Gen Z has quickly established itself as the most diverse generation to enter the workforce, however, a new report from LGBT Great, a global diversity and inclusion organisation has revealed that 40 per cent of Gen Z LGBTQ+ professionals do not feel the financial services industry is an ally to the LGBTQ+ community. In fact 23 per cent believe LGBTQ+ talent is not comfortable being ‘out’ at work and 23 per cent view the financial services culture as unappealing.
The report, Redefining the Future: LGBTQ+ Talent Attraction and Perception, spotlights some of the challenges faced by LGBTQ+ professionals in the workplace as well as providing critical insights into their perceptions and priorities of the workplace. Looking across seven countries and 1,830 individuals, the report paints a mixed picture of the challenges and opportunities faced.
While 70 per cent of LGBTQ+ talent agreed the financial services industry offers attractive compensation and benefits, they remain nearly two times more likely than non-LGBTQ+ talent to view the sector as having an unhealthy work/life balance.
Furthermore, 22 per cent of LGBTQ+ professionals perceive the financial services industry as not inclusive of all sexual orientations and gender identities. LGBTQ+ talent are three times more likely to strongly agree that financial services lacks diversity (increasing to 3.3 times among those with financial services experience) and are 2.5 times more likely to express concerns about disclosing diversity data compared to their non-LGBTQ+ peers.
Matt Cameron (he/him), founder and chief executive of LGBT Great
Matt Cameron (he/him), founder and chief executive of LGBT Great said: “Our report aims to redefine the narrative by equipping organisations with the tools, data and insights to foster authentic belonging and create workplaces where every identity can thrive. Organisations formerly assessed for LGBTQ+ inclusion gain a competitive advantage attracting both LGBTQ+ talent and allies.”
A more inclusive industry
While 23 per cent of LGBTQ+ talent finds the culture of the financial services industry to be the most negative factor relatively, this number decreases to 17 per cent for LGBTQ+ talent with industry experience. Consequently, this suggests that the industry impression from the outside is worse than reality.
Nonetheless, one in three of all respondents said they would not feel comfortable disclosing their sexual orientation at any stage at work (and 18 per cent for gender identity). LGBTQ+ talent was 2.5x more likely to express concerns about DE&I data disclosure compared to their non-LGBTQ+ counterparts.
The most significant reason for not disclosing diversity data was prejudice and social stigma, cited by nearly half (46 per cent) of trans, non-binary, and intersex talent. Additionally, 40 per cent expressed concerns about the lack of clarity regarding how companies would use their data, as well as potential discrimination from colleagues.
However, 64 per cent of LGBTQ+ talent and 55 per cent of allies report being more likely to apply to firms that have undergone an LGBTQ+ assessment.
Cameron adds: “To attract under-represented talent, inclusion must go beyond policy, it requires authentic action and visible advocacy. This is not just the right thing to do, but a business and reputational imperative for firms that want to stay competitive. LGBTQ+ talent seek more than just a job; they are looking for workplaces where they bring their full selves, where all identities are respected and where they can see others like them.
“By working together, we can transform the financial services industry into a beacon of inclusivity for LGBTQ+ talent, clients, and investors.”
Priorities and engagement
The report sheds light on the priorities influencing LGBTQ+ professionals’ employment decisions across all industries. It found that 21 per cent of LGBTQ+ talent prioritise compensation and benefits, followed by job security (15 per cent) and work/life balance (15 per cent). Meanwhile, a highly competitive and fast-paced working environment acted as a deterrent for 18 per cent of LGBTQ+ talent.
Sixty-four per cent of LGBTQ+ talent are more likely to apply to organisations assessed for LGBTQ+ sensitivity and inclusion (as are 55 per cent of allies). Furthermore, 63 per cent feel more comfortable applying when hiring panels include visibly LGBTQ+ individuals and are DE&I-trained.
Additionally, 60 per cent of LGBTQ+ talent said they would be positively influenced to apply to a firm that had formal diversity hiring targets and visible LGBTQ+ content.
Once hired though, organisations must continue to push for greater inclusivity for all, as the report found that one in two LGBTQ+ professionals would consider leaving their employer for a more inclusive organisation.
The study also highlights the critical role of allies in driving inclusion. In comparison to non-allies, allies are 27 per cent more inclined to apply to organisations that are formally assessed on LGBTQ+ sensitivity and inclusion. Additionally, 28 per cent are more comfortable in applying if hiring panels include visible LGBTQ+ individuals and are DE&I-trained. Allies are also 22 per cent more likely to apply to firms with formal public diversity hiring targets.
LGBT Great
By partnering with organisations dedicated to meaningful change, LGBT Great envisions a future where inclusivity is not only an aspiration but a lived reality across the financial services industry and beyond.
Since its launch in 2019, LGBT Great now has over 70 members including Fidelity, Aon, Schroders, St. James’s Place Wealth Management, Legal & General and Axa IM.
Emma Palethorpe (she/her), head of change (Asia) and LGBTQ network chair, St James’s Place
Emma Palethorpe (she/her), head of change (Asia) and LGBTQ+ network chair, St James’s Place (an LGBT Great member firm), said: “At St. James’s Place, we understand that fostering LGBTQ+ inclusion is essential for creating workplaces where talent feels safe, valued, and empowered to thrive. As a founding member of LGBT Great, we are proud to collaborate with partners who bring lived experience and unique perspectives to the forefront of our inclusion journey.
“This commitment enhances our ability to foster belonging, drive innovation, and deliver the best outcomes for our people, clients, and communities. Together, we are building a culture where diversity is celebrated, and everyone has the opportunity to succeed.”
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