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

Sexual harassment and discrimination remain rife in Australia’s technology start-ups and women are leaving as a result, according to a new report that paints a bleak picture of the financial and human toll on some of the nation’s fastest-growing businesses.

Grapevine is a women-led collective that began in 2023 in a bid to expose and address inequality in Australia’s technology sector, and one year on the group says little has improved.

Paloma Newton (left) and Misha Garg from Grapevine, an initiative to stamp our harassment in the tech sector.Credit: Steven Siewert

Amid a mounting number of allegations of inappropriate behaviour at software firm WiseTech Global and coding program Grok Academy, Grapevine has released a new report into the financial impact of toxic workplace behaviours, drawing on stories from hundreds of employees across the sector.

It found that 72 per cent of victims of harassment, bullying or discrimination decided to leave their business altogether. Formal reporting of incidents remained low, with just 23 per cent of incidents escalated through official channels, with victims often fearing repercussions.

In a damning finding of how technology companies are handling these issues, 96 per cent of those who reported harassment or bullying then had negative experiences dealing with senior leaders, HR or managers.

Each of Grapevine’s eight female founders have experienced varying degrees of workplace harassment and discrimination. Co-founder Paloma Newton said technology start-ups often lack the structures or protections in place for women compared to other businesses.

“It’s bad business to treat your people badly,” she said. “A lot of women we’ve spoken to just leave. It’s like, why make it harder on yourself?

“Even if you’re in say, the consulting industry, or the advertising industry, there are systems in place and avenues to take if there are issues.

“Tech start-ups often don’t have an HR department, and they might not until they reach 20 or more people, and the founders might not have that emotional intelligence to go talk to their staff about what their options are. They’re not creating a space where they can feel safe.

“A lot of the time women just leave. And that’s sad, particularly for a sector which is struggling to find talent, and struggling to bring women into these businesses. Why would they stay?”

Another Grapevine co-founder, Misha Garg, a former Uber and CBA executive, said the cost of replacing an employee can be up to 150 per cent of their salary, presenting a significant resource drain for early-stage companies.

She said she had considered leaving the start-up sector due to toxic workplace issues.

“When you do have a bad incident, it leaves a really sour taste in our mouth, and it’s a small community,” she said. “Even going to events can feel daunting, because you don’t want to bump into that one person, it’s a very real fear.”

Grapevine’s report comes amid a growing number of reports into alleged misbehaviour of local technology executives including Richard White, the CEO of Australia’s largest software firm WiseTech Global, and James Curran, the former CEO of a high-profile coding program for high school students.

Prabha Nandagopal is a former senior legal adviser on the Australian Human Rights Commission Respect@Work report, and is now founder of Elevate Consulting Partners.

Tech is considered a high-risk industry, given its companies are often male-dominated and led by founders who have had little experience managing teams, she said. There are also considerable power imbalances, especially between men and young women who may be straight out of university.

“The start-up culture of ‘move fast and break things’ does not prioritise setting up the right employment infrastructures, policies and processes to prevent harmful workplace behaviours,” Nandagopal said.

“Any company without these in place can be considered particularly high risk. Having recently entered the tech start-up industry, one of my first observations was how small and close-knit the community is, which can make it harder for women to report sexual harassment, as they fear it could harm their future career prospects.

“As a result, a culture of silence develops, where incidents go unreported. For some women, the risks of speaking out may feel so high that leaving the industry altogether seems like the easier option.”

Prabha Nandagopal, a former senior legal adviser on the Australian Human Rights Commission Respect@Work report, is the founder of Elevate Consulting Partners.

She said the introduction of a positive duty under the Sex Discrimination Act requires all businesses to proactively take measures to eliminate workplace sexual harassment, regardless of their size.

“Leaders in the tech industry, particularly start-ups, have a real chance to reshape workplace culture from the ground up. By creating clear policies around harassment, offering safe ways to report it, and acting transparently, they can build a respectful and inclusive environment.”

Grapevine’s co-founders have created a platform for people to share positive examples of creating safer and more inclusive work environments, and are calling for submissions.

“We know there are companies getting it right, and we want to amplify those stories to set a new standard,” Garg said.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.