Impact of Workplace Discrimination on Queer and TGNC Employees

Workplace discrimination is a real problem for Queer and Trans and Gender Nonconforming (TGNC) employees worldwide.

In June 2020, the Supreme Court of the United States decided to extend the 1964 Civil Rights Act’s workplace protections to sexual orientation and gender minority employees. This means that just like many other social minority groups, LGBTQ+ individuals now have federal protections against discrimination in the workplace.

However, before June 2020, the lack of these protections exposed LGBTQ+ employees to greater levels of discrimination than other protected groups. In fact, before this decision, the amount of sexual orientation and gender identity complaints filed to the Equal Employment Opportunity Commission was comparable to combined complaints filed under racial and sex discrimination workplace harassment. This is despite the EEOC not being able to enforce cases of LGBTQ+ harassment before June 2020.

Years of discrimination in the workplace have led to many negative economic and personal outcomes for LGBTQ+ people. Economic implications include higher rates of unemployment, pay-gaps, and fewer employee development opportunities. While discrimination has also been found to have a negative personal impact on employee's mental health and their access to employee benefits.

Although the extension of these protections is a welcomed start, it does not mean that Queer and TGNC employees will instantaneously stop facing discrimination in their places of work. It also does not mean that these communities will have an easier time getting a job. Instead, organizations will now have to take a look at their culture, policies, and practices in hopes of reducing discrimination against LGBTQ+ people or face possible litigation.

In the meantime, Queer and TGNC individuals will continue to face the challenges and impact of discrimination.

Higher Rates of Unemployment for LGBTQ People

Before the economic downturn brought on by Covid-19, a study by UCLA found that 19.9% of LGBTQ people were unemployed when the national rate was at a 50-year low of 3.6% unemployment. Furthermore, when looking at just the TGNC population, about 20% reported being unemployed and 46% classified themselves as underemployed. A similar study found that TGNC individuals are five times more likely to be unemployed and even with a college degree, they are four times more likely to be making less than $30,000 a year. These numbers are even more disparaging for Queer and TGNC people of color and those with disabilities.

This huge disparity in the employment rate between LGBTQ+ people and the general public can be attributed to discrimination. A fact that has been studied and supported by multiple studies. One such experiment found that resumes that included factors that identified candidates as Queer or TGNC received fewer callbacks compared with the same resumes without any indication of their identities.

With these statistics, it is no surprise that 1 in 10 LGBTQ+ people report removing identifying items from their resume to hide their sexual orientation or gender identity. This practice is even more common among LGBTQ People of Color and LGBTQ People with disabilities.

During the pandemic, these numbers have skyrocketed, with an additional 17% of Queer and TGNC people losing their jobs compared with 13% of the general population. Additionally, a survey by the Human Rights Campaign found a discrepancy in the reduction of work hours as well. With 1 in 3 LGBTQ of respondents having to face a reduction compared to 1 in 5 people in the general public. This is probably because 40% of LGBTQ employees work in service industries- which has been exposed to greater economic insecurity.

Wider Pay-Gaps

According to the U.S. Census Bureau, when Queer individuals are hired, they often face a wide pay-gap for doing the same work as their heterosexual and cisgender counterparts. A pay gap that can increase in size depending on any additional marginalized identities that these employees hold.

Despite having similar qualifications, on average Queer men report earning 10-32% less than their heterosexual counterparts depending on their field of work. All while Queer women were found to make about 19% less than Queer men and over 25% less than heterosexual men. More problematic are the statistics surrounding Trans employees. Members of this community are up to four times more likely to earn less than $10,000 in yearly wages. That is almost $3,000 less than the federal poverty line.

Pay-gaps can be caused by occupational segregation, vertical segregation, and ineffective equal pay legislation. For example, Queer men are more likely to be overrepresented in female-majority occupations where the average pay is typically lower than in male-majority jobs. While Queer women are more represented in male-majority fields and therefore are more likely to face sexist and homophobic barriers to earning equal pay. Furthermore, Queer and TGNC people are often segregated to lower management positions with a limited number entering top management roles.

Additionally, Queer and TGNC employees are less likely to engage in job-switching even though people who switch jobs experience faster earnings growth. The reason behind this is cited to be because outside options are likely to expose them to greater levels of discrimination.

Again, all of these disparities are even greater if Queer and TGNC employees also identify with other minority identities. Another study by UCLA found that eliminating the racial pay gap would reduce the poverty rate for Black and African American Queer men from 14.5% to 10.9% and the poverty rate for Black and African American women from 24.7% to 16.9%.

Limited Access to Development Opportunities

Out of all of the Fortune 500 companies, only 3 CEO's are openly Queer. None of these openly out CEO's are People of Color or identify as TGNC.

Workplace discrimination has also been connected to higher levels of job dissatisfaction, reduced organizational commitment, and decreased output. The consequence of which is being identified as a lackluster, low-performing employee. A label that makes it more difficult for employees to gain access to development opportunities and promotions. Which often perpetuates the negative impact on their morale and performance.

Even in cases where an employee hides their identity, to avoid discrimination, the amount of mental energy required for ongoing identity maintenance has been found to negatively affect their chance of being awarded development opportunities. This is because instead of spending their mental bandwidth on their job, they spend a significant amount of it changing pronouns, switching names during conversations, and dealing with microaggressions. Knowing full-well that coming out could jeopardize their career.

Even in cases where individuals are out and may still feel motivated to develop themselves professionally, they may not be given the same job advancement opportunities as their heterosexual or cisgender counterparts. In fact, on average the majority of Queer individuals leave their current jobs within three years due to a lack of employee development opportunities.

Since Queer and TGNC* employees are often deprived of these opportunities, organizations also miss out on the full potential and capabilities of their talents. As well as the opportunity to identify future leaders who can help take the company to the next level.

*It is important to note that at the time of this writing, little research has been done on the career development opportunities that Transgender and Gender Non-Conforming people have access to. However, based on other employment trends it is reasonable to assume that their access to employee development and promotions is even more limited than for cisgender Queer people.

Retirement Savings Gap

Queer and TGNC people are less likely to be able to save enough for retirement than their heterosexual and cisgender counterparts. In fact, UBS Investment Bank found that the median retirement savings for same-sex couples is $66,000 versus $88,000 for straight married couples.

This discrepancy is often due to a lack of access to higher-paying jobs, benefits, and financial education.

As previously mentioned a large portion of the LGBTQ population works in the service industry which is notorious for low wages and for failing to provide employer-sponsored benefits like retirement plans.

Retirement is even more difficult for single Queer and TGNC people who do not benefit from living in a dual income home. According to a report from SAGE, this applies to one in three LGBTQ older adults who live alone, compared to 21 percent of the non-LGBT population.

Furthermore, Queer and TGNC people are less likely to have children or family members who might care for them as they age when retirement savings is not enough. This is often an option available to many retirement-age non-LGBTQ people.

Despite the retirement savings gap and lack of support, Queer and TGNC people are more likely to have to retire early due to poor health or having to care for a sick partner.

Additional Implications

Discrimination can also lead to many health problems for Queer and TGNC individuals. People who are “out” in the workplace and experience discrimination report higher levels of compounded stress and health-related problems in comparison to their heterosexual counterparts. Even those who are not out experience a toll that leaves workers feeling distracted, exhausted, and depressed.

Other biased practices can make it difficult for LGBTQ employees to take care of these health issues. For example discriminatory paid leave policies can make it particularly challenging to take time off to seek care. Even in cases where transgender-specific or HIV-related health care is needed.

This leads Queer and TGNC people to have to make the choice of whether or not they should take unpaid leave. However, financial concerns often keep 65% of LGBTQ people from doing so or taking less than they needed. Over half cited fear of losing their job, or being sidelined at work (e.g., removed from projects, denied a promotion, etc.).

This lack of inclusive policies can have other ramifications that make it difficult for Queer and TGNC employees to start a family or care for their loved ones. If a company has paid family leave benefits that only apply to birth mothers, this can leave out mothers who did not give birth, employees who became parents through surrogacy, and Trans parents. It also leaves out adopting families which disproportionally affects LGBTQ families who are four times more likely to parent an adopted child.

Furthermore, many Queer and Trans people have additional caregiving responsibilities that extend to “chosen family". In fact, 58% of respondents anticipate having to be a caregiver for at least one chosen family member should they experience a serious health condition. However, even those Queer and TGNC folks that have access to paid family leave are often unable to access it if it only applies to immediate family members.

Conclusion

Although this group of employees can now receive some justice, discrimination will continue to take place unless organizations employ the right inclusion practices and create better work environments for LGBTQ+ employees.

Learn how to create a more inclusive work environment for your employees by checking our Ultimate Guide to Queer and Trans Inclusion in the Workplace.