This Is How The Job Market Will Suffer From Anti-LGBTQ+ Legislation
Source: Fast Company, Lafawn Davis
Photo: Getty Images
Companies need to realize that standing in solidarity with the LGBTQ+ community is not just the right thing to do from a moral standpoint—it is smart business practice.
We’re not even halfway through 2023, and we are already seeing a significant number of anti-LGBTQ+ bills across the U.S.—more than twice the number from all of last year. Many of these bills present a variety of policies that threaten the LGBTQ+ community, including where and how we go to work.
In fact, a new survey from Indeed shows nearly two-thirds of LGBTQ+ individuals are worried about how these bills will affect their career options—75% are hesitant to apply for a job at a company that is headquartered in a state with anti-LGBTQ+ legislation. Fear of discrimination, harassment, and concerns about career advancement top their list of worries. Personally, I also hear this from my own friends, colleagues, and peers and see it myself as part of the LGBTQ+ community.
Like other marginalized communities, it’s no surprise that LGBTQ+ workers and job seekers face unique barriers. These laws will only exacerbate these issues and could mean that many LGBTQ+ workers will have to hide their identity to feel safe at work. Not being able to bring our authentic selves to work is a matter of comfort, well-being, job stability, and safety.
IMPACT TO BUSINESS: HIRING AND RETENTION SUFFER
Companies need to realize that standing in solidarity with the LGBTQ+ community is not just the right thing to do from a moral standpoint—it is smart business practice.
In today’s labor market, companies are already facing headwinds to hire strong talent. The majority (57%) of U.S. employers say they have suffered financial losses from the inability to fill jobs.
According to Indeed’s survey, 46% of LGBTQ+ workers would never apply for a company that is headquartered in a state with anti-LGBTQ+ legislation. According to the U.S. Census Bureau, the LGBTQ+ workforce is comprised of 15 million people, and growing. LGBTQ+ workers make up about 9% of the entire labor force and roughly 21% of Gen Z—the current generation entering the labor force. If you add in allies and advocates, you are looking at an enormous number of potential workers who would not apply to your company based on the laws in your state. And this isn’t only about talent attraction—these laws have the potential to drive people out of the state to new jobs in new locations.
Employers in those states are at risk of losing talent if they do not stand in solidarity with and support of the LGBTQ+ community. Of course, a company can’t necessarily control the laws enacted in its home state. This means that, if they want to attract and retain LGBTQ+ employees, they need to take actionable steps toward building an inclusive and supportive workplace environment for them.
MAKE IT ABOUT ACTION, NOT PERFORMING
In the past, some companies have taken risks to come out in favor of desegregation before the Civil Rights Movement, and of domestic partnership before marriage equality was passed. They may have been motivated by financial incentives and access to new markets, but that doesn’t negate that those actions were conscientiously right. A forward-looking company driven by its sense of social responsibility may stir up controversies in the short term, but the reputational rewards reaped in the long run could be legacy building.
We are at a crucial moment when it comes to LGBTQ+ rights in the U.S., and employers need to do their part in a real and authentic way. The LGBTQ+ community needs benefits, employee groups, psychological safety, representation, and support. And it falls to employers—specifically in states passing harmful legislation—to advocate for their employees.
We cannot expect these job seekers and employees to remain in a state that is instituting laws against their very being. At the same time, moving can be cost prohibitive for many. What we have the ability to do is intentionally create a workplace that gives them a sense of community and security.
Employers should talk to their employees and listen to their feedback to learn what resources they need to thrive at work. It is not enough to put a rainbow on your logo in June. Without real action, that is just a performative gesture called “rainbow washing.”
ACKNOWLEDGE THE SIGNIFICANT ADDITIONAL CHALLENGES OF TRANSGENDER PEOPLE AND LGBTQ+ PEOPLE OF COLOR
Within the LGBTQ+ community, transgender people and people of color face disproportionate barriers. While 69% of transgender respondents agree that their workplace is friendly for those with varying sexual orientations, over half of them say that they face additional stigmas or judgment due to their gender identity or gender expression.
Black respondents were also 85% more likely than white respondents to say they have experienced discrimination due to their LGBTQ+ identity at their current workplace.
Inclusivity is intersectional. Companies need to recognize that there are people who may face additional discrimination based on their identities and should make sure to center these experiences in conversations about DEI at work. These actions prove that you genuinely support your employees, and this support will lead to greater retention.
BRING YOUR AUTHENTIC SELVES TO WORK
Though we have really hard challenges ahead, there is a lot to be optimistic about—as a society, we’ve made tremendous progress in creating more diverse and inclusive workplaces. Nearly 90% of people say their company has a formal nondiscrimination policy in place, and 78% say the company truly enforces it.
But there is still more work to be done. Employers can support their LGBTQ+ employees by offering flexible time for medical treatments, adding LGBTQ+-specific benefits, and updating company records with pronouns for everyone. Company handbooks should be updated to ensure they are written to recognize the lived realities of all LGBTQ+ workers, especially those in the transgender community. Companies can also revisit outdated family-leave policies, or dress codes that enforce gender categories. Without this, a large swath of talented workers are going to look elsewhere.
During Pride month, we should be mindful that LGBTQ+ is not a one-month-a-year occasion to support the community, but a year-round commitment. Ultimately, being able to bring your full self to work brings about a sense of belonging. Inclusiveness is good for business because it builds camaraderie and lowers staff turnover. A more diverse workforce can also spur fresh ideas and innovation, and open new pathways for businesses. All these invariably lead to what CEOs, boards of directors, and shareholders all want—bigger profit, higher stock price. The “get woke, go broke” sentiment cannot be further from the truth. In fact, the sentiment should be, “Care for your employees and they will care for your business.”
At Indeed, DEIB (Diversity, Equity, Inclusion & Belonging) is one of our core values and is deeply embedded into our culture and business, which impacts our employee experience, job seekers, and clients. We encourage, and urge, all businesses to realize that diversity is not an initiative or a program that sits in the corner of HR, and should be deeply ingrained into all business operations.