The research is clear: even as organizations continue to debate issues related to diversity and inclusion, creating truly inclusive environments for LGBTQIA+ employees remains both a moral imperative and a business advantage.
According to our Center for Workforce Transformation’s Workforce Panel study of more than 1,500 employees conducted in May 2025, organizations have significant room for improvement in their Pride Month activities and year-round LGBTQIA+ support.
Most importantly, just 39% say their company's Pride messaging is backed up by meaningful actions. But for those who believe this, there is a significant impact. Regardless of a person's identification, they are nearly 1.9x as likely to experience belonging when this is the case. Similarly, this action shows employees care. They are 2.2x as likely to say the organization cares about their health and well-being when Pride words are backed up with actions.
We know that inclusive work environments foster greater engagement, a sense of belonging, and improved organizational performance. Organizations that are LGBTQIA+ inclusive have been found to have better talent attraction and retention, increased engagement, and improved collaboration resulting from a more diverse workforce.
LGBTQIA+ acceptance has made significant strides globally. In recent years, we've seen Bangladesh elect its first transgender mayor and Angola revise its penal code to allow same-sex relationships while banning discrimination based on sexual orientation.
Yet progress remains uneven. Homosexuality is still criminalized in 69 countries, and even in progressive regions, we see concerning reversals — from anti-LGBT movements in Poland and Hungary to policy rollbacks in other nations.
Research from Stonewall found that in the U.K., people increasingly support the LGBTQ+ community, with 1 in 3 actively "respecting" LGBTQ+ individuals and one in five declaring "admiration." More than 7 in 10 British people would support someone close to them who came out as LGBTQ+.
Despite these positive trends, challenges persist. The UK Government's own research shows that reported LGBT+ hate crime has grown at double the rate of other forms of hate crime over recent years. Even today, Stonewall reports that "too many LGBTQ+ people still have to hide who they are in the workplace." When LGBTQIA+ employees can speak about their personal lives without fear of negative consequences, it matters, not just for queer employees, but for everyone. These employees are 1.5x as likely to say they can be their authentic selves at work, regardless of their identification.
A new term, the "lavender ceiling," refers to the barrier LGBTQIA+ employees face in career advancement. Recent research found that within the Fortune 500, there are only 4 openly LGBTQIA+ CEOs, representing just a tiny fraction of leaders who are openly part of the LGBTQIA+ community.
But there is some possible good news here. In our study, nearly half (48%) of all employees said that LGBTQIA+ employees are represented and supported in leadership or high visibility roles in their organization. Bias significantly contributes to this lavender ceiling. Without targeted training to reduce bias and specific supportive policies, LGBTQIA+ employees continue to face barriers to advancement that their peers don't experience. This isn't just unfair — it's a waste of talent and potential that organizations can't afford.
Within organizations, recruitment practices can be fraught with unconscious bias. These implicit biases — attitudes and stereotypes that influence our actions without conscious awareness — can particularly impact LGBTQIA+ candidates. Stonewall found that 18% of LGBTQ+ people looking for work experienced discrimination because of their sexual orientation or gender identity, while 35% worried about facing discrimination.
To create more inclusive recruitment:
While unconscious bias will always be a factor in hiring, training and greater awareness can significantly reduce its impact on your recruitment process.
Our data shows just 55% of organizations have clear policies in place to prevent discrimination and only 48% have resources in place (e.g. ERGs, inclusive healthcare) specifically for LGBTQIA+ employees. When they have those resources and support systems in place, employees are 1.8x as likely to believe the organization supports their health and well-being. A review of FTSE 100 firms found that 80% overlooked LGBTQIA+ employees in their organizational policies.
HR leaders should take these steps:
Beyond policy changes, organizations can create lasting impact through:
Employee Resource Groups: Create spaces for LGBTQIA+ employees to connect. These groups foster belonging, especially crucial since LGBTQIA+ employees often feel excluded. Supportive work relationships have a positive impact on work attitudes and well-being, and are critical to increasing inclusivity.
Leadership Commitment: As with any culture change, senior leaders must drive behavioral changes. They need to visibly support the LGBTQIA+ community and model allyship. This includes supporting those who report harassment, ensuring career opportunities are available to LGBTQIA+ employees, and proactively supporting their career goals.
Comprehensive Education: Since some employees conflate sexualized behavior with LGBTQIA+ identity, education is crucial. Implement training on:
Consider asking all employees to include pronouns in email signatures. When everyone participates, it reduces isolation for LGBTQIA+ employees and normalizes the practice.
Direct representation is important. Our research shows that 48% of employees see LGBTQIA+ representation in leadership or high visibility roles. For these employees, the outcomes of this representation are significant. They are:
At Perceptyx, we help organizations understand their strengths and prioritize opportunities for improvement. Exploring these through the lens of sexual orientation and gender identity can inform policy development and champion LGBTQIA+ inclusion.
When collecting LGBTQIA+ demographic data, consider:
Legal Requirements: Different countries have varying legal requirements for collecting and reporting LGBTQIA+ data. In countries where being openly LGBTQIA+ is illegal, these questions should not be included. Always consult your legal team first.
Purpose and Strategy: Have a clear plan for why you're collecting this data and how you'll use it. Link LGBTQIA+ initiatives to company strategy to ensure meaningful impact.
Question Design: Move beyond binary gender options. Research shows that restrictive questions can reduce engagement and lead to mis-categorization. Consider:
Building Trust: When first introducing LGBTQIA+ demographics in surveys, self-identification rates may be low. It often takes several survey cycles for employees to trust they won't be individually identified. Monitor response rates as an indicator of organizational trust.
People leaders play a critical role in establishing and measuring LGBTQIA+ inclusion. They can support initiatives that establish equitable processes and outcomes for all employees, ensuring that selection, promotion, and development opportunities are truly available to LGBTQIA+ employees.
Ready to build a more inclusive workplace for your LGBTQIA+ employees? Download our comprehensive DEIB Guidebook for research-backed strategies on how to create belonging for all employees. To learn how Perceptyx can support your LGBTQIA+ inclusion efforts through strategic listening and analytics, schedule a demo with our team. For more insights on building inclusive cultures, subscribe to our blog.