Research increasingly shows that diverse, inclusive organizations function more effectively. Savvy leaders may strive to incorporate social equity into their stated organizational values, hire a demographically diverse staff, and encourage professional development opportunities related to diversity, equity, and inclusion (DEI). The problem with these well-intentioned and laudable steps comes when they function as isolated initiatives or amount to boxes on a human resources department checklist. There is a better way. The advantages of DEI are much better realized through inclusive leadership approaches that fundamentally shape workplace culture. Likewise, the presence of inclusive leadership within a workplace may be the most crucial factor in ensuring that an organization can fully reap the well-established benefits of DEI.

What is inclusive leadership?

The term “inclusive leadership” can seem like jargon, so it’s helpful to break it down. Experts in organizational psychology, human resource management, and business administration assert that inclusive leadership is distinct from other leadership paradigms in that it simultaneously facilitates a sense of belonging within a workgroup while also conferring appreciation for the unique attributes of individual members. In short, and to summarize insights from international research involving over a million employees conducted by the global human capital consulting firm Deloitte, inclusive leadership makes people feel respected, heard, and valued. In an inclusive workplace, all employees are comfortable expressing themselves and are empowered to reach well beyond their own prior limitations in accomplishing things never thought possible.

For inclusive leaders, diversity means more than you think

DEI specialists stress that enthusiastically hiring a diverse group along parameters of race, gender, age, and other social identity aspects is very important. Still, it’s not sufficient for fostering an inclusive workplace culture that will optimize performance, increase commitment, and promote full engagement. Instead, highly effective leaders take it further by encouraging “diversity of thinking” and purposely bringing together teams where members approach and tackle problems uniquely and effectively. Inclusive leaders recognize and call forth the synergy between each member’s varied individual perspectives and the collective power of team collaboration where each and every member feels highly valued and connected to the group. Engagement like this begins with creating a climate where everyone brings and engages all parts of themselves at work.

Why inclusive leadership?

Research shows again and again that inclusive workplace cultures make for better performing organizations. For example, inclusive workplaces are associated with businesses meeting or exceeding financial targets, delivering more innovation, achieving better business outcomes, and increasing work attendance, retention, and organizational commitment. Crucially, research pinpoints that the extent to which workers feel included hinges primarily on leadership and permission to bring their whole self to work–namely, “the behaviors of leaders…can drive up to 70 percentage points of difference between the proportion of employees who feel highly included and the proportion of those who do not.” In turn, those employees who feel genuinely included report better teamwork, improved decision-making, and enhanced collaboration. Inclusive leadership is the catalyst for satisfaction and success.

Another advantage of inclusive leadership is that it hinges on a strong sense of social consciousness manifested as a leader’s commitment to diversity, awareness of bias, and propensity for cultural intelligence, among other traits. In 2021, more so than ever, circumstances of a global pandemic and an ongoing public reckoning around racial injustice amplify DEI as a pressing ethical imperative and motivating management priority. An inclusive leadership approach reinforces timely opportunities to honor social consciousness, cultivate cultural understanding, and insist on equity through empathy and genuine compassion.

An inclusive leader is an effective one

Inclusive leadership can take organizations beyond inclusion as a buzzword, diversity as tokenism, equity as a mere aspiration, and the other manifestations of misguided DEI efforts—in fact, it can transform workplace culture to make inclusion real and sustainable. Inclusive leadership development is, therefore, one of the best ways that leaders at all levels can answer increasingly pervasive calls for social equity and deepen their professional impact while helping their businesses grow and innovate.