Driving gender equity in UK tech 

For HR and reward  leaders in UK tech, understanding the strategic importance of gender diversity has never been more urgent. The Lovelace Report 2025, produced by Mercer’s sister company Oliver Wyman in partnership with WeAreTechWomen, reveals the economic and societal costs of women’s underrepresentation and attrition in technology underscoring the urgent need for action.

Titled The Value of Keeping Women in Tech, the report warns that the UK could be losing up to £12 billion annually due to women’s underrepresentation and attrition. Women comprise just 20% of the UK’s tech workforce - a gap that’s widening as women leave the sector twice as fast as men.  Annually, 40,000 to 60,000 women exit the UK tech and digital sector. Some leave the industry entirely; others switch employers seeking better career prospects denied by their current roles. This churn costs the UK economy between £2 billion and £3.5 billion annually. Specifically, women changing roles account for an estimated £640 million to £1.3 billion of this cost, while those leaving tech altogether represent an estimated £1.4 billion to £2.2 billion in lost economic value. 

Women hold just 15% of leadership roles in tech, and the gender pay gap remains around 15%, reaching up to 25% in some roles. These disparities stifle organisational growth, curb innovation and threaten the UK’s ambition to lead globally in AI, digital infrastructure and advanced innovation.

Addressing these issues is both a moral imperative and a strategic business priority. Organisations that fail to act risk missing out on a talent pool worth billions and jeopardising their future growth. For HR and reward professionals, targeted interventions -such as equitable pay, inclusive talent development and flexible work policies - are essential to retaining women and unlocking their full potential.

The report’s insights are supported by Mercer | Comptryx’s industry-specific, up-to-date remuneration data - ensuring data integrity and depth. Leveraging this data enables HR and reward leaders to make informed decisions that promote fairness, improve retention and ensure compliance with evolving standards.

The Lovelace Report emphasises that closing gender disparities is vital for sustainable business success. With high-quality data and industry benchmarks, HR and reward teams can:

• Conduct precise pay equity audits to identify and address disparities.
• Design inclusive reward packages that attract and retain diverse talent.
• Implement flexible policies like remote working, parental leave and career breaks to support women’s career continuity.
• Develop targeted talent development programmes to prepare women for leadership roles.
• Track progress with reliable metrics and reporting frameworks.

Investing in gender diversity delivers measurable benefits — boosting innovation, enhancing decision-making and increasing profitability. 

Furthermore, proactively addressing pay gaps and career barriers helps organisations reduce turnover, retain critical skills and build a resilient, inclusive workforce — key ingredients for leading in the global tech arena. 

The Lovelace Report 2025 is a rallying call for business and reward leaders to build an inclusive, innovative UK tech industry. By leveraging tools like Mercer’s Comptryx, organisations can enhance their reward strategies, champion gender parity, and establish themselves as leaders in diversity and inclusion.

We encourage you to explore the findings of the Lovelace Report and consider how data-driven approaches can accelerate progress. By leveraging accurate benchmarking data, implementing targeted reward strategies and fostering an inclusive culture, organisations can unlock the full potential of women in tech and ensure the UK remains at the forefront of innovation.