Indian corporations are witnessing a notable uptick in efforts to appoint seasoned women professionals to pivotal leadership positions. From CFOs to CEOs, companies are increasingly emphasising the inclusion of women in these high-profile roles. Insights from executive search firms and board members, as reported by ET, shed light on this growing trend.
Dual Drivers – ESG Standards and Board Commitment to Diversity
This surge is being propelled by a dual focus on environmental, social, and governance (ESG) standards and a firm commitment from company boards to enhance diversity in top-level positions. Industry leaders note that investors are now not only seeking financial returns but are also favouring companies actively involved in social initiatives, with a strong emphasis on gender diversity.
Mandates and Preferences: Striving for Gender Parity
Atul Vohra, Managing Partner at Transearch India, highlighted that approximately 30% of CXO mandates explicitly require the identification and hiring of a woman professional. Furthermore, in more than half of the searches, a distinct preference leans towards female candidates, provided all other factors are equal on merit. Jyoti Bowen Nath from Claricent Partners added that over 50% of C-suite mandates are now inclined towards women in top roles.
Balancing Diversity and Merit in Selection Criteria
While there is a push for “only women CXO candidates,” there is a simultaneous call to strike a balance between merit and diversity in the selection process. Jyoti Bowen Nath emphasized the importance of understanding the nuanced criteria to ensure fair and effective appointments.
Industry Perspectives and Advocacy
Shekhar Bajaj, Chairman of Bajaj Electricals, underscored the significant contributions of women to organisational growth and board insights. Advocating for mandatory hiring of women in leadership roles, Bajaj highlighted the need to counter unconscious biases in favor of men. He further called for increased female representation on corporate boards to enrich discussions with diverse perspectives.
Impact on Search Closure Times and Compensation
The transformative wave is evident not only in contemporary sectors like technology and startups but is also making inroads into traditional industries such as manufacturing. The limitation of senior female professionals is extending search closure times, with some processes now taking 12-15 weeks. This scarcity is also influencing compensation trends, as companies compete for a limited pool of qualified candidates.
Navigating Diversity and Talent Balancing Acts
While some industry leaders support the extreme position of prioritising diversity, Meleveetil Damodaran, Chairperson of Excellence Enablers, cautioned against limiting the talent pool exclusively to women candidates. He emphasised the importance of diversity and inclusion but stressed the need to avoid compromising the selection of genuinely accomplished individuals based on merit.
Showcasing Success Stories
Recent successes include notable women professionals assuming key P&L/CXO roles in Indian corporates, such as Suman Hegde, CFO at Jubilant Foodworks; Geetika Mehta, MD at Nivea India; Ipsita Dasgupta, SVP and MD at HP India, Bangladesh, and Sri Lanka; and Aparna Iyer, CFO at Wipro.
The shift towards prioritising women in leadership roles reflects a positive evolution in the corporate landscape. As organisations navigate this transformative journey, finding the right balance between diversity and talent remains a critical factor for sustained success.
