Author: Varun Sachdeva, SVP & APAC Head at NLB Services

As India emerges as a global economic powerhouse, there is a growing recognition that true progress lies in leveraging the potential of a diverse workforce.

In a recent report by UNDP (United Nations Development Programme) on Gender Inequality Index 2022 (GII), India stands 108 out of 193 countries. This data might not seem like a major milestone but it depicts a significant jump of 14 ranks in GII 2022 as compared to GII 2021.

The present state of gender diversity in Indian corporations paints a picture of progress, however it also underlines the work that remains. Thriving sectors like IT and banking are leading the charge, with women occupying up to 30% of leadership roles. Yet, major industries like manufacturing and energy still have a long way to go as the ratio of women leadership is still low.

In a diverse country like India, women influence over 70% of consumer purchasing decisions, thus, having a workforce that reflects the customer base is predominant. Organizations with a powerful female representation can comprehend and cater to this substantial market sector better.

Benefits of Gender Diversity

Gender diversity often results in innovation as distinctive teams bring forth unique perspectives and experiences, leading to ingenious solutions and products. It brings many benefits to the corporate table.

• Studies have shown that companies with higher gender diversity tend to perform better financially. For instance, studies have shown that gender-diverse companies are 21% more likely to experience above-average profitability.
• Gender diversity leads to better decision-making and governance. Women often bring different leadership styles that emphasize collaboration and empathy, which can positively impact the overall work environment.
• A diverse workforce enhances the company’s reputation, making it more attractive to top talent and fostering greater employee satisfaction.

Hurdles to Achieving Gender Balance in Corporations

Despite the evident benefits, Indians corporations are still finding it hard to overcome the common challenges of achieving gender diversity, leading to a slower progress:

• Oblivious bias continues to plague hiring and promotion processes of women and it often results in qualified women being overlooked for leadership roles. 
• One of the most common challenges is lack of flexible work arrangements. It makes it onerous for women to balance career and family responsibilities, a particularly significant issue in India's family-oriented culture.
• Persistent gender pay gap is also one of the key issues leading to major gender disparity. This often demotivates the women personnel and results in finding alternatives.
• The organizational stereotypes also play a significant role, with women losing their faith in the corporate world and choosing to exit. 

Best Practices For Corporates

To conquer these challenges, companies need to implement best practices that foster gender diversity in the organization.

1. Strong Policy Enforcement

Developing and implementing strong gender-inclusive policies and strategies is essential. This consists of equal pay, anti-discrimination, and harassment prevention.

2. Set Data Driven Diversity Goals

Corporates should initiate clear, measurable targets for women's representation at all levels, backed by regular audits and transparent reporting.

3. Remodel Recruitment & Promotion Process

Execute blind resume screening and make sure diverse interview panels to mitigate unconscious bias. Also, develop female leadership programs tailored for women to create a strong pipeline of female talent.

4. Execute Flexible Work Policies

Provide remote work options and flexible hours to support employees' work balance and personal responsibilities. Offer parental leaves that encourage shared responsibilities between women and men.  

5. Address Gender Pay Gap

Conduct timely pay equity audits and ensure transparency in the remuneration structures to rectify the disparities, if any.

Key Takeaways

Gender diversity is not just about fairness; it's about building stronger, more resilient companies that can compete on the global stage.

The future of gender-inclusivity in India is promising, as the corporate sphere would evolve, this diversity would play a significant role in shaping a more inclusive and innovative workplace.

The ascending technologies like Artificial Intelligence can play a crucial role in encouraging gender equality. Tools that eradicate prejudice in hiring and performance evaluations are getting more and more prevalent. 

As we progress, businesses that will adopt and support gender diversity will not only lead in innovation and performance but will set new standards for corporate responsibility and social progress. 

The journey towards gender inclusivity may be not that easy, however the rewards- for businesses, individuals and society as whole - are immeasurable.