Four in 10 (40%) Gen Z LGBTQ+ professionals believe leaders in the financial services industry are ineffective at being allies to the LGBTQ+ community, finds a new report from LGBT Great. This issue is likely to intensify as Gen Z, the most diverse generation to enter the workforce—with 17% of global respondents identifying as LGBTQ+1—continues to shape the future of work.
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, today launches its global report, Redefining the Future: LGBTQ+ Talent Attraction and Perception2. 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.
Barriers for LGBTQ+ talent in the financial services industry
The study, based on data from over 1,830 respondents across seven countries, reveals both the barriers and opportunities for LGBTQ+ talent within the financial services industry:
- Confidence in ability but perception challenges: 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.
- Concerns about diversity and inclusion: One in five (22%) 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.
- Cultural challenges: 23% believe LGBTQ+ talent is not comfortable being “out” at work. A further 23% view the financial services culture as unappealing.
While 23% of LGBTQ+ talent finds the culture of the financial services industry to be the most negative factor relatively, this number decreases to 17% for LGBTQ+ talent with industry experience, suggesting that the industry impression from the outside is worse than reality.
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.
“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 over 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 encompasses 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).
Understanding LGBTQ+ talent priorities
The report sheds light on the priorities influencing LGBTQ+ professionals’ employment decisions across all industries:
- Top priorities: 21% of LGBTQ+ talent prioritise compensation and benefits, followed by job security (15%) and work/life balance (15%).
- Biggest deterrents: A highly competitive and fast-paced working environment deters 18% of LGBTQ+ talent.
- Impact of visible inclusion: 64% of LGBTQ+ talent are more likely to apply to organisations assessed for LGBTQ+ sensitivity and inclusion (as are 55% of allies). 63% feel more comfortable applying when hiring panels include visibly LGBTQ+ individuals and are DE&I-trained.
- Retention challenges: One in two LGBTQ+ professionals would consider leaving their employer for a more inclusive organisation.
- Diversity hiring targets: 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.
Engaging allies in the workplace
The study also highlights the critical role of allies in driving inclusion. In comparison to non-allies, allies are 27% more inclined to apply to organisations that are formally assessed on LGBTQ+ sensitivity & inclusion, and 28% more comfortable in applying if hiring panels include visible LGBTQ+ individuals and are DE&I-trained. Furthermore, allies are 22% more likely to apply to firms with formal public diversity hiring targets.
Disclosure of sexual orientation and gender identity in the workplace
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 2.5x 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%) 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 report being more likely to apply to firms that have undergone an LGBTQ+ assessment.
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."
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.