The road to equality and inclusion at work is often a bumpy one, and one major hurdle in the road that isn't highlighted much is the pay gap that exists for marginalized groups, including the LGBTQ+ community.
The phrase generally refers to the gender pay gap – the difference in average earnings between men and women in the labor force. The truth is that the fight for equal pay crosses gender lines, intersecting with sexual orientation, gender identity, race, and ethnicity.
Pay disparity is a stark reminder of inequality and carries serious consequences. When someone earns relatively less income throughout their career, they are cut off from sustainable financial well-being, even though closing the gap would boost economic output and benefit society.
There have been several studies confirming the pay gap for the LGBTQ+ community, with a 2022 report from the Human Rights Campaign finding that LGBTQ+ employees in the United States earn 90 cents for every dollar a heterosexual employee earns.
Another report from creative industries recruitment firm Major Players revealed an 8.5 per cent pay gap for LGBT employees compared to cis colleagues.
Despite advances in LGBTQ+ rights, including marriage equality and anti-discrimination laws, these data sets underscore that economic inequality for LGBT people remains a significant challenge.
The root cause of the LGBTQ+ pay gap
“There is a strong connection between how we treat our LGBTQ+ employees, how they bring themselves to work, how they feel valued, how they feel viewed in the workplace and the pay gap,” says Joanne Lucey, managing partner at Global Technology Talent Solutions. Top players and darts group.
Even during the recruitment phase, discrimination and bias in hiring practices persist. A 2015 study revealed that even then, five percent of LGBTQ+ candidates were less likely to be called for an interview than straight or female candidates.
Various studies have shown that once a position is held, LGBTQ+ employees are less likely to be promoted to leadership positions and are often overlooked for higher-paying jobs.
Another contributing factor is the lack of comprehensive policies and benefits in the workplace. While some companies have implemented inclusive policies for the LGBTQ+ community, such as non-discrimination protections and domestic partner benefits, others are lagging behind.
Lucy says it's common to see people leave their jobs if a place lacks policies and procedures that help support LGBTQ+ employees.
“If you're constantly going out, because you don't feel seen, you don't feel heard somewhere, that's going to have a really negative impact on your career,” she says.
Workplace culture also plays a crucial role in perpetuating inequality, causing the pay gap to persist. LGBTQ+ individuals continue to face harassment, microaggression, and hostile environments at their jobs.
These factors affect earning potential and contribute to higher rates of job turnover among LGBT employees.
Lucy says that as an LGBT leader, she uses her role to “create an environment and culture where everyone feels they can bring their full selves to work and thrive.”
Lack of policies, support and procedures
While the current gender pay gap of 14 percent is significant, the picture becomes more complex when gender and sexuality intersect. Lesbian, bisexual, and transgender women face a double burden, experiencing the gender and LGBTQ+ pay gap simultaneously, leading to greater financial disparity.
Lucy says this whole difference comes from a lack of representation. “Women don’t see themselves on boards. Pay gaps exist due to lack of support, lack of policies and procedures, and lack of trust in the employer.” [having] Your back.
“This is further exacerbated when we look at the LGBT community.”
Business case for listing
Aside from the obvious ethical and moral reasons for closing the pay gap in the LGBTQ+ community, and having a strong Diversity, Equity and Inclusion (DEI) strategy, there is a strong business case for employers as well.
“There is a direct relationship to that [inclusive] “Companies have better stock price performance, higher returns on equity, higher market valuations and strong cash flows,” says Lucy.
“The first thing organizations need to understand is that focusing on inclusion is not something soft and fluffy and ‘nice to have’.”
As the UK economy technically begins the year in recession, and with many businesses still reeling from the financial losses felt in 2023, Lucy is starting to see a worrying trend of reduced DEI spending.
“When we have [DEI initiatives] By saying “nice to have,” we miss the key opportunity, which is that it is about the financial performance of the organization.
“It's not nice to have,” she insists.
Closing the wage gap in the LGBTQ+ community
A more equitable workplace can be built by dismantling the barriers that contribute to the wage gap among the LGBTQ+ community. This requires a multifaceted approach, directly addressing systemic and individual factors.
On an individual level, LGBTQ+ people can play a role in addressing the pay gap, by advocating for themselves and their colleagues. During the hiring period, LGBT job seekers can prioritize inclusive employers and negotiate fair salaries based on transparency.
For employers, although DEI training is important, this one-time exercise will not be enough to close the wage gap in the LGBTQ+ community. As Lucy says, the once-a-year training “has no impact on how this organization actually lives and breathes.”
A transparent pay policy will ensure fairness for all employees. When an employer clearly defines pay scales and promotion considerations, it reduces potential bias in salary and promotion decisions, promoting a more equitable and inclusive work environment.
Above all, business leaders must promote and support the advancement of LGBTQ+ employees into leadership positions. Representation at all levels of an organization can help challenge stereotypes and biases.
Lucy agrees and believes having queer role models within a company is crucial to an inclusive workplace.
“You have to make sure that you see leadership within the company from different backgrounds so that people within the organization can look up and see themselves,” she points out.
