Can the Japanese Concept of Kaizen Help You Grow?

The writer Mark Twain once said, “Continuous improvement is better than delayed perfection.” Sounds pretty deep, huh? And although he wasn’t talking about a strategy for business growth, that quote could easily be the tagline for the Japanese philosophy known as “kaizen,” which many businesses have adopted because of its focus on continuous improvement to create more value with less waste. So what is kaizen, and is it something that could be helpful to your business? 

What Is Kaizen?

According to Maasaki Imai, the management consultant credited with bringing the concept of kaizen into the business world, “The message of the Kaizen strategy is that not a day should go by without some kind of improvement being made somewhere in the company.” That might sound like a lot of pressure, but kaizen, which translates to “continuous improvement,” or “change for the better,” puts the focus on improvement as a gradual and methodical process. In fact, in the concept of kaizen, there is no perfect “end” to something – everything can be improved upon. graph with arrows moving upwards

If this sounds like it could end in a rigid and ruthless pursuit of efficiency, which overlooks employees or treats them like machines, that is not the case. When implementing a kaizen-focused strategy, you should be thinking about a variety of ideas that aren’t just focused on output, but also on employees. Kaizen means making the work environment more efficient and effective by creating a team atmosphere, improving everyday procedures, ensuring employee engagement, and making a job more fulfilling, less tiring, and safer. 

In fact, employee engagement is a huge part of kaizen: since kaizen recognizes that people who perform certain tasks and activities are the most knowledgeable about that task/activity, a central part of kaizen is including them to create change as the best strategy for improvement. That means employees should be given autonomy to take action on improvements themselves, which will build a culture of engagement. And, since a major component of kaizen is recognizing that even very small changes can make a big difference, everyone’s contribution is valued, although teamwork is the most central component of kaizen.

One of the most well known examples of a company implementing the kaizen concept is Toyota: within its production system, Toyota encourages and empowers all employees to identify areas of potential improvement and create viable solutions. 

So how does kaizen work in theory and practice? Let’s look at the five key principles behind it, and some strategies for implementing it in the workplace.

The 5 Principles of Kaizen

According to kaizen, in order to strive toward continuous improvement, your business should work on these five key principles:

  • Know your customersKnowledge of your customers and their interests will enhance their experience, and create value for everyone.
  • Let it flow – This principle refers to the target of zero waste in an organization. Sound impossible? That’s the thing about kaizen – you’re never going to achieve zero waste, but if you could that would mean the process of improving would stop. And remember: there is no perfect end point in kaizen.
  • Go to Gemba – “Gemba” translates to “the real place,” and as the leader of an organization, you need to follow the action, as value is created where things are actually happening.
  • Empower people – Teams should all have goals to work towards, and should be given the right tools and processes to achieve these goals. In addition, you need to make sure that no one is given contradictory goals, so everyone can work together as a team.
  • Be transparent – To know if you’re improving, you need to track your performance and progress with real data and metrics.

These five principles should keep all of those small changes coming, and should hopefully lead to three major outcomes, which are the three pillars of kaizen:janitor cart in an office

  • Good housekeeping – This means that your workplace should be neat, clean, and efficient, so that materials and tools are easy to locate, use, and maintain. All of this should help you maintain a balance, and not have either an excess in production, or a shortage of material or goods. 
  • Elimination of waste – Anything that doesn’t add value should be eliminated and removed from your processes to ensure that only valuable services and products are offered. The goal of eliminating waste should help you to improve relationships and communications with outsiders like suppliers, and to provide maximum value and benefit for your customers.
  • Standardization – Standardization involves producing products and services to pre-set specifications. The standards, though, should be appropriate for your business, as well as accepted as fair and achievable by everyone who is involved in the process. Ultimately, a good standard should create the safest, easiest, and most efficient way to perform a job.

Using Kaizen in Your Business

So why might you consider using the central ideas of kaizen in your business? If you’re a small business owner, chances are there are a ton of things you want to do for your business, but you just can’t seem to get to it all, maybe because it’s all just too much and you feel overwhelmed, or like you have to do everything yourself. 

Changes don’t happen at your business because changing everything you’d like to, or making a few major changes, just seems like too big a task and, again, totally overwhelming. But the advantage to kaizen is that it is all about incremental, step-by-step change. It’s a continuous process, not a time-bound one, so you can focus on separating out the urgent and the important.

Another big advantage to kaizen is that it is meant to empower both owners/managers and employees, and give everyone the tools to effect positive change in your business, so you are not the one shouldering the entire burden of change making. 

checklist with a green pencil
If you want to try out Kaizen, then try creating a checklist of “plan-do-check-act.”

If all of this sounds right to you, where do you start? Well, since kaizen requires a lot of collaboration, teamwork, and discussion, the first step to implementing this style of workflow should be to get everyone on board. You’ll have to create a workplace that doesn’t resist change; in fact, employees need to be motivated and fully involved in the change.

The next step, then, is to get everyone involved in identifying problems and solutions; they should also know that they are empowered to make changes. So, for example, if you have an employee working in customer service who has feedback on how to improve the processes in that department, they should have the means to give that feedback, and then they should even be made responsible for implementing those changes. 

And if you’re not sure how to get the above process of implementing those changes rolling, there is actually a four-step cycle to follow to make improvements, known as the PDCA cycle. PDCA stands for “plan-do-check-act,” and it looks like this:

  • Plan: Map out the changes you want to make so that everyone knows what to expect when trying to solve a problem
  • Do: Implementing the best solution to the problem
  • Check: Evaluate the solution to the problem to see if it worked
  • Act: Determine whether or not the solution should become a company standard, or if it needs further changes. If you decide you need to implement more changes, go back to the plan step and start the process over.

We can often get caught up in stressing over the big changes we think need to be made, or we give ourselves strict deadlines for making major changes, but we often just end up getting overwhelmed, and those big changes don’t seem to materialize. If this sounds familiar, stop and consider that maybe making small changes as you go could add up, and result in some pretty big positive changes for your business. Using the concept of kaizen could help you to remove issues at your business from the root, and improve the way you work for good, all while taking some of the burden off of your shoulders. So does it sound like something that could work for your business? 

Are You Sacrificing Innovation for Efficiency?

What are you focused on for your business? Do you have your sights set on improving efficiency, and making sure your business is running like a well-oiled machine? That’s a great goal, but is there a downside to constantly striving toward greater efficiency? There could be: according to some experts, efficiency might just be one of the enemies of innovation. Let’s look at why, how a return to creativity could boost your business by making you more innovative, and how you can inject some of that important creative thinking back into your work.

Efficiency Vs Innovation

arrows in the middle of a target
You’ll have to limit the time and energy put into processes in order to truly be efficient.

According to Investopedia, “The term efficiency refers to the peak level of performance that uses the least amount of inputs to achieve the highest amount of output. Efficiency requires reducing the number of unnecessary resources used to produce a given output, including personal time and energy.” Sounds pretty austere, but many business owners do get caught up in the importance of speeding up processes, eliminating waste, improving quality, reducing costs, and generally pleasing customers, and embrace this way of thinking. 

Now, we’re not saying that those things aren’t important, but really consider what it means to be efficient: according to the business definition of efficiency, you’ll have to limit the time and energy put into processes in order to truly be efficient. And what is something that takes time and energy? Innovation – creating new products, services, or ways of doing things. Innovating also means trying things that don’t work, and that looks wasteful – and who likes waste? 

But creativity is messy, and can’t be reduced to inputs and outputs, or given limited space to grow. And creativity, and the innovation it breeds, could end up making all the difference in your efforts to separate yourself from the rest of the crowd, and ultimately grow.

The Importance of Creativity

Sure, the time and energy you put into experimenting and working towards innovation will have an uncertain future payback. In addition, cutting back on anything can have short-term payouts, making it tempting to work on improving current products and systems rather than finding new ones. But if you’re putting in less you could ultimately end up getting less back, right.

So you might want to consider taking some time to prioritize creativity and innovation over efficiency. Why specifically? Because:

  • Your business’ survival could depend on it – Think of it this way, no matter how efficient business’ producing encyclopedias became, they were always going to be killed off by innovations like Wikipedia. Or if you’re running a taxi company, you can tweak your day-to-day operations, but that won’t protect you from ride-sharing apps. The takeaway: you can improve your current product, service, or way of doing things with as much efficiency as you like, but it’s the businesses that take chances and innovate that could ultimately end up on top.rocket ship soaring above hot air balloons
  • You’ll get a competitive advantage – Your business might not become the victim of such extreme examples as above, but at the very least, you’ll probably end up with a product or service that is overlooked because it’s old and just part of the routine. If you’ve got something new, you’ll get more attention, and will probably be able to command higher prices.
  • You’ll have more engaged employees, and a better talent pool to choose from – Nobody likes to do the same old thing every day, and no one wants to see their talent and creativity go to waste in a stale environment. Not only that, but nobody wants to be treated like a machine that is constantly being told to work more efficiently! So, being known as an innovator will mean you’ll get a better pool of applicants to choose from, and your current employees will be energized by a creative work environment. That could make them more productive, without you having to resort to the austerity of focusing solely on efficiency.
  • You might just learn something! – Striving for efficiency might teach you how to cut back or increase output, but it probably won’t teach you much about what works and doesn’t in your industry, or what customers want. Working towards innovation and being creative, on the other hand, means experimenting, showing early-stage products/services to customers and gauging their reactions, trying to solve real problems, and yes, getting things wrong – but getting things wrong is a great way to learn how to get things right!

Slow Down and Get Creative!

Again, we’re not knocking efficiency: you’ve got to get things done, after all, and some things should be done quickly and with less waste. But, with that being said, sometimes to be truly effective, you’ll have to reduce the pressure to be so efficient, slow down, and try a little creativity and innovation. But if you’re wondering how to foster more creativity and innovation in your business, don’t worry – there are actually some pretty simple things you can do to get the ball rolling:

Give yourself space and time

What’s one major way we’ve managed to cram more efficiency into our working lives? By being connected All. The. Time. It seems like we can’t even wait in line for coffee without firing off a bunch of emails, or commute without jumping in on a conference call. And while we might think we’re making the most of our time this way, are we really? This ruthless efficiency with our time is actually taking away the space for thinking, reflecting, and generating ideas, so try to resist the urge to be plugged in all the time. It’s tough, we know, but don’t worry: those emails can wait.

Seek out difference

You and your team are totally on the same page, right? You know exactly how each of you wants things done, you’ve got the same knowledge base, and you’re working towards the same goals. Great for efficiency, but maybe not for creativity, so go out of your way to connect with new people who don’t share the same exact experience and views as you. They might work in different industries, spend their time in different places with types of people, or think differently than you do – and all of these differences could spur you to think in new ways.

Get out of the office

laptop outside on a tree stump
Try to get innovative by working outside and getting some inspiration.

Yes, we know, it’s hard to think that you can work efficiently anywhere but at a desk in an office, but being in that kind of space all day can really numb your mind. We’re not saying you have to immediately jump into holding meetings at the beach or on a forest path, but don’t be afraid to change up where you do your work, and where you consult with your team. A change of scenery could be just what you need for inspiration! But, of course, don’t forget to go to the beach, the forest, the park, or wherever inspires you and feeds your brain, instead of dulls it. 

In addition, getting out of the office in other ways could also help you be more creative. Take classes, go away for the weekend to a new place, or ride your bike during the day. Getting out of your same-old daily routine can be invigorating, and can wake up your brain and get those creative juices flowing.

Inject more creativity into your own life

Creativity isn’t always easy to just switch on. You’ve got to feed it. And a great way to make sure you can be creative in your working life is to find creative pursuits that interest you in your personal life. That doesn’t mean you have to all of a sudden become a painter or a concert pianist: you can do photography right on your phone, take a dance class, or even learn a new language. And get this: according to a study in the Annals of the New York Academy of Sciences, different expressions of creativity can build your creative muscle and actually make your brain more efficient!

Get your zzzz’s

As we talked about earlier, we often think that being efficient means using every minute of our time, and that means staying up late to get things done, and/or getting up at the crack of dawn to clear our inboxes. But missing out on sleep means your brain won’t be functioning at peak performance. In fact, research published in Trends in Creative Sciences Journal suggests resting boosts creative problem solving, and that’s probably more important to your business than shooting off a few extra emails.

Efficiency versus innovation: it’s a tough choice, right? It doesn’t have to be: remember that fable about the tortoise and the hare? If you were going to take that story and apply it to your business, the moral would be that sometimes you have to go slow to get ahead, or even to go fast. Pressure to speed up and be more efficient could end up burning you out, and won’t necessarily move you forward, while creativity (even with the little bit of mess it can leave behind) might feel slower, but can lead to the innovation that your business needs to grow.

Your Employees Are Present, but Are They Really There? The Problem of Presenteeism

There’s nothing more frustrating than being down a few team members, right? When employees are absent, it seems like you just can’t get as much done, and you’re left scrambling to fill the void. But is absenteeism really the worst thing for your business’ productivity and bottom line? Turns out, it might not be. In fact, the problem of “presenteeism,” or being at work but not being really all there, might be a much bigger problem. So what is presenteeism, and is there a way to combat it and get your employees and your business back on track?

What Is Presenteeism?

Let’s start by taking a look at what we mean when we use the words “absent,” “absenteeism,” and “presenteeism.” silhouette of a person with a question mark next to the head

  • Absent: This simply means that an employee hasn’t come to work for an important reason, like illness, family issues, vacation, or jury duty. There shouldn’t be any problem with taking days off if needed; this time is extremely necessary for employee productivity
  • Absenteeism – Taking days off is one thing, but it becomes absenteeism if it is habitual. If this is happening, you’ll need to look at the cause and try to address it: something like burnout, harassment, mental health issues, or a difficult situation at home could be causing the problem. In general, 1.5% is a very good rate for absenteeism; a higher rate can indicate an issue.
  • Presenteeism – Some employees will take time off when needed, and others won’t, which can lead to presenteeism, or situations when employees come to work but are unproductive on the job or not working at their full capacity. This can be caused by many things, including:
    • Illness/mental illness/chronic diseases (this is generally agreed upon to be the most common, and so most problematic, cause of presenteeism)
    • Burnout
    • Harassment
    • Demotivation
    • Problems within a team/conflicts
    • Time management issues
    • Stress

Coming to work and “powering through” under these conditions doesn’t do anyone any favors: your employee will suffer, and so will your business. But what price is your business paying for this phenomenon?

How Big of a Problem Is Presenteeism?

Now that we’ve laid out what presenteeism actually means, let’s look at its devastating effect on productivity, and your bottom line. Consider this:

  • According to a GCC Insights report by Global Corporate Challenge (GCC) from 2016, while employees were absent from work an average of 4 days per year each, they confessed to being unproductive on the job for 57.5 days each, or almost 3 working months.
  • Absent workers cost employers around $150 billion per year, but those who come to work but are not fully present around $1,500 billion per year in the US, based on Bureau of Labor (BLS) data
  • The Journal of the American Medical Association has reported that depression sets U.S. employers back some $35 billion a year in reduced performance at work, and that pain conditions such as arthritis, headaches, and back problems cost nearly $47 billion. Not only that, but the researchers also found that the on-the-job productivity loss resulting from depression and pain was roughly three times greater than the absence-related productivity loss attributed to these conditions.
  • When it comes to healthcare costs for employees, studies have shown that only around 30% is attributed to direct medical care and pharmaceutical costs, usually in the form of premiums an employer pays to an insurer. Another 9% is associated with short- and long-term disability and worker’s compensation. Just 6% is the result of absenteeism. The overwhelming majority of the cost – a whopping 60% – is attributed to health-related lost productivity caused by presenteeism. That means presenteeism costs employers two to three times more than direct medical care.
  • According to one study,  69% of respondents reported going to work while sick at least once in the past year. Workers who did go to work while sick estimated that their productivity was reduced by 23%.

These numbers should worry you, and should make you wonder what exactly is going on. Why are employees at work, but not all there? 

What’s Happening?

So what’s going on here? Being absent is clearly not a problem in our workplaces. After all, according to the BLS, the 2018 US annual average absence rate is 2.9%, and some studies show that the median worker takes only one absence day per year, while workers in the 90th percentile take 7 absences per year. But this might be part of the problem: workers are not taking enough time off. Why are they showing up, and not working to their potential? It could be down to multiple reasons, including:illustration of a woman being yelled at at work

  • Little to no paid sick days being offered to them
  • Job insecurity
  • Understaffing
  • Unrealistic expectations from their employer
  • Time pressure
  • Harassment for taking a sick leave
  • Huge workload

Take a good look at the issues above, and consider if your employees might be feeling pressure to come to work, even if they’re not at their best, or if they’re forgoing things that are necessary to their mental health and work/life balance, like taking vacations. As we think about that, let’s now take a look at what can be done to help combat presenteeism.

What Can You Do?

Presenteeism can obviously be harder to spot than absenteeism: you know when someone doesn’t show up for work, but you often can’t tell when or how much something going on under the surface, like mental or physical illness or stress, is hindering someone’s performance. But there are things you can do to try to combat presenteeism, and both make life better for your employees and do a favor for your business’ finances. 

Recognize the problem 

Now you know that presenteeism could be a problem in your workplace, so it’s time to be on the lookout for it. While it can be hard to spot, as we pointed out, it doesn’t have to be. According to Dr. David Batman, GCC’s chief medical officer, and a registered consultant specialist in occupational health with expertise in psychological health at work, employers need to be more tuned into the well-being of their employees: 

“I preach a simple message – pay attention if you notice something has changed. Employees at all levels of a business may be stressed, distracted, and struggling to perform at work. As a result, they may be fatigued and this can affect their concentration. So if employees’ engagement with their job decreases or they seem unconcerned about outcomes, you may have a problem – and you will need to act.”

Be clear that it’s ok to take time off 

We need to change the conversation, and start prioritizing both under-performance issues and employee wel-lbeing over absenteeism. In the past, it was believed that productivity was connected to attendance, and still today, visibility is related to productivity and efficiency,  so employees feel like they need to prove themselves just by being there. 

But as Dr. Batman points out, “We need to stop talking about how many sick days people are taking and focus our energy on what they’re doing when they’re actually at work.” And that means giving them the time they need to recover, and doing the following: an empty office

  • Don’t have a disciplinary policy related to absenteeism. This will only encourage employees to work when they’re not up to it.
  • Set a good example, and take time off when you need it.
  • If you notice someone is unwell, or if they are not themselves, send them home or even let them work from home for a while if that’s best.
  • Do your absolute best to offer adequate paid time off and/or sick leave.
  • Consider offering a workplace wellness program.
  • Make sure you have enough staff to cover an employee if they can’t be at work, otherwise they might feel pressured to always be there.
  • Reduce the stigma around mental health issues in your workplace, and make clear that you prioritize their mental well-being by offering them time off and coverage for mental health treatments

Presenteeism is not about workers pretending to be sick to get out of work, or fooling around on the job and not getting things done, it’s a problem in our culture that values attendance over wellbeing. Hey, no one likes working when they’re sick, stressed, or overwhelmed, right? And the numbers prove that not only do people not like it, but it’s bad for their productivity, and for your bottom line. So it’s time to focus on creating a workplace that’s healthy for employees’ bodies and minds, so you can achieve your goals and keep your employees happy and motivated.

Are You All Thumbs? How to Grow Your Business with Text Messaging

What are some of the sounds that always get your attention? If you’re like most people these days, one sound that you probably won’t ignore is the sound of a text message notification. And with almost 4 billion texts being sent around the world every day, there are a whole lot of people checking their phones when they hear that sound! So what does all this have to do with your business? Well, there are ways you can use the popularity of text messaging to your advantage, and grow your business with the power of SMS. 

What Makes Text Messaging So Powerful?text messaging infographic

Before we get into how to use text messaging to grow your business, let’s take a look at exactly why text messaging can be such a powerful tool for your business. The numbers surrounding text messaging are pretty astounding, and might make you wonder why you haven’t tapped into this area of communication and marketing before. Just check this out:

  • 81% of the US population (or over 250 million people) use text messaging.
  • Incredibly, according to a study by Singlepoint, texts have a 99% open rate (as opposed to emails, which have an open rate of anywhere from only 10-30%). And Forbes reported that 95% of texts are read within three minutes.
  • A study by Velocify reports that 45% of text messages receive a response, compared to 6% of emails.
  • Only 17% of cell phone users say that getting texts from businesses they frequent is obtrusive.
  • A Pew study found that 33% of American adults prefer texts to all other forms of communication, regardless of who is sending that text or what the message is about.
  • Consumers actually prefer certain business interactions to be handled by text, such as checking order status (38%), scheduling or changing an appointment (32%), or confirming reservations (31%). 

So it’s clear that people (otherwise known as your customers!) are definitely on board with text messaging coming from businesses. In fact, to add to the stats above, 78% of consumers polled wished they could text a business, but most businesses don’t have this option available. According to Twilio, only 48% of businesses are equipped to handle messaging. What does that mean for you? Adopting text messaging could mean a giant leg up on your competition. Not only because you’ll be doing something that other businesses aren’t, but also because you’ll be reaching customers far more quickly than your competition. And remember, studies show that shoppers tend to choose the company that they can get in touch with first!  Just look at these stats proving how fast text messaging is: 

  • Sending and receiving a text is 10 times faster than placing a voice call.
  • It takes less than five seconds to read most text messages.
  • You can receive a response incredibly quickly, within 90 seconds on average. Email, on the other hand, takes 90 minutes on average.

These are all some pretty compelling statistics, so you might now be wondering how to harness the power of texting for your business. Let’s take a look at some strategies for using SMS to grow your business.

Text Messaging Marketing Strategies

Using text messaging internally at your business can be a great way of communicating with your team, saving you time and keeping everything running smoothly and efficiently, but it’s time to also start thinking about how to use text messaging to attract customers and keep them satisfied. Try the following easy and cost-effective texting tactics:

1. Texts for Customer Service Supportsupport on a tablet screen

There are so many great things about text messaging, not least of which is that it is a form of two-way communication. That means you can set your business up to receive inquiries from customers, and then answer them at lightning speed. You can also allow customers to make and confirm appointments with you, so they never need to take extra time out of their busy schedules to call you and wait on hold, meaning you’ll both free up more of your time!

2. MMS Text Promotions

Who says you have to stick to simple SMS messages that only include a short sentence? That’s great for answering questions quickly and succinctly, but if you want to get people to sit up and take notice of a promotion you’re running, try using MMS, or Multimedia Messaging Service. Using this type of texting will allow you to include photos, coupons, videos, and other engaging content, so you’re even more likely to get customers to click.

3. Text-to-Win Sweepstakes

Want to get more subscribers? Try offering a text-to-win sweepstakes with a tempting prize! Advertise your giveaway, asking customers to text a specific word to your number; they’ll be excited to sign up, and you’ll gain a whole bunch of new text subscribers.

4. Automated Text Campaigns

Do you like the ease of sending out automated emails and using drip email campaigns? You can do the same thing with text messaging, with a much higher click-through rate. As with email campaigns, you can set up text messages to go out at set times, like after they subscribe, after they make a purchase, or when you’re having a promotion. In all of these cases, you can also send out a personalized coupon code to keep them coming back for more.

5. Texts to Give Peace of Mind

No business wants to run the risk of data breaches, and all customers want to know that their information is protected. You can give your customers peace of mind (and add an extra layer of security to protect your business) by asking for customers’ phone numbers to send them a verification code via text to confirm a purchase. Everyone wins security-wise, and you’ll also be able to add more customers’ phone numbers to your list.

6. Texts to Get People in the Door two chat bubbles with the words hello and hi

Businesses can use what’s known as “geofencing,” or a service that sends texts to customers based on their location. That means you’ll be able to send notices and coupons to your subscribers when they are close to your business, which means they’ll be more likely to stop in! 

7. Texts to Get More Info

You don’t have to limit your text messaging to just promotions and ways to get customers into your business – you can also use them to better understand your customers. Send out text messages with quick and easy surveys and polls, and you’ll be much more likely to get a response, and get some valuable info to improve your business. 

Rules to Remember

There are so many ways to use text messaging, and the numbers prove that it’s pretty likely that using SMS and MMS will be beneficial to your business. But there are a few things to remember that can help ensure the success of your texting campaign:

  1. Always get each customer’s permission before you start sending business texts to them
  2. Try to personalize your texts when you can – studies have shown that personalized messages are 202% more likely to convert
  3. Respond to text messages from customers as quickly as possible, within an hour if possible – 82% of customers expect an immediate response to texts, after all!
  4. Remember to speak your customers’ language, and avoid too much slang or too much jargon
  5. Be consistent with your communication, but don’t bombard customers: for promotional texts, 3 a month is a good starting target

There are so many types of technology that can help level the playing field for small businesses these days, and text messaging can be a very powerful tool in your belt. This convenient, immediate, and cheap way of connecting with your customers can open up some seriously beneficial channels for engaging with your customers, and reaching them right where they already are: on their phones! The convenience, service, and enticing promotions that you’ll be able to offer will create a memorable experience for them, and grow your business so you can reach your goals!

Take Pride in Your Workplace: Have We Gotten Past LGBTQ Discrimination at Work?

It’s Pride Month! And this month, we’d like to do more than just post a picture of a Pride flag – not that there’s anything wrong with showing your support! We’re all for that, but we’d also like to take this opportunity to examine the state of things when it comes to LGBTQ individuals in the workplace in the 2020s. We know we’ve made significant progress, but what challenges are we still facing? And what more can we do to bring more equality into our workplaces? After all, that will benefit everyone in the long run!

How Far We’ve Come

There was a time when being out anywhere, in any job, could mean facing real problems, including unchallenged discrimination and termination. But we’ve made great legal strides in the last few decades, and there are now laws on the books that protect the rights of LGBTQ employees. These laws include:gavel in front of some books

  • Title VII: Federal law, supported by the Equal Employment Opportunity Commission, and now, once again, enforced by the Department of Justice. This law:
      • Says that discrimination or harassment based on sex stereotypes about how a man or woman should behave violates the law
      • The Supreme Court in 2020 concluded that it includes protection based on sexual orientation and gender identity
  • State laws: 
      • 20 states (plus D.C.) prohibit discrimination based on sexual orientation and gender identity 
      • 2 states prohibit discrimination based on sexual orientation only
      • 11 states prohibit discrimination based on sexual orientation and/or gender identity against public employees only
  • Local laws: 
    • 227 Cities, Towns, Counties, and Townships currently prohibit discrimination based on sexual orientation and/or gender identity

Only 6 states have no protections at the state or local level (Alabama, Arkansas, North Carolina, North Dakota, South Dakota, Tennessee)

In addition, companies are getting better at making their own voluntary policies that help to foster an inclusive workplace and stamp out discrimination. For example, in 1999 72% of Fortune 500 companies included sexual orientation in their nondiscrimination policies, and only a couple of them included gender identity. Today, 89% of such companies include sexual orientation, and 66% prohibit discrimination based on gender identity. Many federal contractors have also enacted policies on LGBT workplace equality: of the largest 50 federal contractors, 86% prohibit sexual orientation discrimination and 61% prohibit discrimination based on gender identity.

And, according to the Human Rights Campaign’s Corporate Equality Index, in 2015 a record number of 366 businesses achieved a top rating of 100%, while in its initial year in the early 2000s, only 13 businesses achieved the highest rating. To achieve a 100% rating, the company must have, among other requirements, an equal employment opportunity policy including sexual orientation and gender identity or expression in place, equivalent spousal and partner benefits, accompanied by transgender-inclusive health insurance coverage, and provide competency training and have either an employee group or a diversity council.

All of this means that, on the federal, state, local, AND private sector levels, things are improving when it comes to combatting discrimination in the workplace. But how are things in practice? 

What Challenges Do LGBTQ Employees Face at Work?

Despite all the good intentions out there, things certainly aren’t all rainbows (no pun intended) and unicorns when it comes to how LGBTQ employees actually experience their workplaces. In fact, according to surveys conducted by Out Now Consulting, more than 40% of lesbian, gay and bisexual individuals, and almost 90% of transgender persons, have experienced discrimination in the workplace, harassment or mistreatment by co-workers.

That’s a lot of people who do not feel like valued members of their team, and who will end up stressed and unhappy. And while these employees’ humanity is the most important thing at stake, this state of affairs will also affect your business, when these stressed and unhappy employees become unproductive or decide to leave their jobs. 

But it’s not just dealing with the decision to come out at work, and the microaggressions that can occur if they do come out, or the stress of having to live as someone other than who they are if they don’t come out. There are so many signs of heterosexual, cisgender privileges and assumptions at the workplace, and it can be stressful to deal with these things AND to be forced to be the ones to speak out against themgender sign. For example, some things to watch out for that can often be baked into the ethos of a workplace include:

  • Lack of gender-neutral restroom facility or inadequate signage.
  • Employment/human resource documents with only two gender options: “male” or “female.”
  • Lack of access to gender-affirming healthcare, life insurance, disability, and other employment benefits.
  • Inadequate or no employment health insurance coverage for LGBTQ significant others and dependents.
  • Inadequate or no employment life/disability insurance coverage for LGBTQ significant partners and dependents.

We need to remember that all of the above still exists; all the laws and equality indices we can think of aren’t going to make all of the issues facing real people go away overnight. It’s incumbent on everyone to change the culture, but the biggest responsibility lies with employers, who need to lead on this front, and not just because it’s the right thing to do. It’s also the right thing to do for your business.

The Value of Diversity

Equality and diversity are important goals in and of themselves, and creating a workplace that is inclusive for all is without a doubt great for employees. According to a survey conducted by the Williams Institute, The Business Impact of LGBT-Supportive Workplace Policies, LGBT employees who spend considerable time and effort hiding their identity in the workplace experience higher levels of stress and anxiety, resulting in health problems and work-related complaints. This means that an LGBTQ-friendly workplace will lead to improved health, increased job satisfaction, better relationships with co-workers and supervisors, and greater work commitment among LGBTQ workers.

But there is also actually concrete evidence that an equal, diverse, and inclusive workplace is a more effective, productive, and profitable workplace. Business owners who excel at equality have: 

  • Employees who are more likely to remain in their current positions (especially if they’re able to be out in the workplace), meaning they save money on recruitment and training
  • Lower healthcare costs, because their employees tend to be in better health
  • An easier time attracting customers who are eager to do business with socially responsible companies
  • More loyal customers – In a national survey conducted by Harris Interactive in 2011, nearly nine out of ten (87 %) LGBT adults said they are likely to consider a brand providing equal workplace benefits. 23% of LGBT adults have switched products or services because a different company was supportive of the LGBT community, even if a brand was costlier or less convenient
  • A much bigger talent pool to choose from
  • Less stressed, more productive employees

So, while you can’t single-handedly change our culture, you can start with your workplace, and keep the momentum of equality, diversity, and inclusivity going. You can have an LGBTQ-friendly recruitment process, a workplace that is tolerant, except when it comes to intolerance, and a good eye for anything that keeps your employees from feeling like equal parts of your team. With the help of you and other good employers, we CAN get past LGBTQ discrimination at work, and keep everyone’s businesses growing at the same time.

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