PurposeThe purpose of this study is to examine the aspects of workplace environment and the experiences of LGBT (lesbian, gay, bisexual and transgender) employees in an Asian context; a subject that has hitherto been somewhat neglected. It responds to a call for more contextual research in the field of employment diversity in organizational management in general.Design/methodology/approachThis is a mixed method study, which utilizes multiple sources of primary and secondary data and consists of in-depth personal interviews, a survey of LGBT employees, published data (including legislation and state policies), reports issued by social and media organizations, documentary evidence from Taiwanese companies and insights drawn from the existing literature.FindingsIt was found that there is an interplay between the macro, meso and micro levels in the multilevel relational framework applied to diversity of employment in Taiwan. Macrolevel factors, such as supportive legislation, mass media and social tolerance toward LGBT community positively affect mesolevel factors, such as stable and secure social networks among the LGBT community in the form of legal and social organizations (NGOs, social media, bars, restaurants, etc.) as well as many companies inclusion of sexual orientation in their definitions of diversity. However, this is opposed by macrolevel, cultural values related to family structure and intergenerational relationships that inhibit pro-active integration and equality of LGBT individuals at the meso organizational level. Companies headed by older-generation leadership can be slow to advocate, support and promote sexual-orientation diversity in their workplaces. In contrast, microlevel data shows that LGBT employees receive robust psychological support from their peer group, friends and the LGBT community, although gaining acceptance by family and coworkers remains a challenge.Research limitations/implicationsFuture studies need to focus on the dynamics of the meso- and microlevel factors by investigating how organizational structure, perspectives of leaders and HR managers, diversity management practices and attitudes and behaviors of LGBT employees and other coworkers affect development and integration of sexual-orientation diversity programs within organizations.Practical implicationsManagers, policy makers in organization as well as educators benefit from the context-sensitive findings and recommendations offered in this paper.Social implicationsUnderstanding of LGBT individuals employment environment helps to facilitate or hinder the positive development of equal society and benefit both LGBT employees, their coworkers and managers.Originality/valueLimited research exists on the LGBT employees experiences at work in Asia. This study makes unique contribution to the understanding of sexual orientation category of diversity at work in Taiwan context.