In an effort to promote sustainable economic growth and a more equitable society, increasing workforce diversity, particularly regarding women’s participation in the labor market, has been identified as essential. The CFA Institute and CFA Society India have released the third edition of “Mind the Gender Gap,” a study aimed at raising awareness about gender disparity and fostering dialogue among industry stakeholders. This edition seeks to serve as a resource for policymakers and regulators, emphasizing the implementation of the Business Responsibility and Sustainability Reporting (BRSR) framework since its introduction by the Securities and Exchange Board of India (SEBI) in May 2021.
The report compiles BRSR disclosure data from 300 companies across three fiscal years, capturing a wide representation of India’s capital market. It reveals concerning trends in gender inclusion. Despite the increase in total workforce size—over 1 million jobs added—female representation rose only to 18%. Women’s participation at the board of directors level remains stagnant between 18% and 19%, while the ratio of female to male Key Managerial Personnel stands at less than one to seven. Additionally, the pay gap has widened, with female directors earning only 27% of their male counterparts’ remuneration.
Notably, female workforce representation differs by sector, with industries such as Information Technology and Financials showing higher percentages compared to sectors like Utilities and Energy, where participation is as low as 4% to 6%. The report calls for transparency in remuneration disclosures and standardization in defining senior managerial roles to facilitate better comparison and accountability.
As women constitute 43% of higher education enrollment in STEM fields, the report underscores the disconnect between educational attainment and available job opportunities, aiming to ignite discussions that further gender equity within the workplace.
Why this story matters: Highlights the critical need for gender diversity in workforce for economic growth.
Key takeaway: Female representation in senior management remains low despite overall workforce growth.
Opposing viewpoint: Some may argue that market forces should dictate workforce composition without enforced gender quotas.
