Sep 1, 2026
By Zarabeth Golden
The future workforce is changing, and organizations that want to remain competitive will need to adapt to shifting employee expectations and demographics. According to EY’s U.S. LGBTQ+ Workplace Barometer, Generation Z identifies as LGBTQ+ at nearly six times the rate of Generation X and is expected to make up approximately 30% of the U.S. workforce by 20301. As a result, LGBTQIA+ inclusion is increasingly becoming a talent strategy issue rather than solely a diversity initiative. Organizations that understand and respond to these workforce shifts will be better positioned to attract, engage, and retain top talent in the years ahead.
At the same time, the broader DEI landscape is experiencing significant change. The Human Rights Campaign Foundation’s State of the Workplace for LGBTQ+ Americans and Corporate Equality Index 2026 notes that many companies are navigating heightened political, legal, and social scrutiny surrounding diversity and inclusion efforts.2 Despite this uncertainty, LGBTQ+ employees continue to report concerns about workplace bias, career advancement, job security, and belonging, particularly among transgender and gender-expansive workers. The report also warns that when organizations retreat from or remain silent about inclusion commitments, employees often perceive that lack of clarity as a signal that support is diminishing.
These trends matter because inclusion has a direct impact on retention. EY found that LGBTQ+ employees who reported positive workplace experiences were 2.6 times more likely to intend to stay with their employer. Conversely, only 38% of employees who described their workplace experience negatively expected to remain with their organization over the following year. Among Gen Z respondents, 40% reported leaving a job because the employer was not welcoming to LGBTQ+ employees. These findings suggest that fostering inclusion is not simply about culture; it is also about reducing turnover risk and maintaining a strong talent pipeline.
Additional research reinforces this connection. The Williams Institute found that a substantial percentage of LGBTQ+ employees have left jobs because of how they were treated in the workplace, demonstrating that employee experience remains a key driver of retention3. Workplace discrimination, exclusion, and lack of support can have significant consequences for both employees and employers, including increased turnover costs, lower engagement, and loss of institutional knowledge.
One of the most effective ways organizations can strengthen inclusion and belonging is through Employee Resource Groups (ERGs). LGBTQIA+ ERGs provide opportunities for networking, mentorship, leadership development, and community building while also giving organizations valuable insights into employee experiences. At PIOW, we know that effective ERGs help transform organizational values into action by creating connections between employees and leadership and by fostering cultures where people feel seen, heard, and supported.
ERGs also contribute to psychological safety, a critical factor in employee engagement and performance. When employees feel comfortable bringing their authentic selves to work, they are more likely to share ideas, collaborate with colleagues, seek feedback, and fully participate in organizational life. Psychological safety enables employees to focus their energy on innovation and productivity rather than managing concerns about acceptance or belonging. EY specifically identifies trust, belonging, and authenticity as important drivers of positive workplace experiences among LGBTQ+ employees.
The business implications extend beyond retention. According to HRC’s 2026 findings, more than half (54.2%) of workers at organizations that scaled back diversity and inclusion efforts reported experiencing stigma or bias during the previous year, compared with 24.9% at organizations that maintained inclusion practices. HRC further notes that organizations that communicate clearly about their values and inclusion commitments are better positioned to build trust, retain talent, and strengthen business performance.
As workforce demographics continue to evolve, organizations have an opportunity to view LGBTQIA+ inclusion as a business strategy that supports retention, productivity, engagement, and long-term competitiveness. Employee Resource Groups are one practical mechanism for creating belonging and psychological safety, but they are most effective when paired with inclusive leadership, equitable talent practices, and clear organizational commitments. Together, these efforts can help organizations build workplaces where employees can thrive and where businesses are positioned to succeed in the workforce of the future.
References
1 EY. (2024). EY U.S. LGBTQ+ Workplace Barometer. Ernst & Young LLP.
2 Human Rights Campaign Foundation. (2026). State of the Workplace for LGBTQ+ Americans and Corporate Equality Index 2026. https://reports.hrc.org/corporate-equality-index-2026
3 Sears, B., Castleberry, N. M., Lin, A., & Mallory, C. (2024). LGBTQ people’s experiences of workplace discrimination and harassment. Williams Institute, UCLA School of Law.