‘Why would they stay?’ Women leaving tech to avoid harassment

Persistent Harassment and Its Impact on Women in Tech

Harassment, bullying, and discrimination remain entrenched problems within Australia’s technology start-ups, as revealed by Grapevine’s recent report. Drawing on hundreds of employee accounts, the report exposes a troubling reality: 72% of women who experienced such negative behaviors opted to leave their companies altogether. This high attrition rate signals not only personal distress but also a systemic failure to protect female employees.

Despite the prevalence of these issues, formal reporting remains remarkably low. Only 23% of incidents are escalated through official channels, largely due to fears of retaliation or disbelief. When women do report misconduct, their experiences often worsen, with 96% encountering negative responses from senior leaders, human resources, or management. This lack of effective recourse perpetuates a culture where harmful behaviors go unchecked and victims feel unsupported.

Start-Up Culture and Structural Challenges

The unique characteristics of start-ups contribute to the persistence of workplace harassment. Many early-stage tech companies operate without formal human resources departments or established policies, particularly when their teams are small. Founders, often highly skilled in technical domains but inexperienced in people management, may lack the emotional intelligence or frameworks necessary to address sensitive issues effectively.

Paloma Newton, co-founder of Grapevine, emphasizes that unlike more established industries such as consulting or advertising, tech start-ups frequently fail to provide safe avenues for women to voice concerns. This absence of support systems discourages women from staying in these environments, exacerbating gender disparities in a sector already struggling to attract and retain female talent.

Misha Garg, another Grapevine co-founder and former executive at Uber and Commonwealth Bank of Australia, highlights the personal toll on women navigating these toxic workplaces. The fear of encountering perpetrators even at industry events creates a pervasive sense of unease, further isolating victims and discouraging engagement within the tech community.

Financial Consequences for Start-Ups

Beyond the human cost, harassment and discrimination impose significant financial burdens on start-ups. Employee turnover, particularly the loss of skilled women, can cost companies up to 150% of the departing employee’s salary in recruitment, training, and lost productivity. For early-stage businesses operating with limited resources, these losses are especially damaging.

Misha Garg notes that these costs compound the challenges start-ups face in scaling their operations. The departure of women due to toxic environments not only reduces diversity but also undermines innovation and competitive advantage. Addressing workplace culture is therefore not just a moral imperative but a strategic necessity for sustainable growth.

Industry-Wide Challenges and High-Profile Cases

The report’s findings emerge amid growing scrutiny of prominent figures in Australia’s tech scene. Allegations against executives such as Richard White, CEO of WiseTech Global, and James Curran, former CEO of a coding program for high school students, have drawn attention to systemic issues of misconduct at the highest levels.

Prabha Nandagopal, founder of Elevate Consulting Partners and former senior legal adviser on the Australian Human Rights Commission’s Respect@Work report, describes tech as a high-risk industry for harassment due to its male-dominated leadership and significant power imbalances. Young women, often recent graduates, may feel particularly vulnerable and reluctant to report incidents for fear of damaging their careers within a close-knit community.

Nandagopal also points out that the start-up ethos of “move fast and break things” often deprioritizes the establishment of robust employment policies, leaving companies ill-equipped to prevent or respond to harmful behaviors.

Legal Framework and Opportunities for Change

Recent legislative changes offer a pathway for improvement. The introduction of a positive duty under the Sex Discrimination Act requires all businesses, regardless of size, to proactively eliminate workplace sexual harassment. This legal mandate compels start-ups to implement clear policies, provide safe reporting mechanisms, and foster transparent, respectful cultures.

Leaders in the tech sector have a unique opportunity to reshape workplace norms from the ground up. By prioritizing inclusivity and accountability, start-ups can create environments where women feel valued and protected, thereby enhancing retention and performance.

Grapevine’s co-founders have launched a platform to highlight companies successfully cultivating safer workplaces. By sharing positive examples, they aim to set new standards and encourage widespread adoption of best practices.

What this means

The exodus of women from Australia’s tech start-ups due to harassment and discrimination is a pressing concern that threatens both the well-being of individuals and the viability of the sector. Addressing these challenges requires concerted efforts from founders, leaders, and policymakers to build inclusive environments where all employees can thrive. Legal mandates provide a foundation, but cultural transformation depends on genuine commitment to transparency, accountability, and respect. By learning from companies that are successfully fostering safer workplaces, the tech industry can begin to reverse this damaging trend and harness the full potential of its diverse talent pool.