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As Gen Z becomes a force to be reckoned with in the working world, there’s also a cohort within that group employers need to start paying attention to: young LGBTQ employees.
Around 20% of Gen Z adults identify as LGBTQ, compared to just 3% of Gen X. And young LGBTQ workers are expected to total around 10 million workers in less than 10 years.
But younger LGBTQ workers are not too happy with how their employers handle inclusion issues compared to their counterparts from older generations. Gen Z LGBTQ workers gave their organizations lower marks on things like fostering a sense of belonging, providing mentorship, and providing equitable benefits, according to a new report from professional services firm EY.
“For me, that was a particular wake-up call,” Mitch Berlin, vice chair of strategy and transactions at EY’s Americas practice and an LGBTQ advocate, tells Fortune. “Even if you weren’t doing it for altruistic reasons, you should be doing it for business reasons.”
That’s because that feeling of exclusion can easily turn into attrition. LGBTQ workers who gave their company lower scores were more likely to say they expected to leave within the year. The report estimates that if an average Fortune 500 company with more than 60,000 workers improved their practices and kept just 5% of the LGBTQ workers that they’re currently losing, they could save around $4.2 million annually in retention costs.
EY recommends five initiatives that employers should consider to improve inclusion for LGBTQ workers, including employee resource groups, making sure that health and wellness benefits are in line with the needs of the community, and improving policies around harassment reporting.
But one thing’s for sure: Ignoring the wants and needs of this cohort is not an option. “If we’re not meeting them where they want to be met, they’re not going to accept the interview offer or stick around very long,” says Berlin.
You can read more about what companies can do to recruit and retain LGBTQ members of Gen Z here.
Paige McGlauflin
paige.mcglauflin@fortune.com
@paidion
Today’s edition was curated by Emma Burleigh.
Around the Table
A round-up of the most important HR headlines.
- Developers are struggling to fill Miami’s tallest corporate tower a year after its unveiling, as hybrid and remote work has slowed office leasing demand in the city. Wall Street Journal
- Sports media site Deadspin laid off its entire staff after being sold to a European publishing group. Axios
- United is curbing its hiring of new pilots and suspending its aviator training classes amid Boeing’s aircraft certification and manufacturing delays. Bloomberg
Watercooler
Everything you need to know from Fortune.
Cleared schedule. Financial tech firm Block is scrapping Tuesday meetings, with top employees welcoming the move and citing the need for longer periods of uninterrupted work. —Steve Mollman
Career costs. A Gen Z student is coughing up $10,000 to become a super-commuter and fly from New York to his Miami internship, saying it’s a necessary expense to gain experience in a tough job market. —Eleanor Pringle
Under their noses. Recently fired unionized Youtube Music workers say they unknowingly trained their own replacements before being axed. —Chloe Berger
Out and back. As young workers job hop to advance their careers, some companies are adapting to a new normal of boomerang hires. —Eleanor Pringle
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