Data shows LGBTQ-friendly workplaces are more profitable — here's why

Since the start of 2023, states have introduced over 520 anti-LGBTQ bills — a record-breaking number that suggests the U.S. is moving backwards in its fight for the civil rights and liberties of all Americans. But if the moral and ethical impact isn't enough to alarm the country, this CEO is asking the U.S. and its employers to consider the economic ones.

Bryan Janeczko founded StartOut, a non-profit dedicated to fostering entrepreneurship in the LGBTQ community, and today the organization has raised over $1 billion for queer entrepreneurs. Janeczko is also the CEO of Nunbelievable, a snack goods company that is committed to combating food insecurity through its one-for-one giving model. As an entrepreneur, a gay man and a father, Janeczko knows a diverse and inclusive workplace often equals a more successful one. But as legislation continues to threaten queer Americans, he wants to remind employers what they stand to lose.

"We know that companies that have supportive LGBTQ policies in place are more profitable," says Janeczko. "And when you have a diversity of thought, you're going to solve problems much more creatively. That's what leads to innovation. That's what will increase profitability."

Read more: The workplace as a safe space: 5 ways to help LGBTQ employees thrive

In fact, when two Finland-based universities assessed the financial performance of 657 publicly traded U.S. companies between 2003 and 2016, they found that businesses with LGBTQ-friendly policies had a higher likelihood of being more profitable and having higher stock market valuations. This only further supports what other studies have found on the business impact of gender diversity: companies with the most gender diversity in their executive teams were 25% more likely to see above-average profitability than companies with the least gender diversity, according to consulting company McKinsey. 

In response to anti-LGBTQ legislation and rhetoric from conservative lawmakers, Janeczko is asking employers to reflect on whether their workplace is truly supportive of queer talent, or if their benefits or silence on the topic is communicating otherwise. EBN spoke with Janeczko further about today's political landscape and what's at stake for business and the U.S. economy. 

Why does the U.S. seem to be backtracking on progress made by the LGBTQ community?
My natural inclination is to be positive, optimistic and look for solutions, and I still fundamentally operate from there. But I think it'd be reckless of me not to recognize the proliferation of these laws in the last two years that have really started to come on the books. You see what's happening in Florida right now, for example. As a gay man and as a father, I have a nine-year-old son — how would my partner and I live in Florida and take our son to a public school? How are we meant to react or be part of that community?

Read more: How anti-LGBTQ legislation is impacting employees and their families

The LGBTQ community is simply being weaponized in political culture wars, and these [politicians] are playing into fear. Why? It's about control and power: they're just finding some wedge to galvanize their base so that they can have a base. It's wrong, but that's how these folks maintain power. 

At its very core, this anti-LGBTQ legislation is a power play.

How does a power play like this impact businesses, or even the economy altogether?
Even if you've got moral objections or religious objections to the LGBTQ community, you can look at it by the numbers. The business case for it is compelling. 

Read more: Going beyond Pride Month: Ongoing strategies for LGBTQ inclusivity 

Look at other countries that are far bigger than us, like China and India — China is catching up to us in terms of being the world's largest economy. America's competitive advantage is innovation, and whatever we can do to support that innovation is going to drive us into the future. But you can't have innovation if you can't bring your whole self to work. Frankly, America's future depends on our diversity. That's why LGBTQ- friendly companies fare better than companies that don't have supportive policies. They lead to more innovation, they lead to more profitable companies that can grow and come up with the next game-changing idea in this world.

How is innovation tied to freedom of expression?
When you stifle who you are, you're not thinking creatively because you're so busy hiding yourself. It may sound silly, but if I wanted to dress in colorful clothing back in my early banking jobs, that wouldn't have necessarily been accepted. And even something as simple like how I dress made me feel like I was hiding or cloaking myself. And what is the cost of cloaking? If you're constricting yourself in any way, you can't operate in a place of free flow.

If we want to grow as people and as a country, we need to do whatever we can to hone in on creativity and innovation.