Diversity, Equity, and Inclusion (DE&I) has been rapidly climbing the board agenda of Multinational Corporations (MNCs) in recent years. According to a study of 200 CEOs conducted by Summit Leadership Partners in 2021, nearly all of the participants (95%) stated that DE&I is a priority for their companies in the next one to two years. A separate report from McKinsey confirms that companies with diverse leadership teams consistently outperform their peers financially. Although the benefits of having a diverse and inclusive workspace are universally accepted today, many MNCs tend to follow a one-size-fits-all policy, even though the definition of ‘diversity’ usually differs across geographies. While global standards of DE&I are key, global companies must keep local differences in mind to deliver real impact on the ground.
Over the last few decades, MNCs have been attracted to India, mainly to leverage its strong talent pool and tap into the immense market potential, and this trend is only expected to grow. However, given India’s increasing importance in the global landscape, understanding the nuances of India’s DE&I challenges is critical for sustained growth. In addition to those elements that are common across the world, like gender, race, sexual orientation and disability, there are other unique factors relating to diversity in India. MNCs will be able to create an inclusive and equitable workplace when they recognise these challenges and meet them effectively.
1. Regional differences
Many companies tend to view India as a single entity when in reality, the differences between various states and regions in India are immense. Local languages and customs of the dominant employees or those with a majority tend to seep into the workplace, potentially creating an environment where employees from other regions feel unincluded. Additionally, implicit biases about team members from different cultural and religious backgrounds are likely. Therefore, programmes and interventions that nurture an inclusive culture, raise awareness and eliminate negative prejudices are imperative in the Indian workplace.
2. Socioeconomic inequality
Employment initiatives that aim to hire talent from socially disadvantaged groups, economically weaker sections (EWS), and smaller towns need to consider that people from traditionally disadvantaged groups in India often face multiple obstacles to growth in the workplace. These difficulties could be due to their social background, lack of quality education, and medium of instruction at school (English vs vernacular). Hence, specific programmes and interventions that address this equity gap are required to bring them at par with the others.
3. Ageism
India, which has a high percentage of the prime working-age population, will experience a demographic shift in the coming years due to an ageing workforce and declining birth rates. This demographic trend will lead to a higher supply of older workers in the labour market. Therefore, companies need to develop strategic policies and interventions to harness the advantages mature employees offer and mitigate challenges such as digital literacy, multigenerational collaboration, and unconscious stereotyping.
4. Other factors
According to The World Bank, in 20073, India had approximately 40-50 million disabled people, with the disability rates being higher among men and in rural areas compared to urban areas. And The World Bank estimates that women constituted 20.5% of India’s labour force in 20214 . A few impediments to the participation and success of women and PwD professionals in corporate India are a lack of adequate education, limited access to public spaces and transport, and social and economic exclusion. Enterprises, therefore, need to implement initiatives that create pathways for them to join the workforce and — develop interventions that provide them with the infrastructure and environment they need to prosper in the workplace.
At Sine Qua Non, our global expertise and local acumen enable MNCs from different sectors to plan their DE&I strategy from an Indian perspective. From defining the objectives, assessing gaps, building a roadmap, aligning the policy and practices with a company’s core DE&I framework, sensitising and training team members to measuring the performance and sharing reports for improving effectiveness — we provide comprehensive DE&I consulting services. Capitalise on the diversity of India’s burgeoning skilled talent and help create a more equitable workforce and society with Sine Qua Non as your DE&I partner.
