Women constitute less one-fifth of overall workforce in India: Report

Women constitute less than 20% of the overall workforce, the CFA Institute's second ‘Mind the Gender Gap’ report has found. It also revealed that women hold a significantly smaller share of senior positions.

The report, released in partnership with CFA Society India, has found that when it comes to Board of Directors (BoDs) roles, men occupy a higher proportion of seats. Women directors constitute only 18.4% of the board director positions.

The gap is even wider among key managerial personnel (KMPs), where just over 10% are women and nearly two-thirds of the companies analysed have no female KMPs. and among those that do, 80% have only a single female KMP. Also, demale directors earn only 44% of the median salary of their male counterparts, while female KMPs receive less than 25% of the remuneration paid to male KMPs

The report incorporates insights from 300 Indian companies representing a workforce of 8 million through Business Responsibility and Sustainability Report (BRSR) disclosures, according to a press statement. The BRSR framework was introduced by the Securities and Exchange Board of India (SEBI) in 2021 and mandates Indian companies to report on a variety of topics, including gender-wise composition of the labour force, pay, turnover rates, and other factors.

The report also noted that male directors earn 21X the median remuneration of male employees and 24X that of male workers while male KMPs earn 35X the median remuneration of male employees and 40X that of male workers

The information technology sector employs the highest percentage of women (34%), followed by the consumer discretionary and financial sectors (25% and 24% respectively) with the lowest women participation in the utilities sector (4%)

Only about 0.5% of the total workforce (8.25 million) across 300 companies comprises differently-abled individuals, the report noted.

When it comes to BoDs, the real estate, information technology, consumer staples, health care and consumer discretionary sectors show a more equitable gender distribution. Conversely, the financial services and energy sectors exhibit the most pronounced gender imbalance among BoDs.

Regarding KMPs, no sector has a male-to-female ratio of less than 5 to 1. The disparity is most extreme in the real estate sector, followed by the utilities and communication services sectors.

Arati Porwal, Country Head, India, CFA Institute, said, "The report highlights the pressing need for stronger gender equality initiatives within Indian corporate structures. The report also reveals an encouraging trend in data transparency, with more Indian companies disclosing BRSR data, while raising awareness about the challenges and opportunities related to gender diversity and DEI strategies. Companies with diverse leadership teams demonstrate greater innovation, improved decision-making, and enhanced financial performance."

Rajesh Sehgal, CFA, Chairperson, CFA Society India, added, “Corporate India must adopt meaningful initiatives and inclusive strategies to retain female talent, diminish the remuneration gaps, and subsequently pave the way for Indian workplaces to become more diverse and inclusive for women and differently-abled individuals.”