According to a study, women lead just 1.6 per cent of Fortune India 500 companies and 5 per cent of Fortune India Next 500 enterprises. The ongoing gender disparity in leadership positions within Indian enterprises is highlighted by the report ‘Enhancing Women Leadership in India Inc.’, which was co-conducted by Fortune India and the SP Jain Institute of Management and Research. The study involved 130 business executives with a representation of 54 per cent female and 46 per cent male CEOs in 16 roundtable conversations across Bengaluru, Delhi-NCR, Mumbai, Kolkata, and Mumbai.
One of the key findings of the study showed that business executives now acknowledge that the government has been working for ten years to advance women in the workplace, and that it is the industry’s duty to put policies in place that support women in leadership roles. The report highlights the recognition of gender disparity in the workplace by the industry, highlighting career advancement opportunities and organisational policies. Even with improvements in many areas, the study shows a startling fact: in all levels of corporate India, a very small proportion of businesses are run by female MDs or CEOs.
According to the study, a scant 1.6 per cent of Fortune India 500 companies have women at the helm, with 5 per cent for The Next 500 and 3.2 per cent for Fortune India 1000 companies. Every year, Fortune India releases a list of the top 500 Indian companies by revenue. This list is similar to the Fortune 500, but mainly focused on Indian corporations.
The study pinpoints a number of underlying factors that contribute to the gender gap. The ‘leaky pipeline’ issue is a noteworthy feature, as it accounts for a considerable proportion of women employees leaving the field owing to family obligations once they reach middle management.
Over 30-40 per cent of women employees quit their work by the time they reach middle management. This is when they inevitably tie the knot or start a family. Returning to work post childbirth gets challenging. The study also pointed out that when women return to work post their maternity leave and caregiving duties, the break often disrupts their career progression, leading to severe shortage of women in leadership roles. Furthermore, the study noted that the issue is worsened by ingrained prejudices that are part of the corporate mindset.
Companies are reluctant to appoint women to mid-level management positions because they anticipate a six-month maternity leave. The majority of organisations don’t want to fork out salaries during the paid leave period, and smaller ones simply cannot afford to do so.
According to the report, stereotypes about women’s commitment, readiness to relocate, and capacity for managing P&L responsibilities impede their prospects for promotions. The next phase that disrupts women’s careers is when their kids appear for the board exams. Additionally, another break occurs when they have to take care of their parents or in-laws in their late 40s.
The study also highlights that often decision-makers arrive at assumptions on women’s preferences instead of speaking to them directly, which sustains discriminatory behaviours.