Transgender People Experience Unique Challenges at Work

2021 has been the deadliest year on record for the trans community – the second year in a row it has achieved that dubious milestone. The Human Rights Campaign Foundation reports at least 46 transgender and gender non-conforming people have been killed this year and other forms of oppression and discrimination run rampant through society as well.

That discrimination extends to the workplace as well. A new McKinsey survey looked into the work experiences of people in the U.S. who identify as transgender and found some startling data. Transgender adults are twice as likely as cisgender adults to be unemployed – and those who do have jobs make 32% less more money a year, even when both groups have similar or higher education levels.

Perhaps because of that salary gap or because of societal prejudices against trans people, more than half of transgender employees say they are not comfortable being out at work, with two-thirds remaining in the closet in professional interactions outside their own companies.

People who identify as transgender feel far less supported in the workplace than their cisgender colleagues do, the report found, saying it’s more difficult to understand workplace culture and benefits, and harder to get promoted.

There are more than 2 million transgender people in the United States, and another 1.2 million people identify as nonbinary. Increasing inclusion and wage equity in the workforce for trans people, says McKinsey, could boost consumer spending in the U.S. by up to $12 billion per year.

As in society at large, transgender people are underrepresented in the workplace. Data from the Behavioral Risk Factor Surveillance System (BRFSS) of the Centers for Disease Control and Prevention indicates just 73% of transgender adults are in the workforce, versus 82% of cisgender people. Transgender people are twice as likely to be unemployed.

Those who are at work have a harder time. 1.7 times as many transgender people report being recently out of work vs. cisgender. And 42% say they work part time, decreasing the odds they have access to healthcare and other benefits. BRFSS data shows that the average transgender adult makes $17,000 less than a cisgender one, often because they’re 2.4 times more likely to work in the food or retail industry, where many jobs pay minimum wage.

Those numbers get even worse when the transgender person is part of another marginalized community. McKinsey says 75% of Native American trans people and 43% of Hispanic trans people make less than $25,000. Among White cisgender people, that number is just 17%.

Just getting a job can be challenging, though. Gender nonconformity is an uncomfortable topic for many people, so transgender applicants say they feel pressure to alter their appearance to fit gender norms while interviewing. And if they receive a job offer, transgender people have a harder time understanding the company’s culture and benefits, since they don’t feel able to be upfront about issues such as gender-neutral bathrooms or whether benefits include hormone replacement therapy.

And a notable number of trans job seekers said they’ve avoided applying to certain industries for self-protection reasons.

“Safety, at 59%, was by far the most cited concern for transgender people in their decisions not to pursue certain industries,” the report reads. “Not seeing others like them in these industries, not being able to bring their full selves to work, and not finding support for trans or gender-nonconforming people were also high on the list of reasons.”

And, perhaps not surprisingly, given the other data, more than one-third of the trans people McKinsey spoke with feel their gender identity affects their ability to get promoted – and 86% said they don’t see leaders or managers who look or seem like them.

So what can companies do to be more inclusive?

McKinsey suggests being more intentional in recruiting, with a purposeful outreach to transgender community groups and direct talk about LGBTQ+-friendly benefits. Offer strong mental healthcare as a benefit, since the trans community reports higher rates of depression than others. And become a more trans-friendly company, reviewing dress codes and eliminating gender-specific language, along with diversity training.

Those steps can not only bring a larger economic windfall, they can broaden an office’s diversity and inclusion, which could spill over to include other marginalized groups, creating a better work environment for everyone.

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