A diversity of markets, customers, ideas, and talent is driving the need for inclusion as a new leadership capability.
The business case for inclusive leadership is clearer than ever. Studies show, time and again, that diverse teams in inclusive cultures are more engaged, performance-driven and innovative. Companies in the top quartile for gender diversity on their executive teams are 21 per cent more likely to experience above-average profitability than companies in the fourth quartile. Likewise, companies with ethnically and culturally diverse executive teams are 33 per cent more likely to outperform EBIT margin.
What is inclusive leadership?
Inclusive leaders cultivate a holistic mindset while building and engaging diverse teams. Examples of practising an inclusive leadership mindset include:
- Deciding pay, performance ratings and development and promotion opportunities free of bias and based on capability and effort
- Challenging entrenched organisational attitudes and practices that promote homogeneity
- Enabling diverse individuals to feel safe to contribute without fear of embarrassment or punishment
Watch Natalie Wilkins and Deborah Croft discuss inclusive leadership (recording from a LinkedIn Live)
Facts & Figures
More than 80 per cent of people believe inclusion is an important factor when choosing a new employer. Effective leaders who adopt inclusive behaviours are proven to:
- Reduce visible attrition: About 35 per cent of female employees leave within the first few months following a maternity leave in Europe. This can cost your business hundreds of thousands in disrupted projects and replacement hiring, not to mention the knowledge and skills you invested to develop these valuable employees.
- Reduce invisible attrition: Working mothers and carers find it harder to advance their career. According to Pew research, 41 per cent of working mothers said being a parent made it harder to advance in their careers, compared with 20 per cent of fathers.
How our executive coaching and leadership training can foster inclusive leadership
Creating an inclusive culture that embraces differences is no small feat. Approximately 75 per cent of all change initiatives fail. Many don't have the intended long-term impact because they neglect the human element and focus solely on linear plans and processes.
Most people naturally resist change and are driven by unconscious bias. Through our human-centric training and consultancy services, we can address these challenges together and create sustainable change.