The path towards equality and inclusion in the workplace is often a bumpy road, and one major obstacle that is often not highlighted is the pay disparity that exists for marginalized groups, including the LGBTQ+ community.
This phrase generally refers to the gender pay gap, or the difference in average earnings between men and women in the workforce. The truth is that the fight for equal pay transcends gender boundaries, sexual orientation, gender identity, race, and ethnicity.
The pay gap is a stark reminder of inequality and has serious consequences. People who earn relatively little over their careers are closed off from sustainable economic well-being, even if closing the gap increases economic output and benefits society.
There is a wealth of research supporting the LGBTQ+ pay gap, with a 2022 report from the Human Rights Campaign finding that LGBTQ+ employees in the U.S. earn 90 cents for every dollar earned by straight employees. Masu.
A separate report by Major Players, a recruitment agency for the creative industries, found that gay employees are paid an 8.5 percent disparity compared to their cis-het colleagues.
Despite advances in LGBTQ+ rights, such as marriage equality and anti-discrimination laws, these datasets confirm that economic inequality for queer people remains a significant challenge.
The root causes of the LGBTQ+ pay gap
“There is a strong correlation between how we treat our LGBTQ+ employees, how they approach their work, how they feel valued and seen in the workplace, and the pay gap. It’s relevant,” said Joan Lucey, managing partner of the Global Technology Talent Solutions organization. Major Player and Arrows Group.
Even at the recruitment stage, discrimination and bias in hiring practices still exists. A 2015 study found that even back then, 5 percent of LGBTQ+ candidates were less likely to be called for an interview than straight or female candidates.
Studies have shown that once LGBTQ+ employees are hired, they are less likely to be promoted to leadership positions and are often overlooked for higher-paying positions.
Another factor is the lack of comprehensive workplace policies and benefits. While some companies have implemented LGBTQ+-inclusive policies, such as non-discrimination protections and benefits for domestic partners, others have lagged behind.
According to Lucy, workplaces that lack supportive policies and procedures for LGBTQ+ employees often see people leaving their jobs.
“If you’re constantly leaving because you don’t feel seen or heard in that space, that’s going to be very detrimental to your career,” she says.
Workplace culture also plays a key role in perpetuating inequality, contributing to the pay gap remaining intact. LGBTQ+ people continue to face harassment, microaggressions, and hostile environments in the workplace.
These factors affect earning potential and contribute to higher turnover rates for gay employees.
As a queer leader, Lucy describes her role as working to “create an environment and culture where everyone feels like they can bring their whole selves to work and thrive.”
Lack of policies, support and procedures
The current gender pay gap is 14%, but the picture becomes even more complex when gender and sexuality intersect. Lesbian, bisexual, and transgender women face the double burden of simultaneously experiencing gender and LGBTQ+ pay gaps, resulting in even greater economic disparities.
Lucy says this difference all comes from a lack of representation. She said: “Women don’t see themselves on boards. Pay disparities are caused by a lack of support, a lack of policies and procedures and a lack of trust in employers. [having] your back.
“And it gets even worse when you look at the queer community.”
The business case for inclusion
Aside from the obvious ethical and moral reasons to close the LGBTQ+ pay gap and develop a robust diversity, equity, and inclusion (DEI) strategy, there is also a strong business case for employers.
“There is a direct correlation between [inclusive] Companies have better stock price performance, higher return on equity, higher market valuations and stronger cash flow,” says Lucy.
“The first thing organizations need to understand is that a focus on inclusivity is not a fluffy, ‘nice-to-have’ thing.”
With the UK economy technically starting the year in recession and many businesses still reeling from the economic damage that will be felt in 2023, Lucey is worried that DEI spending will be cut. I’m starting to notice a trend.
“When we have [DEI initiatives] As a “nice-to-have,” we are missing out on important opportunities that impact the financial performance of our organizations.
“It’s not a ‘nice to have’ thing,” she insists.
Closing the LGBTQ+ wage gap
By removing barriers that contribute to the LGBTQ+ pay gap, we can create a more equitable workplace. This requires a multifaceted approach that addresses both organizational and individual factors head-on.
As individuals, LGBTQ+ people can play a role in addressing pay disparities by advocating for themselves and their colleagues. During recruitment, gay job seekers can prioritize inclusive employers and negotiate a fair salary based on transparency.
While it’s important for employers to receive DEI training, that one-time training isn’t enough to close the LGBTQ+ pay gap. As Lucy says, her one training a year “has no effect on how that tissue actually lives and breathes.”
A transparent pay policy ensures fairness for all employees. When employers clearly define pay levels and promotion considerations, they reduce potential bias in pay and promotion decisions and promote a more just and inclusive work environment.
Above all, business leaders must actively promote and support the advancement of LGBTQ+ employees into leadership positions. Representation at all levels of an organization helps counter stereotypes and prejudice.
Lucy agrees and believes having queer role models within your company is paramount to an inclusive workplace.
“We need to see leadership within the business from a variety of backgrounds so that people within the organization can see themselves and see who they are,” she points out.