Closing the Gap: Overcoming Barriers to Leadership for Women in Canada’s Digital Economy

Executive Summary

Despite the well-documented benefits of workplace diversity, women are significantly underrepresented in leadership roles within Canada’s digital economy. While a large and growing body of research highlights the barriers that women face in the broader workforce, there remains a lack of focused studies on the systemic and institutional challenges that prevent women from advancing into leadership positions in the digital economy.  

This report, informed by a series of interviews with women in the technology sector and subject matter experts and supplemented by secondary research, highlights key barriers to women's advancement into leadership roles in the digital economy. Based on these findings, several evidence-based recommendations have been developed. Grounded in literature review and the insights shared by the women who participated in this research, these recommendations provide organizations with actionable strategies to effectively address these challenges and promote women's leadership in the digital economy.

Although women comprise nearly half (48%) of the Canadian workforce, data from 2023 indicates that they represent only 34.8% of those employed across all levels in Canada’s digital economy. Their representation drops even further in leadership roles. As previous research by ICTC has shown, women continue to be underrepresented in management positions across the broader economy, a trend that also persists in the digital economy.

The case for advancing women in leadership is both economically compelling and rooted in equity. Research shows that organizations with diverse leadership teams experience greater organizational performance, higher profit margins, and stronger governance practices. Empathetic leadership traits position women as transformational leaders who excel in crisis and change management, especially at the helm of global, multicultural organizations. Moreover, closing the gap in women's labour force participation has the potential to increase household incomes by $18 billion.

ICTC’s research reinforces that gender stereotypes, implicit biases in hiring and promotion, the motherhood penalty, a lack of role models, mentorship and sponsorship opportunities, and workplace culture all contribute to the underrepresentation of women in senior leadership positions.  

Specific recommendations to advance women into leadership positions in the digital economy include:

1. Increase the visibility of diverse leadership
2. Invest in programs policies, and initiatives that support new parents and caregivers
3. Design responsive mentorship programs
4. Develop sponsorship programs to complement mentorship initiatives
5. Implement organizational and workplace experience initiatives that address harassment and exclusion

These recommendations apply to more than just organizations, HR teams, and business leaders; industry and sectoral stakeholders have an important role in advocating for best practices among their membership and firms in their verticals to ensure that women benefit from systematic, top-down change, programs, initiatives, and policies.