HR strategies to tap untapped women talent in Tier 2–3 cities

Authored by: Dhanashree Thakkar

India's corporate landscape faces a persistent paradox: acute talent shortages coexist alongside millions of capable women in smaller cities who remain excluded from formal employment opportunities. The greatest untapped resource for India's economic growth lies not in global markets but within its own emerging urban centres, where transformative change is already underway.

The Emerging Workforce Revolution

The employment landscape for women in Tier 2 and 3 cities has undergone dramatic transformation in recent years. Job applications from women in these regions surged three-fold between 2021 and 2024, accompanied by a 34% increase in median salaries over the same period. Cities such as Lucknow, Jaipur, Indore, Bhopal, Surat, Nagpur, and Coimbatore have emerged as significant employment hubs, accounting for over 45% of total job applications on major platforms. Currently, 41% of women's jobs are based in Tier 2 and 3 cities, reflecting growing opportunities beyond metropolitan areas.

While India's female labour force participation rate has increased substantially from 22% in 2017-18 to 40.3% in 2023-24, nearly two-thirds of Indian women remain outside the formal workforce. This gap represents both a challenge and an enormous opportunity as India pursues its $5 trillion economic milestone and the longer-term vision of a $30 trillion Viksit Bharat by 2047. Organisations must now address whether they are prepared to meet this ready talent pool through strategic HR interventions.

Reimagining Work Models for Genuine Compatibility

Flexibility in work arrangements has evolved from a corporate benefit to a fundamental prerequisite for women's workforce participation. For women in Tier 2 and 3 cities, barriers to employment often stem not from capability gaps but from compatibility challenges: disproportionate household responsibilities, limited public transportation infrastructure, and safety concerns.

Organisations must embrace diverse work arrangements, including fully remote positions, hybrid models, part-time opportunities, project-based assignments, and job-sharing structures. Research demonstrates the value proposition clearly: 89% of women working in hybrid arrangements identify saving commuting time as the most significant advantage, while 80% cite flexible working hours as a crucial benefit. In smaller cities where mobility and safety considerations are paramount, such flexibility becomes essential rather than optional.

This transformation requires anchoring performance evaluation in outcome-based metrics rather than physical presence. Additionally, flexibility policies must be gender-neutral to drive systemic change. When caregiving responsibilities are framed exclusively as women's concerns, organisations lose exceptional talent. Positioning flexibility as a universal benefit for all employees, aligned with progressive frameworks such as India's New Labor Code, helps dismantle stereotypes about sole caregiving responsibilities and promotes greater career continuity for women.

Developing Strategic Local Talent Pipelines

Effective local hiring strategies must commence well before recruitment campaigns. The opportunity is substantial, supported by significant government initiatives: the Skill India Mission has trained over 35.56 lakh women since its 2015 launch, while the Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) has mobilised more than 8.4 million urban poor women through Self-Help Groups across India. These programmes represent a vast, pre-trained talent pool awaiting channelisation into formal employment.

Proactive partnerships with educational institutions, polytechnics, Industrial Training Institutes, and skill development centres in Tier 2 and 3 cities are essential. Campus connections in smaller cities often yield candidates with superior retention rates and authentic long-term commitment. Such grassroots partnerships serve dual purposes: building sustainable talent pipelines while establishing community trust that assures families of safe, credible, and growth-oriented career pathways. Organisations should actively sponsor vocational programmes aligned with industry requirements and establish structured internship programmes with transparent pathways to permanent positions.

Capability Building Beyond Basic Training

Women increasingly pursue non-traditional roles in Field Sales, Delivery, and Logistics, with nearly 6 lakh applications in Field Sales alone recorded in 2024. This ambition demands focused investment in capability development that transcends conventional training paradigms.

Women in Tier 2 and 3 cities frequently require corporate exposure rather than foundational capability enhancement. Skilling and reskilling initiatives must bridge the divide between academic knowledge and corporate readiness, encompassing technical competencies alongside digital literacy, professional communication skills, and financial education. Structured onboarding, continuous sponsorship, and mentorship programmes prove critical. Pairing women in emerging cities with senior women leaders in metropolitan areas creates invaluable mentorship channels that accelerate professional development. Furthermore, transparent and accessible returnship programmes are vital for reintegrating experienced professionals following career breaks, leveraging their existing expertise and organisational loyalty.

Building Comprehensive Enabling Ecosystems

Organisational policies prove effective only through genuine operational commitment. Companies must establish authentically supportive ecosystems encompassing practical childcare assistance, safe commuting options, and rigorous enforcement of equal pay structures. Career progression frameworks must operate transparently, founded on defined competencies rather than subjective evaluations.

In Tier 2 and 3 cities, family and community engagement becomes non-negotiable, as social norms significantly influence career decisions. HR teams should collaborate with local leaders to conduct family engagement sessions showcasing local women professionals' success narratives, demonstrating how women's employment benefits entire households financially, socially, and educationally.

Technology serves as a powerful equaliser in this transformation. Digital hiring platforms, virtual assessments, online training modules, and remote collaboration tools enable companies to transcend geographical constraints. For women facing mobility limitations, technology becomes a direct employment enabler, facilitating participation in virtual learning environments and seamless remote collaboration with national and global teams.

Conclusion

The workforce transformation is underway, with women from Tier 2 and 3 cities demonstrating readiness to contribute meaningfully to India's economic growth. Organisations that commit to authentic flexibility, strategic local partnerships, comprehensive capability building, and enabling ecosystems will secure not merely diverse talent but a distinctive and enduring competitive advantage. As India advances toward its vision of Viksit Bharat, harnessing this untapped talent represents both an economic imperative and a defining opportunity in the nation's growth trajectory.