LGBTQ+ Gen Zers dissatisfied with workplace inclusion efforts, reveals new research
March 28, 2024Gen Z LGBTQ+ employees are dissatisfied with current workplace inclusion efforts, according to the latest research from EY US.
This generation gave their employers an average C grade for inclusion efforts, while other generations rated them with a grade B, according to EY’s US LGBTQ+ Workplace Barometer.
The research found that LGBTQ+ workers who rate their workplace experiences poorly are significantly more likely to leave their current employment. In fact, failing to address the needs of this generation could result in missing out on a talent pool of up to 10 million workers over the next five years. This exodus would translate into substantial turnover costs. However, improving retention of LGBTQ+ employees by just 5% could save the average Fortune 500 company nearly $4.2 million annually, noted the report.
"There are millions of dollars on the line, and as the LGBTQ+ population grows, organizations that prioritize inclusiveness will differentiate themselves among top talent," emphasized Mitch Berlin, EY Americas Vice Chair – Strategy and Transactions and Americas Executive Sponsor of Unity, the EY LGBTQ+ Business Resource Group.
The study also found that LGBTQ+ Gen Z workers are three times as likely to express uncertainty about their organization's LGBTQ+ initiatives. In short, if employers want to attract and retain, this generation, with its unique expectations and evaluation criteria, then they are going to have to significantly improve their inclusion efforts.
The report also shed light on concerning trends that demand urgent attention from employers striving to create truly inclusive workplaces. For example, like myGwork’s latest research on workplace perceptions by Gen Z students and graduates, EY’s survey also uncovered troubling disparities faced by racially and ethnically diverse (R&ED) LGBTQ+ employees. The study revealed these groups are more likely to experience harassment and microaggressions in the workplace compared to their white counterparts:
- · R&ED LGBTQ+ employees are 1.7x more likely than white LGBTQ+ employees to experience harassment at a previous employer.
- · R&ED LGBTQ+ employees are 2.3x more likely to experience microaggressions in the workplace.
In short, achieving genuine inclusivity requires a nuanced understanding of intersectional identities. Additionally, employers must heed the voices of LGBTQ+ Gen Z employees and take decisive action to bridge the gap in workplace inclusivity. Failure to do so not only jeopardizes employee retention and financial stability but also undermines the fundamental values of equality and respect in the modern workplace, especially as the LGBTQ+ community in the US today comprises nearly 14 million adults and is growing rapidly.
In fact, Gen Z (those born between 1997 and 2012) are six times more likely than their Gen X counterparts to identify as LGBTQ+. With Gen Z set to become 30% of the workforce by the year 2030, employers should deepen their focus on LGBTQ+ inclusion, visibility and engagement through robust commitments, communications, programming and other action-oriented initiatives, noted the report.
Those that do, will be better positioned to not only enhance a sense of psychological safety and belonging among their current LGBTQ+ workforce, but also to attract top talent inclusive of this community. The message is clear – employers must heed the voices of LGBTQ+ Gen Z employees and take decisive action to bridge the gap in workplace inclusivity. Failure to do so not only jeopardises employee retention and financial stability but also undermines the fundamental values of equality and respect in the modern workplace.
Commenting on the report findings, Leslie Patterson, EY Americas and US Diversity, Equity, and Inclusiveness Leader, stated: "Building and sustaining a culture where people feel seen and valued starts with leadership setting the tone at the top. By actively listening, learning, offering support, and taking decisive action, leaders can build trust and credibility within their organizations, distinguishing themselves as champions of diversity and inclusion."
Click here to download the full survey.
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