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SENSEX74,3460.41%
BANKNIFTY54,1860.88%
NIFTY IT29,3845.57%
PHARMA24,0870.33%
AUTO26,0930.05%
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ENERGY40,1970.02%
NIFTY23,4060.33%
SENSEX74,3460.41%
BANKNIFTY54,1860.88%
NIFTY IT29,3845.57%
PHARMA24,0870.33%
AUTO26,0930.05%
FMCG48,1241.01%
METAL13,5350.17%
REALTY762.601.39%
ENERGY40,1970.02%

India's Corporate Leadership Pipeline: The "Broken Rung" Challenge

Key Statistics:

  • Women account for 26% of India's workforce
  • Representation drops to 16% at mid-management and 8% at the CEO level
  • Only 93 women are promoted to manager for every 100 men globally
  • 74% of Indian organisations have fewer than 30% women in leadership roles

The Broken Rung Phenomenon

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The "broken rung" refers to the first promotion to manager where career trajectories begin to diverge. This phenomenon leads to a steady decline in women's representation across organisational levels in India. The gap does not suddenly appear in senior leadership; it begins much earlier, around the 8-12-year mark in a career.

The Mid-Career Challenge

Research suggests that the transition phase from 10-20 years of experience can prove particularly vulnerable for women. Approximately 65% of professionals identify the mid-career stage as the time of the year when women are most likely to leave the workforce. This phase often involves multiple transitions, as professionals juggle growing career responsibilities with significant personal milestones.

Structural Challenges

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  • The Motherhood Penalty: Many women report that their careers slow down after the birth of a child, often coinciding with the mid-career phase.
  • The Sponsorship Gap: Only 31% of women report having sponsors compared to 45% of men, making it difficult for women to access leadership opportunities.

Organisational Impact

The mid-career exit of experienced professionals represents not only the loss of individual capability but also the loss of leadership potential developed over many years. Finding suitable replacements is rarely easy, and the organisational impact of mid-career attrition is far greater than it may initially appear.

Addressing the Issue

Organisations must move beyond intent and implement structural solutions, such as creating formal sponsorship programmes in which senior leaders actively sponsor high-potential women for leadership opportunities.

Investor Takeaway

Investors should be aware of the potential long-term impact of a declining female leadership pipeline on corporate performance.

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