By Dr. Saundarya Rajesh
India Inc. is making great strides in DEI – The year-on-year insights from Avtar & Seramount’s ‘Best Companies for Women in India’ study illustrate this clearly. For instance, while only 30% of the ‘Best’ companies had a second-career program in 2016, 84% had it in 2024. Only 60% of the companies offered remote work in 2016, while 93% provided this in 2024 and 100% of the companies have a structured process for flexible work.
Can we relax and celebrate India Inc’s DEI wins? Unfortunately, no. Though we have progressed, our research shows that there are still 7,00,000+ companies in India where inclusive initiatives remain absent, particularly MSMEs, family-run businesses, startups, agricultural organizations, manufacturing and industrial sectors, and academic institutions.
We are also dealing with criticism about DEI, that it kills merit and amounts to reverse discrimination, which present a risk of companies moving away from DEI. But Avtar’s experience working with hundreds of organizations has shown us that inclusion is directly linked to employee satisfaction, retention, productivity, innovation and customer reach. The backlash is a result of a lack of understanding of how DEI must be pursued.
So, how can companies adopt DEI measures that are effective and lead to long-term and inclusive growth?
Go beyond tokenism: Avoid diversity hiring/promotion quotas. Superficial celebrations of diversity or social media hashtag campaigns without meaningful measures to promote inclusion are also token gestures. Going beyond tokenism involves:
- Creating leadership accountability, through clear DEI goals for leaders and targeted training;
- Fostering psychological safety in the workplace, where everyone feels valued – In India, with its vast diversity in caste, region, religion, and culture, this is a non-negotiable step;
- Addressing micro-aggressions and biases through regular trainings and clear reporting mechanisms;
- Flexible work structures;
- Employee growth programs for the disadvantaged to promote equal opportunities, such as mentorship and skilling programs (Example: Avtar’s DigiPivot program for women, offered in partnership with Google, HUL and ISB);
- Employee feedback mechanisms.
Measure DEI impact: For DEI efforts to be long-term and sustainable, DEI impact must be measured, which in turn makes it possible for DEI action to be aligned with business goals.
- Many DEI aspects are quantifiable – retention rates, employee satisfaction scores, customer satisfaction levels, market reach, and so on, each of which has a direct effect on the company’s financial performance. It’s key to regularly track these metrics and have the financial impact of DEI assessed preferably by an external partner.
- Participating in benchmarking studies helps companies gauge the efficacy of their DEI solutions. Through these studies, companies can explore top industry practices, compare their DEI initiatives with others, and identify effective strategies. We have witnessed the powerful impact of benchmarking through the Avtar-Seramount’s annual indices ‘Best Companies for Women in India’ (BCWI) and ‘Most Inclusive Companies Index’ (MICI).
In India, we have clear workplace mandates and legislations – SEBI directive on women on boards, the Maternity Benefit Act, POSH Act, and so on, along with the RPwD Act to promote PwD inclusion, which present a clear case for organizations to prioritize DEI. Let’s capitalize on these mandates and align DEI into the core business strategy. This will lead to genuine change at the individual level, which is crucial, because when individuals grow, organizations prosper; and when organizations thrive, the nation advances.
Dr. Saundarya Rajesh is Founder-President of the Avtar Group
