonstrates that there is large potential for success. PopUp Play is also supported by high-profile investors, including Capital Factory, Silverton Partners, Floodgate, and Techstars.

Supporting Startups for the Holidays

Entrepreneurs tend to be passionate about their products and creative in how they make them a reality. Parents who are hoping to find fun, educational toys for their children can look to startups to find some of the most creative, innovative products on the market.

Categories
Government and Policy McNair Center

Obama in the White House

Generating an Innovation Nation

The Obama administration’s policies toward small business and entrepreneurship have received mixed reactions. While Obama elevated the administrator of the Small Business Administration to a cabinet position and the SBA increased its lending to small businesses, some small business owners felt that the government bailed out big businesses at their expense after the 2008 financial crisis. Many small business owners are concerned about the effects of the Affordable Care Act.

Over the course of his presidency, Obama has played a part in connecting innovation with government. During his first term, he created the positions of Chief Technology Officer, Chief Data Scientist and Chief Performance Officer. In 2012, he began selecting entrepreneurs to work as Presidential Innovation Fellows within the federal government to make government more efficient, impactful and user-friendly.

Inspired by startups and music

Austin’s South by Southwest music and media festival inspired President Obama’s latest innovation project South by South Lawn (SXSL). Last month, the Obama administration invited community change-makers nominated by the public to attend SXSL. Innovators gathered at the White House to discuss how they use technology to advance areas like technology, food, art and collaboration.

On the technology panel “Fixing Real Problems,” innovators like Chris Redlitz (founding partner of Transmedia Capital and founder of The Last Mile), Jukay Hsu (founder of Coalition for Queens) and Nina Tandon (founder of EpiBone) addressed societal issues, including criminal justice reform, health care costs, access to higher education and job opportunities. Panelists emphasized the importance of understanding the impact of company growth on surrounding communities when planning for future endeavors. They emphasized the importance of creating inclusive access to the new opportunities brought about by societal transformation and technological change.

Focus on social entrepreneurship

With the Access Code program at Coalition for Queens, Jukay Hsu aims to increase economic opportunities in Queens. The program allows populations usually underrepresented in the technology field, like women and minorities, to gain the skills needed to enter the field. There are no upfront costs, but graduates of the program are expected to “pay it forward” by committing a percentage of their first two year’s salary toward funding future Access Code cohorts.

Chris Redlitz created The Last Mile in 2008 in an effort to reduce recidivism rates. For successful criminal justice reform, inmates need the skills to readjust to the outside world. To meet this need, the Last Mile started a six-month program for inmates to develop companies and pitch their ideas to the business community. In 2014, Redlitz created the first computer coding program in a United States prison, teaching HTML, JavaScript, CSS and Python.

Nod to for-profit entrepreneurship

At EpiBone, Nina Tandon provides patient-specific, customized bone grafts created from the patient’s own stem cells. Through this personalization of treatment, she aims to simplify procedures, provide more exact care and reduce the costs of post-surgery treatments. Each year, over 100,000 patients have bone-related surgeries in the United States alone. EpiBone could potentially increase access to these necessary operations through reducing costs and rehabilitation times.

Bringing innovation within government

Obama invited technology executives to join him in Washington to spearhead innovation in government. Former Google executive Megan Smith now serves as the United States Chief Technology Officer. Microsoft executive Kurt DelBene took a leave of absence in 2013 to help fix the problems with HealthCare.gov.

At SXSL, Presidential Innovation Fellows shared their projects to improve government efficiency at the “Startup in the White House” exhibit. Jacqueline Kazil’s GeoQ crowdsources geo-tagged photos to quicken disaster response. With the Green Button Initiative, John Teeter aims to help Americans understand and improve their energy use. The innovation company 18F has been developing NotAlone.Gov to provide students and schools with access to resources against sexual assault. Visitors saw how design and technology could potentially modernize the immigration system, improve veterans’ access to benefits and increase cancer patients’ access to clinical trials.

The first SXSL – and the last?

Although technology will not cure all of society’s ills, it has the potential to improve lives more quickly than any government institution could. Continuing initiatives that focus on creative solutions leads to a more widespread awareness of this potential. The federal government should focus on technology and innovation as integral contributors of growth.

Obama used SXSL to show innovation’s potential in policy solutions. Unfortunately, he made no mention of policy toward small businesses, particularly for-profit enterprises. Events like SXSL must also focus on policy that accelerates for-profit entrepreneurship that aid U.S. economy growth. There was no mention of how the federal government would incentivize entrepreneurship to strengthen the U.S. economy and maintain competitiveness in the global marketplace.

Whether through another South by South Lawn or the inclusion of innovators in policy solutions, the Trump administration should seek to make government more inclusive, transparent and effective. However, simply embracing startup culture and bringing entrepreneurs into government is far from enough. For entrepreneurship to play its full role, the U.S. needs policies that will actually help small businesses, not hinder. Only then will small enterprises and startups be able to take their place as drivers of economic growth.