On October 1, the Detroit Regional Chamber and MichAuto hosted an exclusive virtual event to present McKinsey & Company’s Fall 2024 Detroit/Metro Black Technology Talent Survey, which assessed the attraction and retention of Black technology talent in Detroit. Results were presented and discussed.
Overview of Black Tech Talent in Michigan
Opening the conversation, McKinsey & Company’s Horace Tiggs IV discusses the impact of the lack of Black tech talent in technology roles and the headwinds companies face when seeking to identify and activate Black tech talent. I dug deep into it.
The report’s most compelling findings include:
Michigan ranks 47th in black degree attainment rates, and the black-white graduation gap is nearly double the national average, limiting the development of technology talent. Michigan produces some of the best STEM graduates, but 45% leave the state within two years in search of more attractive tech hubs. 71% of Michigan companies report that they are not successful in recruiting Black tech talent, with one quarter citing lack of technical experience and another quarter citing inadequate job readiness. I’m doing it. 76% of Michigan businesses report higher than expected Black retention rates due to strong mentorship programs and career development opportunities. Even though Michigan produces more STEM graduates than the national average, black STEM talent is significantly underrepresented among Detroit’s innovation workforce, compared to 69% of white talent. The average for all technical jobs is 11%. 65% of Black small business owners in the Detroit area find it “very difficult” to access capital. A recent study of 231 high-tech startups founded in Michigan showed that 50% left the state, taking jobs and investments with them.
Tiggs also highlighted the value at stake for companies, saying research has found that organizations with Black tech executive leadership outperform their peers.
“There’s not necessarily a cause or correlation between the two, but the more diverse a company is, the more it will have a positive (economic) impact on business,” he said.
develop talent
After the presentation, Aaron Aboagye, Chamber Director and Managing Partner at McKinsey & Company, moderated a conversation with industry leaders and innovators to discuss the findings and help everyone build a more inclusive technology ecosystem. We looked for strategies to build. Such strategies include bringing more algebra and computer science curriculum back into the classroom. This is essential to developing the essential problem-solving, technical, and literary skills of our students and tomorrow’s technology workforce.
“It goes back to the root cause of not focusing on promoting technology at a young age,” Felten added. “One of the things we realized working with young people is that if they have common literary skills, they can write code.”
Mr Bright also encouraged employers to provide “start-up funding” to help students pursue higher education degrees.
“This will ensure that Black tech talent goes to school, gets the training they need, and has access to math,” Bright said. “I think we’re going to need more partnerships between training, mentoring, and education to strengthen the pipeline.”
A great example of “front-end funding” in action is the Detroit Promise. This is a last-dollar scholarship that guarantees all eligible Detroit residents a tuition-free path to an associate’s degree, bachelor’s degree, or technical certification at a participating academic institution.
maintain talent
Panelists also discussed how Michigan’s technology industry faces systemic bias that makes it difficult to hire and retain Black workers. To combat this, we need to make systemic changes, including by investing in upskilling and reskilling programs, second-chance hiring, and promoting diversity in leadership roles through mentorship and internal development programs. .
“What keeps CEOs up at night is the challenge of finding top talent,” Green said. “From a corporate perspective, we have to continue to think about our retirement strategies and we have to be intentional about what we’re doing.”
To conclude the program, panelists also discussed the difficulty in accessing investment capital in Michigan, particularly for Black startups, which hinders innovation and entrepreneurial growth in the state.
“When we started raising money[for Automation Workz]we had a rude awakening…we didn’t have a single serious investor from Michigan,” Birdhill said. “If you really want to innovate in Michigan, you have to write a check.”
