The £3.5 billion talent drain we can’t afford to ignore

Dr Vanessa Vallely OBE

CEO, WeAreTechWomen

The UK tech sector is at a crossroads. We have bold ambitions to lead the world in AI, cybersecurity and digital transformation, yet we’re haemorrhaging the very talent we need to get there.

Every year, between 40,000 and 60,000 women leave their tech roles. Almost half exit the industry entirely. The cost? A staggering £2–£3.5 billion annually in lost productivity, recruitment, onboarding and institutional knowledge.¹ This is at a time when the sector is already short 98,000–120,000 professionals and will need to double or triple capacity by 2030 to meet demand.

Real reasons women are leaving the workforce

The Lovelace Report,¹ a collaboration between WeAreTechWomen and Oliver Wyman, based on a survey of over 500 mid to senior-level women in tech, explodes the myth that women are leaving primarily due to caring responsibilities. Just 3% cited this as their main reason. The real culprits are systemic: limited career progression (25%), lack of recognition (17%), inadequate pay (15%), poor culture (8%) and absence of role models or sponsorship (8%).

Over half of the women surveyed said their career progression has not matched expectations. Many are stuck in the ‘sticky middle’ — waiting three to four years for promotion, compared with an industry norm of two — despite 70% holding extra qualifications and leadership training. Pay gaps persist at every level, with 50% earning below the benchmark for their seniority.

Pay gaps persist at every level,
with 50% earning below the
benchmark for their seniority.

Ways to retain talent

This isn’t just about fairness; it’s about future-proofing the industry. If we continue to lose diverse voices, we risk hard-coding bias into the very technologies shaping our future. The solutions are clear and achievable:

1. Actively monitor for career stagnation and intervene with skills-matched, high-visibility opportunities.
2. Distribute high-impact work equitably, using transparent, competency-based processes.
3. Build clear career ladders with defined progression requirements and equal pay at each step.

Importance of action from leadership

We have the insight, the economic case and a roadmap for change. What we need now is leadership willing to act. Because if we get this right, we don’t just stop a £3.5 billion leak; we unleash the potential of thousands of brilliant women who can drive our industry, and our economy, forward.

[1] WeAreTechWomen, & Oliver Wyman. (2025, July 7). The Lovelace Report: Unlocking £2–3.5 Billion: The value of keeping women in tech.