JOIN USEmbracing gender diversity as a biz imperative
As I sat down to pen my thoughts on this subject, I realised that a number of research publications are readily available for companies to understand the business imperatives of gender diversity.
The publications include one paper that I authored 5 years ago in the International Diversity Conference with a specific focus on India.
Hence, I will take this opportunity to summarise some key research data to substantiate the business case, as well as provide pointers on what companies should focus on while promoting a work place for gender inclusion.
World Bank development indicators show a strong relationship between women participation and economic growth (GDP) of any country. With the increased levels in women participation, Indians could be 5 per cent richer than otherwise projected by 2015, 12 per cent by 2025 and 25 per cent richer by 2050. This increased participation will enable companies to compete for the heart and mind share of women and influences them to buy their products or services or be recruited .
Yet another interesting research, recently published from Harvard indicates that there are higher chances of innovation and productivity in teams that have women. Catalyst, an organisation that focuses on diversity, had conducted a survey among Fortune 500 companies and found that those companies with higher percentage of women on boards had 35 per cent higher profits than the others. So, there is no debate any longer on the business case for gender diversity.
In India, there is a steady increase of women in the available talent pool. While in the early 90’s probably 6 out of 50 students in an engineering college were women, today, the number of women candidates stands at around 25-30 , particularly in the IT and communication streams.
On the other hand, the traditionally women-friendly, or should I say preferred sectors, like hospitality and medicine continue to see a steady flow of women aspirants. Therefore if companies need a competent work force for sustainable growth, they cannot ignore the women talent pool. Needless to say, diversity is a key business imperative today.
The two fundamental drivers for profitability are controlling cost and increasing revenues. For companies, both these drivers are met through employee participation. It is about their expertise, strategic thinking, ability to solve problems and innovate, in order to respond to new market demands.
Diversity thinking helps companies to attract local talent, engage them meaningfully to leverage their potential. This approach is helping us to reach out to new markets and customers, and thereby increase our revenues. Fostering an inclusive work environment enable any organisation to retain the diverse workforce and optimise the cost by eliminating differential turnover across demographic groups. Government regulations, customer practices and the potential transformational deals are also other driving factors for diversity.
As corporations face increased global competition from everywhere for everything from everyone, they must build growth and drive strategy. This creates the need for experts with diverse skills sets. Numerous studies show that increasing gender equality enhances productivity and economic growth. Boards need to avoid “group think” - non-consideration of alternative ideas and a desire for unanimity at the expense of quality decisions.
The best ideas flourish in a diverse environment, and companies benefit from accessing female talent. But knowing that there is an urgent business need to increasing our women workforce isn’t enough. Organisations world over are still grappling with issues such as low availability of women employees, the debate over the proverbial glass ceiling, the absence of a level playing field and the lack of policies that specifically drive gender diversity and encourage women. Moreover, there is little clarity on who really “owns” the gender diversity agenda.
Companies can support diversity in a number of ways, the most basic of which is hiring right by being vigilant in ensuring that the hiring pipeline is equally and consistently diverse. Also, they can widen the hiring pool through public/private partnerships through scholarships and education at work opportunities.
It is also critical to retain the existing women workforce through better talent management, providing a flexible work culture to accommodate their personal needs and launching initiatives that foster their personal and professional development. But most importantly, companies should position themselves as equal opportunity employers that believe in meritocracy and are committed to providing a level playing field at work.
While organisations need to take a stand on gender equality on their turf, there is much that women can do to help themselves. They need to assert themselves more and be better negotiators to reach senior leadership positions. It is also advisable to find mentors and learn from experience sharing, adapt their style to the needs of the organisation, build skills to become more self confident and make conscious choices that enable them to achieve success.
Accepting opportunities with inherent risks and networking with others will also enable women to enhance their career prospects. However, these are just levers that can help increase the number of women in an organisation. It is imperative for organisations to first fully understand and embrace the gender diversity agenda and become committed to drive it through all available and potential channels.
(The writer is Associate Vice President (Diversity & Sustainability), HCL Technologies)