India Inc.: From Intention to Impact - Catalyst
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India Inc.: From Intention to Impact
About the Catalyst Research Centers The Catalyst Research The Catalyst Research The Catalyst Research The Catalyst Research Center Center for Equity in Business Center for Career Pathways Center for Advancing for Corporate Practice Leadership examines and exposes root causes of Leader Effectiveness conducts research documents workforce gender gaps from the explores a central challenge distinguishing sound talent demographics and their classroom to the boardroom, facing today’s business management strategies impact on employees, conducting research that leaders: how to leverage from programmatic fads and companies, communities, sorts myth from fact, employee diversity to documents best practices. and society. In particular, identifies the true problems achieve success through These findings enable the Center identifies how that hold women and other inclusive decision-making organizations to strategically women’s underrepresentation underrepresented groups and talent management. create and support inclusive affects corporate governance back from advancement, The Center’s research cultures for both women and and executive teams, and and provides a solid basis examines the nature, men. The Center’s partnership it explores how diverse for more effective talent impact, and practice of with its Expert Community, leadership contributes development. The Center’s inclusive leadership. It helps a consortium of business to business success. findings allow businesses, committed leaders learn leaders who contribute to By verifying gaps in media, governments, and how to become individual and act on the Center’s representation and creating individuals to gauge women’s change agents, shaping work, informs organizational results-oriented solutions, progress and develop the workplace culture by policy and practices, leading the Center’s findings and solutions and action plans role modeling effective to actionable solutions and recommendations help to advance women into interpersonal interactions and systemic change. organizations diversify leadership. capitalizing on opportunities leadership. to build inclusive talent management systems. About Catalyst Founded in 1962, Catalyst is the leading nonprofit organization expanding opportunities for women and business. With operations in the United States, Canada, Europe, India, Australia, and Japan, and more than 800 member organizations, Catalyst is the trusted resource for research, information, and advice about women at work. Catalyst annually honors exemplary organizational initiatives that promote women’s advancement with the Catalyst Award.
India Inc.: From Intention to Impact Aarti Shyamsunder Alixandra Pollack Dnika Travis Research Partners: AT&T Inc. Halliburton Bloomberg Hewlett-Packard Company BMO Financial Group IBM Corporation The Boston Consulting Group KeyBank Cardinal Health, Inc. Kimberly-Clark Corporation Chevron Corporation McDonald’s Corporation Credit Suisse Novo Nordisk Debevoise & Plimpton LLP PAREXEL Dell Inc. Sodexo Desjardins Group State Street Corporation Deutsche Bank AG UPS EY Verizon The findings, views, and recommendations expressed in Catalyst reports are not prepared by, are not the responsibility of, and do not necessarily reflect the views of the funding organizations. Unauthorized reproduction of this publication or any part thereof is prohibited. catalyst.org © 2015 Catalyst
Diversity is very important to our organization and is a part of our business strategy. I build a business case for it in three major ways. First, today, we need innovative ideas to cope with the rapid changes we see in the world around us—environmental, governmental, political, economic changes. For this, we need diverse management teams and diverse thought. Second, we need more women to fill the talent gap we are facing. And finally, our client companies want to partner with others who have similar beliefs, and so it is critical for us to model diversity and inclusion now. —Sunil Nayak, Chief Executive Officer Sodexo India On-Site Services In the face of a critical shortage of employment- This study3 is based on a survey of 42 companies4 ready talent,1 India’s business leaders are increasingly which collectively employ more than 400,000 looking to women as a crucial untapped economic people across India,5 as well as interviews with engine,2 yet the bridge from diversity-focused key business leaders and experts.6 Our findings programs and policies to inclusive impact remains indicate a gap between organizations’ well- uncertain. The current representation of women intended corporate initiatives and the impact and men in corporate India (see Figure 2) reveals a of those initiatives in creating more inclusive disconnect between organizations’ strategies and workplaces. women’s inclusion in India Inc. How to Use This Report This report offers support to diversity and inclusion (D&I), human resources (HR), and business leaders in developing a systems approach to change in India, Inc., focusing on key areas in which to improve women’s workplace inclusion in India Inc., including: • Foundational Approaches to help organizations With this focus in mind, this report provides: address key, locally relevant issues to set the stage for progressive change. • Reality Snapshots: Information on the current landscape of women’s inclusion in India Inc. • Flexible Work Arrangements and Cultures to help overcome sociocultural barriers. • Impact Opportunities: Information on the specific gaps and related opportunities for • Employee Leave and Reintegration Programs to change. create workplace environments where talent is valued. • Strategies for Success: Recommendations on the actions organizations can take to create the • Leadership Development Programs to ensure that necessary change. growth is inclusive and monitored from the top. • Employee Inclusion Efforts to build networks and create inclusive cultures for all employees. 2 | India Inc.:
Profile of Participating DEFINITIONS: JOB TITLES Companies AND LEVELS Forty-two organizations representing seven industries participated in the 2015 Catalyst India To make comparisons across companies, Benchmarking study. some of which use different job titles and levels, organizations were provided standard definitions as FIGURE 1 common reference points for use when responding Participating Organizations’ Profiles to the survey. Corporations and professional and Characteristics (N=42) services firms received slightly different definitions as appropriate to their context. The following BY HEADQUARTERS LOCATION represent a consolidation of these definitions: India 29% •L evel 1: Executive Officers: Senior-most executives or senior-most elected professionals, Europe and United 71% including the CEO or firm managing partner States (India Subsidiary) and those individuals within one reporting level of the CEO/managing partner, who set BY INDUSTRY the strategic and/or operational direction of the organization or firm. Consumer Products 19% and Services • Level 2: Senior Managers/Senior Directors: Energy and Utilities 7% Senior management or its equivalent on the professional or technical ladder, including Financial Services 19% individuals below executive officer who are within three reporting levels of the CEO. In Industrials/ 10% the case of Professional Services Firms this Manufacturing level includes the partner pool or equivalent Information Technology– 17% (not including management/executive Products and Services committee members). Information Technology– 7% • Level 3: Managers/Directors: Middle IT and BPO management to first-level managers or its Other 21% equivalent on the professional or technical ladder. Those individuals below senior BY WORKFORCE SIZE (N=34)7 managers/directors who are within five reporting Average Number of levels of the CEO in a corporation or, in the case Employees in India 10,182 of professional services firms, all non-partners per Organization (senior associates, associates, of counsel, counsel). •L evel 4: Entry Level and Pipeline: Non- management/individual contributor (including entry level), including all individuals below the Manager/Director level or below the associate level (e.g., analysts) at professional services firms. From Intention to Impact | 3
FIGURE 2 FIGURE 3 Representation by Gender Across Representation by India Headquarters Levels (N=30)8 and India Subsidiary Companies (N=30) Pipeline INDIA HEADQUARTERS (Entry to Manager/ 24% 76% Pipeline Director) (Entry to Manager/ 21% 79% Managers/ Director) Directors 21% 79% Managers/ Directors 21% 79% Senior 19% 81% Managers Senior Managers 15% 85% Executive Officers 14% 86% Executive Officers 11% 89% Women Men INDIA SUBSIDIARY Pipeline (Entry to Manager/ 25% 75% Director) Managers/ Directors 21% 79% Senior Managers 20% 80% Executive Officers 15% 85% Women Men 4 | India Inc.:
Inclusion Efforts Set the Stage for Gender Parity The first goal is to attract women [to work with • Many organizations offer safe us]—and not just in the conventional ways. transportation options to women Sometimes we recruit for “second career” employees who work late. applicants, where they are not limited by any previous experience. We are careful about • In accordance with the Sexual Harassment defining and selecting for what the role needs; for Women at Workplace Act 2013, most pre-experience is not a requisite, qualification organizations must now have a strict, zero- is required. We are also exploring some [other] tolerance policy in place, supplemented new approaches. by employee training programs, internal complaint committees (ICCs) and —Man, Project Manager mechanisms to address complaints.12 Gurgaon ** While the majority of surveyed Reality Snapshot: Foundational organizations (88%) offered anti- sexual harassment training, the Approaches Demonstrate remaining 12% have yet to address Breadth but Have Potential for this legally mandated activity. Deeper Impact While such measures get women into organizations and ensure a safe work environment once there, Although gender parity at the societal level is still more systemic, culturally ingrained issues that lacking in India in many respects,9 our data indicate affect women’s workplace experiences and career that organizations are implementing ground-level trajectories such as gender bias, family support changes to establish a foundation for their D&I role, and shifting demographics continue to efforts. In particular, these initial approaches include demand more attention and focused effort. broad efforts to attract women into the workplace and ensure that women have safe and comfortable FIGURE 4 work environments once they are hired. Proportion of Women and Men Hired in Fiscal Year 2014 (N=27) For instance, going beyond campus recruiting, where large numbers of graduates are hired directly Pipeline from their college campuses, more than 86% of (Entry to Manager/ 21% 79% companies practice other recruiting strategies Director) designed to help increase gender diversity. This is an evident need given that hiring tends to skew heavily Managers/ 24% 76% Directors toward men, especially at senior levels, as seen in Figure 4. Senior Managers 15% 85% Another example of the breadth of inclusion efforts employed by organizations relates to safe Executive workplaces. To ensure that women recruited into the Officers 15% 85% workforce are welcomed into safe environments, organizations in India are working to mitigate risks Women Men to women’s safety and experiences of harassment bias.11 For example: From Intention to Impact | 5
Impact Opportunity: Hold • Had dedicated staff working toward the development and advancement of Local Leaders Accountable women: 64%. for Implementing Locally While locally created and owned strategies, Relevant Strategies programs, and policies may set the stage for local accountability, this remains an impact opportunity Complete change will take its time. There are across India, Inc. Though data suggest that the different ways you do it. You change it from majority of organizations have a high degree of local the root, or you change it at a demonstration ownership of women’s advancement strategies, level, when you demonstrate you have some this does not always translate to individual leaders commitment to it. I would say there is a lot of dissonance, but…you then deal with the accepting ownership for action and impact. dissonance one way or the other. At least you recognize that there is a dissonance there. • 57% of all organizations held senior That’s the first step. leaders accountable for gender diversity goals or objectives,15 mostly (83%) through —Woman, Head of Corporate Sustainability performance goals and/or ratings.16 Hyderabad ** Among those that do, only two organizations held senior leaders To achieve deep and sustainable change, accountable by linking efforts to programmatic breadth must be accompanied (variable) compensation. by contextual depth. In setting the stage for greater inclusion, organizations must ensure • 41% of organizations did not hold local that foundational issues such as diversity- senior leaders accountable. focused recruiting efforts and wide-ranging safety and anti-harrassment offerings, are well tackled. Attending to local needs is critical while Holding leaders accountable for translating implementing D&I strategies, and identifying those intention into impact can be a crucial game- specific foundational issues stemming from the changer in India Inc. Organizations that connect organization’s local context requires local leadership particular local goals to achieve foundational D&I be held accountable for “getting it right.” needs with strategic organizational objectives and emphasize consequences (e.g., rewards for A significant majority of organizations13 reported progress or penalties for lack of progress) are having a formal set of strategies to advance able to hold senior leaders accountable and women.14 Most organizations showed a high reinforce the organization’s commitment to D&I degree of autonomy and local ownership: efforts. Local development and implementation is key, but insufficient if not coupled with ongoing • Developed local strategies: 71%. learning and refinement, stemming from a focus on accountability. • Created programs locally: 60%. • Created policies locally: 71%. 6 | India Inc.:
Strategies for Success: Expand CONSIDER THIS: RESOURCES Recruiting Efforts to Achieve FOR TAKING ACTION Both Breadth and Depth Approaches to recruiting talent that involve a As you seek to accelerate your inclusion efforts, focus on identifying and attracting qualified women reflecting on your organization’s own foundational will enhance representation and improve the approaches to attract women, consider the organization’s external reputation and brand. Broad following questions and Catalyst resources to guide strategies such as a diverse-slate policy,17 whereby your next steps: organizations’ talent acquisition teams as well as external recruiters are required to consider a certain • How effective are your current D&I efforts? number or proportion of women for all available How is your organization leveraging its positions is useful, especially in traditionally male- strengths to attract and keep top talent-- dominated industries. But these high-level policies especially women? may still leave key segments of talent untapped. xx Catalyst’s Vital Signs19 resources will Such top-level strategies must also be help you diagnose your organization’s complemented by locally relevant approaches inner D&I health and arm you with that penetrate key market areas more deeply. For tools to create or expand workplace example, a focus on sourcing candidates from inclusion. For instance, Vital Signs: smaller towns and newer or upcoming colleges Determining Actions for Inclusive Policies and women’s colleges has proven useful to some and Practices20 will help you evaluate organizations in India.18 Senior leaders—hiring your current policies and practices managers, especially—must be held accountable for seeking and fairly considering women for recruiting, advancing, and candidates from such new areas. Organizational retaining women. incentives for recruiters or hiring managers who • Is the business case for gender diversity provide diverse applicants and/or hire diverse clearly defined and communicated in your employees (in terms of gender and regional or organization? educational background) can further support these efforts. Diversity trainings for hiring managers xx Gender Diversity in India21 will provide tailored to locally specific cultural norms to combat you with the major “pillars” that form potential biases toward individuals from certain the business case for more women in regions, cities, schools, or particular demographic India Inc. backgrounds (such as class) can also be important. From Intention to Impact | 7
Flexible Work Arrangements Help Overcome Sociocultural Barriers When Supported by a Flexible Work Culture One of the biggest challenges was . . . How While many surveyed companies (86%) reported do I manage my career in the context of roles having a formal, written flexible work policy, and expectations that people have of me in significantly fewer India-headquartered companies the community, in my family, in society? had one compared to India subsidiary companies.25 —Woman, Founder and CEO • A full 93% of India subsidiary companies Bangalore reported having a formal written flexible work policy compared to just 67% of Reality Snapshot: Organizations India-headquartered companies.26 Offer Flex Work Policies But Among the organizations that offered flexible Insufficiently Promote Their Use work arrangements (FWAs): • Flexible arrival and departure (94%) and [The biggest need] is genuine flexibility, telecommuting (86%) were the most earned flexibility, unconditional flexibility. commonly offered flexible work programs. That…is really missing in its truest sense. —Woman, Head of Corporate Sustainability • Job sharing (17%) was the least common. Hyderabad Women in the paid workforce in India are faced FIGURE 5 with a complex set of sociocultural challenges, including social expectations and stereotypes about Percentage of Organizations Offering gender roles, the complicated clashes between FWAs, by Type (N=36) modernization and tradition, and the impact of globalization.22 There is an absence of reliable infrastructure outside of work, including daycare or Flexible Arrival and 94% transportation options. Moreover, as young families Departure Time increasingly move into urban India for work, leaving Telecommuting/ behind a strong family and social support system Work from Home 86% in their home towns and smaller cities, employees Reduced Work in India—especially women—face great challenges Schedule/Part- 58% integrating work and life demands such as raising Time Work children while pursuing a career.23 Compressed Work Week 28% When organizations identify solutions to common challenges, such as rigid rules around when and Job Share 17% where to work, team inefficiencies, and employee burnout, employees and businesses alike benefit.24 Yet, not all companies in India have a formal work-life integration strategy to address such issues. 8 | India Inc.:
Impact Opportunity: Promote and encourage a culture where flexible work is accepted as a norm. Inclusion by Promoting Work- Life Integration A lack of tracking may be tied to FWA uptake challenges, due in part to barriers and social norms Despite a prevalence of FWAs “on paper,” most still prevalent in many organizations. Tracking FWA of these programs were poorly tracked among use will help identify opportunities for culture surveyed organizations, showing a need for greater change interventions—for instance, encouraging accountability and cultural acceptance of FWAs. For managers at all levels to promote and role model the instance, even telecommuting, which was offered use of FWAs where there is currently low utilization. by a majority of organizations, was tracked by only Calling on leaders to mandate, role model, and slightly more than one-third (39%) of organizations.27 hold themselves and one another accountable This raises questions about how serious organizations for implementing change efforts around work-life are about employees’ work-life effectiveness. integration is an essential step in improving women’s Consequently, the extent to which employees actually representation and inclusion in India Inc. feel empowered to take advantage of available FWAs is uncertain. One way to create a flexible culture is to review where employees are encouraged to use FWAs compared to low employee use of FWAs. CONSIDER THIS: RESOURCES FOR TAKING ACTION Strategies for Success: To understand the importance of flexible work Encourage FWA Use options in retaining top talent, consider the following by Employees questions and Catalyst resources to guide next steps. You have other policies like flexi-time or • How do employees in India address work-life work-from-home. But does the woman feel balance challenges? empowered enough to even ask for those flexi-time options from her manager? Would xx Expanding Work-Life Perspectives: Talent she feel that if [she asks] to use those policies Management in India28 points out the or… benefits, would it affect [her] promotion? challenges that work-life integration What will my manager think? What will my poses for employees in India juniors think? She’d be even scared to ask for those benefits which are provided to her by (especially women). the company. I think that as the policy bit is • Why should organizations in India provide taken care of, the sensitivity or the awareness and the empowerment that is needed to FWAs? Is it worth the costs? make the best of the policies—that is where the experience has been [not as good] as xx The Great Debate: Flexibility vs. Face Time— what we’d like to have. Busting the Myths Behind Flexible Work Arrangements29 describes the importance —Man, Manager, Diversity and Inclusion of FWAs for employers interested in Mumbai retaining top talent, and how FWAs are increasingly the rule, not the exception. While many of the surveyed organizations provide flexible work options and leave programs, more of them must begin tracking FWA utilization From Intention to Impact | 9
Employee Leave Policies Are Insufficiently Supplemented by Reintegration Efforts The question is more about, they do come back, While the relatively long duration of maternity but they leave after—very quickly after that. So leave coupled with high rates of return paint a they come back, but after three months they positive picture, employees we interviewed from realize this is becoming a bit too much, and they participating organizations shared concerns around quit. So it is more of ensuring when they come long-term success and career sustainability. These back that really we are able to retain them. return rates reflect short-term outcomes, while for many—women with children, in particular—the —Woman, Director—Business Management double burden of work and family responsibilities Mumbai proves to be an insurmountable obstacle later. Reality Snapshot: Organizations Exacerbating this challenge, nearly half of surveyed companies (48%) reported not offering any family Offer Employee Leave Programs care options such as on-site/near-site child care, Yet Provide Insufficient emergency child care, referral and support services for child and elder care. This presents a critical area Post-Leave Career Support of opportunity in a country where family support is crucial for women’s well-being at work and at home Surveyed organizations offered a variety of leave and where external infrastructures leave much to options, including “extra” maternity leave (paid be desired. Such a lack of organizational support and unpaid) beyond legislated time off,30 adoption for post-leave caregiving responsibilities raises leave/assistance, volunteer leave, paid and unpaid questions about the extent to which India Inc. is paternity leave, and sabbaticals. For instance, fully supporting women’s ability to successfully organizations generally offered more than the integrate work-life needs. legally mandated 84 days of maternity leave, with many women returning to work after that period. Impact Opportunity: Provide FIGURE 6 Paid and Unpaid Maternity Leave and Adequate Post-Leave Support Percentage of Employees Returning to Employees Post-Leave An opportunity exists in providing organizational AVERAGE NUMBER OF DAYS OFFERED support to employees returning from long-duration leaves or career breaks. Such employees must be Paid reintegrated using fair performance management Maternity Leave 144 days31 practices. More than one-half (57%) of surveyed Unpaid organizations focused reintegration efforts on Maternity Leave 104 days32 performance management policies for employees returning from long-duration leaves. However: PERCENTAGE OF EMPLOYEES RETURNING Paid • 41% of organizations still lack a formal, Maternity Leave 85%33 standardized approach to determining Unpaid appropriate performance review ratings Maternity Leave 90%34 for post-leave employees. 10 | India Inc.:
• Of those organization that do have a recognize contributions made. Organizations can formal approach: build on the steps they are already taking to attract, recruit, and reintegrate women returning from career ** More than half (54%) use a pro-rated breaks using a range of policies and benefits.36 performance rating approach. Methods for recognizing performance of ** 13% use a uniform ”default” rating35 employees who take leaves reinforce the value common to all returning employees. the organization places on talent, and support the meaningful—and hopefully sustainable— ** 25% use a mix of approaches. reintegration of employees after leave. Strategies for Success: Reintegrate Post-Leave CONSIDER THIS: RESOURCES Employees Using Fair and FOR TAKING ACTION Inclusive Practices In helping organizations provide fair leave options and then reintegrate employees into the workplace Organizations in India must implement simple post-leave, consider the following questions and but fair post-leave policies, ensuring that returning Catalyst resources to guide next steps. employees—especially women—are not penalized for taking leaves and are evaluated fairly based on their • What sociocultural barriers keep women from performance in ways that adequately and effectively career advancement in India, and what can organizations do to ensure they don’t lose talent FIGURE 7 due to work-family integration challenges? Percentage of Post-Leave Reintegration Strategies, by Type (N=42) xx The Making Change in India Inc.37 toolkit focuses on how organizations Flexible Post-Leave and individuals in India can overcome Work Arrangements 62% sociocultural obstacles to gender inclusion. Specifically, Making Change in India Inc.: Skills Training 26% Tool 3—Reintegrating Women Into the Workplace Networking Successfully38 addresses the barriers women Opportunities 24% face upon returning to work after a career break and provides organizations and Counseling 19% individuals with recommendations for “Buddy” System successful reintegration. to Stay in Touch 12% During Leave • What do employee work-life integration efforts Skills Retention look like in different regions, and what might Training 12% be some lessons learned for India? Manager Coaching for Supervisors of Post- 29% xx Work-Life: Prevalence, Utilization and Benefits39 Leave Employees provides a quick look at employee leave and None of the Above 31% flex work options across the globe, along with some organizational success factors. Other 12% From Intention to Impact | 11
Leadership Development Programs Have Yet to Result in Inclusive Growth Every year there are so many women who sign ** Only two of the India-headquartered up [for our women’s leadership development companies had mentoring programs program]. Somehow they never had been for women compared to 13 (52%) of registered for general programs, which then the India subsidiary companies.41 goes on to show that, in fact, these women during their corporate lives don’t have access • 36% of surveyed organizations have to quality training. sponsorship programs, yet: —Woman, Professor Ahmedabad ** Nearly half (46%) of India subsidiary companies and no India- headquartered companies had Reality Snapshot: Though sponsorship programs targeted to Prevalent, Leadership women. Development Programs Don’t It is possible that women are receiving such Reach Enough Women opportunities through other general programs. But a closer examination of organizational approaches The broad category of leadership development to leadership development reveals that even includes formal leadership training programs, these “general” programs might be not reaching coaching, mentoring, and sponsorship. Programs women. Among surveyed organizations that for leadership development in general were a offered leadership development programs,42 the high priority for organizations. When it comes to groups targeted most often were high-potential programs targeting the development of women, employees and senior leaders. Given that senior India‑headquartered companies were less likely leaders and those in higher ranks of the India than India subsidiaries to offer specialized programs Inc. pipeline are mostly men (see Figure 2), this for women. programmatic approach raises some questions about the reach of such talent development • While 88% of surveyed organizations programs to those most in need: namely, women. offered some form of leadership Developing existing leaders, most of whom training, only three India-headquartered are men, precludes an opportunity to develop organizations offered women-targeted emerging women leaders. leadership training programs compared to 20 (74%) India subsidiary companies.40 Organizations must evaluate whether these leadership development programs reach • 64% of surveyed organizations have women—and whether women are reaping the coaching programs, yet: benefits of participation to the same extent as ** men. Unfortunately, that question is difficult No India-headquartered companies had women’s coaching programs. to answer currently. In general, there was insufficient utilization tracking by gender or ** Almost half (46%) of India subsidiary measurement of impact for these programs. This, companies did not have women- again, calls attention to the need for greater targeted coaching. accountability and monitoring mechanisms for such organizational change efforts. • 71% of surveyed organizations have mentoring programs, yet: 12 | India Inc.:
FIGURE 8 Among those organizations that did measure impact, Percentage of Development Program most only measured participation and satisfaction at Impact Tracking, by Type an aggregate level, rather than by gender. NUMBER OF ORGANIZATIONS • For instance, while 80% (20) of organizations OFFERING PROGRAM offering leadership training programs tracked participation overall, only 36% (9) Leadership tracked participation by gender. Training 37 ** Fewer than half of these organizations, Coaching 27 48% (12), tracked career advancement Mentoring as an overall impact measure, and 30 just 20% (5) tracked advancement by gender despite the fact that the most Sponsorship 15 commonly stated purpose of these programs, especially for women, was ORGANIZATIONS MEASURING IMPACT advancement.43 Leadership Training 68% • These patterns also hold for tracking the impact of coaching and mentoring Coaching 52% programs. Mentoring 53% Among the relatively few organizations that did measure career development and advancement Sponsorship 60% outcomes, most measured promotions. Overall, women’s promotion rates lag men at all levels (see Figure 9). FIGURE 9 Percentage of Total Promotions, by Gender and Organization Type (N=22) INDIA HEADQUARTERS INDIA SUBSIDIARY Pipeline Pipeline (Entry to (Entry to Manager/ 19% 81% Manager/ 28% 72% Director) Director) Managers/ Managers/ Directors 21% 79% Directors 24% 76% Senior Senior Managers 12% 88% Managers 19% 81% Executive Executive Officers 19% 81% Officers 24% 76% Women Men From Intention to Impact | 13
Impact Opportunity: Ensure • Women represent 28% of executive-level employee exits despite only representing That Efforts to Advance Women 14% of the executive-level employee base. are Monitored From the Top • Only 15% of executive-level external hires are women. It has to be a top-down approach. We have such young leaders on the ground [in India]— first-line managers—who emulate what they • Fewer women than men are promoted see at the top. So it’s extremely important for into executive-level ranks. the CEO to be a role model and set the tone. Combined, these factors serve to further exacerbate —Woman, APAC D&I Head the current leadership gender gap in India Inc. Bangalore FIGURE 10 Introducing D&I programs and policies is an Percentage of Senior Leader D&I essential start, but to achieve sustainable impact, executives and managers must be held accountable Accountability, by Outcome (N=24) for initiative implementation and results. Retention of Gender- Among surveyed organizations that focused on Diverse Talent 79% accountability, the most common aspects of diversity for which leaders were held accountable included: Promotion of Gender- Diverse Slates 63% • Retention of gender-diverse talent (79%). 44 Sponsorship of High- ** 89% of India subsidiaries held senior Potential Women 58% leaders accountable compared to 50% of India-headquartered Promotion of use of companies.45 FWAs and Other Work- 54% Life Integration Efforts • Promotion of diverse slates and/or Equitable Allocation of appointments (63%)46 were approximately “Hot Jobs” Necessary 46% for Advancement equally emphasized by India- headquartered and subsidiary companies. Increasing Women’s Access to Mentors/ 38% Mentoring Programs Holding leaders accountable for both retention and hiring is critical. At executive levels, women Other 13% are leaving at a higher rate than at other levels. 14 | India Inc.:
Strategies for Success: Require CONSIDER THIS: RESOURCES Senior Leaders to Transform FOR TAKING ACTION Intentions Into Impact More than 40% of organizations fail to hold In reflecting on your organization’s current senior leaders accountable for making measurable leadership development programs as well as progress—impact—on D&I goals. Figure 10 reflects accountability structures and culture, consider the the areas of accountability among participating following questions and Catalyst resources to guide organizations that did emphasize senior leader next steps. accountability. It uncovers opportunities to increase senior leader involvement and accountability • What are the barriers to leadership for women? among all organizations in all these areas and more. xx Leadership Gender Gap in India Inc.: Myths and Realities47 lays out the myths and realities regarding women’s advancement into leadership positions in India. • What outcomes or indicators of development and advancement does your organization measure? Have you considered moving beyond simply measuring promotions to measuring outcomes such as increases in budget, P&L responsibility, people management, or additions to the organization’s succession planning pool? xx Enhancing measurement and tracking efforts helps organizations closely examine what is working, where, and why. Good Intentions, Imperfect Execution? Women Get Fewer of the “Hot Jobs” Needed to Advance48 and High Potentials Under High Pressure in India’s Technology Sector49 show how women often don’t receive the career advancing “hot jobs” that comprise true leadership development. From Intention to Impact | 15
Employee Engagement Is Essential to Achieving Meaningful and Sustainable Inclusion Managers are the ones who can create the are responded to appropriately “often” or biggest impact. I keep telling them that the “almost always.” numbers will increase as long as you create an inclusive environment. Still, organizations can do more to connect this sense of employee involvement to employee and —Woman, APAC D&I Head business outcomes. Employee networks, also Bangalore known as employee resource groups (ERGs), affinity groups, or business resource groups, provide a critical channel by which employees connect to D&I Reality Snapshot: Leveraging issues and create a sense of community, fulfiling the need for employee involvement.52 Employee Involvement can Boost Organizational A majority of organizations reported having employee networks (74%), but India subsidiary Change Efforts companies were more than twice as likely to have employee networks than were India-headquartered A key strategy to spur a sense of employee companies.53 involvement and ensure workplace inclusion is helping employees feel like they belong and • India-headquartered companies: 42% contribute to the larger organization, while still valuing their unique strengths.50 This is achieved • India subsidiary companies: 87% by such practices as: As with tracking of leadership development • Providing opportunities for employees program outcomes, not all organizations reported to discuss what D&I means to their assessing the impact of employee networks. work group. • Of organizations offering diversity • Soliciting input from employees at all networks, 29% did not assess impact in levels on how to improve D&I efforts any way. within the organization. • Companies that do track employee • Actively responding to employee input. network outcomes primarily track participation/attendance (61%)54 or • Providing employees with structured satisfaction (39%).55 forums and opportunities to learn about best practices related to promoting D&I • Of organizations that had employee in the organization. networks, 90% reported having a network ”champion.” Based on employee change effort engagement metrics, most organizations indicated that their employees were relatively highly involved.51 The lack of tracking once more begs the question of accountability. Are these champions holding • Approximately 83% of organizations networks accountable for business impact and reported that employee suggestions on inclusion. Likewise, are they themselves being held improving D&I efforts in the organization responsible for employee network success? 16 | India Inc.:
Impact Opportunity: Involve • Among those offered, opportunities most commonly (60%) included unconscious all Employees in Efforts to bias training. Create an Inclusive Culture However, despite the fact that a majority of Our senior sponsor for D&I in India is a male, surveyed organizations report providing such which is wonderful to have. We actually have a opportunities to employees across levels, utilization lot of male members in our [women’s network is notably low. Most organizations reported that team]. There’s a lot of awareness, and there’s a opportunities for dialogue with men happen: lot of discussion keeping this as a priority. • Rarely: 31%. —Woman, Director-Business Management Mumbai • Once or twice a year: 38%. One indicator of an organization’s focus on • Most organizations (64%) did not monitor the importance of gender diversity is the level of men’s engagement in D&I efforts. employee involvement in D&I change efforts.56 Organizations in India that create opportunities for employees to provide feedback to leaders— Strategies for Success: Increase and for that feedback to be validated and heard—on an ongoing basis will be better poised Access to and Business Impact for success. of Employee Networks Employee networks are great forums in which At our company, our women’s network focuses organizations can provide opportunities for on development of women at three main employees to engage in meaningful dialogue with [levels]: starting-to-mid-management, mid- colleagues and organizational leaders, including: management, and senior management. All women can nominate themselves throughout • Sharing ideas on what D&I means in the the year in India and APAC and even globally. context of their work and work groups. Through the women’s network they can identify mentors based on their own needs. They use a • Providing input on how organizational tool to identify competency needs, [which] then D&I efforts can be improved. maps [them] onto a mentor who can help with those areas….Maximum focus is needed on mid- • Learning about current strategies from management, to prevent leakage there….We which everyone can benefit. need to have more role models….Women need more people to look up to, to be better able to resist societal pressure and give up their careers. Another critical way to improve employee involvement is to look to allies. Men, especially —Man, Assistant VP, Diversity & Inclusion senior male leaders, have a critical role to play Noida in D&I efforts.57 Not only are they represented in greater numbers in more powerful, senior positions, Among organizations with employee networks, they also personally have a lot to gain from more women’s networks were most common (94%), diverse and gender-balanced workforces. followed by resource groups for persons with disabilities (23%). Adding more employee networks • 60% of surveyed companies reported to cater to more dimensions of diversity is another having gender training/development opportunity by which organizations can increase opportunities for men. employee feelings of belonging. From Intention to Impact | 17
Among organizations with employee networks: CONSIDER THIS: RESOURCES FOR TAKING ACTION • 81% were driven by HR or other diversity groups. In addition to employee engagement across the • Only 42% were funded through lines of pipeline through key activities such as employee business. networks, it is critical to ensure that other key stakeholders such as senior leaders—and men, in This lack of connection to the business may make particular—are engaged. Building employee involvement it easy to dismiss networks as a “nice to have” rather than a critical facet that drives both D&I through networks and bringing men into the movement impact and business benefits. as allies for change are critical. However, outcomes will likely fall short in the absence of senior leader champions Strengthening the perceived—and real— and accountability for all. Consider the following connection between network activities and questions and Catalyst resources to guide next steps. business outcomes can be very useful in improving buy-in and leveraging such networks to support • How can you engage key stakeholders meaningful impacts for participating employees systematically in building the case for gender D&I? and the business alike. xx Getting Ready for Change in India Inc.: A Step- By-Step Guide58 will help your stakeholders Strategies for Success: address key questions about internal and Engage Men as Champions external success factors and creating a business case for your organization. In to Accelerate Progress addition, A Bright Spot Case Study: How The full support of men—arguably the larger (in Individual Champions Help Close the Gender terms of numbers) and more powerful stakeholder Gap59 demonstrates how individuals, group in most organizations—is required to especially male leaders, can make a accelerate progress toward ending gender difference in leading inclusion efforts. disparities. But there needs to be more investment in such efforts than merely counting male attendees • How do you ensure that your organization pays at infrequent events. Organizations must work attention to employee involvement and connection to raise awareness across the employee base to organizational change in driving inclusion? regarding current challenges in the D&I landscape as well as what all—women, men, and organizations xx Think People, Not Just Programs to alike—have to gain from closing these gaps. Build Inclusive Workplaces60 shows how employee connection to company values Men must also be held accountable for and the presence of visible workplace supporting D&I efforts and rewarded for role role models help foster inclusion and modeling desired behaviors and acting as champions for change. In so doing, organizations offers recommendations for action. can combat the zero-sum thinking that holds many men back from fully supporting D&I efforts and create pathways to greater D&I impacts of which all employees can take ownership and from which all employees can benefit. 18 | India Inc.:
India Inc.’s Inflection Point: an Opportunity for Intentional Organizational Change Organizations are taking stock of the fact that there are systemic biases that could be leave policies. Yet, addressing questions around [getting] in the way of women [entering] the how to retain women by developing an inclusive leadership pipeline. [They are] marking it up culture that encourages use of these policies as an important project for them to be focused without penalties, stresses the need to provide on, which is a big change. Today, I have seen career-advancing opportunities, and where more conviction on why they want to do it. It’s men and senior leaders feel at least an equal— not just [ticking a box]; it’s more about, “Let’s if not greater—stake in the game, will propel make a difference.” [This] is a very positive organizations to the next level in gender inclusion. thing…. What is hard is actually practicing it, because understanding it and appreciating it at Barriers to greater inclusion are rooted both a rational level is different from implementing within and outside the workplace in India. it and executing it on the ground. Organizations that understand what makes the —Woman, Founder and CEO difference between stated intentions and achieved Bangalore impact will serve as crucial game-changers in the journey toward an India Inc. where women and men have equal opportunities to succeed. India Inc. is at a critical inflection point. With gender D&I a strategic imperative, next steps Leaders who find themselves and their require a sustained commitment to implementation. organizations at this inflection point have a choice Given the increasing size of the Indian workforce,61 to make: accept the status quo and stagnate, or the opportunity to make large-scale impact is build on lessons learned and capitalize on key unprecedented. opportunities to propel their organization’s D&I agenda. Insights from this report on the landscape Organizations certainly have ticked many of the of women’s inclusion in India Inc., the current right boxes when it comes to addressing acute and realities and associated opportunities for change, apparent barriers to gender equity—such as anti- and the strategies for success can support this sexual harassment training, FWAs, and maternity move from intention to impact. From Intention to Impact | 19
Endnotes 1. FICCI-EY, Reaping India’s Promised Demographic 24. Lisa D’Annolfo Levey, Meryle Mahrer Kaplan, and Aimee Dividend—Industry in Driving Seat (2013); K. Ramkumar, Horowitz, Making Change—Beyond Flexibility: Work “Demographic Dividend or Burden?,” Forbes, February Life Effectiveness as an Organizational Tool for High 25, 2013. Performance (Catalyst, 2008). 2. “Close India’s Gender Gap to Open its Competitive 25. The difference between the India-headquartered (N=8) Potential,” World Economic Forum press release, and India subsidiary companies (N=28) was significant at November 16, 2009. p
49. Aarti Shyamsunder and Nancy M. Carter, High Potentials Under 56. Travis and Pollack. High Pressure in India’s Technology Sector (Catalyst, 2014). 57. Jeanine Prime and Corinne A. Moss-Racusin, Engaging Men 50. Dnika J. Travis and Alixandra Pollack, Think People, Not Just in Gender Initiatives: What Change Agents Need to Know. Programs to Build Inclusive Workplaces (Catalyst, 2015). (Catalyst, 2009); Jeanine Prime, Corinne A. Moss-Racusin, 51. The mean was 3.8 on a 5-point scale. and Heather Foust-Cummings, Engaging Men in Gender 52. Employee networks can help develop and advance women Initiatives: Stacking the Deck for Success. (Catalyst, 2009). by providing access to role models and mentors, providing 58. Catalyst, Getting Ready for Change in India Inc.: A Step-by- actual leadership experience, tapping into women’s skills Step Guide (2012). and identifying talent early, providing support through life- 59. Catalyst, A Bright Spot Case Study: How Individual stage and career challenges, and being a source of visibility Champions Help Close the Gender Gap (Catalyst, 2013). and engagement simultaneously. See Meryle Mahrer 60. Travis and Pollack. Kaplan, Emma Sabin, and Sarah Smaller-Swift, The Catalyst 61. India will add about 120 million people to its working Guide to Employee Resource Groups (Catalyst, 2009). population by the year 2020, making up 28% of the world’s 53. The difference between the India-headquartered (N=5) workforce, according to the Deputy Governor of the and India subsidiary (N=26) companies was significant at Reserve Bank of India (RBI); “India to Have 28 pc of World’s p
Acknowledgments This report is an example of the outstanding Practice; Jeanine Prime, PhD, Senior Vice President, teamwork and dedication of many individuals. Research; Jan Combopiano, Senior Vice President, Aarti Shyamsunder, PhD, Director, Research, Research, Chief Knowledge Officer; and Nancy Alixandra Pollack, Director, Research, and Dnika Hendryx, Editorial Director, Marketing, all of Travis, PhD, Vice President and Center Leader, whom provided invaluable feedback throughout Catalyst Research Center for Corporate Practice, the content-development process; and Courtney designed the study, collected the data, analyzed it, McCluney, Molly Forgang, Rochelle Olivares, and and authored the report. Shawna Vican, who transcribed and coded the qualitative interview content. Subject-matter experts and team members who contributed to the creation of this report include Finally, we wish to thank the Catalyst India Inc. Deepali Bagati, Executive Director, Catalyst USA who member organizations that provided the insights showed the way with the 2010 India Benchmarking and data upon which this report is founded and Report;62 Shachi Irde, Executive Director, Catalyst the Catalyst Research Partners, whose support India WRC, who assisted with outreach and data enables us to co-create important research and collection; Julie Nugent, Vice President and Center actionable findings to help develop inclusive work Leader, Catalyst Research Center for Corporate environments around the world. 22 | India Inc.:
Board of Directors Mary Beth Hogan, Esq. Stephanie A. Streeter John F. Smith, Jr. Chair Co-Chair, Litigation Chief Executive Officer (1998–2001) Peter Voser Department Libbey, Inc. Chairman & CEO Chairman Debevoise & Plimpton LLP General Motors Corporation Christopher J. Swift ABB Ltd Muhtar Kent Chairman & CEO Thomas J. Engibous Chairman & CEO The Hartford Financial Services (2002–2005) Secretary The Coca-Cola Company Group, Inc. Chairman, President & CEO Texas Instruments Incorporated Maggie Wilderotter Chanda Kochhar Richard K. Templeton Executive Chairman Managing Director & CEO Chairman, President & CEO Charles O. Holliday, Jr. Frontier Communications ICICI Bank Ltd. Texas Instruments Incorporated (2006–2008) Corporation Chairman & CEO Ellen J. Kullman John B. Veihmeyer DuPont Treasurer Chair & CEO Global Chairman DuPont KPMG LLP James S. Turley Thomas Falk (2009–2013) Chairman & CEO T.K. Kurien Mark Weinberger Chairman & CEO Kimberly-Clark Corporation CEO & Executive Director Chairman & CEO Ernst & Young Wipro EY Linda Addison Honorary Directors Managing Partner A.G. Lafley Thomas J. Wilson Norton Rose Fulbright LLP Chairman, President & CEO Chairman, President & CEO Tony Comper The Procter & Gamble Allstate Insurance Company Retired President & CEO John Bryant Company BMO Financial Group Chairman, President & CEO Michel Landel Historic List of Kellogg Company Michael J. Critelli Group CEO Board Chairs Retired Chairman & CEO Ursula M. Burns Sodexo Pitney Bowes Inc. Thomas C. Mendenhall Chairman & CEO Marc B. Lautenbach (1962–1976) Thomas J. Engibous Xerox Corporation President & CEO President Retired Chairman & CEO Ian Cook Pitney Bowes Inc. Smith College Texas Instruments Incorporated Chairman, President & CEO Gerald Lema Donald V. Seibert Ann M. Fudge Colgate-Palmolive Company Former Chairman and President, (1977–1980) Retired Chairman & CEO Mary B. Cranston, Esq. Japan Chairman of the Board Young & Rubicam Brands Retired Senior Partner Baxter International Inc. J.C. Penney Company, Inc. Pillsbury Winthrop Shaw Charles O. Holliday, Jr. Sheri S. McCoy Lewis H. Young Retired Chairman & CEO Pittman LLP Chief Executive Officer (1981–1984) DuPont Michael S. Dell Avon Products, Inc. Editor-in-Chief Chairman & CEO Business Week Karen Katen Dell Inc. Beth E. Mooney Retired Vice Chairman Charles W. Parry Pfizer Inc Chairman & CEO Jamie Dimon (1985–1986) KeyCorp Ilene H. Lang Chairman & CEO Chairman & CEO JPMorgan Chase & Co. Denise Morrison Aluminum Company of Retired President & CEO President & CEO America Catalyst William A. Downe Campbell Soup Company Chief Executive Officer Richard E. Heckert Reuben Mark BMO Financial Group Indra K. Nooyi (1987–1988) Retired Chairman & CEO Chairman & CEO Chairman & CEO Colgate-Palmolive Company Eric J. Foss PepsiCo, Inc. E.I. du Pont de Nemours President & CEO Anne M. Mulcahy & Company Aramark Kendall J. Powell Retired Chairman & CEO Chairman & CEO Reuben Mark Xerox Corporation Deborah Gillis General Mills, Inc. (1989–1990) President & CEO Barbara Paul Robinson, Esq. Chairman & CEO Catalyst Stephen S. Rasmussen Retired Partner Colgate-Palmolive Company Chief Executive Officer Debevoise & Plimpton LLP Marillyn A. Hewson Nationwide John H. Bryan Chairman, President & CEO James S. Turley (1991–1995) Lockheed Martin Corporation Ian C. Read Retired Chairman & CEO Chairman & CEO Chairman & CEO Ernst & Young Sara Lee Corporation Jacqueline Hinman Pfizer Inc Chairman & CEO G. Richard Wagoner, Jr. J. Michael Cook CH2M HILL Companies Ltd Feike Sijbesma Retired Chairman & CEO (1996–1997) CEO & Chairman General Motors Corporation Chairman & CEO Managing Board Deloitte & Touche LLP Royal DSM
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