Innovation thrives on a diverse STEM workforce. Are you tapping into these three key success levers?

Driving innovation in the life sciences industry requires a workforce composed of diverse and equitable people possessing multifaceted perspectives and experiences. Achieving this, however, is a challenging mandate, and SRG and New Scientists Job's 2024 Global Talent Trends & Insights Report reveals that organizations are making inconsistent gains in their efforts. We found some notable steps forward in some areas and setbacks in others. The data confirms employers should redouble efforts to attract and retain a diverse and engaged workforce.

First the good news: we uncovered encouraging data around pay equity for women. Gains were made in all three regions of the world we tracked. This is commendable as STEM employers have long strived to attract female talent and pay them the same rate as men. On the other hand, racial diversity continues to struggle in North America, as only a small portion of STEM jobs are filled by black and Hispanic/Latino workers. Not only are their numbers small in the STEM workforce, but their average salaries are among the lowest. It’s a statistic that could hamper the industry’s goals of attracting a more diverse candidate pool.

Organizations leading in Diversity, Equity, and Inclusion (DE&I) practices will likely achieve a more equitable and inclusive workforce and reap the benefits. According to McKinsey, the top quartile of these companies are 27% more likely to outperform financially, while the bottom quartile are 24% less likely. So not only is having a diverse and equitable workforce the right thing to do, but it also makes financial sense. 

Pay Gap Closes for Some

In the overall U.S. labor market, women make just 84 cents for every dollar a man makes. For women in STEM fields, achieving pay equity is closer to reality. Our latest data confirms this:

• In North America, the pay gap in 2023 is down to 8.2%, falling from 20.7% in the previous year.
• The smallest gap was among mid-career scientists (45-54), with a gap of just 4.5%
• However, the gains have not been consistent, and they remain high in other regions around the world

Such sizable improvements were not observed in different racial and ethnic groups. Asian scientists, on average, earned the highest salaries at nearly $100k. This was followed by people who identified as two or more races and white workers. Hispanic/Latino employees took home the lowest pay, at just about three-fourths of the highest income, while black workers did slightly better but still ranked among the bottom third.

Importance of Workforce Diversity to Talent

One of the reasons why companies with leading DE&I practices tend to outperform is a higher level of engagement and satisfaction among their employees. According to Gallup, 42% of U.S. workers say a diverse and inclusive organization is important to their consideration of a prospective employer. Moreover, cultivating a sense of belonging at work is increasingly seen as a lever of productivity and retention. 

This is especially true among younger generations of workers, whose values regarding workplace satisfaction differ markedly from their older peers. Among Gen Z, 83% are swayed by a company’s diversity and inclusion efforts, according to Forbes. As this generation grows proportionally in the workforce, companies must remain committed to fostering such a corporate culture.

So how can life sciences businesses ensure they align their efforts to the desires and values of their people? There are several critical considerations when building a DE&I strategy. 

Three key success levers for a STEM workforce

Start with the right data 

Organizations often go just skin-deep when reviewing hiring data. Benchmarks such as diversity of candidate slates and hires tell half the stories. Tracking the advancement of diverse hires once they join the organization, capturing their sentiment on the talent experience, and surveying unsuccessful candidates offer nuanced and actionable insights.

Seek out more diverse talent pools

Whether it’s conducting early career recruitment or sourcing for more senior talent, an effective talent acquisition strategy should be comprehensive in its scope. This means expanding geographic targets, working with diverse universities, and tapping into affiliation groups. Also, consider a skills-based strategy that eliminates the requirements for college degrees.

Lean on employee resource groups (ERGs)

Leaders can gain valuable insights from their own employees by establishing ERGs. These not only help talent to grow and advance, but they also provide critical feedback to management—earmark resources, and secure executive support to ensure the success of these groups. 

Although the world of work is progressing in creating diverse and inclusive workplaces, it is doing so at an uneven pace. Pay equity still falls short of women’s expectations, and many life sciences companies' workplaces still lack true diversity. There is ample evidence that improvements are not only a moral mandate but also a business one. 

Want to learn more about the sentiments of life sciences workers? Get actionable insights with SRG’s 2024 Global Talent Trends & Insights Report today. Download your copy here.