Why women in tech: the business case for gender diversity

8 mins. 10 mins.

Progress is driven by diverse teams. At Volvo Group, our focus is to build environments where every engineer and digital innovator can thrive and lead. Women in technology careers are playing pivotal roles in the tech industry, contributing to groundbreaking advancements in engineering, software development, and digital innovation. The question is no longer whether women belong in tech - that’s already proven. The question now is: how far have we come, and what’s next?

The journey so far

The tech industry has made measurable strides in attracting women to STEM careers. Women hold 35% of STEM-related degrees globally and make up 33% of the workforce in the largest tech companies¹. However, the real challenge isn’t just hiring - it’s career progression, retention, and leadership representation. Moving up in the hierarchy, 19% of senior VPs and 15% of CEOs are women².

In our industry, only 20–30% of leadership roles are held by women². At Volvo Group, we’re working to meet and exceed that benchmark. By increasing the representation of women in technology, we broaden the pool of talent we can draw from, strengthening innovation and competitiveness. Through equal access to career growth, transparent pathways, and mentorship programs, we’re building an environment where everyone in engineering, science, technology, and math can grow and succeed at every level.

Beyond representation: real impact in tech and engineering

Breakthroughs in digital systems, AI, and sustainable mobility don’t come from one group; they come from diverse teams that blend genders, cultures, disciplines, and lived experiences. Just as important is the climate those ideas land in: psychological safety, meaning the everyday confidence to question assumptions, flag risks, and share ideas without penalty. Why? To ensure it’s easier for contributions to surface early and improve engineering outcomes for everybody.

Volvo Group’s focus is on building environments where every engineer, digital innovator, and technology leader, women included, can thrive, contribute at full potential, and lead.

Industry insights

Macro: Across OECD countries, women’s employment has advanced, but gaps in pay and hours persist. Closing the gender employment gap could lift annual GDP per capita growth by ~0.2 percentage points across the OECD, and closing the gap in hours worked could roughly double that uplift⁴
Firm level: Companies with more women in STEM leadership see up to 35% higher innovation revenue ⁵
Team level: “Diverse teams are 1.7 times more likely to be innovation leaders and deliver 15%–35% higher innovation and performance metrics.⁶

Volvo Group journey: inclusion as a way of working

1. Sustainability – building a future-ready workforce

Between 2023–27, tech and green transitions are expected to transform nearly 23% of jobs and make advanced digital skills a top training priority, underscoring why broadening the STEM pipeline is a competitiveness issue, not just an HR issue⁷.

Sustainability isn’t just about the environment – it’s about building industries that endure, adapt, and stay competitive. In engineering, technology, and digital innovation, longevity depends on a steady pipeline of skilled professionals driving progress. Increasing the representation of women in science and engineering are key to keeping the industry resilient and future-proof.

Why workforce sustainability matters

Workforce development: Globally, about one-third (≈32%) of researchers are women—clear headroom to grow the talent base.⁸ A broad and diverse talent pipeline fosters stronger innovation and keeps businesses at the forefront of change.
Economic growth: McKinsey Global Institute estimates advancing women’s equality could add $12 trillion to global GDP (scenario analysis across 95 countries)⁹. Countries and organizations that fully leverage their STEM talent pool experience higher productivity, technological advancements, and economic gains.
Business longevity: In 2023, 41% of scientists and engineers in the EU were women (7.7 million), but in manufacturing, women were just roughly 22%. This is evidence of sectoral gaps where mobility, trucks, and heavy industry sit¹⁰. Organizations with a variety of technical expertise - from digital engineers to software developers - are better positioned to navigate industry shifts and market demands.

2. Innovation – expanding perspectives for a competitive edge

Diverse teams fuel innovation. Across 1,700 firms in 8 countries, companies with above-average leadership diversity report 19% more revenue from new products/services (45% vs 26%) and higher EBIT margins¹¹. Combining perspectives across engineering, software development, and digital technology leads to smarter solutions, stronger collaboration, and breakthrough advancements. Expanding opportunities for women in STEM can be seen to effectively strengthen R&D, product innovation, and market adaptability. Companies that take a forward-thinking approach to advancing women in software engineering, IT, and technical leadership gain a clear edge in emerging technologies.

How expanding talent pools strengthens innovation

Problem-solving strength: Diverse technical expertise leads to more effective solutions and innovative thinking, and, psychological safety is the guardrail that lets those ideas surface early enough to matter. Classic PNAS (Proceedings of the National Academy of Sciences) work shows diverse groups can outperform groups of top “high-ability” solvers on complex problems (diversity beats ability when problems are hard)¹².
Market adaptability: Teams with varied perspectives respond better to regulatory changes, consumer demands, and industry shifts.
Competitive edge: Large-scale studies find teams with greater ethnic diversity publish in higher-impact journals and receive more in research-driven industries, innovation fuels long-term success and keeps businesses ahead of the curve.

3. Leadership – shaping the future of technology

McKinsey’s Diversity Wins shows companies in the top quartile for gender-diverse executive teams are significantly more likely to financially outperform peers¹⁴. As digital transformation accelerates, demand for women in STEM and technical careers is rising, yet they remain underrepresented in software engineering, structural engineering, and IT leadership. Creating pathways for women to advance into leadership isn’t just about fairness – it’s about making businesses more effective, competitive, and future-ready.

Why leadership diversity matters

Stronger decision-making: Teams with diverse leadership make more well-rounded, informed, and innovative choices.
Industry influence: More women in leadership help shape company policies, workplace cultures, and product development.
Sustainable growth: Organizations with diverse leadership teams are more resilient, adaptable, and positioned for long-term success.

How we’re building a future-ready workforce

At Volvo Group, we believe a workforce that is skilled, engaged, and diverse is the foundation of long-term success. Our experience shows that industries thrive when talent is developed, nurtured, and empowered to innovate. The question is not only why diversity matters—but how to make it work in practice.

Effective workforce strategies

#tecHER digital forum—community, events, and stories that spotlight technical careers and leadership journeys.
Employees resource groups (ERG) to boost gender inclusion. At Volvo Group, this is called WIN (Women Inclusion Network), offering globally peer groups, mentoring, networking events, confidential helplines, inspirational conferences and newsletters and more.
Nursing rooms, locker rooms, security equipment and clothes designed for female employees—practical support that enables more colleagues to participate fully at work.
Hire Smart e-learning—transparent, skills-first hiring practices available for all managers and recruiters.
All of Us workshops & cards—everyday tools for inclusive collaboration.
Diversity Pledge at Volvo IP—a concrete commitment to equitable innovation.
Unleash Human Potential—a learning program for top leaders run by the International Institute for Management Development (IMD) that include key strategies to help you reach your potetntial: High Performance Leadership, Adopting a Growth Mindset, Building Great Teams, Being a Positive Role Model, and Making Change Stick.
Ergonomics of our work stations in factories and workshops so that our jobs are accessible to everyone regardless of genders, body strengths, special abilities etc.
Expanding access to STEM careers – through internships, graduate programs, and university partnerships that bring more talent into engineering, digital innovation, and emerging technologies.
Supporting leadership growth – by investing in mentorship, sponsorship, and transparent promotion criteria that give talent a way to remove barriers, provide transparent pathways, and fair access to opportunity and achieve our ambition of 35% female leaders by 2030
Enhancing innovation through collaboration – building cross-functional teams that connect engineering, IT, and digital talent with psychological safety built into how we work so ideas and risks are raised early to accelerate problem-solving and product delivery.
Fostering a future-ready workforce – equipping teams with adaptability, digital fluency, and the technical skills to thrive as industries transform including inclusive ergonomic practices in product design.

Come join Volvo Group on our tech journey

At Volvo Group, we are shaping the future of mobility, engineering, and technology. Investing in skills, leadership, and knowledge-sharing isn’t just about preparing for what’s next - it’s about ensuring that every innovation we create serves people, industries, and societies for generations to come.

Read: Inventing tomorrow

Explore: Job opening in software, data, and engineering

Connect: Join our talent community for updates and events