Career breaks tricky for women, salary gap persists, says survey

Bengaluru: Even as India Inc is wooing women in mid-management roles to re-enter the workforce with returnship opportunities, employers face some challenges in onboarding returnees. Talent advisory firm Longhouse Consulting’s report showed that approximately 80% of working women in India take career breaks, with 45% citing childcare and personal commitments as primary reasons. Women who have significant gaps in their resumes due to career breaks for caregiving or other personal/family reasons can be viewed as having a disadvantage, the report said. The talent advisory firm said that unconscious bias and stereotypes about women’s commitment and capabilities after a career break can impact hiring decisions. It also said women returnees struggle to negotiate fair compensation and benefits after a career break. Women have experienced limited opportunities for career progression or advancement compared to their peers who did not take a career break and that can be a deterrent. Limited support groups and resources within organisations for women returning to work can hinder their chances of successful reintegration, the report said. On the brighter side, companies are introducing flexible policies including extended childcare leave policies, remote and flexible working culture, gender-neutral caregiver leaves for new parents, and upskilling opportunities.Women’s participation in the workforce grew to 37% in the 2022-23 financial year representing a 13.7 percentage points increase in 2023 compared to 23.3% in 2018, the report showed. In India, around 25.6 crore women are employed, out of a total female population of over 69.2 crore.The positive trajectory underscores progressive policies, schemes, and benefits to increase the participation of women in the workforce. About 17% of employed women (4.3 crore) are salaried --- 2.7 crore in urban and 1.6 crore are based in rural areas. About 65% are self-employed women and 18% are contract workers. The report showed that 39% of Indian companies employing women in CXO positions outweighed the global average of 32%. The report showed that 98% of businesses in India have at least one woman in senior management roles, surpassing the global average of 90%. Longhouse Consulting’s data highlights that 40% of CFO positions and 50% of HR director positions in India are now held by women. Women’s representation in executive boards increased by 2% in 2023 compared to the year ago period. Currently, women hold 12% of the board seats in India.The report underscores the importance of gender diversity in C-suite roles, revealing that 30% of these positions actively require the presence of women professionals to establish parity in workplace opportunities. Anshuman Das, CEO and founder of Longhouse Consulting, said, “Promoting women in leadership requires a ground-up approach, with male leaders playing a pivotal role. Encouraging aspiring women leaders through dedicated mentorship and skill development initiatives is essential.”