The business case for diversity in the boardroom has been made time and time again. Boards are the epicentre of decision-making for a business, the nature of which are often complex and multi-dimensional. When each individual can bring unique ideas, solutions and strategies to the table, decision making is much more likely to be fair and effective. Diverse boards are better equipped to deal with an ever-changing business climate, including overseas competition and digital transformation. However, while we’re used to hearing about the push to hire senior leaders that represent different cultures, races, and religions, LGBTQ+ representation has often been left out of the conversation.
Given the greater availability of data, studies assessing the correlation between board diversity and corporate performance have tended to focus on gender. In fact, the topic of LGBTQ+ diversity in the boardroom is so underdiscussed that it’s challenging to uncover any reliable data as to how severe the issue of underrepresentation is. We do know that there are no openly LGBTQ+ CEOs in the FTSE 100, and only four within the Fortune 500, and these figures have not improved for several years. In fact, there are now fewer LGBTQ+ CEOs in the FTSE 100 than in 2018.
The barriers to LGBTQ+ inclusion in the boardroom
Although huge strides have been made within the past few decades as inclusion within the workplace has become a higher priority for many organisations, there are still numerous factors that can impact the ability of LGBTQ+ professionals to enter senior leadership roles. In this thought leadership piece, we’ll examine some of the most prominent, along with some of the measures that can be taken to overcome them.
Unwanted public scrutiny
As individuals rise to the tops of their professions, there is usually a greater expectation for personal and professional lives to overlap through personal branding, networking events, and general increased public interest. For gay, lesbian or trans individuals still struggling with their own identities or reticent about being ‘out’, this can make it challenging to pursue progression opportunities knowing that unwanted scrutiny into their personal lives may follow. Research confirms that 35% of LGBTQ+ and 51% of transgender individuals in the UK disguised their identity at work for fear of discrimination and judgement – concerns that may only be amplified the more senior a position a person holds.
Mental health factors
Supressing one’s true identity and authentic self within the workplace can cause huge psychological strain which can impact productivity, making it harder to sustain the level of performance required to rise to the level of senior leadership. Research suggests that up to 60% of LGBTQ+ individuals develop anxiety and depression at some point in their lives, factors known to severely impact a person’s ability to succeed professionally, regardless of talent.
Cultural and structural inequalities
The prevailing social and cultural conservatism present across many sectors is still in the earliest stages of being dismantled. Within STEM, for example, LGBTQ+ professionals have been demonstrated to experience significantly greater career limitations and professional devaluation than their non-LGBTQ peers. Factors such as this can make it especially challenging for gay, lesbian or trans employees to rise to the top of their professions within these sectors, and can even prove a barrier to entry altogether.
Data gathering challenges
Even if organisations are at heart committed to increasing LGBTQ+ representation within boards and senior leadership, this presents more significant challenges in comparison to other minority groups. It’s far from obvious if a person is gay or trans unless they choose to make it known, nor is it legal or appropriate to ask, and therefore gathering data on this during the recruitment process with a view to boosting representation can prove near impossible.
A lack of visibility
“You can’t be what you can’t see” is a phrase that’s often related to the lack of women and racial minorities within senior leadership roles, but the same sentiment very much applies to the LGBTQ+ community. Although there have been a few notable instances of prominent CEOs coming out such as Apple’s Tim Cook, visibility of the LGBTQ+ community within senior leadership remains far lower than national averages would imply. Role models provide a template for success, blazing a trail for others who share the same experiences and characteristics to follow. Without this, it’s easy for people with unique identities to feel that they aren’t entitled to certain positions, and that they don’t belong.
How can LGBTQ+ representation in the boardroom be improved?
Unfortunately, many boards are formed based upon like-minded individuals from the same communities, the same schools, and the same backgrounds. Shaking things up requires real introspection and effort, along with a deep examination of potential cognitive biases that perpetuate the cycle of senior leaders recruiting in their own image.
As with many issues related to equality and inclusion, it’s imperative that positive attitudes sexual orientation and gender diversity be communicated from the top down. Many cis, straight senior leaders feel that it isn’t appropriate or necessary for them to share public statements in support of the LGBTQ+ community, or create supportive content during events such as Pride month. This couldn’t be further from the truth. When senior leaders confirm their allyship to the LGBTQ+ community, this sets the tone for the whole organisation, and could well empower and inspire trans, gay or lesbian employees to feel more comfortable expressing their true identities at work.
Finally, it’s vital that practical measures are implemented to attract and promote diverse talent. For example, the benefits and rewards an organisation offers should be inclusive of civil partnerships, parental leave for adoptions, and gender affirming procedures. Businesses should also consider implementing a formal mentorship programme aimed specifically at nurturing diverse talent from within, and providing a framework for success. These policies, along with a strong commitment to ED&I in a business’s handbook and external values, can make a significant impact on company culture that will prove attractive to LGBTQ+ talent at across all levels of seniority.
At GRG Executive Search, we’re taking the lead for an equal future, and consistently review and refine our approach to supporting diverse talent. For a confidential discussion about how I can support your executive search requirements, don’t hesitate to get in touch with me on helenschwarz@grgexecsearch.com.