Women are underrepresented in the C-suite. Here's how your company can fix that.

Melinda Gates once said that “a woman with a voice is by definition a strong woman. But the search to find that voice can be remarkably difficult.”

There has been considerable progress in gender inclusion and diversity in business. In fact, most countries have implemented rules and guidelines to increase women's representation on boards. However, in many industries, the corporate hierarchy remains starkly divided and male-dominated.

The sixth edition of Women in the Boardroom, a study conducted by Deloitte in 2018, revealed that women hold only 16.9% of board seats worldwide. Of the 2,765 MSCI ACWI Index companies, only one in five directors were women in 2019, up a marginal 2.1% from the year before.

There is no dearth of inspirational women who have been role models for millions of aspiring young entrepreneurs. Women in leadership positions are hardly viewed as an anomaly, and yet the boardroom still lacks the diversity that is advocated for and expected in the modern world.

Boardroom Diversity Is So Much More Than Just an Organizational Goal

Studies have long shown that organizational diversity has tangible benefits. If the organization chooses to look beyond discriminating factors like gender, they will be able to recruit from a larger talent pool. By embracing diversity, they can attract and retain the best talent.

Additionally, when a diverse group of people work together, there is a better exchange of ideas, viewpoints, market insights, and problem-solving skills. This results in a higher level of employee engagement and improved financial performance. A diverse organization not only signals an attractive working environment for talent, but also a promising opportunity for investors.

Diversity Affects Performance

Vinita Shrivastava, Chief Human Resources Officer at Syngene International Ltd., says that companies with a gender-balanced boards “bring a lot of finesse, sophistication, and human touch to the boardroom, [which creates an] objective and unbiased environment.” It also allows for a variety of perspectives, which can boost both strategy and execution.

Due to boards’ pivotal role in company growth and decision-making, both of which involve considerations of economic, social, and political realities, diversity on the board is a crucial element in its ability to perform successfully. The number of qualified women out there means that there is little reason for any board to not be enhancing diversity – and performing successfully.

"The number of qualified women out there means that there is little reason for any board to not be enhancing diversity – and performing successfully."

According to Arun Balakrishnan, Honorary Chairman Bengaluru at the Institute of Directors, the different perspective that women can offer is an indispensable tool.

Empowering Women to Make the Leap

Generally speaking, women tend to have an edge over men when it comes to emotional intelligence (EQ). EQ can be leveraged in managing shareholders and employees more efficiently. Shrivastava maintains that if women have confidence in themselves and are well-versed in their field then “there is nothing that can stop us.”

“It is very important to be aware of the world around us and also try and network to the best of our ability,” she added. “In order to be a part of the boardroom, one needs to have a holistic view of things and be able to articulate that well.”

Shrivastava advises aspiring women leaders to have a 360-degree view of topics around them in addition to their specialization. She also advises them to network strategically and make their presence felt. “Move ahead with grit and passion,” she said. “Articulate your views clearly and don’t feel intimidated.”

First and foremost, women must believe in themselves and be willing to negotiate for themselves without compromise. Facing the steep uphill climb to the top of the corporate ladder means using all the tools in one’s arsenal and not being afraid to tout one’s accomplishments.

Beating the Status Quo

The reasons that organizations cite for their lack of active diversity are a catch-22. The most common excuse is that they don't have enough women in senior management and C-suite roles who are “board ready." This begs the question of why these organizations are not taking steps to help prepare women for board positions.

An additional factor may be the mindset of organizations unwilling to change and stuck in old ways. Change is scary, and it threatens our illusions of security, but adding diversity to your board has never been harmful. There has never been a case of an organization closing its doors because it was too inclusive or opened too many doors for historically disenfranchised groups. There is no reason to be scared of this particular change. 

Fortunately, organizations have the power to rectify these perceived obstacles by adopting the right mindset and taking the right measures.

Women’s presence on boards needs to reach a certain critical mass for it to have a real impact. The end goal for organizations should not just be getting more female representation on their boards, but ensuring it as a step toward gender parity. To achieve this, the industry as a whole needs to take concrete action. Legislation does play a part, but it is only a part of the equation.

Here Are a Few Ways Organizations Can Achieve Gender-Diverse Boards

Reducing Bias And Casting A Wider Net

Bias poses a huge constraint on diversity. Organizations must aim to reduce bias during the recruitment process and cast a wider net while looking for talent within and outside the company.

Making A Commitment

In order for gender diversity to become part of your organizational culture, it must go beyond simply being a goal. It must become imperative. Your company's leadership needs to draw up a roadmap for how they'll get from point A (exclusionary boards) to point B (gender-diverse boards). Once a plan has been drawn up, it should be shared with all relevant stakeholders to ensure accountability and transparency. 

When there is a commitment from the top, finding the right candidates becomes much easier. Organizations should develop standard procedures and processes that will enable them to measure their progress. Mandatory disclosures about diversity, well-defined diversity criteria, measurable targets, periodic refreshment of the board, investor engagement, and voting are some of the ways through which organizations can convert their gender diversity commitment into a measurable achievement.

Sponsoring and Mentoring

Offering sponsorship and mentorship programs to support, empower, and prepare women for board positions is an important step toward ensuring that there is a pool of qualified candidates for the future.

Regular guidance and mentorship programs dedicated to encouraging women to take up senior positions will generate a good pipeline of boardroom-ready leaders.

Creating Role Models

Establishing strong female role models within an organization encourages other women to aspire to leadership positions.

These role models can also become facilitators to guide and support other aspiring women. Women who hold roles at the C-suite or board level can open doors for others.

The Mid-Level Management Hitch

Many women's careers stall in middle management because of a lack of opportunities and support. For women to be retained and grow in the workplace, organizations should provide more flexibility for working parents as well as facilitate easy transitions for those returning from career breaks.

Women in mid-management should also be offered professional development opportunities as well as challenging roles and elevated responsibilities so that they feel empowered and can achieve their full potential.

Be the Change You Wish to See in the World

Organizations should reflect the diverse world we live in, and organizational heads should be responsible for executing this vision. They should set the tone at the top and make a case for diversity and gender parity in the organization as a priority. Unless this becomes the norm, women will continue to be underrepresented in the C-suite and boardroom. Now is the time for change.

At Stanton Chase, we advocate for diversity and inclusion in the workplace. Stanton Chase  is a proud member of the 30% Club  and has established itself as a leader in promoting gender-diversity on boards. To find out how Stanton Chase can help your organization diversify its boardroom, please contact one of our consultants .

About the Author

Ashwini Prakash  is a Managing Partner for Stanton Chase’s India offices. She has over 18 years’ experience in executive search consulting and specializes in the consumer products, retail, life sciences, and healthcare sectors. She is a Certified Assessment Consultant (Psychometric Assessments) and a Certified Organization Culture Expert.