Pride Month and Beyond: 6 Ways to Support Your LGBTQ+ Employees

Quick look: Pride Month gives employers an opportunity to celebrate and stand behind their LGBTQ+ team members, but creating an inclusive workplace is a year-round commitment. LGBTQ+ employees contribute meaningfully to workplace culture and success, and business leaders can demonstrate support through the benefits they offer, the policies they write, the communications they send, and the culture they shape.

Every June, Pride Month shines a light on the lived experiences and ongoing advocacy of LGBTQ+ people. For many employers, it’s also a chance to reflect on whether employees feel respected and empowered throughout the entire year, not just during Pride Month.

While workplace inclusion has advanced in many ways, some LGBTQ+ employees still face barriers related to belonging, representation, and equitable opportunity. But small and medium-sized businesses (SMBs) are in a strong position to change that.

Below, we explore what the workplace may feel like for LGBTQ+ employees and six strategies to make your workplace one where everyone can succeed.

The reality of work for many LGBTQ+ employees

The cultural landscape has shifted considerably. According to recent Gallup research, 9% of U.S. adults identify as LGBTQ+, more than double the rate when tracking began in 2012. However, this hasn’t automatically translated into better workplace experiences, with the Human Rights Campaign Foundation finding that:

• 40% of LGBTQ+ workers have hidden who they are at work for fear of stigma or harm
• 35% have heard coworkers make derogatory jokes or comments about LGBTQ+ people
• 54% of transgender and non-binary employees say they feel unhappy or depressed at work

Additionally, the Williams Institute at UCLA School of Law found that 47% of LGBTQ+ workers have experienced workplace discrimination or harassment over the course of their careers, and employees who are open about their identity with even one colleague or manager are three times as likely to report discrimination than those who aren’t out to anyone.

Equal ambition, unequal access

Career growth and advancement are goals shared by many employees, but access to leadership opportunities is not always experienced equally.

McKinsey & Company’s research shows that LGBTQ+ representation declines at each step up the organizational chart. For example, LGBTQ+ women hold 2.3% of entry-level roles, but that figure falls to 1.6% at the manager level and drops further from there.

Similarly, transgender employees are more concentrated at the entry level than their cisgender peers, less likely to take on supervisory or hiring responsibilities, and more liable to consider their gender identity something that deters from their advancement.

The value of a welcoming work environment

Creating a workplace that empowers LGBTQ+ staff isn’t just the considerate thing to do, it can also positively impact business performance. The U.S. Chamber of Commerce found that:

• Companies with LGBTQ+-supportive practices are 3% more productive
• Those same organizations experience stronger profitability and market valuation
• 70% of LGBTQ+ employees say their employer’s stance on LGBTQ+ issues makes them more likely to stay
• 72% of LGBTQ+ allies factor a company’s LGBTQ+ support into their decision to accept a job offer

An engaged, stable workforce is an obvious win, and a culture where people feel seen and respected is one of the most effective ways to build it.

6 things SMB leaders can do now

True change requires more than good intentions; supporting LGBTQ+ employees in the workplace means taking action across culture, policy, and benefits. Here are six strategies SMB leaders can put into practice:

1. Build a robust nondiscrimination policy

When drafting or revisiting your nondiscrimination policy, explicitly include sexual orientation and gender identity as protected statuses, alongside all other categories required under applicable human resource (HR) law. Define behavioral expectations clearly, and make sure employees have a confidential channel to raise concerns without fear of retaliation. Concerns should be investigated promptly, and outcomes should be consistent.

SHRM’s LGBTQ+ workplace toolkit is a solid starting point, or an HR outsourcing partner can help ensure your policy is comprehensive and compliant.

2. Revisit how your company communicates

Reviewing your internal and external communications for equity can surface blind spots you didn’t know were there. Some questions to ask include:

• Do your forms, job postings, and internal materials use gender-neutral language and move beyond binary options?
• Are employees encouraged to share their preferred pronouns in email signatures and messaging platforms, if they choose?
• Do workplace policies like dress codes reflect assumptions about gender that may no longer apply?
• Does your outward-facing content (e.g., website, social media, marketing) reflect a diverse workforce and audience?

3. Make education an ongoing priority

Bias often persists not because people are unkind, but because they haven’t had the chance to learn. Providing your team with training on topics like workplace diversity, unconscious bias, harassment prevention, and respectful communication can build awareness.

Leadership behavior also plays an important role. Managers who model inclusive language, empathy, and create psychological safety further set trust and a welcoming tone.

4. Design benefits with your whole workforce in mind

Today’s employees have varied needs. For LGBTQ+ workers especially, the right benefits can influence whether they choose your company and whether they stay.

For instance, nearly half of LGBTQ+ adults report financial challenges, compared to approximately 25% of the general population. A 401(k) with an employer match and other financial wellness resources can ease some of that pressure.

Family-building benefits are another area where many LGBTQ+ employees face specific hurdles, and can include:

• Connection to fertility specialists, adoption and surrogacy advisors, emotional support counselors, and legal guidance
• Reduced-cost access to partner clinics and agencies
• A personalized care plan with a dedicated coordinator
• At-home prescription fulfillment and educational resources for every stage of the journey

Mental health coverage deserves equal attention. The American Psychiatric Association reports that LGBTQ+ individuals are 2.5 times more likely to experience depression, anxiety, or substance misuse. An employee assistance program (EAP), telehealth coverage, and a private on-site wellness space can each play a role in supporting employees who need it.

5. Celebrate and champion the LGBTQ+ community

LGBTQ+ employees bring valuable perspectives and leadership potential to the workplace and should have equitable access to recognition, development, and advancement opportunities.

Visibility matters; people who see colleagues with similar identities in leadership positions can imagine their own path there. SMB leaders can bolster this growth by creating a mentorship program that pairs LGBTQ+ staff with sponsors committed to their development.

Beyond policy and benefits, Pride Month is also a chance to recognize LGBTQ+ culture and historical contributions through curated reading lists, educational events, and highlighting the ways LGBTQ+ people have shaped your workplace and industry.

6. Consider external HR support

Building a compliant and inclusive workplace requires ongoing attention to regulations, benefits administration, employee development, and consistently putting resources behind your values. These important tasks are ongoing and can be tricky for growing SMBs to manage internally.

An HR outsourcing partner, like a professional employer organization, can support these efforts through:

• Policy and compliance guidance: Experienced HR professionals help draft and maintain nondiscrimination policies, employee handbooks, etc.
• Fortune 500-level benefits: From 401(k) plans and family-building support to mental health resources and financial wellness programs
• Mentorship program support: Assistance designing and running an effective program
• Learning and development access: Training portals with on-demand modules and support building a professional development strategy
• Actionable DEI data: Insights on pay equity, promotion patterns, turnover, and hiring trends