Leaders in the financial services sector are not effective allies to the LGBTQ+ community, two-fifths of Gen Z who identify as such have said.
According to a report from LGBT Great, 22% of LGBTQ+ professionals believe the sector is not inclusive of all sexual orientations and gender identities.
They were also more likely to believe that the sector lacked diversity than non-LGBTQ+ professionals, with this rising among those who had experience in financial services.
They were also more than twice as likely to have worries about firms disclosing diversity data than non-LGBTQ+ counterparts.
The report, Redefining the Future: LGBTQ+ Talent Attraction and Perception, polled more than 1,800 people across seven countries including the UK.
It found that although 70% of LGBTQ+ professionals felt the financial services sector offered attractive compensation and benefits, they were more than twice as likely to see the profession as having an unhealthy work/life balance than non-LGBTQ+ talent.
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Some 23% of respondents said they would not feel confident about being ‘out’ at work, while a further 23% said the culture of the financial services sector was “unappealing”.
However, the view that financial services culture was unattractive was not as commonly held among the LGBTQ+ professionals who had experience in the sector, with just 17% agreeing.
Working in financial services as an LGBTQ+ professional
As for what LGBTQ+ professionals looked for at work, 21% said they prioritised compensation and benefits, while 15% said job security was important. A further 15% looked for a good work/life balance.
Some 18% were put off by highly competitive and fast-paced working environments.
Firms leading with their diversity and allyship was also seen as an important factor, as 64% of respondents said they were more likely to apply to companies that were assessed for LGBTQ+ sensitivity and inclusion.
Some 63% felt more comfortable applying for roles at firms where the hiring panels had visible LGBTQ+ people and were trained in diversity, equity and inclusion (DE&I).
Half of LGBTQ+ professionals said they would think about leaving a job for a more inclusive company, while 60% said they would be encouraged to apply for a job at a firm that had diversity hiring quotas and visible LGBTQ+ content.
These considerations were also important to allies.
Compared to non-allies, allies of the LGBTQ+ community were 27% more inclined to apply to work at companies that were formally assessed on sensitivity and inclusion, while 28% would feel more comfortable with firms that had visible LGBTQ+ people on the hiring panel and were DE&I trained.
Further, 22% of allies were more likely to apply to companies with formal diversity hiring targets.
Once at work, a third of respondents said they were not comfortable with disclosing their sexual orientation, while 18% said the same for gender identity.
LGBTQ+ professionals were also more than twice as likely to be worried about DE&I data disclosure than non-LGBTQ+ counterparts.
The main worry around disclosing this data was potential stigma and prejudice, as said by 46% of trans, non-binary and intersex talent.
Two-fifths shared concerns about the lack of clarity regarding how the data would be used, as well as potential discrimination from colleagues.
Conversely, 64% of LGBTQ+ professionals and 55% of allies were more likely to apply for a firm that had been assessed.
Matt Cameron (pictured), founder and chief executive of LGBT Great said: “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.”
Emma Palethorpe, head of change for Asia and LGBTQ+ network chair at St. James’s Place, added: “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.”
LGBT Great launched in 2019 and has a mission to make more than 5,000 workplaces and five million people truly inclusive by 2035. It has more than 70 member firms, including St. James’s Place, Legal and General and Schroders.
