Quantum Matters: Dystopia or utopia? Action needed on D&I in quantum

Diversity and Inclusion in the quantum ecosphere is abysmal.

The numbers speak for themselves. In the private sector, only 1 in 54 of all applicants for female roles are female, while almost 80% of quantum companies do not have a senior female figure. There is no data on sexual orientation or ethnicity.

In an industry that is forecast to be worth $8.6bn in 2027, we cannot afford to miss out on talent. Especially when that industry is going to help solve some of the world’s most intractable environmental and medical problems. D&I is key to accelerating innovation and creativity, and avoiding group think, as evidenced in a report from The Inclusion Initiative at the London School of Economics.

Is there cause for hope? Definitely. Firstly, 62% of current employees in quantum want their employers to do more to increase diversity, according to recruitment firm Quantum Futures.

Secondly, two new organisations are focused on change. DiviQ was formed a few months ago, with industry luminaries like whurley and Denise Ruffner on board. Its mission is to foster a diverse quantum workforce through supporting those from underrepresented backgrounds with education, networking opportunities and mentorship. In an earlier incarnation, it paired over 400 quantum students, graduates and young professionals with mentors in the quantum space.

Meanwhile, The Inclusion Initiative at the London School of Economics, an institute that specialises in creating inclusive workplaces in financial and professional services through behavioural science and data, now has a new Deep Tech hub with a focus on quantum.

Thirdly, the quantum industry can learn from the finance industry, which is far from perfection, but has taken great strides in recruiting, retaining and promoting diverse staff, and changing the composition of its Boards.

In The City Quantum Summit Briefing on D&I, published earlier this month by The Inclusion Initiative (TII), participants in a brainstorming lunch at the Summit shared their advice from a lifetime of seeking to change their respective industries.

“Collecting data on diversity, benchmarking and fair hiring processes is crucial to ensure equal representation early in the hiring pipeline,” said Connor Teague, Founder of Quantum Futures. “Companies need to focus on unbiased job descriptions and interview processes.”

Cecily Josten, the researcher from TII who authored the report, noted that relying less on an applicant’s background and more on task-based assessments would aid recruiters in promoting a more diverse talent pool.

Bringing in leaders from other industries is helpful, pointed out Teague. “Hiring non-traditional quantum leaders to the business – when the co-founders step to the side and bring in a leader from a different industry – the business tends to stop hiring versions of themselves! I’ve seen great success with quantum businesses that have done this.”

Denise Wilson OBE, a leader who has transformed the composition of FTSE-350 Boards – 40% are women, compared to only a decade ago when 152 of the companies had no women on boards at all – was clear that “the power of publication should not be underestimated, and transparency drives change.”

Armed only with a target to increase the number of women on Boards, as CEO of the FTSE Women Leaders Review Wilson used embarrassment and peer pressure as a tool, publishing a list of Boards that were falling behind the new norm – as well as a barrage of social media highlighting the best and the worst performers, and supportive government guidance.

“Improving diversity means a multi-year, multi-layered approach, it requires systemic change and taking on a system that has worked very well for some but excludes others. D&I must be owned and held accountable at the Board level and talked about like any other business-critical issue,” she said.

Wilson noted the need to “lift the lid on every people process, pay, bonus allocations, retention, performance evaluations and the like.” A recent study of Gen Z by consultancy Oliver Wyman found that 30% of women looking to switch jobs cited better advancement and growth opportunities as a reason to leave a job, and wanted greater clarity about internal promotions, suggesting they see the current processes as unfair.

For Denise Ruffner, the President of Women in Quantum, a Founder at DiviQ, and a long-standing campaigner for a more diverse Deep Tech sector, culture is key. “Organisations need to pay attention to their culture and cultivate an environment where different voices and viewpoints are not only heard but encouraged and considered,” she said, pointing out that retention of highly skilled employees is a big issue in the industry.

The Oliver Wyman study noted that Gen Z (of all genders) expect fair pay, inclusive policies and transparency, or they quit. More than 60% of the 10,000 respondents in the US and the UK are looking to job hop despite an uncertain economy – they view work as transactional and “want to control their career paths, pushing hard or slowing down as needed to accommodate family, reduce stress, or pursue outside interests.”

Incorporating a degree of flexibility at work is another factor useful to encourage D&I. The average number of days worked from home or remotely is currently stabilising at around 25% of total working days. Flexible work policies can reduce quitting rates by 35%, according to recent work by Professor Nicholas Bloom of Stanford University.

LSE Professor Grace Lordan, Founder of TII, called for fair opportunities, visibility and voice, which depends on inclusive leaders who do not hire based on their own affinity, but hire for diversity and for perspectives that they do not yet have. “That really requires a change in ego in our leaders and a change of perspective towards a diversity mindset.”

Industry legend whurley was adamant that commitment and culture are crucial: “Commitment because hiring for DEI isn’t without its challenges and you can’t give up if you face a few along the way. Culture because that’s the #1 key to DEI in a company. Without a culture that embraces and celebrates differences you simply won’t succeed. DEI has to be built into your company’s DNA.”

Ultimately, D&I is much more than just a ‘nice to have’ in a transformational industry like quantum technology. A warning lies in what is currently happening with AI, and what happened with social media.

Whurley put it very clearly. “Quantum will change computing more in the next ten years than it has changed in the last century. Providing equal access and equal opportunities will make the difference between humanity’s future being diverse or dystopian.”

Karina Robinson is Senior Adviser to Multiverse Computing, Co-Founder of The Inclusion Initiative, and Founder of The City Quantum and AI Summit

Overcoming tribal challenges

The LSE’s new Inclusion Institute

The most successful species on this planet revels in the comfort of conformity. Just think of the boost and subsequent bonhomie that comes from a ‘successful’ meeting where everyone agrees. Yet with instability as the defining condition of our times, executives must evolve to become comfortable with discomfort.

Who, in the City, would hire someone who had failed a Maths O level? Twice. Yet that is the case of Sir Robert Stheeman, one of the most successful and trusted CEOs of the Debt Management Office, which is responsible for issuing UK government debt. It didn’t seem to affect the £2 trillion – give or take a few billion – that he has issued over 17 years in the job.

He is not alone in believing that a contributory factor in the 2008 financial crisis was the increased conformity in the hiring of talent. ECB President Christine Lagarde famously quipped that if Lehman Brothers had been Lehman Sisters the crisis would have looked quite different. Studies from business consultants like McKinsey and respected academic institutions like Harvard Business School conclude that better business decisions result from more diverse and inclusive companies.

And yet how laborious and demanding it is to create this change. The overarching reason is biology. Humans are wired to align individual with group interest, to achieve hyper-sociality, in the words of Mark Pagel, head of the Evolution Laboratory at the University of Reading. Arguably as powerful as the Darwinian natural selection gene is culture, “that software collection of ideas, routines, rituals and behaviours written into our brains – it is the most successful way there has ever been of making more people.”

We are programmed to accept and celebrate the culture of our birth, our tribe, even though it is an arbitrary accident – not to mention the resilience of culturally defined emotions which range from healthy nationalism to xenophobia and racism, notes Pagel.

It is no coincidence that Ursula von der Leyen mentioned Winston Churchill, Soho bars and her discovery of the British sense of humour in the first speech she gave on British ground this year. Titled “Old friends, new beginnings: building another future for the EU-UK partnership,” the EU Commission President reminisced about her time as a student at the London School of Economics, suffusing the room in the warm glow of cultural unity, before delivering the harsh message that “the more divergence there is, the more distant the partnership has to be.”

So how to achieve the cognitive diversity that is necessary to deliver better company returns in a transformed digital marketplace? It is most likely to occur when you mix gender, generation, ethnicity and sexual orientation on boards and teams, and ensure they feel accepted, or included, and thus able to speak up. An uncomfortable meeting is more likely to deliver innovation.

The Financial Services Skills Taskforce report which was published at the end of January was damning of the City’s talent recruitment and retention. Mark Hoban, a former City Minister who chairs the FSST, put it bluntly: “There is no doubt that the financial services sector is facing an existential skills crisis.”

Alarmingly for a sector that depends on talent and innovation, it has the third lowest training spend per employee and the second lowest spend per trainee compared to other sectors of the economy. Meanwhile, fewer than 40% of students associate creativity and a dynamic work environment with working in banks, but highly value these in any future employer.

The demand for talent already exceeds supply and this trend is set to become more acute. “The lack of gender and ethnic diversity is both a social issue and a skills issue. Talent that the industry needs is not being utilised,” argues the independent review commissioned by HM Treasury.

A number of firms are working hard at changing this. Charles Martin, Senior Partner at City law firm Macfarlanes, is clear about the value of hiring a more diverse workforce. “Firstly, it feels right. It doesn’t feel sustainable to work in a market where we don’t look like our clients or the world around us. Secondly, more diversity makes for more balanced decisions and less group think. Thirdly, we need to have the best people working for us. If we are failing in diversity, we will fail in business terms.”

MI5 plans to hire 50% more behavioural scientists in 2020 to help it analyse the vast amounts of online data generated by terror suspects. Marrying psychology and the increasing amounts of data available on diversity and inclusion is just as relevant for City firms.

These are the reasons why, with Associate Professor Grace Lordan, I am co-founding The Inclusion Initiative institute at the London School of Economics. In association with some of the most advanced City institutions we seek to merge data and behavioural science to help change culture for future success.

The City is responsible for well over 10% of the UK’s tax revenues and continues to be one of the global go-to centres for finance. With just a bit of hyperbole, Byron’s lines about the importance of the Coliseum to Rome come to mind: “When falls the City, London shall fall; And when London falls - the World.”

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Can I take the opportunity to invite you on the 5th of March at 6pm to come to the LSE and join me for the launch of the Inclusion in the City report, which I am co-authoring with Dr Grace Lordan. This will be a panel discussion event, chaired by Dame Minouche Shafik, and feature four senior leaders from the City of London giving reactions to the messages in the report. 

The 5th of March event is ticketed and part of the LSE Festival. This year's Festival will bring together global leaders, innovators and change makers to investigate how we can learn lessons from the past, tackle the challenges of today and shape the future. You can get a free ticket online now by following this link.

It is also the night The Inclusion Initiative will be announced, a new institute at the LSE which I am co-founding. It will bring behavioural science insights to the City of London in partnership with City firms. Do get in touch if your company might be interested in exploring working together. Here is the pamphlet.