Gen Z Employees Unimpressed With Workplace Inclusion Efforts

Generation Z employees who identify as LGBTQ+ are unimpressed with current workplace inclusion efforts, according to a new study.

In fact, employers are barely scraping by with a pass grade in the eyes of LGBTQ+ Gen Z employees, who rated their organisation with a lacklustre C+ for inclusion efforts, compared to a B from other generations, revealed the latest research from EY US.

The research found that LGBTQ+ workers who rate their workplace experiences poorly are significantly more likely to consider leaving their current employment. For employers, this exodus could translate into substantial turnover costs, according to the sobering results outlined in EY’s US LGBTQ+ Workplace Barometer. Improving retention of LGBTQ+ employees by just 5% could save the average Fortune 500 company nearly $4.2 million annually.

Failing to address the needs of this generation, however, could result in missing out on a talent pool of up to 10 million workers over the next five years. “There are millions of dollars on the line, and as the LGBTQ+ population grows, organisations that prioritise inclusiveness will differentiate themselves among top talent,” stated Mitch Berlin, EY Americas Vice Chair – Strategy and Transactions and Americas Executive Sponsor of Unity, the EY LGBTQ+ Business Resource Group.

INTERSECTIONAL DISPARITIES

Additionally, LGBTQ+ Gen Z workers are three times as likely to express uncertainty about their organisation’s LGBTQ+ initiatives. This generation, with its unique expectations and evaluation criteria, demands tailored approaches to inclusivity initiatives.

“Feeling safe to be your authentic self is something that everyone should be entitled to, but we know reality is often more complex than that,” Berlin emphasised. “Company leaders should remain steadfast in their commitments to diversity, equity, and inclusion, cultivate an environment where people feel comfortable to be themselves, and offer the right resources so employees can thrive.”

The report also shed light on concerning trends that demand urgent attention from employers striving to create truly inclusive workplaces. For example, achieving genuine inclusivity requires a nuanced understanding of intersectional identities. 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, revealing the extent to which they are more likely to experience harassment and microaggressions in the workplace compared to their white counterparts.

It found that R&ED LGBTQ+ employees are 1.7x more likely than white LGBTQ+ employees to experience harassment at a previous employer. It also revealed that R&ED LGBTQ+ employees are 2.3x more likely to experience microaggressions in the workplace.

LGBTQ+ GEN Z OPINIONS MATTERS

Employers can’t afford not to listen to the growing generation Gen Z workforce, noted the report. The LGBTQ+ community in the US today comprises nearly 14 million adults and growing rapidly. Additionally, 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.

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, noted the report. In short, 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.

“Building and sustaining a culture where people feel seen and valued starts with leadership setting the tone at the top,” stated Leslie Patterson, EY Americas and US Diversity, Equity and Inclusiveness Leader. “Through listening, learning, offering support and taking action, leaders will build trust and credibility, which in turn can help their organisations stand out with a powerful and growing segment of the population.”

Click here to download the full survey.

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