This article addresses the complex issue of sexual orientation and gender identity (SOGI) data collection in workplaces, highlighting the intricate balance between fostering inclusion and mitigating potential harm and exclusion. This tension manifests uniquely across diverse cultural, legal, and organizational settings. We review existing literature, offer practical guidance for decision‐makers, and outline future research avenues. While SOGI data collection in workplaces can enhance diversity, equity, and inclusion (DEI) initiatives and elevate the visibility of lesbian, gay, bisexual, transgender, intersex, and queer (LGBTIQ+) employees, challenges include the risk of discrimination, privacy concerns, and linguistic complexities. To address these, researchers and practitioners must consider the purpose, language, and cultural context of data collection, involving LGBTIQ+ stakeholders, and conducting reconnaissance studies. Future research opportunities lie in understanding employee willingness to share SOGI data, motivations of human resource (HR) and DEI professionals, and the impact on organizational culture. Reimagining LGBTIQ+ research to ease the tension between inclusion and protection, we conclude that responsible SOGI data collection demands a nuanced approach that prioritizes inclusion and equity while addressing privacy concerns and potential harm.