Beyond tokenism: How MSMEs can drive LGBTQIA+ inclusion and unlock workforce potential

SC ruling brought LGBTQIA+ rights to the forefront, yet significant challenges remain, especially in the workplace. While large corporations are making strides toward inclusivity, the MSMEs can also help

In today’s globalised corporate landscape, diversity and inclusion are no longer just buzzwords; they are essential components of sustainable business practices. In India, the conversation around inclusive hiring is still in its nascent stages but gaining momentum, particularly after the landmark 2018 Supreme Court decision that decriminalized homosexuality (Section 377). This ruling brought LGBTQIA+ rights to the forefront, yet significant challenges remain, especially in the workplace. While large corporations are making strides toward inclusivity, the role of Micro, Small, and Medium Enterprises (MSMEs)—the backbone of India’s economy—cannot be overlooked.

Current corporate hiring practices for the LGBTQIA+ community

Large multinational corporations (MNCs) in India, have taken significant steps toward creating LGBTQIA+ inclusive environments. MNCs are leading the charge with dedicated LGBTQIA+ programs, gender-neutral restrooms, and Employee Resource Groups (ERGs). These initiatives are paving the way for an environment where LGBTQIA+ employees, as well as employees identifying as nonbinary individuals, feel accepted and can fully contribute. However, the reality remains that while 70% of global corporations have LGBTQIA+ inclusive policies, only 20-30% of Indian firms have implemented concrete measures. The gap between global and local practices highlights the need for more widespread adoption of inclusive policies.

Challenges persist, even among these trailblazers. Tokenism, where companies launch diversity programs more for optics than for true inclusion, remains a significant concern. Additionally, most corporate job postings still use binary language, excluding nonbinary individuals and creating barriers right from the first point of contact. However, there are exceptions today, which have successfully implemented fully gender-neutral language in job postings and extended benefits to same-sex partners, setting an example of true inclusion.

The role of MSMEs in LGBTQ+ hiring

MSMEs are vital to the Indian economy, contributing to over 30% of the GDP and employing a significant portion of the workforce. Unlike larger corporations, MSMEs can be more agile and adapt faster to changing social norms, making them key players in fostering grassroots-level inclusion. However, their role in LGBTQIA+ hiring is often overlooked.

The challenges MSMEs face in this area are unique. Resource and infrastructure constraints may limit their ability to roll out large-scale diversity programs, and many small business owners may not fully understand the benefits of LGBTQIA+ inclusion due to cultural stigmas or lack of exposure. However, MSMEs that have embraced diversity have seen tangible benefits not just from a workplace and culture perspective but also from a productivity perspective.

How MSMEs can encourage LGBTQIA+ hiring

While MSMEs may face challenges, there are actionable steps they can take to become more inclusive. Starting small but impactful is key. For instance, adopting gender-neutral job descriptions, using inclusive language, and incorporating pronoun usage during the onboarding process can make a significant difference. Updating internal policies to recognise same-sex partners in employee benefits is another crucial step.

Partnerships and networking are also vital. MSMEs can collaborate with organisations like Pride Circle and The Humsafar Trust, which specialise in LGBTQIA+ hiring and training. These collaborations can help MSMEs implement diversity training programs and provide access to LGBTQIA+ talent networks.

Upskilling and education are essential in breaking down unconscious biases. MSMEs can introduce diversity training programs that focus on promoting sensitivity toward LGBTQIA+ issues and educating teams about the benefits of a diverse workforce.

Additionally, MSMEs can implement supportive infrastructure changes, such as gender-neutral restrooms and inclusivity statements in their mission and values, signaling a safe and welcoming environment.

MSMEs have the potential to be champions of LGBTQIA+ inclusion in India’s workforce. By fostering inclusive hiring practices, MSMEs can contribute to creating a more equitable and innovative workplace. The benefits of inclusive hiring are clear—greater employee satisfaction, increased creativity, and higher productivity. MSMEs can drive systemic change and create a ripple effect that resonates across the larger economy. In doing so, they not only contribute to social equality but also position themselves as leaders in fostering a dynamic and forward-thinking workforce.

The time for MSMEs to step up and lead the way in LGBTQIA+ inclusion is now. By embracing even, the smallest of steps toward inclusive hiring, MSMEs can help build a more inclusive India, one that values and celebrates diversity in all its forms.