Indian companies favour external recruitment for top jobs, women remain sidelined

Indian corporates are predominantly turning to external candidates to fill their most senior leadership positions, according to fresh research that underscores persistent challenges in executive succession planning and gender diversity at the highest levels.

The 2026 study by CIEL HR found that external hires secured 82.6 per cent of C-suite appointments, signalling a marked preference among boards and stakeholders for bringing in leaders from outside their organisations rather than promoting from within. The data highlights concerns about internal talent development pipelines and organisational capability to nurture future leaders.

Women's representation in chief executive officer roles remains particularly concerning, dropping to just 8.7 per cent despite India having a substantial reservoir of qualified female talent available for senior management positions. The disparity raises questions about recruitment bias, structural barriers, and the effectiveness of diversity initiatives implemented by Indian businesses over recent years.

The reliance on external hires for executive roles suggests Indian companies may be struggling with succession planning and internal talent recognition. HR specialists point to a widening gap between availability of capable candidates and boardroom decision-making, with external recruitment often perceived as a lower-risk strategy despite associated costs and integration challenges.

The findings come amid ongoing industry conversations about building more robust leadership development programmes and ensuring merit-based advancement regardless of gender. Business bodies and governance experts have repeatedly emphasised that diverse executive teams correlate with improved corporate performance and innovation, yet implementation gaps persist across sectors.