Some politicians are pushing draconic anti-LGBTQ+ bills. There is an organized campaign of harassment that has gone after Target for its Pride section and even Cracker Barrel. It can feel like inclusivity is a risky policy for a firm in the current climate, but this is not the case at all. Research has shown that companies that are more inclusive tend to perform better than less inclusive firms.
Despite activists using a “go woke, go broke” rallying cry, it seems as though so-called “woke” companies are more profitable than ever. A 2021 Finnish study showed that LGBTQ+ friendly companies not only had improved profitability, but also higher stock market valuations. There are a number of reasons for this.
Inclusive Companies Have Happier Workers
Unhappy workers aren’t as productive as happy workers, with some studies showing a productivity decline of as much as 10%. One surefire way to make employees unhappy is to treat them as if they do not belong and that their struggles do not matter at all.
Inclusive companies that are more welcoming and willing to go the extra mile to meet the needs of their employees are going to have happier workers. This will lead to higher employee dedication and productivity.
LGBTQ+ Friendly Companies Retain More Talent
A sizable portion of the workforce is LGBTQ+. According to Deloitte, companies “who lead in diversity and inclusion also report higher rates of employee retention.” Retention rates are important because training new employees takes time and resources. Employees that have been with a firm for years come with a wealth of institutional knowledge that is challenging to replace.
Talented people will seek better opportunities if they don’t feel supported or seen at work. It can be tempting for some firms, thinking they are playing it safe, to be “apolitical” when it comes to LGBTQ+ rights. But the choice to not have a stance is a stance, and employees clock when their companies do not support their basic human rights.
Diversity Creates Innovation
One of the most obvious benefits of an inclusive workplace is that it brings together people from varying backgrounds, all of whom have fresh perspectives and outlooks. This makes diverse firms more likely to be dynamic and innovative compared to more homogenous firms.
Studies show that companies with above-average diversity produce a staggering 19% more revenue through innovation than companies that are below average.
Inclusivity Is Popular
Throughout the years, support continues to increase for LGBTQ+ people. In the noise of current American political frays, it can feel like the country is evenly split on LGBTQ+ rights. This is not the case — people are overwhelmingly in favor of equal rights. For example, marriage between same-sex couples, when legalized, was supported by just 53% of Americans. Today, that number is 71%.
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