Diversity has become a key topic of discussion in boardrooms around the world. It is important for companies to build a representative employee pool, both from a business sustainability angle, as well as to be recognized as an employer of choice.

One area which has garnered recent attention is increasing the percentage of women throughout a company, but more particularly at senior levels. This is especially pertinent for sectors in corporate India where women are classically under-represented at every level of the organization; such as IT, Automotive or the Pharma industry. Smart leaders understand that gender balance delivers better, more sustainable performance: companies that explicitly place value on gender diversity perform better in general, and as compared to their peers.

Also, there is increasing evidence that women are uniquely suited to the kind of leadership needed in modern organizations today - that many women identify as transformational leaders.

Transformational leadership’s approach causes deep-rooted change in individuals and their manner of functioning. It creates valuable and positive change in followers with the end goal of developing them into conscientious and ethically responsible leaders. Transformational leaders motivate employees to persevere towards goals that exceed immediate self-interest, where instead what is right and ‘good’ becomes their driving force. These leaders transform the needs, values, preferences and aspirations of followers holistically, so that the interests of the wider group replace self-interest.

On the other hand, the transactional leader influences by appealing to self-interest, chiefly through the exchange of rewards and services. The relationship between the leader and the follower is viewed as a series of rational exchanges that enable both parties to reach their own goals. While the transactional leader motivates employees to perform as expected, the transformational leader inspires them to surpass expectations. A transactional style of leadership entails implementing punishments for poor performance and giving out rewards for good behaviour. Meanwhile, a transformational style of leadership aims to motivate and develop to improve performance.

Transformational skills are especially needed when leading fast-changing organizations, as they are by far the most effective at leading a productive and engaged workforce. Pragmatic HR leaders interested in closing the gender gap know that the key lies in leveling the playing field and creating equal opportunities for men and women. The HR policies of every organization should develop a framework wherein the need-gaps that women face are tackled such that any woman is able to have a satisfactorily long career journey at an organization. It is this longevity that will provide every woman with the opportunity to secure her tenure and eventually have a chance at C-suite level leadership.

The world is experiencing one of its most significant revolutions: the rise of technology and globalisation, and along with it a gradual re-balancing of the genders. Companies who sense its significance will access a more diverse talent pool, with a greater scope of innovating, expanding and transforming as a business.