What Silicon Valley still doesn't understand about its diversity problem

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While recent conversations around racial equality in the U.S. have been somewhat of a wake-up call for employers to look inward, tech giants face even more scrutiny for lagging behind others on diversity and inclusion even as they wield more power.

Only 1.7% of Facebook’s (FB) technical roles are held by Black employees, according to its own diversity report. At Google (GOOG, GOOGL), which employs some 119,000 workers, a mere 3.7% are Black. Apple (AAPL) hasn’t published a fresh report since 2018, when it disclosed that 6% of its tech jobs went to Black professionals.

So what’s Silicon Valley getting wrong on diversity? “What the tech industry and many large employers have gotten wrong is focusing too much on quarter-to-quarter hiring numbers,” says Michael Ellison, co-founder and CEO of CodePath, a San Francisco-based nonprofit that provides free support, mentorship, and career coaching for computer science college students throughout the U.S.

CodePath founder and CEO Michael Ellison speaks with Yahoo Finance's On The Move.
CodePath founder and CEO Michael Ellison speaks with Yahoo Finance's On The Move.

Instead, Ellison says tech companies need to focus on long-term systemic change that educates a more diverse group of students to enter the tech industry.

“When you look at trying to fill the talent pipeline this quarter, this year, you're ignoring the fact that there are only 7,360 Black computer science graduates in all of 2019 and only 8% of them ended up becoming software engineers. So this means only 588 career-ready Black software developers each year graduating in an industry with 1.4 million software developers,” he explained an interview with Yahoo Finance’s On the Move on Wednesday. “You can't fill a diversity gap with numbers so small.”

‘A strong equity lens’

While Silicon Valley titans have made significant financial commitments and pledges to diversity, there’s something fundamentally broken about the system at large, according to Ellison, whose nonprofit works with 4,500 students, 95% of whom are Black, Latinx, or women.

The Silicon Valley operating system is flawed in two key ways — having too much of a myopic approach, in part by recruiting largely from elite schools, and not valuing true equity, according to Ellison. The idea of eliminating inequity is to take into account the circumstances that may have helped or hurt a candidate and try to level the playing field, he explained.

“When you talk about diversity but you don’t have a lens of ‘Am I working with first-generation college students?’ ‘Am I looking at low-income populations?’ Guess what? You end up going to the same places you always go to — elite schools, you look at students with lots [on their] resumes,” said Ellison.