From the earliest civilisations to the modern era, women have played vital roles in various industries, contributing to economic growth, social progress and cultural innovation. But, despite decades of progress, sizable gender gaps remain in most indicators of economic success. Throughout the history of women in the workplace, women have engaged in an uphill battle for equality. And, while there is still work to be done, it is admirable to see how women have altered these standards over time.
Today women stand 180 from where they stood decades ago
According to a 2018 report from the Institute of Fiscal Studies, as the proportion of women in work has seen a continual rise from roughly 52% to 72% in the last 50 years since equal pay legislation was introduced, this increase of women in the workplace is largely the result of a huge change in working patterns at particular points in the life cycle. There are far more women in employment today throughout their mid-to-late 20s and early 30s. This is in part because women are now cohabiting and having children both less frequently and later in life.
While some may think things like the biological clock and pregnancy would slow down women’s pace in the workforce, it has shown to be the complete opposite. Women are edging the gap in a lot of ways to strive for equality and diversity in all areas. From 1980 through 2018, it was found that women are narrowing the disparity of pay and advancement through education and skills. This is a complete 180 from where women stood just a couple of centuries ago.
The fight continues for the remaining 180
In earlier periods, the societal norm placed women as being primarily the homemakers and the family caregivers to children or older loved ones. The spouse was considered the “head of the household” who went into the workplace to earn a living for the family. In some cultures, and regions of the world, gender-specific norms or traditions may still be intact. However, as certain social and economic changes occurred, such as the rise of the Industrial Revolution and the creation and development of public education, the role of women in the workforce began to expand. These historic events evolved the former convention that women belonged at home and created a need and desire for women in the workplace.
A recent Deloitte study reported that the remuneration for women independent directors in Nifty50 companies has seen a significant rise, doubling over the past five financial years, compared to a 1.7-times increase for their male counterparts. From fighting for equal pay as their male co-workers, they are now getting higher pay.
Independent Directors: What, why and Women? Empowering Women in the Workplace
In a Corporate the effectiveness of a system of corporate governance cannot be legislated by law nor can any system of corporate governance be static. Rather, in a dynamic environment, systems of corporate governance need to continually evolve. Good corporate governance is the manifestation of beliefs, values and actions to ensure maximum value creation for the stakeholders. Factors like globalisation, global competitiveness, technology, regulatory changes, shareholders, activism, etc. have considerably expanded the role and duties of directors.
The decision-making and governance at the highest level in any company vests with its Board of Directors (The Board). Hence, a group of trustworthy and respectable people particularly denoted as Independent Directors who are not directly involved in the management of the company or have any kind of relationship with the company that may affect the independence of his/her judgment were needed. As per the Companies Act,2013 a listed company shall have at least one-third of independent directors of the total no. of directors on its board and at least one should be a woman.
True independence of women directors
Aparna Mittal, founder of the Samana Centre for Gender, Policy, and Law said, “A large number of companies retain women independent directors because a minimum number on board is now mandated for certain types of companies in India”. She added that for many companies, this requirement remains a checkbox exercise. Reports also suggest that various companies also appoint successful women directors to enhance their brand image. Though the discussion remains open-ended, various studies prove that while the law requires mandatory women directors, independent or otherwise, the necessity should be appreciated more in the context of the contribution that a woman on the Board brings to the Company culture and contributes to the company’s performance. 2019 McKinsey study mentions that there is a positive correlation between a more diverse leadership team and financial outperformance.
Women Directors are above the glass ceiling
Jing Dong Hua, VP World Bank said that “Empowering women is not only the right thing to do. It is also the smart thing to do”. It can add trillions of dollars to global GDP, boost productivity, generate higher returns on investment and promote greater organisational effectiveness.
The demand for experienced and highly skilled independent women directors is increasing as Nifty50 companies continue to grow, because of the evolving roles of the directors in the dynamic corporate environment. Here are a few behavioural traits that only a women director is better at:
- A woman is more detail-driven, focused, patient and prudent in their reviews, and the one with better communication skills.
- They are more inquisitive and inclusive which makes her relationship with the stakeholders more in tune as they are less risk-averse, so her presence leads to better procedures and policies for cross-checks, second opinions, etc. which results in perfection.
- They are better equipped to handle decisions regarding HR policies, CSR policies, Marketing strategies for consumer goods, advertising and PR now increasingly on compliance-related issues.
- A woman director, being highly educated and experienced, is also perceived as a cultural change agent and role model by other women stakeholders. Her presence can empower and groom future women directors from within.
Upskill women in the workplace to become the right fit
With the rise in demand and increase in qualified candidates, the right fit remains challenging. Though the core skills remain human-centered including empathy, ethnographic research, customer co-creation, rapid prototyping, active customer listening, etc., there are a few skills that need to be developed throughout along with the technical knowledge and know-how. These include intensive, immersive and continuous learning of line-of-work and economy-related updates with industry experts and leaders; peer networking to gain unique opportunities to exchange ideas with a diverse set of other experiences; updates on real-world problems and applications; gaining a global perspective through personalised development offered by mentors, leaders, international collaborators, etc. These help in improving strategic decision-making, leadership, influence, innovation and creativity, and legacy building for personal fulfillment of future goals. From managers to partners, CXOs to Directors, women will continue to fight their way to get an equal seat at the roundtable.
As Bill Shankly said, “Aim for the sky, and you’ll reach the ceiling. Aim for the ceiling, and you’ll stay on the floor.” Glass ceilings have been broken, but more need to be broken. It’s already got numerous cracks, though.
