Inclusion is a key part of future-proofing: ignore it at your peril

At a time when diversity, equity and inclusion (DEI) is under attack both from political and business leaders, some organisations are scaling back or even withdrawing from their DEI initiatives. Yet, at the time as we see businesses retreating from inclusion, employee engagement is quietly eroding.

Gallup’s 2022 report revealed that nearly six in ten global employees were quiet quitters – disengaged, doing the bare minimum. More recently Fortune claimed that ‘revenge quitting’ was ready to take its place, with disgruntled employees venting their frustrations by simply walking out the door. Both types of quitting are the result of dissatisfaction at work, and the cost to business is the same: reduced productivity and increased staff turnover.

The business reality is this: Fostering inclusion is more than a moral imperative – it’s a strategic necessity. The daily interactions that employees have with line managers are the lynchpin of engagement and retention, directly impacting the bottom line.

What does “inclusion” really mean?

Inclusion is not the same thing as diversity, though the two concepts are often conflated. Diversity is about numbers – the representation of diverse characteristics. It can be mandated and legislated. Inclusion, as Mary-Frances Winters notes in ‘From Diversity to Inclusion: An Inclusion Equation’, is achieved largely through “voluntary actions”.

Appointing a diverse workforce will not on its own lead to inclusion and its benefits; organisations must foster the experience of inclusion. But how?

Research by Shore et al. (2011) frames inclusion as a dual imperative: fostering belonging and encouraging uniqueness. This enables otherwise excluded groups to fully contribute to organisational goals to help businesses improve performance. In addition, as Mor Barak has shown, this approach safeguards against groupthink — as well as being morally right.

Inclusive cultures aren’t just fairer – they outperform. Shore, Cleveland & Sanchez (2018) found that inclusion improves an organisation’s ability to attract, promote and retain diverse talent. If by implementing inclusion effectively organisations can help harness diverse thinking and improve business performance, then surely this is a business imperative. The question is: what are the most effective ways of fostering inclusion?

The inclusion-performance link: evidence and insights

From 2020 to 2023, I interviewed DEI leaders and early-career professional women to understand their experiences of inclusion. My research revealed several inclusion practices that can promote belonging and encourage uniqueness to foster inclusion. Three key themes emerged:

1. Belonging vs valuing uniqueness

Organisations tend to prioritise practices that promote belonging, seeking to help employees feel part of the organisation. In contrast, employees crave recognition for their unique professional expertise. This is consistent with other studies that indicate inclusion for early career professionals is likely to be experienced through their work, or task-related inclusion. They experience inclusion when they are able to influence decisions and contribute to organisational goals.

2. Wellbeing and career development

Both D&I leaders and employees agree: Wellbeing and career development matter. They demonstrate that the whole person is valued. However, D&I Leads tend to focus on broad organisational wellbeing and career development initiatives. What early-career professionals value are the day-to-day interactions and personalised relationship with their line manager. For them, wellbeing means being treated as an individual, balancing work-life demands and the alignment of work assignments with career and skills development.

3. The power of people skills

While organisations focus on setting the tone from the top, early career professionals rarely refer to the role of senior leaders. The fact of the matter is that line managers make or break inclusion, with junior employees describing them as managers with either ‘good or poor people skills’.

So while organisations that aim to foster inclusion may be investing in some good practice, early career professionals experience inclusion — or a lack of it — in the daily interactions with line managers and the extent to which they perceive they are able to influence the organisational goals.

As a leader, how do you translate inclusion into measurable business results? Follow these six tips:

1. Prioritise task-related inclusion: Encourage all managers to invite input from their teams. For example, inviting the most junior members of the team to contribute first in meetings, and not offering their own opinion until everyone has spoken. In this way managers can help employees to feel valued and encouraged for their expertise. These micro-interactions are powerful signals of respect.

2. Develop people skills in junior managers: Employees feel included within the context of everyday interactions with line managers with good people skills. Consider redirecting some organisational resource towards developing good people skills in junior managers. Delivering more immediate and direct experiences of inclusion for employees in this way can offer greater ROI than costly top-down organisational interventions.

3. Democratise decision-making: Employees value being appreciated for their expertise and contribution to organisational goals, so use their differences as a resource. Consider how you might include more of your staff in decision-making. Use technology such as pulse surveys and video calls to involve more people, particularly those working remotely. Even regular updates on the progress of key decisions can foster a sense of ownership and engagement.

4. Personalise wellbeing initiatives: Employees value individualised support from their line manager, more than generic wellbeing programmes. Although these are appreciated, they are sometimes perceived as ‘performative’ care. Train managers to recognise and respond to employees’ unique work-life needs.

5. Make career development ongoing: Hold regular career development conversations, not just at annual appraisals. Monthly check-ins focused on how objectives might be achieved, rather than just looking at what has been achieved, help align work with career aspirations and foster inclusion.

6. Redefine inclusion in policy and practice: Shift the narrative from merely facilitating belonging to promoting inclusion as valuing difference and encouraging uniqueness. Re-message inclusion to provide more focus on valuing and encouraging differences as a resource to contribute to organisational goals, alongside belonging. Make it clear that diverse perspectives are a strategic asset, not a checkbox.

The bottom line

Inclusion is here to stay, and it makes sense – not just because it’s the right thing to do, but as a proven driver of engagement, productivity, and performance. For leaders who want to future-proof their organisations, the path is clear: Make inclusion a daily practice, not just a policy. Your people – and your profits – will thank you.

Dr Christine de Largy is an Executive Fellow of Organisational Behaviour at London Business School. Prior to this she was Chair, UK Board Services Harvey Nash, advising board directors on career planning. Her interests focus on promoting the ESG agenda at board and executive level.