These are the regressive work culture trends currently fuelling the unfair LGBTQ+ pay gap
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The path towards equality and inclusion at work is often a bumpy one, and one major bump 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 workforce. The truth is that the fight for equal pay transcends gender lines, intersecting with sexual orientation, gender identity, race, and ethnicity.
Pay disparities are a stark reminder of inequities and carry significant consequences. When a person earns less comparatively throughout their career, they are closed off from sustainable financial well-being, even though closing the gap would boost economic output and benefit society.
There have been many studies confirming the LGBTQ+ pay gap, with a 2022 report from the Human Rights Campaign finding that LGBTQ+ employees in the United States make 90 cents for every dollar earned by a heterosexual employee.
Another report from creative industries recruiting firm Major Players uncovered an 8.5 per cent gap in queer employee salaries compared with cis-het colleagues.
Despite advancements in LGBTQ+ rights, including marriage equality and anti-discrimination laws, these data sets confirm that economic inequality for queer people remains a significant challenge.
The root cause of the LGBTQ+ pay gap
“There’s a strong connection between how we treat our LGBTQ+ employees, how they bring themselves to work, how they feel valued, how they feel seen in the workplace and the pay gap,” says Joanne Lucy, managing partner at global technology talent solution organization Major Players and Arrows Group.
Even during the recruiting phase, discrimination and bias in hiring practices persist. A study from 2015 revealed that even then, five per cent of LGBTQ+ candidates were less likely to get called in for an interview than straight or female hopefuls.
Various studies have shown that once in a role, LGBTQ+ employees are less likely to be promoted to leadership positions and are often overlooked for higher-paying posts.
Another contributing factor is the lack of inclusive workplace policies and benefits. While some companies have implemented LGBTQ+-inclusive policies, such as non-discrimination protections and domestic partner benefits, others lag behind.
Lucy says that it’s common to see people leave a job if the place lacks policies and procedures that help support LGBTQ+ employees.
“If you’re constantly exiting because you don’t feel seen, you don’t feel heard in a space, that’s going to have a really negative impact on your career,” she says.
Workplace culture also plays a crucial role in perpetuating inequality, which causes the pay gap to remain in place. LGBTQ+ individuals still face harassment, micro-aggression, and hostile environments in their jobs. These factors affect earning potential and contribute to higher job turnover rates among queer employees.
Lucy says that as a queer leader, she uses her role to “create an environment and a culture where everybody feels they can bring their full selves to work and thrive.”
A lack of policy, support, and procedure
While the current gender pay gap of 14 per cent 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, resulting in even greater financial disparity.
Lucy says that this difference all comes from a lack of representation. “Women don’t see themselves on boards. The pay gaps are there because of a lack of support, a lack of policy and procedure, and the lack of confidence in your employer [having] your back.
“And that is compounded even more when we when we look at the queer community.”
The business case for inclusion
Aside from the obvious ethical and moral reasons for closing the LGBTQ+ pay gap and having a robust diversity, equity, and inclusion (DEI) strategy, there is a strong business case for employers as well.
“There is a direct correlation that [inclusive] companies have better share-price performance, high return on equity, higher market valuations, and strong cash flows,” Lucy says.
“The first thing organizations need to understand is that focusing on inclusivity isn’t soft and fluffy and a ‘nice to have’.”
As the UK economy starts the year technically in a recession, and with many businesses still reeling from financial losses felt in 2023, Lucy is beginning to see a worrying trend of DEI spending being cut.
“When we have [DEI initiatives] as a ‘nice to have,’ we’re missing out on the key opportunity, which is that it’s about the financial performance of an organization.
“It’s not a ‘nice to have,'” she insists.
Closing the LGBTQ+ pay gap
A more equitable workplace can be built by dismantling the barriers contributing to the LGBTQ+ pay gap. This requires a multi-faceted approach, tackling both systemic and individual factors head-on.
Individually, LGBTQ+ people can play a role in addressing the pay gap by advocating for themselves and colleagues. During the recruitment period, queer job
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