India Inc. outperforms the globe with 39pc women CXOs: LONGHOUSE Consulting report

LONGHOUSE Consulting, a specialised executive search and talent advisory firm, recently released a hiring outlook report on women in leadership roles in India. The survey report titled “The State of Women Leadership Hiring in India” was based on information gathered from various sources, including internal talent data, career portals of employers, and year-on-year hiring trends.

The key findings of the survey highlight a significant feat, with an impressive 39% of Indian companies employing women in CXO positions, outpacing the global average of 32%. The report further states that an impressive 98% of businesses in India have at least one woman in senior management roles, surpassing the global average of 90%. LONGHOUSE Consulting’s data highlights that 40% of Chief Financial Officer (CFO) positions and 50% of HR Director positions in India are now held by women, showcasing a remarkable departure from traditional norms and stereotypes.

The historic trend suggests that year-on-year women's representation in executive boards increased by a significant 2% in 2023. Currently, women hold 12% of the board seats in India.

The report underscores the importance of gender diversity in C-suite roles, revealing that 30% of these positions actively require the presence of women professionals to establish parity in workplace opportunities. Encouragingly, 49% of companies are proactively building an inclusive culture through mentoring and coaching initiatives aimed at upskilling women. Despite these encouraging trends, the share of women in senior-level positions remained at 20% in 2023 and trails behind lower experience levels. The overall data on women's workforce in the report showed a positive trajectory in women's employment, reaching 37% in the fiscal year 2023 — representing an absolute increase of 13.7% and a rise of 58.8% from 23.3% in 2018. This upward trend, attributed largely to various initiatives by the Government of India, reflects a nationwide push to improve employment opportunities and empower women through progressive policies and schemes.

Women at the mid-managerial level aspiring for leadership roles encounter various challenges, often resulting in career stagnation or departure from their current employment. Delving into challenges, the report stated that approximately 80% of working women in India are taking career breaks, with 45% citing childcare and personal commitments in homemaking as the primary reasons. Resume gaps, skills obsolescence, lack of confidence, bias, stereotypes, and lack of support are some of the prominent challenges that women with a career hiatus face while returning to work. But the brighter side is that companies are taking initiatives to bring about changes by implementing accommodations like extended childcare leave policies, remote and flexible working culture, gender-neutral caregiver leaves for new parents, upskilling opportunities, and more.

Sharing his insights on the report, Mr. Anshuman Das, CEO and Founder of LONGHOUSE Consulting, said, “For India Inc., inclusive leadership is more than a goal; it's a commitment to unlocking the full potential of every individual, irrespective of gender. Promoting women in leadership requires a ground-up approach, with male leaders playing a pivotal role. Encouraging aspiring women leaders through dedicated mentorship and skill development initiatives is essential. This report is a testament to the fact that we have taken our step towards this SDG goal. "

LONGHOUSE Consulting Report - State of Women Leadership in India

Executive Summary - Key Findings

• Overall, women employment has grown over time, reaching 37% in FY’23.

• 39% Indian companies have women CXOs against the global average of 32%.

• Women hold 10-12% of the board seats in India.

• Approx. 80% of the working women in India are taking career break.

Women's Employment Outlook

Women employment has grown over time, reaching 37% in FY’23

• In India, approximately 25.6 crore women are employed, out of a total female population of over 69.2 crore.

• Women participation in employment has increased by 13.7 points in 2023 compared to 2018, this upward trend is the result of various steps taken by the Government of India for boosting employment and women empowerment through various laws, policies and schemes.

• 17% of employed women (4.3 crore) are salaried, with 2.7 crore in urban and 1.6 crore in rural areas.

• Women's representation increased by 5% and 2% in 2023 compared to 2022, a significant shift across junior professional and executive boards, respectively.

• Currently, women hold 12% of the board seats in India.

Methodologies:

LONGHOUSE Consulting gathered data from a variety of sources, including internal data, career portals of employers, and measured the year-on-year hiring trends pan India.

Women in Leadership

39% Indian companies have women CXOs against the global average of 32%

• The proportion of women placed in senior-level positions (20%) trails behind lower experience levels.

• While globally, businesses with at least one woman in the senior management role increased to 90%, the same stands at 98% in India.

• 30% of the active C-suite roles require a women professional to create equal opportunities at workplace, while 49% are building an inclusive culture, providing mentoring and coaching.

• 40% of the HR director in India are held by women, followed by 40% across CFO, whereas lags in the proportion of CEO/MD and other roles.

Challenges and Accommodations

80% of the working women in India are taking career break

• Majority of the women (45%) take career break due to childcare and personal commitments in home making.

• Continuing studies (30%), Health and age related reason (10%), Social reasons (5%) are the other major factors for taking a career break.

Challenges in hiring women returnees

1. Resume Gaps - Women often have significant gaps in their resumes due to career breaks for caregiving or other personal/family reasons, which can be viewed as a disadvantage.

2. Skill Obsolescence - Rapid changes in technology and industry practices during career breaks can lead to concerns about skill obsolescence.

3. Rebuilding Confidence - Rebuilding confidence after a career break and feeling valued in the workplace can be a hurdle for women returnees.

4. Bias and Stereotypes - Unconscious bias and stereotypes about women's commitment and capabilities after a career break can impact hiring decisions.

5. Lack of Support - Limited support and resources within organisations for women returning to work can hinder their successful reintegration.

6. Work-Life Balance - Concerns about work-life balance and flexibility can make it challenging to attract and retain women returnees.

7. Career Progression - Limited opportunities for career progression or advancement compared to their peers who did not take a career break can be a deterrent.

8. Negotiating Compensation - Women returnees struggle to negotiate fair compensation and benefits after a career break.

Accommodations provided by organizations

• MNCs launching second career programs for women returnees.

• Remote work and flexible hours offered by companies.

• Travel facilities provided by the company.

• Introduction of extended childcare leave policies.

• Creation of employee resource groups for new mothers.

• Gender-neutral caregiver leaves for new parents.

• Upskilling opportunities provided by organisations.