This document provides an executive summary and agenda for a study on inclusion and diversity maturity benchmarks. It discusses the current state of inclusion and diversity in India, key trends, and the inclusion and diversity maturity landscape. While India has a richly diverse population, its companies still have progress to make in achieving true inclusion and representation. Barriers like biases, lack of awareness, and fatigue need to be addressed. However, inclusion is becoming a strategic priority for companies and has benefits like improved performance, decision-making, and retention. The road toward inclusion in India looks promising if companies play a role in partnership with the government and communities.

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Inclusion and
Diversity Maturity
Benchmark
Executive Summary
Creating an Inclusive
Workplace
2021

3. Agenda
About The Study
Current State of I&D
Key I&D Trends
I&D Maturity Landscape
Maturity Deep-Dive
The Way Forward
…4
…7
…11
…14
…17
…33

4. Zinnov’s approach to Inclusion & Diversity
Inclusion & Diversity (I&D) at the
Workplace –
SCOPE OF I&D
DEFINITION OF I&D
Inclusion & Diversity (/ɪnˈkluːʒ(ə)n/ /ænd/ /dʌɪˈvəːsɪti, dɪˈvəːsɪti/)
Inclusion in the workplace is a collaborative, supportive, and respectful environment that increases the
participation and contribution of all employees. Truly inclusive workplaces remove all barriers, discrimination, and
intolerance (of races, ethnicities, genders, ages, religions, disabilities, sexual orientations, education, personalities,
skill sets, experiences, knowledge bases etc.)
Diversity – quite simply put – is equal and fair representation, regardless of demographical differences. Diversity is
an automatic outcome, and a core subset, of an ‘inclusive workplace’. Hence, Zinnov strongly believes in the
need to prioritize Inclusion first – organizations need to look at is at “I&D” and not “D&!”.
While Inclusion & Diversity are all-encompassing concepts that address all aspects of demographic, political,
educational, cultural and religious differences, there is still a long way to go before we as a society are able to
holistically envelope barriers without distinction.
Through this assessment, it was seen that top I&D charters across India’s GCoE Ecosystem are currently still focusing
on 3 key diverse communities and hence, basis explicit focus areas for the target audience and for the sake of a
uniform benchmark analysis, the scope of this Study has been restricted to inclusion of the following:
Diverse
Representation
Affirmative
Action
WHAT THE PERCEPTION OF I&D IS…
…VS. WHAT I&D ACTUALLY IS
Diverse
Representation
Affirmative
Action
Eliminating
Systemic
Biases
Mobilizing
Allyship
Creating Safe
Spaces for Open
Conversation
A Cultural
Mindset
A sense of Belonging
Equity at the
Core
Acceptance
Collective
Accountability
The presence of structured programs, policies and networks that address I&D across generations and cultures in
select mature GCoEs is acknowledged and appreciated, but will fall out of scope for the 2020 Industry
Benchmark.
Women
Lesbian, Gay, Bisexual, Transgender, Queer (LGBTQ+)
Persons with Disabilities (PwD)
ABOUT THE STUDY

5. Why prioritize Inclusion & Diversity?
Diverse Talent
Pool
27%
Higher Creativity &
Better Innovation
14%
Reduced
Attrition
22%
Improved
Decision
Making
9%
Increased
Bottomline
Impact
5%
Positive
Culture
Builidng
23%
Drivers behind prioritizing I&D in
India GCoEs
IMPACT OF I&D ON ORGANIZATIONS’ PERFORMANCE
What are the key Advantages of becoming an Inclusive Workplace?
Source: PeopleMatters, BCG Insights, Company Annual Reports, Zinnov Research & Analysis
Diverse Talent Pool (Attraction), Positive Culture
Building and Reduced Attrition –
According to Glassdoor, in 2019, 67% of job
seekers weigh diversity as a factor when
evaluating company offers. Further, it was seen
that cognitive stimulation through different
perspectives, increase in transparency,
empathy and commitment to workforce
wellbeing leads to significant increase in brand
value, job satisfaction, loyalty – hence culture.
Increased Bottomline Impact –
I&D benefits profitability as well as turnover. A
study from Bersin showed that diverse companies
had 2.3X higher cash flow per employee over a 3-
year period than non-diverse ones. Further, the
ability to create more inclusive products &
services boosts brand favourability & widens one’s
consumer base.
Improved Decision Making –
Diverse teams make better decisions. Cloverpop,
an online decision-making platform, conducted a
study across 200+ teams that showed a direct
positive correlation between diverse teams and
better decision-making. diverse teams have a
60% improvement in decision-making.
Higher Creativity & Innovation –
Research by the Harvard Business Review (HBR)
provides compelling evidence that diversity
unlocks innovation and drives market growth. The
study discovered that diverse companies are 70%
more likely to capture new markets, which, in turn,
yields higher performance. Similarly, a study by
BCG in 2017 proved that companies with diverse
leadership report higher innovation revenue.
26%
45%
Average Innovation Revenue
reported by Organizations
Orgs with below-average diversity scores
Orgs with above-average diversity scores
Note:
• Avg diversity score calculated using the Biau index, a statistical
means of combining individual indices into an overall agg. index
• Innovation Revenue : Percentage of total revenue from new
products & services launched over the past 3 years
ABOUT THE STUDY

6. Participant Demographics
Chennai 16%
Mumbai 11%
Hyderabad 31%
Bangalore 82%
Pune 37%
NCR 19%
GCoE Presence across Locations(2)
90+ Centres
50+ GCoEs(1)
Headcount
<500
20%
Headcount
500-3,000
45%
Headcount
>3,000
35%
Organization Headcount
Across Industries
Semiconductor
8%
8%
Software &
Internet
52%
52%
Automotive
6%
6%
BFSI
11%
11%
Others
13%
13%
(1) 50+ GCOEs include those who directly participated in this study as well as those analyzed through primary conversations and secondary analysis
(2) Location spread includes GCOEs with centers in >1 city in India and hence the percentages will surpass 100%
ABOUT THE STUDY

7. India’s diversity landscape is extremely rich…
Home to 120+ languages, 100+ festival, 25+ cuisines and every single major religion in the world, the
heterogeneity of India’s cultural fabric is one of its biggest strategic assets. Today, India is the second most
populated country with nearly one-fifth of the world’s population, with the average age capping at 28 years,
compared to China’s 37 and USA’s 40 .
A historic driver for growth in India, the country’s technical talent profile continues to be highly sought after,
with an expert survey by Korn Ferry calling out innovation, agility and I&D being key trends driving the
workforce of the future . To that end, India is expected to graduate more women engineers than the entire
world combined in the next 2-4 years. With nearly half its population below the age of 25, India has witnessed
an era of political, social and cultural revolution to break traditional “social evils” such as casteism, sexism,
income inequality, etc., supported by judicial efforts in backing inclusion of the LGBTQ+, People with
Disabilities (PwD) and other marginalized communities, in the last decade.
India has also experienced the birth of multiple NGOs, government supported organizations and socially
driven enterprises committed to serving for the betterment of the country.
122+
100+
9+
25+
Languages
Festivals
Religions
Cuisines
DIVERSITY IS IN INDIA’S DNA
India’s Demographic Diversity – A 2020 Snapshot(1)
COMMUNITY % TOTAL POPULATION LITERACY RATE EMPLOYMENT RATE
Men 52.0% 82.0% 76.0%
Women 48.0% 66.0% 20.3%
LGBTQ+ >4.0% DATA GAP DATA GAP
PwD ~2.3% ~52.2% ~23.8%
(1) Indicative numbers (basis latest estimates), but not accounting for the gross underreporting that comes with significant data collection
challenges, especially in the case of the LGBTQ+ and PwD population in India
Source: International Labour Organization (ILO), Work Bank Databank, UN Factsheet, Census 2011, National Statistics Office, News Articles
CURRENT STATE OF I&D

8. …but India Inc. still has catching up to do in contributing to the global
diversity agenda
As per the Global Diversity Readiness Index by SHRM and the Economic Intelligence Unit, Scandinavia, North
America and Western Europe demonstrate the best regional performance for Diversity and Inclusion (listed in
order of finish). They rank an average score of 70 out of 100. On the other hand, Asia, Eastern Europe, South
America, Africa, the Middle East and South Asia (listed in order of best to worst) score significantly below the
world average of 52. South Asia is ranked the lowest region on the index, with an average score of ~38. This
tells us that while globally, there still remains to be significant progress yet to be made with respect to attaining
diversity & inclusion in workplaces, South Asian countries have an even bigger mountain to climb to be at par
with the rest of the world, in this regard.
Further, India’s Performance on the World Economic Forum’s (WEF) Global Gender Gap Report has declined
considerably since 2018. The lowest performing subindex, well below the global average, was that of
Economic Participation and Opportunity that measures labour force participation rate, wage equality,
estimated earned income, etc.
Organizational Diversity –
A Global View
(1) Ranking of 47 countries across 5 Diversity Categories (National,
Workplace, Social, Legal, Govt)
(2) Overall Score of Global Diversity, out of 100.
GLOBAL DIVERSITY READINESS INDEX(1)
COUNTRY
RANK SCORE(2)
Best-in-Class
Back
Benchers
1
2
3
4
7
14
26
41
44
45
46
47
Sweden
Norway
New Zealand
Canada
UK
USA
Israel
India
China
Nigeria
Indonesia
Saudi Arabia
73.0
72.2
71.5
70.1
66.9
61.5
49.5
35.8
31.8
31.3
30.8
22.7
South Asia is a back-bencher in the Global Diversity Classroom
THE FIGHT IS FAR FROM OVER FOR INDIA INC.
PARAMETER
2018 Report 2020 Report 2021 Report
Score(3)
(0-1)
Rank
( / 149)
Score(3)
(0-1)
Rank
( / 149)
Score(3)
(0-1)
Rank
( / 156)
Global Gender Gap Score 0.665 108 0.668 112 0.625 140
Economic Participation
and Opportunity
0.385 142 0.354 149 0.326 151
Educational Attainment 0.953 114 0.962 112 0.962 114
Health and Survival 0.940 147 0.944 150 0.937 155
Political Empowerment 0.382 19 0.411 18 0.276 51
(3) For all subindexes, the highest possible score is 1 (gender parity) and the lowest possible score is 0 (imparity)
Source: by Society of Human Resource Management (SHRM) and the Economic Intelligent Unit of UK, World Economic Forum (WEF)
CURRENT STATE OF I&D

9. India Inc. faces certain key challenges to successfully achieving I&D at
the workplace…
INDIA INC. HAS VARIOUS UNIQUE HURDLES TO CROSS IN THE MARATHON RACE TOWARDS I&D
Conscious and Unconscious Biases
India faces a myriad of innate systemic biases around gender, sexuality
etc. within sections of society, that have been passed on through
generations and trickled into interactions at the workplace.
CULTURAL CHALLENGES ORGANIZATIONAL CHALLENGES
Rigid Gender Roles and Stereotypes
An implication of the above, there is rigid stereotyping of certain
responsibilities associated only with specific communities (i.e., women
having to be the primary caregivers, PwD only playing supportive back-
office roles etc.)
Lack of Awareness
Most sensitive / personal topics – around sexuality, caste / religion, mental
illnesses (depression, anxiety, addiction etc.) and so on – are considered
taboo and never taught in schools or entertained as discussions in society.
Low Literacy within Diverse Communities
India’s literacy landscape faces glaring gaps, with marginalized
communities bearing the brunt. Women, PwD, the economically backward
etc. do not have easy access to affordable / quality education which
makes it especially difficult for them to secure formal employment.
Lack of stringent Implementation of Regulations
Despite legal paperwork showing support for marginalized communities in
India, the lack of directives around implementation, or penalty for non-
compliance, further augments the challenges faced in including them in
the workforce.
Lack of Shared Accountability
The HR function still carries most of the weight of accountability (for
meeting I&D goals). Sponsorship and guidance needs to come as much
from Business and Product Leaders, as from Corporate Functions. Further,
there needs to be a cultural shift towards “conscious inclusion” that trickles
down to all employees, not just the I&D Council, with all conversations
around “inclusion” being two-way.
Diversity Fatigue
With the motivation being largely around meeting diversity quotas, there is
a significant threat of exhaustion, frustration and disconnect associated
with I&D initiatives.
Restricted approach to I&D
The scope / focus of I&D in organizations is still predominantly limited to
inclusion of women, with other types of diversity (generational, cultural,
LGBTQ+, PwD etc.) taking a back seat.
Glaring Process Gaps
A majority of I&D programs are failing to showcase targeted outcomes,
due to glaring process gaps that are yet to be addressed. (Ex: Diversity
hiring initiatives are futile if the interview panel has not been properly
sensitized towards the needs of diverse communities.)
Lack of Infrastructural Support
There is a high investment required to set up ‘inclusive infrastructure’ like
disable-friendly infrastructure (braille, audio-visual communication etc.),
nursing rooms, employee safety equipment and so on.
CURRENT STATE OF I&D

10. …but the road towards making India an equal opportunity ecosystem
looks promising
Inclusion & equality cannot be tackled alone. The role that GCoEs must play in the triad of Government-
Corporate-Community to improve India’s diversity divided is instrumental. In fact, GCoEs have a unique
opportunity to bolster global I&D initiatives to India’s context and become the torch-bearer for an inclusive
workforce, to other offshore locations.
4-6%
Average increase in
organizational Diversity ratio,
expected by 2025
GCoEs (at least) have some
presence of all these 3 diverse
communities in India
25%
GCoEs attribute higher retention
to increased focus on diversity
initiatives
75%
GCoEs have seen
improvements in engagement,
productivity & innovation owing
to higher diversity ratios
70%
GCoEs are committed to I&D as
a strategic priority in the next 3-5
years
90%
I&D IN INDIA INC. – A PROMISING FUTURE
GCoEs have a key role to play in making India an equal opportunity country
Source: World Bank Data, McKinsey Global Insights, The Economic Times Zinnov Research & Analysis
India, much like other large Asia-Pacific economies, is paying a heavy price by excluding marginalized
communities from the workforce. Lack of Inclusion & Diversity at the workplace, has drastic economic &
business implications.
The Power of Parity: India’s Untapped Economic Potential
Looking specifically at inclusion of women, India has one of the most significant opportunities in Asia-
Pacific to boost the economy by advancing male-female equality. Research shows that by making India a
more gender inclusive ecosystem, India can potentially add up to $2.9 trillion additional annual GDP in
2025. This is 60% higher than the business-as-usual GDP estimated for India in 2025. “From an economic
perspective, trying to grow without enabling the full potential of women is like fighting with one hand tied
behind one’s back,” the report says. On gender equality at work, the six countries quoted furthest from
gender parity were Bangladesh, India, Japan, Nepal, Pakistan and South Korea.
India’s GDP loss due to homophobia (caused by factors such as lost wages and health costs) was nearly
$32 billion, or 1.7% in 2016
Anywhere from 1 to 7% of GDP is lost in Low- & Middle-Income Countries due to exclusion of PwD from the
workforce. Specifically in India, of the ~70 million persons with disabilities in India, only about 100,000 have
succeeded in obtaining employment in industry
Inclusion then not only becomes a prerequisite for better business or society, but also a key factor in
propelling India’s economic growth and global significance.
CURRENT STATE OF I&D

11. Key Inclusion & Diversity Trends in India Inc. (1/3)
INCLUSION HAS BECOME A CORE STRATEGIC AND CULTURAL PRIORITY
A MAJORITY OF “DIVERSITY” FOCUS IS STILL LIMITED TO INCLUSION OF WOMEN
REPRESENTATION AT THE LEADERSHIP (CXO-LEVELS) IS YET TO REFLECT THE SHIFT
I&D COUNCILS ARE BECOMING THE “NEED OF THE HOUR”
I&D SPENDING IS MAJORLY DISCRETIONARY IN NATURE
INCREASING NO. OF GCoES ARE INVOLVED IN ECOSYSTEM OUTREACH & SUPPORT
A
B
C
D
E
F
KEY I&D TRENDS

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