Gender gap in Israeli high-tech: Women hit a roadblock in 2023

The gradual but steady rise in the proportion of women in hi-tech of the past 10 years ground to a halt in 2023 at 35.9%, according to a report published Thursday by RISE Israel Institute.

This stagnation is primarily due to overall lack of growth in hi-tech employment during that year, according to the report. The slowdown affected non-research and development positions the most, decreasing employment opportunities for women in the industry.

“Even in 2024, women are still underrepresented in Israeli hi-tech,” said Yam Atir, vice president of strategy for RISE Israel. “Our report indicates that the increase in the share of women over the past decade – which was already slow and moderate – has come to a complete halt in the past year.

“This is while their share in management positions is even lower. Increasing the representation of women in hi-tech in general, and in key roles in particular, is a tangible necessity, both for the sake of promoting equality and for expanding the workforce in this industry,” Atir said.

“Especially now, when the economic locomotive has also become a significant social engine in Israel, it is even more important to make the sector more equal and diverse,” she said. “Local hi-tech can and should be built on strong and broad female leadership, serving as a role model for girls, teenagers, and women in Israel and around the world.”

RISE publishes a report on the gender gaps in the hi-tech arena based on LinkedIn data each year. This year, the report also reflected that the percentage of women in senior-level hi-tech positions remains low: Women make up less than a quarter (22%) of vice presidents and higher positions, only 16% of C-level positions, and 13% of CEOs.

Israel is also grossly lagging behind other countries when it comes to female founders. In 2023, the percentage of companies with at least one female founder of all companies that raised capital was 16% in Israel, compared to 25% and 26% in Europe and the United States.

In 2023, women made up around a third (36%) of hi-tech employees – the same as in 2022, according to the report. However, when examining their roles, only 28% hold technological positions; the majority (60%) have operational roles.

Part of the challenge is that fewer women pursue degrees in fields that typically lead to top positions in the tech industry. In 2023, only 28% of hi-tech majors and 40% of other STEM majors were women, and those percentages hadn’t increased over the past 15 years.

Salary disparities

There are also significant gaps when it comes to salaries.

A separate report published Thursday by GotFriends – a hi-tech recruitment company in Israel – found that men who got jobs through the network earn an average of NIS 2,000 more than women. This is regardless of their role.

The difference is less pronounced among those with little tenure but widens as individuals accumulate more experience and advance into senior or managerial positions, according to the report.

“One of the reasons for these gaps is that women in the Israeli hi-tech industry request a lower salary on average by 8%-10% compared to men, a significant figure for all roles in the hi-tech domains,” said GotFriends CEO Shiri Vex.

Israel’s Stage One Ventures launched the “Female Founders Office Hours” program three-and-a-half years ago to support female entrepreneurs on their journey to success.

The initiative offers tailored individual meetings with managing partners and team members, providing valuable guidance, consultation, and networking opportunities.

The company learned from working with these female entrepreneurs that men and women lean toward different start-up ideas. Men tend to favor deep tech areas like cybersecurity. At the same time, women are more drawn to softer fields such as digital health, women’s health, children’s education, mental health, lifestyle, wellness, and sustainability.

The GotFriend study showed that only 32% of women found jobs as data analysts between 2022-2023, compared to 68% of men. In contrast, in the role of product manager, there was a reduction in the gender gap in 2023, with women occupying 45% of the positions compared to 55% of men. In 2022, the figure stood at 30% vs 70%.

Diversity initiatives

Several Israeli companies have prioritized gender equality and diversity in the workplace.

For example, 50% of the management team at Intuit in Israel is made up of women, and women fill 39% of all positions.

 “Aside from our moral duty, research shows that diverse teams are more successful, more innovative, and overall better functioning teams,” Keren Raphael, Intuit Israel’s head of People & Places, told The Jerusalem Post. The more diverse a team is, the more it works to promote diversity – and a positive feedback loop is created.”

At Salesforce in Israel, Odelia Rosenfeld is the Social Responsibility Manager, overseeing the Salesforce Women Network (SWN). This network is dedicated to nurturing the professional and personal growth of Salesforce employees and creating initiatives for women both within and beyond the company.

Recently, SWN launched a program in partnership with the WOMAN2WOMAN organization from the 8200 Alumni Association and the Tel Aviv Municipality. This initiative focuses on advancing women to leadership positions in the Israeli hi-tech sector, mainly targeting employees on maternity leave.

Furthermore, as part of Salesforce’s continuous learning efforts, they introduced a program called Rise. This six-month learning and development initiative is designed for non-managerial employees, equipping them with the necessary tools and skills for a career path toward management positions.

“Women are missing in so many critical positions,” Rosenfeld said. “Women can fill any position – I really believe it.”

Another company, Incredibuild, created a collection of children’s books to introduce preschool-aged girls and boys to various hi-tech careers. The protagonist, Sophie, stars in titles such as Sophie’s Crystal Ball, Sophie the Entrepreneur, and Sophie and the Dream Lab.

Tami Mazal Shachar, the company’s CEO, shared with the Post that the concept emerged from a desire to inspire girls to consider diverse career paths and make the world of hi-tech and technology more approachable for them.

“When boys are small, it is natural for them to see a woman or girl being a heroine in a tech position,” Shachar said. “Education starts when you are young. If you want to see more women in tech, you must start before they get to university.”

Mazal Shachar added that about 75% of Incredibuild’s management are women. The company collaborates with Atid Plus, an organization that trains girls and young women from Israel’s periphery and introduces them to jobs in the technology industry. Mazal Shachar sits on the organization’s board.

“Behind every successful woman is the woman herself,” added Yael Eckstein, vice president of marketing for StageOne ventures.

“Women are strong and multitasking individuals who can excel in any endeavor,” she said.