By Paola Accettola
Deloitte’s research on DEI in Canada shows that 40% of organizations have begun to understand the value of diversity and inclusivity and have launched initiatives to address it. However, creating a truly inclusive workplace requires more than just checking boxes—it demands strategic leadership and a commitment to fostering an environment where all employees feel valued and empowered.
In today’s rapidly evolving workforce, inclusivity is no longer optional; it’s a critical factor that drives both employee satisfaction and organizational success. Leadership plays a vital role in promoting inclusivity, transforming the employee experience, and ensuring that your organization stays ahead in the race for top talent and innovation.
Understanding the Importance of an Inclusive Workplace
Inclusivity is more than just a buzzword; it’s about being strategic when creating an organization with unconscious biases in check, being introspective to understand where favoritism may occur, and creating an even playing field for all current or future employees.
McKinsey found that workplaces with a high level of gender and ethnic diversity are 25% more likely to have higher financial returns than organizations that aren’t diverse. Employees also prioritize diversity, with 78% saying it’s important to them that their employer values diversity and 58% saying that it’s very important. This shift in values and priorities is driving employers to look closer into their hiring practices and pay equity within their organizations to ensure that their actions align with the value of a diverse and inclusive workplace.
The Role of Leadership in Fostering Inclusivity
Leadership has a significant impact on workplace culture, especially a culture of diversity and inclusion. Leaders account for up to 70% of employees' experience of feeling like they belong and are psychologically safe in the workplace. Inclusive leaders also see a:
17% increase in team performance;
20% increase in decision-making quality;
29% increase in team collaboration;
And a 76% cut in employee attrition risk.
In order to effectively promote inclusivity, a leader needs to:
Have empathy and high emotional intelligence;
Be open-minded;
Engage in proactive communication and active listening;
And hold managerial accountability for diversity, equity, and inclusion (DEI) practices.
Strategies for Leaders to Promote an Inclusive Workplace
Having inclusive policies can demonstrate diversity and inclusion are a priority in your workplace. These don’t have to be grandiose, either. Strategies outlined to keep hiring practices fair and pay equitable are great places to start. These policies may be about the equal application of bonuses, pay increases to employees in the same roles, or to ensure hiring practices aren’t biased.
Some companies engage in pinkwashing (promoting LGBT+ friendliness to cover negative actions) or similar behaviours where they claim to value diversity and inclusion, but that isn’t reflected within their organization, leading to distrust.
Implementing training and development programs that focus on DEI practices shows employees that you hold these values sincerely. On the flip side, it educates employees on their role in creating an inclusive workplace. For example, combating unconscious bias is important for everyone in an organization as, by its nature, it’s harder to notice within yourself and eliminate.
Having clear communication channels for employees to bring up concerns about the inclusivity of the organization can also help them feel valued and secure in the company. If an incident or concern related to DEI does arise, it’s critical for employees to know they have support in dealing with it.
Overcoming Common Workplace Challenges
If your organization has not always held inclusivity as a core value, then there are a lot of challenges that you may need to overcome to increase the diversity of your business. Even companies which are created with a core set of DEI values will encounter issues and be forced to update policies to meet changing standards. If your existing staff is mostly of the same gender or ethnic background, for example, you may not have the capacity to hire staff members to diversify your workplace. Still, you can look into the pay equity of existing employees and ensure that everyone is on an equal playing field.
Other common barriers include:
Unconscious bias of employees, leaders, and hiring managers;
Communication barriers, such as cultural misunderstandings or a lack of clear communication and reporting channels;
Lack of DEI training;
Perceived underperformance or imposter syndrome in diverse employees;
And resistance to change in existing employees.
Understanding the issue that your company is facing can help you know how to combat it.
If a lack of training or understanding is at the heart of the problem, then implementing mandatory programs and course material can lend a hand.
For communication issues, having a clearly and easily accessed portal to report issues and talk to management can increase morale.
When having cultural misunderstandings, setting aside time to discuss expectations, the current issues, and how you can improve understanding in the future can help increase employee engagement and satisfaction.
The workforce is constantly changing and evolving, and you don’t want to be left behind. Ensuring that you’re proactive on your DEI policies and up to date on the inclusion and diversity of your workforce future-proofs your organization. It also demonstrates that your company is on the cutting edge of inclusivity.
Final Thoughts
Fostering an inclusive workplace is not just a moral imperative but a strategic advantage that drives performance, innovation, and employee satisfaction. Organizations can create a culture where every employee feels valued and empowered by recognizing and addressing unconscious biases, implementing equitable policies, and investing in DEI training. Leadership plays a crucial role in this transformation, with inclusive leaders setting the tone for a positive and collaborative work environment. As HR leaders, it's time to take actionable steps—review your hiring practices, ensure pay equity, and maintain open communication channels. Together, we can build workplaces that reflect the diversity of the world around us and lead the way in creating a more equitable future for all.
Paola Accettola is the principal and CEO of True North HR, a nationally recognized HR consulting team in Canada. She is an HR leader committed to transforming her deep knowledge into helping companies find smart and simple HR solutions. The True North HR team aims to help clients extend or supplement their HR departments.
