Anchor in our bias- the misread diversity.

Company- "Our gender diversity is more than ______ percent!"?

Me- "But is it worth celebrating?"

As a DEI Advisor working with companies ranging from 50 to 50,000 employees, I've seen firsthand the pitfalls of overlooking the nuances in diversity data. While many organizations boast impressive gender diversity statistics, a deeper, individualized analysis often paints a different picture. This note is a reflection of my experiences and observations in uncovering the true meaning of diversity in the workplace.

Let us clear out the illusion-

When analyzing companies' diversity reports, it's common to find gender ratios that suggest parity. However, these figures are usually an aggregate representation, encompassing all roles and levels within the organization. This broad-brush approach to data often conceals the nuances of gender distribution across different job functions and seniority levels.

(P.S. Today you are learning about Anchoring Bias. Anchoring bias is a cognitive bias that describes the common human tendency to rely heavily on the first piece of information offered (the "anchor") when making decisions. Once an anchor is set, other judgments are made by adjusting away from that anchor, and there is a bias toward interpreting other information around the anchor. The concept was first introduced by Amos Tversky and Daniel Kahneman.)

A deeper dive into these statistics reveals a concerning pattern: a significant number of women are concentrated in roles traditionally viewed as 'feminine,' such as administrative, HR, and support functions. Simultaneously, there is a stark underrepresentation of women in key decision-making roles, particularly in areas like strategy, operations, finance, and technology. This segregation is not just a matter of chance but often a result of deep-seated biases and institutional practices that funnel women into certain career paths while reserving leadership and technically oriented roles for men.

This type of functional segregation perpetuates outdated gender stereotypes, subtly implying that men and women are inherently suited for different kinds of work. It reinforces the archaic notion that women are naturally more fit for nurturing and supportive roles, while men are better suited for leadership and technical tasks.

Moreover, this segregation has tangible implications for the growth and innovation of an organization. Diversity in leadership and technical roles is crucial for bringing varied perspectives and innovative approaches to problem-solving. When women are underrepresented in these areas, companies miss out on the full spectrum of talent and ideas. This not only limits their capacity for innovation but also affects their ability to connect with diverse customer bases and respond to a rapidly changing business environment.

Moving forward with a deep dive into the functional divide-

The crux of the issue goes beyond mere representation; it's about the roles and responsibilities assigned based on gender. In the tech sector, for example, I've witnessed companies pride themselves on gender balance, yet their technical and leadership teams remain predominantly male. This type of functional segregation limits women's career trajectories and narrows the cognitive diversity in sectors where it is most needed.

Let us have a look at some of the numbers from India Inc.:

• Tech sector: In India's burgeoning tech industry, women's representation remains low, especially in technical and leadership roles. A NASSCOM report noted that women constitute around 34% of the IT workforce in India, but their presence in senior roles is significantly lower. The segregation is not just vertical but also horizontal, with women more likely to be found in project management and testing roles rather than in core programming or product development.
• Financial services: The finance sector in India shows a similar trend. As per a report by Catalyst, women make up a considerable portion of the workforce in junior and mid-level roles. However, their presence dwindles at senior levels. This reflects a global trend where women are underrepresented in higher echelons of financial institutions.
• Manufacturing and heavy industries: These sectors are traditionally male-dominated in India. Data from the Sixth Economic Census released by the Ministry of Statistics and Programme Implementation indicates that women constitute a meager percentage of the total workforce in manufacturing. The roles they occupy are often in less technical and more labor-intensive areas, not in leadership or technical expertise roles.
• Education and healthcare: Although these sectors have a higher representation of women, the segregation is evident in role types and hierarchy. In education, for instance, women are predominantly teachers at the primary and secondary levels, but their numbers drop in administrative and decision-making roles. Similarly, in healthcare, women are primarily nurses and not as prevalent in specialist or leadership roles.
• Media and entertainment: In this sector, women are often in front of the camera or in content development roles, but they are underrepresented in technical and directorial positions, as noted in a report by the Geena Davis Institute on Gender in Media.

This functional segregation is a proof of the reinforced stereotypes and their prevalence in the workplace where one might boast of an overall high gender ratio but the gender still stands divided.?

A look at the ladder we all want to climb-?

In my consultations, a pressing concern has been the distribution of women across organizational hierarchies. Often, women's representation dwindles at higher levels. This disparity is not just a number – it's a symptom of systemic barriers that prevent women from advancing to leadership roles. It's crucial to understand and address these barriers to truly achieve gender parity at all levels.

According to a report by Zinnov-Intel India Gender Diversity Benchmark, only 11% of senior leadership roles in India are held by women. This stark contrast becomes even more pronounced in certain sectors. For instance, in the technology sector, while women make up around 34% of the workforce, they represent a mere fraction of leadership roles.

A few more reports that highlight this issue? and support addressing this-?

• Gender Diversity Benchmark for Asia 2019 by Community Business: This report highlights that in India, women hold only 20% of mid-level management positions and a mere 9% of senior-level positions. This stark drop-off at higher levels is indicative of the 'leaky pipeline' phenomenon, where women gradually drop out of the workforce as they climb the career ladder.
• "Women On Board 2020" by Prime Database: This study focuses on the representation of women in board positions in NSE-listed companies. It revealed that as of January 2020, women occupied only 17% of board seats. Furthermore, a majority of these women are independent directors, indicating a lack of women in executive roles.
• McKinsey & Company's "Women Matter: An Asian Perspective" (2018): This report underscores that companies in India with at least one woman on the board outperform those with no women on the board in terms of Return on Equity (ROE) and Earnings Before Interest and Taxes (EBIT). However, the representation of women in these positions remains low.
• "The Power of Parity: Advancing Women’s Equality in Asia Pacific" by McKinsey Global Institute (2018): This extensive study estimates that $770 billion of additional GDP could be added to India's economy by 2025 by advancing women's equality. However, it also points out the significant gender gaps in leadership and political representation in India.
• World Economic Forum's Global Gender Gap Report 2021: According to this report, India ranks 140th out of 156 countries in terms of economic participation and opportunity for women. It highlights the large gaps in labor force participation rates between men and women in India and the persistent barriers to women's access to professional and technical roles.

How should then one study the Diversity Data of their company??

One of my key advocacies is for a more intersectional approach in analyzing diversity data. Gender diversity should not be viewed in isolation. Women from different races, sexual orientations, and abilities face unique challenges. In my work, I emphasize the importance of recognizing these intersecting identities to create a more inclusive and equitable workplace for all women.

To combat these challenges, I advise companies to:

• Engage in Comprehensive Data Analysis: It's essential to dissect diversity data across various dimensions to identify hidden biases and gaps.
• Implement Focused Development Initiatives: Programs tailored to support underrepresented groups in critical functions and leadership roles are vital.
• Cultivate a Truly Inclusive Culture: Beyond hiring, fostering an environment that values and amplifies diverse voices is crucial for sustainable change.

The real work begins when we dive into the subtleties of how gender roles and hierarchies manifest within organizations.

As we navigate these complexities, we edge closer to creating workplaces that are not just diverse in numbers but are genuinely inclusive and equitable. In the words of Reshma Saujani, "We need to be brave, not perfect." This bravery is essential as we strive to unravel and address the deeper issues in workplace diversity.

Looking to collect data for your organization or need help in studying the data properly??Write to me at [email protected]?

Remember, if you are not measuring it, you cannot study it. And if you are not studying it properly, you can never correct it.?