Employers looking to enhance retention in the workforce should deepen their focus on LGBTQ+ inclusion, visibility and engagement programmes, according to a study by EY.
The US-based study found that while there are 14 million adults in the LGBTQ+ community in the US today, that figure could grow by 2030 as more Gen Z employees enter the workforce (those born between 1997 and 2012). That is because Gen Z employees are six times more likely to identify as LGBTQ+ than their Gen X counterparts, the study said.
Prioritising inclusion
Companies that fostered an inclusive workplace found that 97 per cent of their employees said they expected to remain in post over the coming 12 months. That compared with only 38 per cent for those who gave their employer a low inclusion rating.
“For the average Fortune 500 company, which employs about 62,000 people, improving retention of LGBTQ+ employees by just 5% could result in annual savings of nearly $4.2 million in turnover costs alone,” the report said.
The report said that companies that scored low among their employees could take action to improve their talent retention. The use of well-designed, confidential employee surveys was a key tool, it said.
Career advancement and leadership
For those who said they had high feelings of psychological safety within their organisations, 89 per cent said they saw their company as a place where they could advance to a more senior level. For respondents with a low sense of psychological safety, that figure dropped by over 40 percentage points to just 48%. Fewer than 1 per cent of Fortune 500 CEO roles and only about half a per cent of Fortune 500 board seats are occupied by LGBTQ+ members – a clear lack of representation at the top.
“The lack of visible LGBTQ+ representation at the highest levels of corporate leadership can be interpreted that visible LGBTQ+ people cannot be successful in these roles,” the report said. “LGBTQ+ leadership visibility can be highlighted simply through leader bios and more in-depth through formal and informal storytelling.”
