LGBTQ workers less likely to be satisfied with their job, benefits and paid leave

LGBTQ workers were less likely to be satisfied with their job, employee benefits package and paid leave, according to the 2022 Workplace Wellness Survey by the Employee Benefit Research Institute (EBRI) and Greenwald Research.  LGBTQ workers were also less likely to be offered various employee benefits, including a financial wellness program.

“Interestingly, many of the differences observed by LGBTQ status appear driven by demographic differences,” said Paul Fronstin, director, Health Benefits Research, EBRI. “Nearly one-half of LGBTQ workers are under age 35, compared with 24% among non-LGBTQ workers. This could account for why LGBTQ workers have lower incomes and less education than non-LGBTQ workers.  It could also affect the lower marriage rates and the fact that LGBTQ workers are less likely to have dependent children.”

“Life-stage and living situation can influence the value placed on employee benefits overall, and on specific benefits,” added Lisa Greenwald, CEO of Greenwald Research.  “Many employers and solutions providers are recognizing that one-size fits all benefits programs may not be as effective as more targeted approaches that address employees’ needs at a given point in time. The WWS data suggest that LGBTQ employees may value more benefits that help with shorter and mid-term financial goals, more so than retirement savings.”

The survey results were published in an EBRI Issue Brief: “Workplace Wellness Programs and the LGBTQ Community.”  Key highlights of the Issue Brief include:

• LGBTQ workers were less likely than non-LGBTQ workers to be satisfied with their job and various employee benefits. And LGBTQ workers were less likely than non-LGBTQ workers to be satisfied with their employee benefits overall and paid leave. However, there is no overall difference or difference at any income level when it comes to health benefits or retirement benefits. LGBTQ workers and non-LGBTQ workers were about as likely to be satisfied with the mix of employee benefits and wages
• Nearly across the board, LGBTQ workers were less likely than non-LGBTQ workers to be eligible for various employee-benefit programs. Yet, they were just as likely as non-LGBTQ workers to participate in such programs when they were offered to them.
• LGBTQ workers give employers lower ratings than non-LGBTQ workers when it comes to employer efforts to help improve financial well-being, emotional well-being/mental health, and physical well-being/health. And when it comes to worker expectations about employers’ responsibilities, LGBTQ workers and non-LGBTQ workers were in agreement. In addition, LGBTQ workers were less trustful than non-LGBTQ workers in institutions that provide various employee benefits.
• LGBTQ workers were less likely than non-LGBTQ workers to rate their work-life balance as excellent or very good. Aside from income and compensation, both LGBTQ workers and non-LGBTQ workers valued flexibility in work schedules above all other benefits, and both groups valued such flexibility almost equally.
• LGBTQ workers were less likely than non-LGBTQ workers to report that they were offered a financial- wellness program.
• Both LGBTQ workers and non-LGBTQ workers described their debt as the same.  About one-third described it as a major problem, one-half described it as a minor problem, and 1 in 5 described it as not a problem.

Differences by LGBTQ status were not found when examining debt by income level, the survey noted. LGBTQ workers were less likely than non-LGBTQ workers to report that saving enough for retirement and affording their children’s college tuition were the financial issues causing the most stress. And they were more likely than non-LGBTQ workers to report that paying monthly bills and student loan repayments were the financial issues causing the most stress.

“You must decide to do more than seek business opportunities or practice expansion. Take steps so that the community sees you as a true ally...”Brian Haney, founder and CEO, The Haney Company

Serving the LGBTQ community

The issues identified in this brief help shine the spotlight on the LGBTQ community and underscore the need for financial advisors to provide them with the products and services they need.

The business case for serving the LGBTQ community is pretty compelling.  Underserved does not mean underfunded, said Brian Haney, founder, CEO of The Haney Company. According to the (National Gay & Lesbian Chamber of Commerce) NGLCC’s report, the LGBTQ market is major economic force, Haney pointed out. This group contributes over 1.7 trillion dollars to the U.S. economy, with an estimated 1.4 million LGBTQ professionals.

On average, Haney added, certified LGBTQ Businesses report annual revenues of $2,475,642. “The meta data alone should make the obvious point that there are a lot of successful LGBTQ consumers and professionals that certainly would benefit from financial advice and guidance,” he said

Reaching out

So what are some of the steps advisors can take to attract members of the LGBTQ community to their practices? “The first point I want to make to all financial professionals is that you don’t have to be a member of the community you are serving in order to be successful. I’m a perfect example as a white heterosexual male that has done a lot of business with the LBGTQ community and been recognized as a true ally,” said Haney.

In addition, Haney advises advisors to be the opposite of a salesperson. “Don’t go in with a business-first mindset, because you’ll quickly find out that many minority markets are already very leery of people coming in to sell to them,” he said.

There’s not a lot of magic to it, he said. Start by connecting with the community leaders and find out what the community needs. Also, get to know the highly visible and influential members, volunteer at LGBTQ events, and develop cultural competence. In addition, Haney said, set aside your current assumptions, form genuine relationships, listen, and learn. Also, advisors should consider joining a local LGBTQ chamber of commerce if there is one in their city.

In addition, he said, they should become known as a trusted part of the community by making the needs and pains of the community their own. The term LGBTQ is a broad one; so, it’s important to not homogenize the community. “It pains me to see the continued financial disparities faced by the LGBTQ community, specifically women,” he said.

For every dollar a man in a married-opposite-sex couple earns, a woman in a same-sex couple earns 79 cents and a man in a same-sex couple earns 98 cents, Haney added. And one in five LGBTQ women living alone lives in poverty. As a proud ally, he considers it a business imperative to make a meaningful dent in these statistics and hope other industry colleagues will do the same.

“None of this can be about optics,” Haney said. “You must decide to do more than seek business opportunities or practice expansion. Take steps so that the community sees you as a true ally and a place they can come if they need help. The giver’s gain philosophy always rings true: When you go to serve the needs of others, you’ll find your own needs get met in the process.”

 

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected]. 

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