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The Costly Business of Discrimination

Discrimination and dollars Center for American Progress Gay and transgender employment discrimination imposes significant financial harm on businesses, introducing inefficiencies and costs that cut into profits and undermine businesses' bottom lines. VS FINANCIAL BENEFITS OF FAIRNESS ECONOMIC COSTS OF DISCRIMINATION When employers hire individuals based on COMPANIES THAT DON'T PROTECT AND SUPPORT GAY AND TRANSGENDER WORKERS ARE INCREASINGLY OUT OF STEP job-irrelevant characteristics such as sexual WITH MOST OF CORPORATE AMERICA: orientation and gender identity, businesses are left with a substandard workforce that diminishes 100% 93% 96% Recruitment their ability to generate healthy profits. 85% 74% 74% Discrimination needlessly forces out otherwise 49% qualified gay and transgender individuals from employment, introducing significant 40% FORTUNE 500 FORTUNE 100 FORTUNE 50 turnover related costs to replace the departing 1 Sexual orientation nondiscrimination policies I Gender identity nondiscrimination policies Retention employee - costs that could have instead been spent on primary business operations. EVERY SINGLE COMPANY on Fortune magazine's list of the "100 Best Companies to Work For" includes Discrimination and hostility toward gay and transgender workers represents an sexual orientation in their nondiscrimination policy. unnecessary distraction that prevents them from performing their core functions on the job. MORE THAN HALF of these companies include gender identity. Job performance and productivity Better benefits = Nondiscrimnation Better retention polices are important When companies discriminate and allow unfairness to go unchecked in the workplace, %24 67% they risk alienating the gay and transgender 49% 43% consumer market, a market that wields a 19% cumulative spending power of nearly $1 trillion. Marketing to consumers Straight workers Gay and lesbian workers Straight and nontransgender transgender employees Gay and employees Workplace discrimination exposes business to potentially costly lawsuits, especially in states that have outlawed gay and transgender workplace discrimination. Compared to 19 percent of straight workers, 43 PERCENT Of gay and lesbian workers said they would have stayed with their former employer SIXTY-SEVEN PERCENT of gay and transgender employees say that it is important to work for a company that has nondiscrimination policies. Only 49 percent of straight and nontransgender individuals thought similarly. Litigation Retention costs Turnover-related costs had they been offered better benefits. HOURLY WORKER: Costs between $5,000 and $10,000 to replace a departing worker. Fair policies promote job performance ONE IN FOUR INDIVIDUALS WHEN GAY AND TRANSGENDER who experienced unfairness PEOPLE ARE WELCOME ON THE JOB, EXECUTIVE MAKING they are more productive, trusting, loyal, entrepreneurial, and satisfied with their career. They are also $100,000 SALARY: on the job say their experience strongly discourages them from recommending their employer to other potential employees. Costs between $75,000 and $211,000 to replace a departing worker. physically and mentally healthier. Sources: "Cumulative spending power of nearly $1 trillion" Witeck Combs Communications, "Buying Power of U.S. Gays and Lesbians to Exceed $835 billion by 2011," Press release, January 25, 2007, available at "One in four individuals who experienced unfairnes..." Level Playing Field Institute, "The Cost of Employee Turnover Due Solely to Unfairness in the Workplace." "Turn-over related costs" Gail Robinson and Kathleen Dechant, "Building a business case for diversity," Academy of Management Executive 11 (3) (1997): 21-31. Better benefits = better retention Level Playing Field Institute, "The Cost of Employee Turnover Due Solely to Unfairness in the Workplace." Nondiscrimination policies are important Out & Equal, Harris Interactive, and Witeck Combs Communications, "Out & Equal Workplace Culture Report," (2008).

The Costly Business of Discrimination

shared by rmmojado on Mar 27
The Economic Costs of Discrimination and the Financial Benefits of Gay and Transgender Equality in the Workplace Employers who discriminate based on sexual orientation and gender identity put themsel...


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