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The Value of Counting

Pat Baillie, Terry Hildebrandt, Ralph Carter and Chris Crespo, 07-11-2010

Lesbian, gay, bisexual and transgender (LGBT) employees are on the verge of being included as a protected class in the United States with the addition of gender identity or sexual orientation to federal legislation. Some of the key indicators of organizational acceptance are policies, benefits and the workplace climate for LGBT employees. These are valuable because customers and potential clients expect companies to walk the talk and include LGBT diversity in their business strategies and goals. Many companies already have protections in their equal employment opportunity policies and provide benefits packages for LGBT employees and LGBT diversity training. These policies can enhance key business metrics such as recruitment, retention and productivity.

Organizations committed to equal treatment of LGBT workers look for ways to quantify their inclusion efforts and find ways to evaluate the recruitment, retention and productivity of these workers. Once diversity executives can measure these areas quantitatively, it becomes easier to evaluate diversity programs, develop responsive policies and provide the needed benefits to keep employees who can produce for an organization.

LGBT metrics are not new. Employers typically capture an employee’s race, ethnicity, gender and sometimes military and disability status to quantitatively evaluate recruitment and retention across the organization and within individual business units. The methodology is already in place on how to collect and use this type of data. It makes good business sense to leverage existing data collection methods to track and gain a more complete picture of LGBT employees, as this can enhance efforts from diversity and inclusion employee resource groups, task forces and other initiatives.

Companies that rate high on indices such as the Corporate Equality Index often outperform their sector competitors for LGBT market share. Yet, in the United States, LGBT employees can be fired in 29 states simply for being LGBT. The lack of federal protections for LGBT employees impacts the performance and retention of these valuable employees.

LGBT Around the World

The global nature of modern business presents some additional concerns for LGBT self-identification efforts. Many countries, such as Canada and the European Union member countries, already provide workplace protections for LGBT employees. However, in many Middle Eastern countries, punishments for violating laws against being LGBT include imprisonment and death.

Companies may want to protect their LGBT employees, but many countries cannot provide a safe harbor for LGBT employees who self-identify. Imagine if a woman or a person of color was subject to prison or death for who they were. What would a company do to change those conditions for their employees?

Bank of America Corp. and JPMorgan Chase & Co. indicate that their anonymous surveys include LGBT questions worldwide. Other companies in Canada and Europe have realized that different standards of data collection polices may need to be considered for their HR systems. IBM has encountered strong resistance to tracking LGBT identity through confidential employee records in certain countries. Businesses must consider how to handle individual employee records for employees who are transferred to countries without protections for LGBT employees and their families.

Determining that LGBT protections are an important business need is the first step. The next is identifying the tools to ensure that change happens. Voluntary LGBT self-identification is a tool that can begin the change process now. «

– Pat Baillie, Terry Hildebrandt, Ralph Carter and Chris Crespo


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