Achieving Fair Pay and Equal Opportunity in European Nearshore Tech

In Europe’s Nearshore tech industry, the promise of innovation should be matched by a commitment to fairness. Yet the reality is that women in technology roles often earn significantly less and hold far fewer leadership positions than men. Recent analysis finds that the median (unadjusted) gender pay gap across European tech is about 25%, meaning women make only €75 for every €100 men earn¹. When pay is compared within the same role and level, the gap narrows to roughly 2.5%, indicating that equal work does indeed pay equally on average but too few women reach those roles¹.

Only about 21% of executive (C‑suite) posts in European tech are held by women, and women occupy roughly 30% of other leadership positions². These numbers reflect a “leaky pipeline”: although women earn about 42% of STEM degrees in Europe, only 24% of ICT (tech) graduates are women, and the share shrinks at each career stage³. The result is a tech sector that misses out on half of its talent pool—and data suggest that gender diversity would benefit it.

Across industries, balanced teams are linked to better performance. Companies in the top quartile of executive gender diversity are 25% more likely to outperform their peers on profitability⁴, and those with over 30% women leaders are dramatically more likely to succeed⁴. Diverse teams also make “better, bolder decisions” and are more able to “radically innovate” as markets shift⁵. Conversely, when women’s representation is low or stagnant, companies miss out on these benefits. The tech sector’s gender gap is therefore not just a fairness issue but a business imperative: tackling pay and opportunity gaps can strengthen performance and innovation.

The Gender Pay Gap: A Closer Look

European tech firms report a stark divide in average pay. In one survey of hundreds of companies, women’s median earnings were 25% below men’s before adjusting for role or experience¹. After controlling for comparable jobs and qualifications, the gap shrinks to about 2.5%, a sign that outright “equal pay for equal work” is nearly achieved in those terms¹. Yet the large unadjusted gap reflects that women are underrepresented in the higher-paid roles. Tech industry data from Ravio (May 2024) highlight that a disproportionate number of men occupy senior and specialised jobs, pushing up the overall average pay for men¹.

To illustrate, consider a recent salary survey in Berlin’s tech sector. It found that the median annual salary for women was €66,000 versus €83,000 for men, a 20.5% gap. Among those with 16–20 years of experience, the disparity widened to 26%, meaning a seasoned female engineer might earn €7,500 less per year than a similar male peer⁶.

Real-world company data further confirm the persistence of pay imbalances:

• ServiceNow UK: women earn about 80p for every £1 a man earns (median, hourly); only 22.2% of the highest-paid quartile of employees are women⁷.

• SAP UK: women earn 78p to the pound, and hold only 22.0% of top-quartile roles⁷.

These numbers reflect how few women reach the highest-paid roles, not just isolated discrepancies. Over time, such gaps can erode morale and amplify turnover if unchecked.

For context, the EU-wide gender pay gap across all industries was 12.7% in 2022⁸. Tech’s 25–26% gap is roughly double that, highlighting it as one of the more imbalanced sectors. Europe’s regulators have taken notice: the upcoming EU Pay Transparency Directive (enforceable by 2026) will force greater salary transparency and framework disclosure⁹.

The Leadership Gap: Underrepresentation at the Top

The pay gap is intertwined with a representation gap. As noted, only 21% of C-suite posts in European tech are held by women, and only about 30% of other senior leadership positions². Meanwhile, 42% of STEM graduates are women, but only 24% of ICT graduates are women³. Among female tech workers, 41% are in junior roles¹⁰, so most never even reach middle management.

Fewer women in senior roles also means fewer mentors and role models, which can deter new entrants and limit upward mobility. Notably, women who do reach executive ranks report almost no pay gap², reinforcing that the challenge lies in reaching these roles in the first place.

Another stark disparity appears in funding: female-led tech startups receive only about 1% of venture capital¹¹. This affects the innovation ecosystem at its earliest stages and reinforces the imbalance.

Why Equity Matters: The Business Case

Fair pay and equal opportunity aren’t just moral imperatives, they are business drivers. Companies with gender-diverse executive teams are 25% more likely to outperform on profitability⁴. Moving from <10% to >30% women in leadership increases the chance of outperforming peers by 48%⁴.

Benefits include:

• Greater innovation through diverse thinking⁵

• Better customer understanding and responsiveness⁵

• Stronger employee engagement and retention¹²

• Reduced legal and reputational risk under evolving transparency laws⁹

Inclusive practices expand your talent pool and create resilient, high-performing teams.

Building Fair, Merit-Based Tech Teams

To embed fairness in your hiring and retention strategies, focus on:

1. Transparent Pay and Promotions Establish clear salary bands and document criteria for raises/promotions. Share this framework with employees. Prepare now for the EU Pay Transparency Directive⁹.

2. Objective Screening and Evaluation Use structured interviews, skills tests, and blind recruitment where possible. Define technical competencies clearly to ensure hiring is based on merit.

3. Diverse Candidate Pools Proactively reach out via women-in-tech networks, boot camps, and community groups. True equality requires intentional outreach.

4. Culture of Inclusion Support mentorship, train on unconscious bias, and visibly reward merit and diversity. Showcase women’s success stories in your tech teams.

Consistent use of these practices signals that skill and performance are the foundation of advancement.

SmartChoice International’s Commitment

SmartChoice International practices what we preach. We track gender metrics to ensure our recruiting aligns with fairness goals.

We:

• Train recruiters to evaluate skills, not stereotypes

• Use anonymised candidate profiles where feasible

• Maintain diverse talent pools

• Help clients standardise hiring and pay practices

Clients who adopt these principles report higher retention, stronger performance, and better culture fit.

The Time to Act is Now

The evidence is clear: fairness and performance go hand in hand. By partnering with SmartChoice International, you can access the full talent pool, improve retention, and build agile, innovative teams based on skill, not bias.

Now is the time to lead. Review your pay policies. Standardise your hiring. Give everyone a fair shot. The benefits, from brand reputation to bottom-line impact, are too important to ignore.

Frequently Asked Questions

Q: How can we ensure our hiring is fair? A: Define objective role criteria. Use blind résumé screening, structured interviews, and skills tests. Audit salaries regularly and establish clear pay bands.

Q: What are the benefits of inclusive teams? A: They bring broader perspectives, improve innovation, adapt faster to change, and outperform peers. They also boost morale, retention, and market insight.

Q: Isn’t merit-based hiring enough? A: Only if “merit” is defined and applied objectively. Without safeguards, bias can distort judgments. Structured, blind processes ensure true meritocracy.

Q: Does targeting women mean positive discrimination? A: No. It’s about removing barriers and expanding the talent pool. All SmartChoice candidates meet the technical bar. Fairness means giving all talent a real chance.

Q: How do we maintain progress? A: Track hiring, pay, and promotion by gender. Set goals. Benchmark against industry norms. Transparency and iteration drive lasting improvement.

Endnotes / Sources

1. Ravio, “Gender Pay Gap in European Tech” (May 2024).

2. McKinsey & Co., “Women in the Workplace – Europe” (2023)

3. Eurostat, “Tertiary Education Statistics: STEM & ICT” (2023).

4. McKinsey & Co., “Diversity Wins: How Inclusion Matters” (2020).

5. BCG, “How Diverse Leadership Teams Boost Innovation” (2018).

6. Berlin Tech Salary Report, Honeypot (2023).

7. UK Gender Pay Gap Reports – ServiceNow and SAP UK (2023–2024).

8. Eurostat, “Gender Pay Gap Statistics” (2022).

9. EU Pay Transparency Directive – European Commission (2023–2024).

10. TrustRadius, “Women in Tech Report” (2023).

11. Atomico, “State of European Tech Report” (2023).

12. Harvard Business Review, “Why Inclusive Workplaces Retain Talent” (2022).