A new report from LGBT Great says that four in 10 Gen Z LGBTQ+ professionals in financial services believe industry leaders are failing to be effective allies.
The report which polled more than 1,830 respondents across seven countries including UK, US, Hong Kong, Singapore, Germany, France and India, shed light on both the barriers and opportunities for LGBTQ+ talent within the financial services industry.
It found that this issue is likely to intensify as Gen Z (born between 1997 and 2012), is the most diverse generation to enter the workforce – with 17% of global respondents identifying as LGBTQ+.
LGBT Great, a global diversity and inclusion organisation with members including Fidelity, Aon, Schroders, St. James’s Place Wealth Management, Legal & General and Axa IM, launched its global report, Redefining the Future: LGBTQ+ Talent Attraction and Perception.
The report underscores critical insights into the perceptions, priorities, and challenges faced by LGBTQ+ professionals in the workplace, providing actionable strategies for organisations to foster authentic inclusion.
Some of the key findings of the study include:
- While 70% 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
- One in five (22%) LGBTQ+ professionals perceived the financial services industry as not inclusive of all sexual orientations and gender identities. LGBTQ+ talent were three times more likely to strongly agree that financial services lacks diversity (increasing to 3.3 times among those with financial services experience) and were 2.5 times more likely to express concerns about disclosing diversity data compared to their non-LGBTQ+ peers
- Almost a quarter (23%) believed LGBTQ+ talent is not comfortable being ‘out’ at work. A further 23% viewed the financial services culture as unappealing
- While 23% of LGBTQ+ talent found the culture of the financial services industry to be the most negative factor relatively, this number decreased to 17% for LGBTQ+ talent with industry experience
Matt Cameron, founder and CEO 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.
“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.”
LGBT Great now has more than 70 member firms since launching in 2019; the study reinforces its mission to empower 5,000 workplaces and 5 million people by 2035 to become authentically inclusive. Its membership now covers industries from financial services, asset management, energy, legal, banking, and construction.
LGBT Great has raised inclusion standards through education, visibility, community engagement, and its flagship Inclusion Index Benchmarking Tool (IIBT).
The report also shed light on the priorities influencing LGBTQ+ professionals’ employment decisions across all industries:
Two in 10 (21%) of LGBTQ+ talent prioritised compensation and benefits, followed by job security (15%) and work/life balance (15%).
A highly competitive and fast-paced working environment deterred 18% of LGBTQ+ talent.
Almost two thirds (64%) of LGBTQ+ talent were more likely to apply to organisations assessed for LGBTQ+ sensitivity and inclusion (as are 55% of allies).
A similar percentage (63%) felt more comfortable applying when hiring panels include visibly LGBTQ+ individuals and are DE&I-trained.
One in two LGBTQ+ professionals would consider leaving their employer for a more inclusive organisation and 60% of LGBTQ+ talent said they would be positively influenced to apply to a firm that had formal diversity hiring targets and visible LGBTQ+ content.
The study also highlighted the critical role of allies in driving inclusion. In comparison to non-allies, allies were 27% more inclined to apply to organisations that were formally assessed on LGBTQ+ sensitivity and inclusion, and 28% more comfortable in applying if hiring panels include visible LGBTQ+ individuals and are DE&I-trained.
Furthermore, allies were 22% more likely to apply to firms with formal public diversity hiring targets.
One in three (33%) of all respondents said they would not feel comfortable disclosing their sexual orientation at any stage at work (and 18% for gender identity).
LGBTQ+ talent was 2.5 times 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%) of trans, non-binary, and intersex talent.
Additionally, 40% expressed concerns about the lack of clarity regarding how companies would use their data, as well as potential discrimination from colleagues.
However, 64% of LGBTQ+ talent and 55% of allies reported being more likely to apply to firms that have undergone an LGBTQ+ assessment.
Emma Palethorpe, head of change (Asia) and LGBTQ+ network chairwoman at St James’s Place, 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.”