"they" aren't the kind of person we want working here
I assume that the "they" is crossdressers. Do you know this is for sure? To overhear something is usually not enough to make a judgement. The reference could have been "They" meaning....felons or convicted molestors or anything. You assumed that they were talking about crossdressing. I think it would be wise for you to make sure before you voice your disapproval!
On the other hand, if you are correct....then you could put a note in the suggestion box! "Hire people based on their qualifications" Just because someone is pretty should not disqualify them from getting a job!