Put Your Money Where Your Mouth Is: Recruiting a Diverse Workforce

The summer of 2020 was memorable. Millions of Americans trudged into their fourth month of a national lockdown and realized this pandemic might be severe. COVID-19 dominated news cycles, households fretted about accidentally exposing loved ones to the virus, and the global economy plummeted as workers stayed home for everyone’s safety. It was a trying time for the U.S., but still, victories occurred. 

Later that year on June 15, the LGBT+ community celebrated one such victory when the Supreme Court ruled that the 1964 Civil Rights Act also protected gay, lesbian, and transgender employees from discrimination based on sex and/or sexual orientation. 

Despite this ruling, LGBT+ individuals still endure workplace hardships. According to 2022 Census Bureau Household Pulse Survey data, those in the LGBT+ community are still more likely to earn under the poverty line when compared to non-LGBT+ individuals. They also face discrimination in the hiring process and during the course of employment.  

One key area where many organizations that wish to employ LGBT+ individuals fall short is when attempting recruitment of LGBT+ employees. Recruiting LGBT+ employees is traditionally tricky due to unique historical and contextual factors. Unlike other marginalized groups, LGBT+ applicants typically have more autonomy over how much of their gender identity and/or sexual orientation they disclose in the workplace. Former Walton College PhD students Cody Bradley (James Madison University), Kristie Moergen (Iowa State University), Dorothea Roumpi (Pennsylvania State University), and Walton College’s Professor of Management Lauren Simon drew on signaling theory in “Don’t just tell me, show me: Impacting perceptions of organizational attraction and fit using activating LGBT diversity signals” to address this challenge. Signaling theory is the study of communication between individuals, especially when they have access to different information. Their research demonstrated that organizations can improve LGBT+ recruitment and retention measures via activating signals. 

Authentic Expression 

As corporate social responsibility becomes increasingly mandatory, it is unsurprising to learn that many organizations claiming to support diversity in general or LGBT+ employees in particular have yet to perform any action that proves their commitment. Outward corporate LGBT+ support has become nearly ubiquitous. Performative allyship has become a habit for many companies attempting to attract diverse workers or even solely for marketing purposes and potential employees can often see right through these claims. 

When selecting places to apply, LGBT+ individuals may assess the likelihood of encountering discrimination while working with an organization and the degree to which they can honestly and safely express their identity at work. These assessments are complex when, as an LGBT+ employee, most companies claim to welcome you with open arms. However, you still may encounter more workplace discrimination and harassment than your heterosexual and cis-gendered coworkers. 

Activating Diversity 

Effectively communicating diversity as an organization can seem impossible. Yes, some companies may engage in performative allyship, but many refrain and wish to foster diversity. These organizations and their managers work diligently to promote ethical work environments but may still need an effective solution for communicating such diversity while recruiting. The answer is more apparent than it seems. 

Bradley, Moergen, Roumpi, and Simon considered signaling theory when analyzing how organizations could communicate that they provide an inclusive work environment. The researchers began by separating two types of communications, or signals. They identified pointing signals or a company’s indication of a characteristic through a statement. Conversely, they found activating signals evince characteristics through observing actual company practices. To illustrate the difference, consider a company advertising its support for diversity with fliers featuring an eclectic office space. That organization is just pointing to its commitment to this support, as consumers of this literature have no frame of reference for the validity of such statements. Companies that wish to employ more diverse workforces and foster inclusive workplaces may be better served by sending activating signals that more concretely demonstrate such a commitment. For example, an LGBT+ employee network within a company would prove to candidates that diversity is encouraged. 

Actions speak louder than words, the researchers found. They used a fictional company’s recruitment website to see how the signals uniquely influenced prospective employees’ perceptions. They found activating signals to be far more effective than pointing signals. Applicants pick up on actions more than statements and are likelier to act on their inclinations. Organizations that use activating signals communicate authenticity by practicing what they preach, and recruits acknowledge the unspoken effort. 

Practice What You Preach 

People are attracted to companies that offer characteristics valuable to their identity, goals, and lifestyles. If a candidate views a company as positive, they are more likely to pursue employment and find enjoyment in their work. These initial perceptions during the hiring process affect your employees’ attitudes, which are critical to organizational success. 

Potential job applicants may find it difficult to learn if companies are genuinely inclusive and supportive of LGBT+ employees. People face tokenization, harassment, and discomfort at work every day, despite uniform claims of diversity standards. For example, if a company promises support for diversity throughout your candidacy, you may be more inclined to work there. But when you arrive for your first day, you’re the only LGBT+ individual. You would immediately question the integrity of your new managers and coworkers. Perceived tokenization or microaggressions could then exacerbate these negative emotions, creating a negative feedback loop with your employer. 

Negative feedback loops are avoidable, however. A previously established LGBT+ presence within an organization lends credibility to your organization and helps potential LGBT+ candidates feel more comfortable interacting with your business. Furthermore, purposefully fostering a LGBT+ presence at the workplace provides the implied benefits of a diverse staff, such as unique employee backgrounds and outlooks. 

If your company celebrates one group of people, Bradley, Moergen, Roumpi, and Simon also found a “spillover” effect. By embracing individuals from one minoritized group, you may signal that you are a welcoming place for those from other historically disadvantaged groups, and are thus one step closer to realizing your business’ potential.