Employee turnover is a costly reality for businesses of all sizes. And oftentimes, there’s more to the storey than meets the eye.
That's why Awardco has been digging into all things turnover—we've dug up numbers on industries, types of separations, job roles, and even across states.
But it doesn’t stop there.
Here, we examine turnover rates across gender and LGBTQ+ identities because inclusivity and safety are vital pillars of a healthy and happy workforce.
Understanding the Employee Turnover Rates Across Gender and LGBTQ+ Identities
Below is a collection of research that illustrates the recent state of turnover across gender and LGBTQ+ identities. First, we cover some eye-opening facts. Then, we share some insightful data on turnover rates.
The goal? To help you spot any hidden cracks in your talent strategy and, more importantly, guide you toward the right changes. When employees feel they can bring their authentic selves to work, they're more likely to contribute their best and want to stick around for the long haul.
Gender Identity Discrimination in the Workplace
Imagine feeling totally at ease at work, able to be yourself without question. That's what it's like when employees feel comfortable expressing their true gender identity. They feel valued and respected.
Unfortunately, even today, there’s still gender discrimination in the workplace. This stems from biases (conscious and unconscious), knowledge gaps, and other challenges floating around workplaces that hold people back from that potential.
For example:
- A study looked at the sex and gender of faculty in STEM. It discovered that the more likely people were to not identify as women, the better their emotional well-being was in their STEM roles. On top of that, these individuals experienced less work-related stress.
There are 2 takeaways from this research:
- Gender identification “may serve as a barrier for the retention of highly gender-identified women in these fields.”
- Gender identification is a key predictor of women’s well-being in STEM.
- CBE-Life Sciences Education reported transgender and gender non-conforming (TGNC) students pursue STEM majors at a 10% lower rate than their cisgender peers. The research calls for an approach that acknowledges “complex and intersectional identities” in the STEM workforce.
- A 15-year study looks at the intersectionality of transgender individuals, including those transitioning at work and those returning to work after gender-related healthcare. The outcomes note the importance of providing a supportive policy and transition plan—something not all employers take steps to provide.
Negative experiences cited in the research mention demotions, lay-offs, and discrimination. This all points to the lack of knowledge on challenges and issues the trans community faces.
Turnover Rates & Data Among Gender Identities
Warner Music Group (WMG) researched their own workforce on turnover rates across gender and LGBTQ identities. They found that turnover was higher for those who didn’t declare a binary gender.
More specifically, turnover among those who didn’t declare a binary gender in:
- 2021 was 19%
- 2020 was 24%
- 2019 was 33%
- 2018 was 31%
The turnover rate for folks who identified outside the gender binary was 5-10 percentage points higher each year than for those identifying as men or women, even with the sharp drop between 2019-2021.
Skills for Chicagoland’s Future reports on BLS data, noting discrepancies in employee tenure between men and women:
- Women’s retention rates are higher than men’s “when they have been working for 12 months or less, 13 to 23 months, and 2 years.”
- At 3 or more years, things start to change—“men are more likely to stay longer in their roles.”
- In the ages between 25–44 years, more women leave the workforce than men, “an age range where over 90% of mothers have their children.”
McKinsey notes: “Women leaders are more than 1.5x as likely” (compared to men at the same occupational level) to have left a previous job because of wanting to work for an employer “that was more committed to DEI [diversity, equity, and inclusion].”
LGBTQ+ Identities in the Workplace
Gen Z is destined to become 30% of the workforce by 2030. They are also six times as likely as Gen Xers to identify themselves as LGBTQ+.
Building LGBTQ+ inclusion in the workplace should be a continuous journey.
Here’s why:
- Gen Z team members “who identify as LGBTQ+ were found to be 3 times as likely to be unsure about their organization’s LGBTQ+ initiatives.” In EY’s survey, these individuals rated their employer’s efforts a C+.
- The average Fortune 500 company employs roughly 62,000 individuals. Improving the retention rate among LGBTQ+ employees by just 5% can bring about an annual savings of $4.2 million—and this is simply for turnover costs.
- It gets more complex when you consider POC (people of colour) employees. EY reports racially and ethnically diverse (R&ED) team members within the LGBTQ+ community are: some text
- “2.3 times more likely than their white LGBTQ+ peers to experience microaggressions”
- 1.7 times more likely “to have experienced harassment at a previous employer”
Turnover Rates & Data Among LGBTQ+ Identities
Turns out, the concerning insights above have been having a real impact on turnover:
- City University of New York (CUNY) looked at turnover intentions among LGBT employees in the U.S. federal government sector. Here’s what they found:
- LGBT team members convey “higher turnover intentions” compared to those identifying as heterosexual.
- Providing “an open and supportive work environment” positively affects retention.
- The Williams Institute at UCLA School of Law shared that 34% of LGBT workforce members left a job because of treatment “by their employer based on their sexual orientation or gender identity.”
- Researchers at Penn State University found that among LGBTQ+ employees, those who disclose their identities are less likely to depart their jobs.
The study notes that “organisational support and disclosure” are key areas that can help lessen turnover among LGBTQ+ individuals in workplaces. And those who feel supported in the workplace are more likely to disclose their identities to others.
Impact of Turnover Among Gendered and LGBTQ+ Employees
Overall, high turnover among marginalised groups creates a self-reinforcing cycle. This cycle ultimately hinders progress toward a more equitable and diverse workplace.
Let’s break this down.
Business & Culture
You aren’t just losing talented people. You’re losing:
- Diverse perspectives: Diversity in thought and perspectives unleashes innovation and creativity. Organisations must take advantage of the potential to elevate their products/services and competitive advantage.
- A healthy workplace culture: Turnover impacts employee morale. If people don’t feel safe showing up as themselves, this only deters them from truly connecting with their customers, clients, and peers—connections that nurture a healthy culture.
- Productivity: When people leave, not only is this costly, but it also delays productivity among teams. Team members must find a replacement or workarounds in their colleague's absence.
Broader Societal Implications
Let’s take a step back and look at the bigger picture. When talented folks from underrepresented groups keep leaving jobs, it has a ripple effect beyond the company:
- Limited access to opportunities: Turnover among underrepresented groups keeps them underrepresented and helps perpetuate:
- Systemic inequalities: The research we presented earlier illustrates the systemic inequalities people of certain identities face, which can compel them to walk out the door.
Rather than acknowledging and fixing the root cause, organisations are losing out on the chance to do so. As a result, things do not change—limited access to opportunities and barriers to advancements remain.
- Barriers to advancement: For example, gender biases in performance reviews impact both men and women. Research shows:
- Men who do not take initiative are perceived as “too soft.”
- Managers hesitate to provide needed critical feedback to women team members.
These biases can negatively impact performance reviews and one’s potential to earn raises and promotions.
- Microaggressions: Women who experience microaggressions are “three times more likely to think about quitting their jobs.” Research we discussed earlier also notes that those in the LGBTQ+ community are no strangers to microaggressions in the workplace as well. When these go unaddressed, this only brews an even greater hostile environment.
- Reduced representation: When employees see coworkers from underrepresented backgrounds leaving a company left and right, that can make them think about following suit.
That's what can happen when there's high turnover among marginalised groups. It discourages others like them from even considering the opportunity, which can create a cycle where these groups are consistently underrepresented. This ultimately hurts the company, too, because they miss out on a pool of talent.
- Missed economic opportunities: Diverse and inclusive workplaces produce more financial success—they earn 2.5 times greater cash flow for each team member. They are also “over 35% more productive.”
High turnover among marginalised groups can represent a missed opportunity to tap into this potential and, ultimately, limit the company's growth.
Strategies to Lower Turnover Rates Among Gender and LGBTQ+ Identities
Anti-discrimination policies and diversity training are great, but they're just the first step. If we want to keep amazing talent from all backgrounds—especially folks who identify as LGBTQ+ or outside the gender binary—we gotta go beyond the basics.
So here, we're going to explore strategies for creating a workplace where everyone feels like they can truly belong. No more hiding who you are, just a supportive environment where everyone can thrive.
Creating Inclusive Workplaces
It’s no news that businesses should uphold anti-discrimination policies and diversity training. But what’s more important is what these standards and programmes actually entail and how employers execute these initiatives.
Studies note a supportive and inclusive workplace environment goes hand-in-hand with higher job performance, satisfaction, and overall well-being.
Gather Feedback
Ask your workforce what inclusion and support mean to them. How would they like to see it manifested in the workplace? Gather responses via 1:1 or group discussions along with surveys.
Raise Awareness on Topics
Based on your workforce’s answers, incorporate programmes that ignite awareness of the multi-faceted experiences of gender and LGBTQ+ identities.
Examples of topics may include:
- Allyship
- Intersectionality
- Unconscious bias awareness
Acknowledge and Listen
And sometimes, it simply comes down to acknowledging.
- The CUNY study we covered earlier makes the point that LGBT employees want “to avoid the stigma of being LGBT” and, therefore, hide their identities.
- The Williams Institute also reports that 26% of LGBT employees are not out to their co-workers.
Thus, acknowledging can be a powerful first step. Acknowledge and listen to underrepresented voices, and use this feedback as your compass for taking the necessary action. Leaders must do more than merely “talk the talk.”
Exploring Specific Retention Strategies
These strategies should be tailored to the needs of gender and LGBTQ+ employees. This includes:
- Mentorship programmes that provide the opportunity for underrepresented groups to advance in their areas of expertise.
- Affinity groups that offer a safe space for team members to share experiences, challenges, and successes related to their shared focus and objectives.
- Career development initiatives that focus on the strengths of each team member and map out a career path that nurtures confidence and progression.
- Benefits enhancement that includes trans-inclusive health care, domestic partner benefits for same-sex couples, and impactful rewards and recognition programmes.
Leveraging Leadership
Many organisations preach DEI efforts yet lack sufficient action to follow through with those words.
The leadership team plays an integral role in driving and advocating initiatives. Get their help in promoting DEI efforts to help mitigate turnover. Sixty percent of workforce members want their leaders to be vocal on diversity issues.
Gaining and leveraging buy-in from the top is crucial in driving successful retention programmes. Leadership members are the custodians of company culture; their influence is vital to keeping talent engaged and committed.
Tracking Your Organisation's Data
Warner Music Group’s Environmental Social Governance (ESG) Report highlights accountability as a critical component to making effective strides in DEI and retention initiatives. And achieving this accountability requires data.
The report states:
“We believe monitoring and disclosing data on gender and ethnicity is fundamental to continuing to drive accountability and action. As such, we’ve enclosed data on gender representation in this report.”
Organisations can consider emulating the ESG report by tracking turnover data on their own employees as well. Data serves as the seed to growing and unleashing powerful methodologies that create lasting impact for your organisation.
Create a More Equitable Workplace
We could all use more awareness, education, and empathy in our retention strategies. Data serves as the goldmine for better and healthier workplaces.
So, in addition to leaning on this guide for your retention strategies, we also encourage you to add these to your resources:
