(Photo: Shutterstock)
An LGBTQ+ individual may face many "coming out" decisions in their lives, including in their careers. So, how is your organization positioned to be a safe place for the LGBTQ+ community to work, collaborate, and grow?
Our Global Head of Diversity and Inclusion, Susan Reid, has said that if you don't have leaders who understand the needs of and for a diverse workforce, you won't be as successful. Yet true equality doesn't always come about by offering all your employees the exact same cookie-cutter support: Even with federal protections against workplace discrimination now in place and same-sex marriage recognized as a legal right in the US, the Human Rights Campaign (HRC) found that only 22 states (and the District of Columbia) offer full LGBTQ+ non-discrimination protections to their residents.
Recommended For You
One way companies can make a difference is by offering support where people feel it most—their wallets. It helps to become a true resource for your employee needs and the wider community through volunteering, charity work, hiring drives to promote inclusion and diversity—but at the most basic level, it all begins with workplace benefits that support LGBTQ+ employees in their unique, personal financial journeys.
Begin with the basics
According to the HRC's 2022's Corporate Equality Index, 91% of the Fortune 500 now include gender identity protections in their nondiscrimination policies (vs. 3% in 2002) and 67% of the Fortune 500 offer transgender-inclusive health insurance coverage (vs. 0 in 2002).
This data indicates not just that LGBTQ+ inclusion is a top-of-mind priority across industries, but also that inclusive workplace benefits coverage is becoming table stakes. So along with taking the important step to codify LGBTQ+ rights within your company policies, it's important to reinforce that message of value and dignity through your benefits offerings. Here are some absolute essentials to cover:
Health care. The health plans you offer should address areas of need specific to the LGBTQ+ community—such as family planning choices around surrogacy, fertility treatments, and adoption; parental leave for birthing and non-birthing parents; gender transitioning treatment and surgeries for those who identify as trans; inclusive and safe mental health care, and more. Additionally, include choices for same-sex couples to extend coverage to their spouses (and perhaps even domestic partners). Encourage them to review each partner's workplace benefits to see what's available and what might make the most sense for their individual situation. Offer focused enrollment support and encourage newly married employees to consider life insurance options—through the workplace or otherwise.
Partnering with partnerships. Some LGBTQ+ couples might decide on a domestic partnership or cohabitation agreement rather than marriage. While the law does not recognize domestic partners as family, your workplace can. Whatever your policies, make sure to proactively communicate what your company offers for domestic partners. If your company has any resources or benefits available, make sure they are loud, proud, and readily accessible.
Family planning and college savings. Same-sex couples planning to have children often face higher expenses: According to The Balance, average adoption fees come to roughly $40,000, while Surrogate.com found that assisted reproduction through cryopreservation, in-vitro, and surrogacy can range from $60,000–$150,000. That's partly why some of our advisors recommend that LGBTQ+ couples begin saving at least three to four years in advance of starting a family. Then, once they have a child, we encourage them to start a 529 education savings plan right away.
Retirement readiness. Our research found that most (87%) LGBTQ investors are confident they are saving enough to enjoy the retirement they would like. While this is encouraging, it doesn't mean the work is done to make sure your LGBTQ+ employees are on track. Many LBGTQ+ individuals may have faced obstacles in their early lives and careers that can have an impact on their ability to save and plan for their future needs. Company matching contributions and retirement planning support can be a game-changer, whether through your provider or a 401(k) advisor. Connect employees with legal support, or resources to think through the possibility of providing long-term care for themselves or a loved one, and connect them to a wider community through organizations like the Gay and Lesbian Medical Associations or the National Register of Health Service Providers in Psychology, which can help pinpoint LGBTQ-friendly care providers.
Estate plans and gifts. Marriage equality has made estate planning much simpler for LGBTQ+ couples—for example, same-sex married couples can now bequeath unlimited assets to their spouse without incurring federal estate taxes and transfer property and assets to each other without having to pay income or gift taxes. Again, access to a financial advisor or legal resources can help LGBTQ+ employees leave no stone unturned when planning for their future.
Consider offering access to advice. Finally, personalized financial guidance can go a long way—and that is especially true for diverse employee groups who face unique financial considerations, like those in the LGBTQ+ community. Offering financial coaching or financial advice through your workplace benefits is one tangible way to give LGBTQ+ employees access to tools that they can use to improve their financial outcomes and discover opportunities they otherwise might miss. For example, Financial Advisors with the Accredited Domestic Partnership Advisor® designation can be especially well-positioned to provide special insight into benefits that unmarried LGBTQ+ couples may want to know about.
Inclusion includes action
Acceptance and inclusion are crucial in the workplace, but they require more than words. For your LGBTQ+ employees to feel truly valued and safe at work, your workplace benefits are an important tool to help your organization create a diverse and inclusive culture. The key is to provide much-needed resources to those who lack them and build bridges within the wider LGBTQ+ community.
If your company makes it clear that you approach LGBTQ+ concerns not only as LGBTQ+ rights, but as human rights, then your employees will have more room to bring their full selves to work and set themselves—and your company—up for greater financial success.
Andrew Cunningham is Vice President, Senior Relationship Manager at Morgan Stanley at Work.
Disclosures: This article has been prepared for informational purposes only. The information and data in the article have been obtained from sources outside of Morgan Stanley. Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of the information or data from sources outside of Morgan Stanley. By providing links to third party websites or online publication(s)/article(s), Morgan Stanley Smith Barney LLC ("Morgan Stanley") is not implying an affiliation, sponsorship, endorsement, approval, investigation, verification with the third parties or that any monitoring is being done by Morgan Stanley of any information contained within the articles or web sites. Morgan Stanley is not responsible for the information contained on the third party websites or your use of or inability to use such site. Nor do we guarantee their accuracy and completeness. Morgan Stanley at Work, Morgan Stanley Smith Barney LLC, and its affiliates and employees do not provide legal or tax advice. You should always consult with and rely on your own legal and/or tax advisors. CRC _4793117 6/22
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
