In India, an estimated 7-8 percent of individuals identify as being part of the LGBTQIA+ community, as per data presented by the Naz Foundation. However, a large part of the community continues to be closeted in the workplace as a consequence of a lack of inclusive culture and support structures. The situation is compounded by daily work life experiences faced by these individuals such as inappropriate jokes, remarks and misconceptions about the LGBTQIA+ community.
Pride in Higher Education
According to a study conducted by BCG, this theme is also reflected on college campuses. The study finds that students face hurdles in coming out on campuses as approximately 56% of LGBTQIA+ students fear differential treatment from their peers, and about 33-36% are concerned about being accepted by both peers and faculty.
Organisations may wonder why it is crucial to create an environment where employees feel comfortable coming out. According to a 2020 study conducted by BCG and New York City’s Lesbian, Gay, Bisexual and Transgender Community Center, “out” employees feel twice as psychologically safe, 1.5 times more empowered and feel 1.5 times safer making mistakes and trying again. In effect being out, leads to more open conversations at work enabling employees to contribute constructively.
In 2022, BCG launched the ‘BLISS’ (Bias-Free, Leadership, Inclusion, Safety, and Support) index to measure inclusion, for which we surveyed 400 LGBTQIA+ individuals in India. The study found that providing a more inclusive culture and elevating the BLISS score from 55 to 75, on a scale of 0-100, led to a 16 percent increase in employee happiness and a 10 percent reduction in retention risk.
Pink Economy: The Untapped Potential
Members of the LGBTQIA+ community and the people they influence are a significant potential customer base with untapped economic potential. The community constitutes a substantial portion of the consumer base, contributing a nominal GDP of $168 billion in India and $4.7 trillion globally as per the estimates published by LGBT Capital. The preferences of this community for products and services can differ from the cis-straight market. This presents organisations with an opportunity to devise distinct strategies to address the specific needs of this market segment.
In India, there is a growing awareness and support for this pink economy and some organisations have already launched products and services catering to the community, such as joint bank accounts, health insurance for same-sex partners, gender fluid clothing, LGBTQIA+-themed events and many more. These examples, however, remain more of an exception than the norm, and organisations at large should draw lessons from these pioneering examples.
The journey ahead
Companies must prioritise creating an inclusive culture for LGBTQIA+ employees. This requires changes in two crucial areas:
Strengthening the foundations of inclusion: This involves making policies, processes, benefits, and infrastructure LGBTQIA+ inclusive. For example, healthcare support should be offered for employees undergoing gender affirmation, partners of LGBTQIA+ employees should be extended the same benefits as spouses of heterosexual employees, dress code policies and language used in corporate communication should be made gender inclusive. Companies should understand that benefits extended to this group have a cascading positive effect on the broader set of employees. For example, improving medical insurance coverage to include benefits such as ART (HIV medication) is not LGBTQIA+ exclusive. This list is not exhaustive and companies should conduct a policy audit to identify which of them require an update.
A key consideration for companies while offering these benefits is protecting confidentially. The company should have clearly defined a limited set of people who administers and facilitates these offerings and train them in handling sensitive data. Likewise, companies should also support an Employee Resource Group (ERG) for the LGBTQIA+ community and offer options to join confidentially.
Building a long-term strategy: To embed inclusion into its cultural fabric, an organisation needs a comprehensive plan of action which usually unfolds in three steps.
Articulate: First, leaders or organisations need to define the DEI strategy and clearly lay out ‘What does great look like’. This makes objectives clear allowing for steady, sustainable progress towards them.
Activate: Second, organisations need to activate the culture through behaviours of leaders. These can manifest in various forms such as creating diverse teams, being vocal allies, rewarding and recognising inclusive behaviour, and using inclusive language. Integrating these actions into their daily routines empowers leaders to role model and drive cultural change.
Embed: Lastly, organisations need to embed inclusion in their culture through broad-based efforts in the organisation. This may involve conducting workshops and training sessions for employees, hosting panel discussions to share the lived experience of LGBTQIA+ individuals and creating allies who can role model and champion inclusion across all levels of seniority during daily interactions at work. Setting up an ally group can be a game changer. Among other things, it builds a critical mass for rolling out various initiatives. Additionally, allies are 3 times more likely to intervene or speak up than LGBTQIA+ employees, against any discriminatory misconduct against LGBTQIA+ employees in a company.
In summary, there is a strong business case for LGBTQIA+ inclusion to complement the moral case. This can be an unlock for employee happiness, motivation, ambition and talent retention. The key to this lies in companies making visible and intentional efforts. Companies need to come out of their closets, enabling more employees to come out as well.
Harish Iyer (he/she), Equal Rights Activist and Advisory Board Member of Global DEI Alliance
