The value of LGBTQ+ inclusion in today’s uncertain DE&I landscape
Companies gain performance advantages through LGBTQ+ inclusion, yet nearly nine in 10 Swiss firms lag. Here’s how leaders can close the gap....
Diversity, Equity, and Inclusion
As the parades end, the work begins: How we can all contribute to closing the LGBTQ+ equality gap
As Pride Month celebrations fade, sobering data reveals the persistent workplace challenges facing LGBTQ+ employees globally. From the ‘gay glass ceiling’ blocking executive advancement to six in 10 LGBTQ+ Europeans hiding their identity at work, the statistics demand sustained corporate and individual action beyond June’s rainbow displays.
Each June, rainbow flags appear across corporate lobbies and public spaces, accompanied by messages of solidarity that signal growing inclusion of the LGBTQ+ community. Yet with equal regularity, these displays mask a sobering truth: we still have significant work ahead before reaching full equity. Today, these efforts are even more important, as many organizations have retreated from their inclusion commitments, often influenced by a chill in shifting political winds. As Pride Month ends, we invite business leaders to examine the lived realities of LGBTQ+ people through compelling data – and to join us in sustained action that will enable us to celebrate genuine progress come next June.
What the data reveals
Legal equality has written inspiring chapters in the LGBTQ+ story. In 1990, 113 countries still criminalized same-sex acts, but by 2025, this number had fallen to 64. In the same period, same-sex marriage has increased from no countries mandating legal recognition to acceptance in 38 countries.
However, economic discrimination continues to persist. While European Union data shows modest improvement – discrimination rates declining from 22% in 2019 to 18% in 2023 – the deeper currents tell a more troubling tale. A staggering 60% of LGBTQ+ Europeans either never or rarely disclose their sexual identity at work. Though some may do this for privacy reasons, many undoubtedly choose silence as armor against discrimination and threats to their safety. We estimate that, if all LGBTQ+ people revealed their authentic selves, 45% would face workplace discrimination as a result.
This awareness drives LGBTQ+ individuals to invest heavily in education. Around 44% of people in same-sex relationships hold higher education degrees, compared to 28% in heterosexual relationships. These investments yield dividends at middle management levels – 26% of same-sex partners supervise others at work versus 22.5% of heterosexual partners. Yet a “gay glass ceiling” blocks the summit: gay men remain 16% less likely than straight men to reach top executive positions.
The social sphere presents even more pronounced challenges. In 2023, more than half (54%) of European LGBTQ+ individuals still feared holding hands with same-sex partners in public, while 55% endured harassment in public spaces. One in three victims of anti-LGBTQ+ violence suffered three or more attacks within five years. Suicidal ideation remains devastatingly high throughout the community.
“Geography creates its own landscape of inequality.”
The spectrum of experience
These statistics, while illuminating, mask notable variations across the LGBTQ+ spectrum: the community is not a monolith, and neither is the discrimination it suffers.
Transgender individuals bear disproportionate burdens: 43% of trans women and 35% of trans men experience workplace bias, alongside 32% of non-binary, gender-diverse, or intersex individuals. In the same vein, trans and non-binary youth also report the highest levels of discrimination beyond work and elevated suicide ideation.
Socioeconomic status deepens these divides. While 18% of LGBTQ+ individuals with tertiary education report workplace discrimination, this rises to 23% among those with lower educational attainment. The gap widens dramatically for those struggling financially: 38% of LGBTQ+ people who report difficulty making ends meet face discrimination, compared to just 15% of those who find it easy to pay their way. Similarly, more than a third (34%) of LGBTQ+ people with disabilities experience workplace discrimination, versus 16% without disabilities.
Geography creates its own landscape of inequality. In Cyprus, for example, more than seven in 10 (71%) of LGBTQ+ people never disclose their sexual identity, compared to just a quarter (24%) in Denmark. Public displays of affection remain dangerous territory: 80% of LGBTQ+ Slovakians wouldn’t hold their partner’s hand in public, while only 32% of Swedes share this fear.
The lived experience of a well-educated gay man in Scandinavia differs as dramatically from that of a non-binary person with a disability in Eastern Europe as night from day. Recognizing these intersecting identities and challenges becomes essential as we work to dismantle systemic inequalities and support inclusion.
The numbers tell a compelling story of untapped potential.
Equality as a foundation for prosperity
The vast amount of work still ahead – spanning legal protections, economic opportunities, and social inclusion – demands our immediate and sustained attention, particularly for those facing the steepest climbs.
Guaranteeing equality represents both a moral imperative and an economic catalyst. Countries with stronger LGBTQ+ legal protections boast more than double the share of women in parliament (34% versus 15%) and 30% lower gender pay gaps. Legal inclusivity correlates positively with economic development across nations.
The numbers tell a compelling story of untapped potential. For example, Open for Business research reveals that many Southeast Asian countries could gain 0.4 to 1.5 percentage points of GDP annually through greater LGBTQ+ inclusion, representing tens of billions of dollars annually. Similarly, European nations could harness 0.3 to 0.6 additional percentage points annually, translating to 3-6bn USD per country annually.
Mentor LGBTQ+ colleagues and sponsor their advancement to break through glass ceilings.
Your role in this transformation
Real progress requires action across three critical domains, with the understanding that experiences vary dramatically across the LGBTQ+ community, based on identity, geography, and economic circumstances. These actions are for everyone – LGBTQ+ individuals, leaders, and allies alike.
Legal domain – use your vote
Vote consistently for candidates who champion comprehensive LGBTQ+ protections and contact your representatives about pending equality legislation. Support legal advocacy organizations that fight for the full spectrum of rights – from employment and housing discrimination to healthcare access, parental rights, and freedom from violence. Push for laws that protect everyone across the LGBTQ+ community, from same-sex couples seeking equal inheritance rights or adoption rights, to individuals needing protection from conversion therapy.
Economic domain – be a supporter
Champion inclusive hiring, transparent promotions, and comprehensive benefits in your workplace. Mentor LGBTQ+ colleagues and sponsor their advancement to break through glass ceilings. Support businesses and initiatives that create economic opportunities for the most marginalized – transgender individuals, those with disabilities, and those without access to higher education. When LGBTQ+ people thrive financially, they gain the security to live authentically and support others facing similar challenges.
Social domain – stand up for justice
Educate yourself about varying safety concerns and create welcoming spaces in your communities and workplaces. Use your social capital to create acceptance where others might not feel safe advocating for themselves. Challenge discriminatory language and build bridges between communities. Personal connections matter most – when people get to know LGBTQ+ individuals as neighbors, colleagues, and friends, they discover a shared humanity, and acceptance naturally follows.
Become part of the solution.
The data is clear: we have work to do.
Next step: Become part of the solution. Pick one action to implement before your summer holiday – and stay the course until Pride Month comes around in 2026.
Authors
Related
Speaking up and staying strategic
When talk of diversity triggers backlash, leaders face a paradox: how to advance inclusion goals while choosing language that keeps dialogue alive in hostile environments....
Why LGBTQ+ inclusion still drives economic performance
While support for workplace LGBTQ+ programs has dropped to just 38% globally, cities with strong inclusion policies demonstrate four times higher human capital performance and double the innovation scores than their less...
It’s time for leaders to nurture inclusion by reinforcing values and creating psychological safety
While some organizations retreat from inclusion commitments under political pressure, the path to lasting transformation lies in embedding diversity deeply within core values rather than treating it as a compliance issue. Leaders...
Learn Brain Circuits
Join us for daily exercises focusing on issues from team building to developing an actionable sustainability plan to personal development. Go on - they only take five minutes.
Explore Leadership
What makes a great leader? Do you need charisma? How do you inspire your team? Our experts offer actionable insights through first-person narratives, behind-the-scenes interviews and The Help Desk.
Join Membership
Log in here to join in the conversation with the I by IMD community. Your subscription grants you access to the quarterly magazine plus daily articles, videos, podcasts and learning exercises.