While corporate diversity initiatives and rainbow lanyards have become commonplace in the modern office, new data reveals a different reality for many LGBTIQ+ employees. Far from feeling fully integrated, a near-majority of LGBTIQ+ workers are encountering rising levels of discrimination, harassment, and the insidious creep of “everyday exclusion.”
Research from Diversity Council Australia (DCA), drawn from the early release of its 2025-2026 Inclusion@Work Index, paints a concerning picture of the modern Australian workplace. It suggests that while policies may look good on paper, the day-to-day cultural reality is lagging significantly behind.
The Rising Tide of Workplace Discrimination
According to the DCA data, 46% of LGBTIQ+ workers reported experiencing discrimination and/or harassment at work in the past year.
To put this into perspective, only 26% of non-LGBTIQ+ workers reported similar experiences during the same period. This makes LGBTIQ+ workers 1.5 times more likely to face these behaviours. Furthermore, the problem appears to be worsening; the current figure marks a noticeable increase from the 2024 index, where 39% of LGBTIQ+ workers reported facing such exclusion.
Catherine Hunter, CEO of Diversity Council Australia, noted that the timing of these findings serves as a critical reminder for businesses.
“As organisations celebrate LGBTIQ+ communities, this data highlights that workplaces cannot be complacent,” Hunter said.
“Our findings point to a persistent challenge within Australian workplaces. Organisations need practical, evidence-based approaches that address the systemic issues contributing to LGBTIQ+ exclusion.”
Hunter emphasised that solving this requires more than just surface-level support.
“Workplaces that invest in inclusive cultures, visible and supportive leadership and clear policies are better positioned to reduce discrimination and create environments where all employees feel safe and respected.”
The Invisible Toll of Everyday Exclusion
While overt harassment is easily identifiable, the DCA research highlights a more pervasive issue: everyday exclusion. These micro-behaviours are often dismissed or overlooked by colleagues, but they compound over time to create a hostile environment.
The data illustrates how much more frequently LGBTIQ+ workers face these subtle slights:
- 39% reported being left out of work social gatherings (compared with 29% of non-LGBTIQ+ workers).
- 49% reported people had made incorrect assumptions about their abilities based on their identity (compared with 33% of non-LGBTIQ+ workers).
- 41% said they had been ignored or treated as if they didn’t exist (compared with 30% of non-LGBTIQ+ workers).
The Business and Human Impact
These everyday exclusions are not just interpersonal issues; they represent a significant operational risk for organisations.
The research demonstrates that workers who are frequently excluded from social gatherings are more likely to report that their work negatively impacts their mental health. It also correlates directly with lower job satisfaction, reduced engagement, and a much higher likelihood of the employee leaving their job. Culturally, this type of exclusion undermines collaboration, stifles innovation, and damages customer service outcomes.
“Everyday exclusion matters. It undermines wellbeing, drives people out of organisations, and weakens team performance, all of which can negatively impact productivity.” said Catherine.
Ultimately, the data serves as a blueprint for where corporate culture needs to head next.
“Organisations that take a deliberate, evidence-based approach to inclusion are better placed to reduce exclusion and support LGBTIQ+ employees so they can feel safe to be themselves at work.”
Ritchelle is Content Team Manager at Akolade, producing stories for Australia's not-for-profit sector at Third Sector.
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