Cultivating LGBTQ+ Inclusion in the Workplace

Quick look: June is Pride Month, an ideal time for employers to honor and further support their LGBTQ+ staff. LGBTQ+ employees have been shown to positively impact organizations in multiple ways, and small businesses can show their appreciation by fostering inclusion within their culture, policies, employee benefits, and corporate communications.

Pride Month is a time to recognize and support the rights, equality, and dignity of all individuals, regardless of their sexual orientation or gender identity. But while Pride Month is celebrated in June, employers can ensure LGBTQ+ workplace inclusion all year.

A staggering number of LGBTQ+ workers report having experienced employment bias, but luckily there are many ways small business leaders can ignite change. Read on to explore what work may be like for LGBTQ+ employees, how to celebrate Pride Month in the workplace, and ways to make your workplace more welcoming and empowering throughout the year.

What’s work like for LGBTQ+ employees?

Over the past two decades, there has been an increasing acceptance of homosexuality. However, there remains room for improvement, especially in the workplace.

The Deloitte Global 2023 LGBT+ Inclusion @ Work report, which surveyed nearly 5,500 LGBT+ people in various sectors and countries, shows that one-third of employees want to switch to more LGBTQ-inclusive employers. For younger workers and minorities, this figure is even larger. Additionally, Deloitte found that while six in 10 LGTBQ+ staff say it’s important to be out at work, less than half are due to worries about being treated differently (39%), negative effects on career opportunities (26%), and personal safety (19%).

The research also demonstrates the importance of allyship for LGBTQ+ employees. Over 60% of those who are out about their sexual orientation and nearly 70% of those who are out about their gender identity state that allyship helps them to be out. Similarly, over 50% of those who have an LGBT+ role model are comfortable about being out at work, versus under one-third of those who don’t.

Further, the Human Rights Campaign (HRC) A Workplace Divided report found that:

• 46% of LGBTQ workers are closeted at work
• One in five LGBTQ workers have been told or had coworkers imply that they should dress more femininely or masculinely
• 53% of LGBTQ workers hear jokes about lesbian or gay people at least occasionally
• 31% of LGBTQ workers have felt unhappy or depressed at work
• One-quarter of LGBTQ employees feel distracted from their tasks when working in an unwelcome environment and 20% would call out of work to avoid negativity

HRC also reports that the top reason LGBTQ workers don’t report negative comments to their supervisor or human resources (HR) department is because they don’t believe any action would be taken, and they don’t want to hurt their professional relationships.

A difficult ladder to climb

Unfortunately, career progression is more challenging for some people than others. In the U.S., approximately 14 million adults identify as LGBTQ+, and they are just as likely as their straight peers to aspire to be top executives.

However, according to McKinsey, their representation in the corporate world is much lower. For example, LGBTQ+ women comprise 2.3% of entry-level employees, but only 1.6% of managers, and even smaller percentages of more senior positions.

McKinsey also found that transgender people are much more likely to be in entry-level positions than cisgender people of the same age, are less likely to have management, evaluation, or hiring responsibilities, and are more likely to believe their gender or sexual orientation is a barrier to advancement.

Inclusivity benefits all

Providing an inclusive and empowering workplace for LGBTQ+ employees makes a major impact—and the numbers prove it.

The U.S. Chamber of Commerce’s report, Better Business: The Benefits of LGBTQ+ Workplace Inclusion, found that:

• Organizations that are more LGBTQ+-inclusive report 3% higher productivity levels than less inclusive ones
• Companies with LGBTQ+-inclusive practices show improved profitability and market valuation
• 70% of LGBTQ+ staff are more prone to stay with their current employer due to its approach to LGBTQ+ inclusion
• 72% of LGBTQ+ allies are more likely to accept a position with an organization that supports LGBTQ+ workers

5 ways to grow LGBTQ+ inclusion in the workplace

Change is invaluable, but it won’t happen overnight. Intentional, thoughtful action is necessary to develop a culture that enables employees to comfortably bring their whole, authentic selves to work. The following are measures SMB leaders can take to increase inclusivity. Alternatively, business leaders may work with a professional employer organization (PEO) to accomplish these.

1. Establish a robust nondiscrimination policy

As employers develop a nondiscrimination policy, they should be sure to include sexual orientation and gender identity as protected statuses. The policy should explicitly state how employees are expected to treat each other and outline a system enabling them to file complaints anonymously. If/when complaints are filed, HR leaders should promptly investigate and see that appropriate actions are taken.

Employers can reference the LGBT inclusion toolkit from the Society for Human Resource Management (SHRM) or work with their PEO partner to develop a comprehensive policy.

2. Review corporate communications

It’s a good idea to examine your business’s internal and external communications and review them for inclusivity. It’s all too easy to unintentionally send the wrong message by using terms that may be exclusive. Some questions to ask include:

• Do you include options for people who don’t identify in gender binary terms in your public and internal communications?
• Do you encourage employees to include their preferred pronouns in their email signatures and collaboration programs, if they wish?
• Are your policies (like your dress code) free of gender stereotypes?
• Do you have diverse representation on your website, social media accounts, and in internal and external marketing collateral?

3. Educate your staff

Education is key to cultivating LGBTQ+ inclusion in the workplace. While most employees aim to treat their colleagues with respect, some may benefit from learning the most effective ways to do so.

Employers can teach their staff by providing access to a learning and development portal with training on topics like workplace diversity, unconscious bias, harassment prevention, and more. One of the best ways for people to learn is by witnessing the actions of others, and it’s important to encourage team leaders to set a positive example for their teams by using respectful and inclusive words and actions.

4. Offer the right benefits

Today’s workforce is diverse, and not just any benefits package will entice talent to join and stay with your company. Many LGBTQ+ employees, in particular, face challenges that employers can address by offering the right benefits.

For example, Nationwide Retirement Institute surveyed 1,000 LGBTQ U.S. adults and found that approximately two-thirds live paycheck-to-paycheck, and many feel less prepared for retirement, investing, and estate planning than their straight peers. Employers can bridge this gap by offering a 401(k) retirement plan with a company match, if possible, and financial wellness training sessions.

Another impactful benefit to consider offering is family-building support. Many LGBTQ+ couples and individuals face challenges regarding having children, and the process can be very expensive and stressful. A supportive family-forming benefit can include:

• Access to benefits experts, fertility clinicians, emotional counselors, and lawyers, as well as a dedicated care manager
• Discounted rates at select fertility clinics and adoption and surrogacy agencies
• Personalized care plans
• Prescription ordering and at-home delivery
• Support and educational resources for every stage of growing a family

Unfortunately, mental health issues tend to disproportionately impact the LGBTQ+ community. The American Psychiatric Association reports that LGBTQ individuals are 2.5 times more likely than heterosexuals to experience depression, anxiety, and substance misuse. This makes providing various mental wellness benefits critical to supporting your LGBTQ+ workforce. Employers can consider offering access to an employee assistance program (EAP), telehealth care, and a private in-office wellness room.

5. Celebrate and support the LGBTQ+ community

Your LGBTQ+ workforce, and the community at large, is full of talent and aspiration—make sure you recognize that! Employees with protected statuses should be celebrated, appreciated, and promoted at the same rate as other employees.

When employees see similar colleagues in senior-level roles, they are set up for success and can more clearly visualize their career progression. To support this, SMB leaders can establish a mentorship program that allows LGBTQ+ workers to pair with sponsors who can help them grow.

Employers can also encourage their staff to celebrate LGBTQ+ culture and historical contributions each June. Some ideas how to celebrate Pride Month at work include sharing suggested literature, hosting interactive events that share knowledge about the LGBTQ+ community, and more.

PEOs: Your partners for instilling inclusivity

Developing a culture that welcomes, empowers, and supports LGBTQ+ employees is a marathon, not a sprint. It entails continually being open to growth and keeping a pulse on diversity, equity, and inclusion (DEI) topics.

PEOs can help. Their HR professionals work with you to make your workplace inclusive and enticing for LGBTQ+ talent. A PEO, like ExtensisHR, can assist with:

• Policy and compliance: HR experts are available to guide you through developing LGBTQ+-friendly nondiscrimination policies, employee handbooks, and more.
• Employee benefits: PEOs can provide Fortune 500-level benefits packages, including 401(k) retirement plans, mental health benefits, and family-building support.
• Mentorship programs: A PEO can help you establish a successful mentorship program for your workforce, whether it is in the office, virtual, or hybrid.
• Learning and development: PEOs may provide access to a training portal with various relevant training modules, and assistance with developing a complete learning and development strategy.
• DEI data: ExtensisHR’s DEI Dashboard provides actionable data on pay equity, salary trends, employee turnover, promotions, and previous hires.

Developing LGBTQ+ workplace inclusion is tremendously valuable, and we’re here to help every step of the way. Contact the experts at ExtensisHR to learn more and get started today.