Leaders in the financial services market are failing to do enough to support LGBTQ+ employees, according to a new report.

One in four Generation Z LGBTQ+ professionals told campaign group LGBT Great that they believe leaders in the industry were ineffective at being allies to the LGBTQ+ community.

Generation Z is the most diverse generation to enter the workforce, according to the report, with 17% of respondents identifying as LGBTQ+.

Close to a quarter of LGBTQ+ workers surveyed (23%) said they were not comfortable being “out” at work, with 33% saying they would not feel comfortable discussing their sexual orientation with colleagues or managers.

One in five (22%) LGBTQ+ professionals perceive the financial services industry as not inclusive of all sexual orientations and gender identities. LGBTQ+ workers are three times more likely to strongly agree that financial services lacks diversity and are 2.5 times more likely to express concerns about disclosing diversity data compared to their non-LGBTQ+ peers.

While 70% of LGBTQ+ workers agreed the financial services industry offers attractive compensation and benefits, they were nearly two times more likely than non-LGBTQ+ talent to view the sector as having an unhealthy work/life balance.

LGBTQ+ workers are actively seeking visible inclusion, with 64% of workers saying they were more likely to apply to organisations assessed for LGBTQ+ sensitivity and inclusion. Half of the LGBTQ+ workers said they would consider leaving their employer for a more inclusive organisation.

Matt Cameron, chief executive of LGBT Great, said: “To attract under-represented talent, inclusion must go beyond policy, it requires authentic action and visible advocacy. This is not just the right thing to do, but a business and reputational imperative for firms that want to stay competitive.

“LGBTQ+ talent seek more than just a job; they are looking for workplaces where they bring their full selves, where all identities are respected and where they can see others like them. By working together, we can transform the financial services industry into a beacon of inclusivity for LGBTQ+ talent, clients, and investors.”

LGBT Great is a global diversity and inclusion organisation. Members include Fidelity, Aon, Schroders, St James’s Place, Legal & General and Axa IM.

• The organisation surveyed 1,830 respondents across seven countries from the financial services industry.