Many businesses embrace workplace diversity but remain unaware of why inclusion is equally important. Their future success depends on getting it right.
Editor's Note:This article has been edited on Oct. 6, 2023 to include new data and information.
Many businesses embrace diversity in the workplace, but are unaware of why inclusion is equally important. While diversity is a vital core value, it will not thrive without inclusion.
Diversity, equity and inclusion (DEI) are not just buzzwords — they're a way of life for many companies and should be a core business value for all. Many major companies, like Google, Facebook, Microsoft and Apple, have dedicated diversity initiatives they report on each year. Google’s most recent report shows progress in diversity and inclusion, but white males remain the largest demographic group in leadership in the U.S. (64%).
Clearly, more progress is needed and inclusion is key to success. But what exactly is inclusion and why is an inclusive culture at work important?
What Is Inclusion in the Workplace?
Inclusion in the workplace means an environment where all individuals, regardless of background, have a voice in the conversation and are valued. A diverse and inclusive workplace fosters a culture that promotes collective ingenuity and better reflects the diverse markets served. By prioritizing an inclusive culture, businesses not only uphold ethical standards but improve their competitive stance in the global market.
Why Is Inclusion in the Workplace Important?
By fostering a diverse and inclusive workforce, companies create an inclusive environment where every individual is empowered to contribute their unique insights and skills. Inclusive cultures encourage a multitude of perspectives, acting as a melting pot for innovation and problem-solving.
Diverse teams operating in inclusive settings propel the organization forward, navigating challenges with a broader perspective. Moreover, an inclusive workplace mirrors the diversity of the market, enhancing the company's ability to connect with a varied customer base. In short, inclusion is not merely an ethical stance but a pragmatic strategy that underpins organizational success.
Related Article: Corporations Are Reevaluating Their DEI Programs
5 Benefits of an Inclusive Work Environment
Let's dive deeper into the benefits that come with cultivating an inclusive workplace culture.
1. Inclusion Boosts Engagement
Gallup research showed that employees in an inclusive workplace are more engaged, demonstrate higher advocacy for their company and have a higher retention rate.
Yet, according to Gallup, only 23% of employees consider themselves to be engaged in the workplace. They are doing the work but are putting in little additional effort. That presents a significant opportunity for organizations to boost productivity and results via inclusion.
"Every major study of employee engagement (Glint, Qualtrics, Glassdoor) last year found that the No. 1 issue in engagement right now is belonging," said Josh Bersin, an industry analyst and founder of Josh Bersin Academy. "This means giving people a sense that they are included, they fit, and their personal style and differences are honored at work. So ‘inclusion’ or ‘belonging’ is a tremendously important measure of engagement, retention, innovation and customer service."
2. Inclusion Builds a Sense of Belonging
Accepting and embracing each employee’s differences and individuality creates a sense of belonging. From this point of view, inclusion and belonging are really the same thing. “Inclusion in the DEI context means including people regardless of differences," Bersin said. "This is the essence of belonging, and it clearly also implies being fair, equitable and transparent — with job hiring, promotion, pay and other rewards.”
Surprisingly, given the HR implications Bersin noted, only 6% of HR leaders believe lack of diversity is a threat to a positive workplace culture, said Amy Mosher, chief people officer at isolved, citing a survey her company completed. “If I were to take this same survey, I would have rated lack of diversity much higher on the threats to a positive company culture,” she said.
Mosher sees an opportunity to redouble efforts to create belonging, particularly with employees working in a distributed environment. “When we work across time zones, we need to find creative ways of bridging that distance with engagement programs. When we dig deeper into why someone feels like they belong, however, we must highlight that representation matters. There is no sense of belonging without every single employee feeling like they belong. That’s real equity and inclusion.”
3. Inclusion Improves Employee Experience
How does inclusion improve the employee's experience? “It lets people speak up, innovate, share new ideas, and obviously help others without risk,” said Bersin. An inclusive work environment also shows employees their employer is interested in their ideas and perspective, which enhances satisfaction and boosts loyalty to a business. Inclusive companies are more likely to recruit and retain top talent, and those employees are more likely to become advocates for the company.
Inclusion is an important piece of successful business, said Chris Savage, CEO and co-founder of Wistia. “It’s one thing to strive for equity, but inclusion takes it a step further and makes everyone feel valued, respected, fulfilled, and welcome. Being empathetic and building an inclusive culture is more than a nice-to-have … it has real strategic value.”
An inclusive culture enables every individual to say they belong, are valued and can be themselves at the company, said Teresa Hopke, CEO at Talking Talent Americas. "People who feel this way are motivated to take part and contribute, knowing that their perspectives and contributions are valued and make a difference,” she said. “There are a wide variety of benefits when diversity and inclusion are truly a part of the fabric of an organization — from unlocking true potential, driving innovation to increasing retention.”
Related Article: What Is Employee Experience? And Why It Matters
4. Inclusive Workplaces Enhance Innovation
Innovation is inherently risky, and an inclusive culture encourages employees to feel comfortable taking such risks. “Innovation requires risk-taking and people who don’t feel included will stay quiet and avoid giving new ideas, feedback or suggestions," Bersin said.
Amber Corrin, account director at Spire Communications, said diversity and inclusion in the workplace provide greater opportunities for more effective problem-solving, decision-making, revenue generation and more. "This is true because, at least in part, diverse backgrounds create diverse ways of thinking, diverse approaches to problem-solving and diverse experiences that shape performance," she explained.
An inclusive workplace means that each employee is free to walk their own pathway to solving problems. Each of us thinks and works in ways that are heavily influenced by our life experiences, said Corrin, and these differing perspectives provide opportunities for innovation and problem-solving that a hom*ogenous workforce lacks.
5. Inclusive Leaders Are More Effective
What leaders say and do makes up to a 70% difference in whether an employee feels included. Therefore, leaders need to be visibly committed to diversity and inclusion and aware of personal and organizational biases.
“Leaders set the example so the more they listen and accommodate different ideas and styles, the greater inclusion and diversity for everyone," Bersin said. His firm's DEI study shows that companies with a high degree of leadership focus on inclusion are 3-4 times more profitable and financially successful than their peers.
Learning Opportunities
At this point, business leaders shouldn't need convincing, as they already recognize the benefits of diversity, equity, and inclusion. “For a generation that watched George Floyd die in the palm of their hand, a diverse workplace isn’t a perk — it’s a requirement,” said Corrin. “It’s where they know their particular strengths will be recognized and valued. And it’s where employers and employees alike understand exactly how and why inclusiveness benefits the entire workforce.”
Diversity and inclusion should be core values that every company encourages throughout the organization, from hiring practices to internal policies to leadership positions. A diverse and inclusive environment enhances employee engagement and innovation, creates a sense of belonging, improves the employee experience, enhances innovation and improves leadership skills and abilities.
The Challenges of Building Inclusion in the Workplace
Working toward a more inclusive workplace is necessary, yet it often presents a set of challenges that require thoughtful navigation. These hurdles, if not addressed properly, could hamper the quest for inclusivity and the many advantages it brings.
Some of the common challenges encountered include:
- Pre-existing Biases and Stereotypes: The road to fostering an inclusive culture can be riddled with biases and stereotypes that predate the initiative. Differences in race, sexual orientation, gender and age can unfortunately be the grounds for prejudice, which can silence some voices and inhibit the creation of inclusive teams.
- Communication Barriers: A diverse workforce naturally brings a variety of languages and cultural norms to the table. This diversity, while enriching, can also lead to misunderstandings or feelings of alienation if not managed with sensitivity and open communication channels.
- Representation Balance: Striving for a representation where everyone feels valued is a delicate balance to achieve. The effort to be inclusive should not tilt the balance into a scenario of reverse discrimination, which could be counterproductive to building an inclusive workplace culture.
- Integration Efforts: Integrating a diverse array of individuals into cohesive, collaborative teams requires proactive effort. It demands strategies that not only celebrate diversity but also foster genuine connections and a shared sense of purpose among employees.
Addressing these challenges head-on with informed strategies, such as unconscious bias training, promoting open dialogue and nurturing a learning culture, can significantly smooth the path toward building an inclusive, diverse workforce.
Related Article: The Future of Work Is an Opportunity to Do Better With DEI
How to Improve Inclusion in the Workplace
Transforming the workspace into one that prioritizes diversity and inclusion will pay off in terms of organizational success and employee satisfaction. Some ways to cultivate an inclusive workplace culture include:
Educate and Train
Education is the cornerstone of change. Implement regular diversity and inclusion training to enlighten your workforce about the value of an inclusive culture and to challenge pre-existing biases.
Start an Open Dialogue
Foster an environment where employees feel comfortable sharing their experiences and perspectives. An open dialogue prevents communication breakdowns at work and acts as a catalyst for understanding and collaboration among a diverse team.
Establish Inclusive Leadership
Leaders play a pivotal role in setting the tone for inclusive cultures. Engage in leadership practices that value and solicit input from all members and reflect diversity at all levels. Participative leadership, for instance, encourages each employee to have a say in decision-making.
Set Flexible Policies
Develop policies that cater to a diverse workforce, such as flexible working hours and locations, to accommodate different lifestyles and needs. Many companies also choose to track productivity and output rather than time spent in seats.
Think About Recruitment Practices
Adopt inclusive recruitment practices that attract a wide spectrum of candidates. Individuals seeking employment increasingly value diversity and inclusion as deciding factors. In fact, one survey found that 86% of job seekers believe a company’s approach to DEI is an important factor when considering an employer.
Celebrate Workplace Diversity
If you have a diverse and inclusive work culture, don't hide it. Celebrate the diverse tapestry of your workforce through events, recognition and promotion of diverse holidays and cultural events.
Set up Feedback Mechanisms
Establish mechanisms for receiving and acting on employee feedback regarding how to create a more inclusive work environment. It’s a way to continuously learn, improve and make employees feel heard and valued.
Create an Accessible Environment
Ensure the workplace is accessible to all, including individuals with disabilities, to truly embody the ethos of inclusivity. From physical modifications like ramps and elevators to digital accommodations like screen readers, creating an accessible environment is a fundamental aspect of fostering inclusivity.
Promote Allyship
Encourage allyship within the workplace, where individuals support each other across differences, fostering a sense of belonging and mutual respect. By promoting empathy, understanding and active support among employees, organizations can build stronger, more cohesive teams that exemplify the values of an inclusive culture.
With a conscientious approach and sustained effort, fostering an inclusive workplace culture where every individual thrives becomes an achievable goal.
