Rainbow Diversity & Inclusion: Supporting The Business Case
The points below are intended to provide a brief overview of the key supporting
arguments for LGBTTI1 workplace inclusion.
“Diversity is not a program or a marketing campaign. A diverse workforce is a
company’s lifeblood, and diverse perspectives and approaches are the only means
of solvng complex and challenging business issues. Deriving the value of diversity
means uncovering all talent, and that means creating a workplace characterized by
inclusion.” (Deloitte, Global Human Capital Trends 2014, p 92)
While there is no doubt that the legal environment for LGBTTI people in New Zealand has improved
dramatically over the last decades, the lived experience of many people from Rainbow Communities
is still one fraught with fear, avoidance and stigma. People from Rainbow Communities are still
expelled from their families and lose friendships and employment when they come out. Legal
change does not automatically bring about social change and stigma persists. This stigma still affects
a significant number of people from Rainbow communities at home and at work.
“We believe the full economic participation of all New Zealand’s talent is
imperative to this nation’s ongoing growth and success. It is not good enough for
parts of the talent pool to be overlooked, underutilised or excluded. For innovation
and creativity we need to tap into all the knowledge and experience available.”
(BNZ Diversity Case Study 2014)
There is as yet no New Zealand research data that examines the situation for Rainbow Community
employees in a robust and comprehensive manner but there is a growing body of international data
in this area that we can draw on and some of this is listed at the end of this paper.
Improving the Bottom Line
“Overall, we find that almost all of top 50 Fortune 500 companies and the top 50
federal government contractors (92%) state that, in general, diversity policies and
generous benefit packages are good for their business. In addition, the majority
(53%) have specifically linked policies prohibiting sexual orientation and gender
identity discrimination, and extending domestic partner benefits to their employees,
to improving their bottom line.” (Sears, Mallory & Hunter 2011)
The central argument for all elements of Diversity & Inclusion in the workplace is that creating a
work environment where people can bring the whole of themselves to work results in staff being
able to be more productive and benefit the company by the richness of the perspective they bring.
1
LGBTTI = Lesbian, Gay, Bisexual, Takatāpui, Transgender, Intersex – Rainbow is used as an umbrella term for
this group.
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The arguments put forward in support of the Business Case for Diversity & Inclusion as typically
applied to gender and ethnicity are well-known, and these also apply in regard to Rainbow
Communities in the workplace.
These can be summarised as: Talent Acquisition and Retention, Productivity and Engagement, Brand
Enhancement, Compliance & Risk Mitigation.
Talent Acquisition and Retention:
Deloitte’s Global Human Capital Trends 2014 report makes the point that today’s workforce has
changed.
“The 21st Century workforce is global, highly connected, technology-savvy, and
demanding. Its employees are youthful, ambitious, and filled with energy and
purpose. Millennials are a major force – but so are older workers who remain
engaged and valuable contributors. Critical new skills are scarce – and their uneven
distribution around the world is forcing companies to develop innovative new ways
to find people, develop capabilities, and share expertise.”
In a gloablised and competitive workplace, attracting and retaining skilled staff is becoming more
difficult than before, and given the ease with which New Zealanders move around the globe this
applies here even more.
Publically advertising that you are a Rainbow friendly organisation helps in all these areas, and not
just to employees from Rainbow Communities.
Recent research (2014) from Ireland’s Gay & Lesbian Equality Network (GLEN) reports up to 30% of
Rainbow employees have been bullied at some time on the job, and 10% have left positions and
sought employment elsewhere because they felt it was unsafe to be open about who they were.
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“I changed my career in my late 30s to avoid working in a homophobic environment.” (Gay
man, 50)
The experience people report when they are able to be open about the whole of themselves is
understandably very positive.
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“ Now it’s not the same tension on a Monday morning wondering how to navigate those
questions about what I did at the weekend.” (Lesbian, 33)
“Really, my manager was a gay-friendly person. For that reason, I am still working for the
same company.” (Gay man, 45)
While many heterosexual staff think their organisation is safe and inclusive, this experience is not
always mirrored by Rainbow employees.
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The Pride in Diversity “Australian Workplace Index” (AWEI) 2012 showed there is a 32% disconnect
between the perceptions of heterosexual people and their lesbian, gay and bisexual counterparts on
the scales of LGBT inclusivity, senior management support and the ability to be themselves at work.
(AWEI 2012)
Productivity and Engagement
Deloitte’s Global Trends in Human Capital report (2014) states:
“Companies around the world agree that employee engagement is vital. Our global
survey showed that executives rate “retention and engagement” as their number 2
priority.” (p75)
When staff feel unable to be open about who they are they report being less productive in the
workplace, and also more likely to move to an employer where they can.
Australian research shows that:
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50% of LGBT employees would feel more committed to an employer who introduced LGBT
diversity policies and programmes
Almost half of LGBT people experiencing lack of workplace inclusion report that they achieve
less as a result
The constant effort involved in concealing one’s identity reduces performance.
Some 52% of closeted gays said they felt stalled in their careers, compared with 36% of noncloseted gays2
The Irish report cited above bears this out:

“It can be quite a strain keeping things hidden. It uses energy better used on other things.”
( Lesbian, 48 years old)
Brand Enhancement
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2
Become an employer of choice: The Gen Y and Millennial workforce now expects
organisations to be obviously open and inclusive and to have a sense of social responsibility
in this area. Being able to display the Rainbow Tick in recruitment processes shows you fit
this expectation.
Demonstrating that your organisation is a safe and inclusive place for your workforce by
getting the Rainbow Tick and being able to use it in advertising and marketing material
signals to your customer base that you are a modern and inclusive operation.
Gay Census, “Same Same” 2008
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The Pink Dollar is an increasingly acknowledged and sought after segment of the consumer
market. Being identified as part of the Rainbow Tick Programme automatically identifies you
to this market.
Diversity of thought is now a business imperative. Having a workforce that openly reflects
the society your organisation is based in brings in a broad range of perspectives and
enhances your reach.
Compliance and Risk Mitigation
Even with the best policies and processes in place, harassment and bullying in the workplace still
occurs to people from Rainbow Communities. The examples below are from the Irish report quoted
earlier but anecdotal evidence strongly suggests this is still the case in New Zealand.

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“While the policy on discrimination toward LGBT people in my organisation is flawless, the
accepted culture of laughing at gay people is very accepted.” (Gay man, 44)
“For the most part I’ve learnt that reporting injustices really just leads to the reporter being
intimidated and excluded in the workplace as a result.” (Lesbian, 25)
The 2014 report “The ups and downs of LGBs’ workplace experiences” from Manchester University
Business School shows:
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LGBs were more than twice as likely to be bullied and discriminated against than
heterosexual employees
LGBs are one and a half times more likely to experience a range of negative acts compared
to heterosexuals and there were highest for lesbians and bisexuals
In some cases LGBs were nearly three times more likely to encounter certain negative acts
compared to heterosexuals. These include
o People avoiding physical contact with you at work
o Experiencing unwanted physical contact, e.g. touching, grabbing or groping
o Being confronted with unwanted jokes or remarks which have a sexual undertone
Discrimination on the basis of sexuality is illegal under the Human rights Act (1993) and this is also
interpreted to apply to people of diverse gender identity. However anecdotal evidence suggests that
harassment and bullying is still commonplace in the workforce in New Zealand. Engaging with the
Rainbow Tick programme will alert employees at all levels of the danger of this behaviour and assist
your organisation in complying with legislation.
As Claudia Brind-Woody, IBM’s Vice-President and Managing Director of Global Intellectual Property
said in January 2014 “This is more than a social justice issue - it’s good for business.”
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Resources
Websites
The Rainbow Tick http://www.rainbowtick.co.nz
The Human Rights Campaign (USA) Corporate Equality Index ( an index of the Fortune 500
companies published annually) http://www.hrc.org/campaigns/corporate-equality-index
Stonewall UK Workplace Equality Index (an index of 100 organisations published annually)
http://www.stonewall.org.uk/at_work/stonewall_top_100_employers/default.asp
Pride in Diversity : Australian Workplace Equality Index ( an index of Australian organisations
published annually) http://www.prideindiversity.com.au/
Community Business (Hong Kong) http://www.communitybusiness.org/
Research and Articles
(2014) The ups and downs of LGBs’ workplace experiences: Discrimination, bullying and harassment
of lesbian, gay and bisexual employees in Britain. [Helge Hoel, Duncan Lewis, Anna Einarsdottir]
(2014) Working it Out: Driving business excellence through understanding lesbian, gay and bisexual
workplace experiences” [Bryan Macintyre and Elizabeth Nixon]
(2013) “Why the gay geek is the most sought-after worker in London”
http://www.standard.co.uk/lifestyle/london-life/why-the-gay-geek-is-the-most-soughtafter-workerin-london-8773838.html
(2012) Schumpeter “Of companies and closets – being gay-friendly is good for business” The
Economist http://www.economist.com/node/21547222
(2012) Consequences of Disclosure of Sexual Orientation in the Workplace [Nathan Barrett & Jan
Lewis] http://www.nzjhrm.org.nz/Site/Articles/2012_Folder/2012_Spring.aspx
(2011) Economic Motives for Adopting LGBT-Related Workplace Policies [Sears, Mallory & Hunter]
Economic Motives for Adopting LGBT-Related Workplace Policies
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