Inclusive Leadership: Harnessing the Benefits of Diversity for Business Success

Diversity and inclusion have become increasingly important in the workplace in recent years. Companies have recognized the value that comes with having a diverse and inclusive workforce, including improved innovation, increased employee satisfaction, and higher levels of engagement. One area where diversity and inclusion can have a significant impact is on effective leadership.

Effective leadership is critical to the success of any organization. Leaders who are able to inspire, motivate, and engage their teams can help drive organizational performance and growth. However, simply having a diverse team is not enough. Leaders must also be inclusive in their approach, creating an environment where all team members feel valued, respected, and included.

Research has shown that inclusive leadership can have a significant impact on team performance. Teams with inclusive leaders are 17% more likely to report that they are high performing, 20% more likely to say they make high-quality decisions, and 29% more likely to report behaving collaboratively. What’s more, a 10% improvement in perceptions of inclusion increases work attendance by almost 1 day a year per employee, reducing the cost of absenteeism.

So, what specific actions can leaders take to be more inclusive? To answer this question, researchers surveyed more than 4,100 employees about inclusion, interviewed those identified by followers as highly inclusive, and reviewed the academic literature on leadership. From this research, they identified 17 discrete sets of behaviors, which they grouped into six categories, all of which are equally important and mutually reinforcing.

The six traits or behaviors that distinguish inclusive leaders from others are visible commitment, humility, awareness of bias, curiosity about others, cultural intelligence, and effective collaboration. These traits may seem like the obvious ones, similar to those that are broadly important for good leadership. But the difference between assessing and developing good leadership generally versus inclusive leadership in particular lies in three specific insights.

First, most leaders in the study were unsure about whether others experienced them as inclusive or not. More particularly, only a third (36%) saw their inclusive leadership capabilities as others did, another third (32%) overrated their capabilities and the final third (33%) underrated their capabilities. Even more importantly, rarely were leaders certain about the specific behaviors that actually have an impact on being rated as more or less inclusive.

Second, being rated as an inclusive leader is not determined by averaging all members’ scores but rather by the distribution of raters’ scores. For example, it’s not enough that, on average, raters agree that a leader “approaches diversity and inclusiveness wholeheartedly.” Using a five-point scale (ranging from “strongly agree” to “strongly disagree”), an average rating could mean that some team members disagree while others agree. To be an inclusive leader, one must ensure that everyone agrees or strongly agrees that they are being treated fairly and respectfully, are valued, and have a sense of belonging and are psychologically safe.

Third, inclusive leadership is not about occasional grand gestures, but regular, smaller-scale comments and actions. By comparing the qualitative feedback regarding the most inclusive (top 25%) and the least inclusive (bottom 25%) of leaders in our sample, we discovered that inclusive leadership is tangible and practiced every day.

For leaders to be more inclusive, they must first commit to the idea of inclusion and make it a priority. This requires an authentic and visible commitment to diversity, challenging the status quo, and holding others accountable. Leaders must also be humble and admit their mistakes, creating space for others to contribute.

Takeaway

In today’s fast-paced business environment, effective leadership is critical to the success of any organization. The impact of diversity and inclusion on leadership cannot be overstated. Leaders who embrace diversity and inclusion create a culture that is open, inclusive, and welcoming to everyone, regardless of their backgrounds, perspectives, or experiences.

To be an effective leader, one must recognize their own biases and work towards overcoming them. It is also crucial to acknowledge and address the biases that exist within the system. A leader should strive to create a meritocracy where everyone has an equal opportunity to succeed.

An open mindset and deep curiosity about others are essential traits of successful leaders. Listening without judgment and seeking to understand others with empathy are vital in creating an inclusive workplace culture. A leader who possesses cultural intelligence is attentive to others’ cultures and can adapt their communication style and behavior accordingly.

In conclusion, the impact of diversity and inclusion on effective leadership cannot be ignored. Leaders who prioritize diversity and inclusion create a workplace culture that is more innovative, productive, and successful. By fostering an environment of inclusivity and embracing diverse perspectives and experiences, leaders can drive their organization to achieve new heights of success.

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