Building a Better Office: How Employers Can Support Gender Diversity

Last year, President Joe Biden declared March 31 to be the first “Transgender Day of Visibility” in the United States. It was a watershed moment for the transgender, nonbinary and gender non-conforming community, but visibility without meaningful support or legal protections has turned out to be a fragile framework.

Our trans colleagues across the U.S. know of numerous places in our country where they are undesired, unwelcome or even unsafe. Legislation and social media debates remind them of it daily. In 2021, 64% of LGBTQ+ people reported being targets of online harassment, and as of early June, the ACLU was tracking almost 500 anti-LGBTQ+ state legislative bills across the country.

This reality follows us everywhere, including to where we spend most of our waking hours — the workplace. A McKinsey report found that people who identify as transgender feel far less supported than their cisgender colleagues. As a whole, trans people struggle to access workplace benefits, feel less supported by their managers and find it harder to get promoted. The study also found that transgender adults are 50% more likely to be unemployed and on average make $17,000 less per year. 

It’s easy to see why so many transgender workers say they’re not comfortable being out at work. This unique burden and constant need to mask can make it much harder to effectively contribute to their companies, regardless of effort and intention.

These effects are further compounded by intersections with other identities. An estimated 45% of the trans and non-binary population in the U.S. is made up of Black people and people of color. These populations are significantly and disproportionately affected by gender and race-based discrimination at home and at work.

Consequently, these groups face higher rates of stress, anxiety and depression. So, considering all these factors, it’s important to ask: How can companies keep their gender-diverse team members not only protected but also engaged?

The business impact of an inclusive workplace culture

The percentage of gender-diverse individuals in the workforce is growing. A Gallup poll this year found that 19% of Gen-Z and 11% of Millennials identify as LGBTQ+. For many employees, their company’s stance on social issues will factor into their decision to engage or stay with an employer. And as consumers, the LGBTQ+ community is now estimated to have $3.7 trillion in purchasing power.

Creating an inclusive workplace culture is crucial for the success and well-being of individuals and organizations alike. An inclusive company culture allows employees to bring their whole selves to work, leading to increased job satisfaction, creativity and productivity.

Inclusive workplaces benefit all employees, not just those who identify as gender-diverse. On the other hand, a lack of inclusivity can lead to higher turnover rates and difficulty in attracting diverse talent. Leaders have a critical role in creating and maintaining an inclusive workplace culture.

In 2020, Harvard Business Review noted that “failure to adopt trans-specific policies and practices can cost businesses dearly in the form of higher turnover, decreased engagement and productivity, and possible litigation. Discriminatory behavior … also hurts the company’s brand.” As the legal landscape regarding gender identity and expression continues to expand, it’s more important than ever to create an inclusive workplace culture that supports all employees.

Steps employers and teams can take to support gender diversity

There are a few key areas where employers can take the lead on gender inclusivity.

• Non-discrimination and supportive policies: A non-discrimination policy that explicitly prohibits discrimination based on gender identity and expression is a crucial first step toward creating a supportive work environment. When employees know they’re supported if they experience workplace harassment, they’re much more likely to feel safe. Other transition-positive policies are worth considering, as well. In 2021, MasterCard developed Transitioning at Work guidelines to give employees access to language that supported those receiving gender-affirming care.
• Pronoun use: To create a more inclusive environment, it’s important to provide individuals with a way to specify their pronouns on company communications and materials. Encouraging employees to share their pronouns in their email signatures and on their profiles in virtual meetings is a good way to start. Additionally, when meeting someone new, ask for and take note of their names and pronouns. If you make a mistake and use the wrong pronouns, quickly correct yourself and move on. Thank the individual for correcting you and make an effort to use their correct pronouns moving forward.
• When interacting with gender-diverse individuals — and everyone else, for that matter — it’s important to keep the focus on their tasks and quality of work rather than personal questions about their identity. By doing this, you can maintain a professional environment while also being inclusive of all individuals.
• Name and gender marker changes: Creating a streamlined and confidential process for employees to change their name and gender marker on company records, identification and other relevant documents can help transgender individuals feel more comfortable in the workplace. Maintain strict confidentiality around gender markers and documents that include someone’s assigned gender.
• Health insurance coverage: Providing inclusive healthcare benefits that cover gender-affirming care and transition-related medical expenses can help trans employees feel valued and supported. Up to 85% of companies that have gender-supportive healthcare options found that there was no additional cost to providing them to their employees. Some companies, like Meta and Amazon, provide health insurance coverage for gender-affirming care.
• Training and culture: Providing training and education to all employees, especially managers and HR staff, on expansive DEI topics can create a more welcoming and supportive work environment for gender-diverse individuals. 
• Supportive leadership: Leaders and managers have a critical role in creating and maintaining an inclusive workplace culture. They can demonstrate their support for gender-diverse individuals by using preferred pronouns, advocating for inclusive policies and practices and actively supporting and promoting gender-diverse employees. Coqual found that employees are more likely to say their companies are fair if they have inclusive managers and colleagues. Perceptions of fairness are tied to leading indicators of positive business outcomes, such as employees’ trust in the company and their intent to stay.

With a growing number of transgender workers and an increasingly hostile legislative climate toward gender-diverse people, creating an inclusive workplace culture is more important than ever. And it’s just good business: Over 45% of all consumers under the age of 34 say they’re more likely to do repeat business with an LGBT-friendly company.

Employers and teams can take simple, actionable steps to create a more inclusive workplace culture. By implementing meaningful policy change, working together and taking concrete steps to improve, we can create a workplace that supports all employees and ensures everyone feels valued and included.