A study by Bersin by Deloitte found that inclusive and diverse companies generate 2.3 times higher cash flow per employee, with smaller businesses experiencing up to 13 times more. These companies also demonstrated greater agility and a stronger readiness for change.
In a separate Deloitte study, enhancing employees’ sense of inclusion resulted in a 17% increase in perceived team performance, a 20% improvement in decision-making quality, and a 29% increase in collaboration within teams.
These findings underscore a fundamental truth: employees thrive when they feel safe to be their authentic selves in the workplace. That’s why having an inclusive leader helping them is essential not only for individual growth but for team performance and long-term business success.
What is an Inclusive Leader?
An inclusive leader is focused on cultivating an environment where every individual, regardless of their background or differences, feels welcomed, respected, and supported. Their management style goes beyond simply encouraging diversity in recruitment; it ensures that all team members have the opportunity to voice their ideas and participate equally.
Key Characteristics of an Inclusive Leader
Some core attributes that define an inclusive leader in the workplace include:
- Active Listeners: Rather than just hearing what team members have to say about a certain task, project, or issue, you genuinely understand and acknowledge their viewpoints. Leaders who listen actively are attentive to the concerns and needs of their teams, enabling more effective responses and helping build an environment where everyone feels heard.
- Open Mindset: It is important for leaders to be open about examining their own biases and recognizing that there is always something to learn from others. This then welcomes diverse perspectives and moves away from rigid, traditional thinking, leading to both innovation and teamwork.
- Teamwork: Leaders should nurture an environment where team members feel empowered to collaborate and share their input freely. Encouraging mutual support and cooperation could help strengthen team spirit and often lead to more innovative and creative outcomes.
- Emotional Resilience: This refers to the ability to remain balanced and adapt in the face of challenges. Inclusive leaders need this skill to manage both personal and workplace stress while guiding their teams calmly and compassionately, responding to adversity with empathy and stability.
- Team Diversity: Inclusive leadership is also evident in the diversity of the team itself. Leaders must build teams with a wide range of backgrounds and viewpoints, enriching decision-making processes and sparking creative ideas.
- Conflict Management: Effectively managing conflicts is another key skill for inclusive leaders, especially since diverse teams may encounter differing opinions, perspectives, or working styles. They should be able to address such conflicts in a constructive way, promoting open discussion and mutual respect.
Why is Inclusive Leadership Important?
Inclusive leadership goes beyond simply managing a diverse team. It’s about creating an environment where every individual feels seen, heard, and valued—regardless of their background, identity, or perspective. This is why it matters:
For Individuals: When leaders adopt an inclusive approach, employees experience a stronger sense of belonging, which directly boosts motivation and engagement. Employees who feel respected and accepted in the workplace are more likely to bring their full selves to work, resulting in higher morale, job satisfaction, and overall well-being.
For Teams: Inclusive leadership fosters trust, collaboration, and psychological safety within teams. When team members know their ideas are welcome and respected, it leads to more effective communication, greater problem-solving, and higher performance across the board.
For Organizations: At the organizational level, inclusive leadership drives innovation and adaptability. This is because diverse teams are more likely to challenge assumptions, contribute unique perspectives, and develop creative solutions. With more inclusive decision-making, businesses are better equipped to respond to market shifts and customer needs, leading to improved outcomes and competitive advantage.
How to Become an Inclusive Leader
Becoming an inclusive leader requires intentional practice, self-awareness, and a commitment to ongoing development. Consider these actionable strategies:
1. Cultivate Self-Awareness
- Recognize personal biases: Everyone has unconscious biases. Being self-aware and acknowledging them is the first step to leading more inclusively.
- Understand your own cultural lens: Reflect on how your background influences your values, communication style, and leadership approach.
- Be open to feedback and continuous learning: Encourage feedback from your team and remain committed to self-improvement.
2. Foster a Culture of Belonging
- Create a safe and welcoming environment: Ensure all employees feel comfortable expressing themselves without fear of judgment or exclusion.
- Promote respect and value for diversity: Actively celebrate different backgrounds, experiences, and viewpoints.
- Encourage open communication and feedback: Make space for honest dialogue and show appreciation for diverse input.
3. Champion Diversity
- Recruit and hire from diverse talent pools: Broaden your hiring practices to include candidates from varied demographics and backgrounds.
- Ensure fair and equitable opportunities for all: Evaluate promotion and development practices to remove systemic barriers.
- Celebrate diverse perspectives and contributions: Publicly recognize and affirm the value of varied insights in team success.
4. Communicate Inclusively
- Use inclusive language: Avoid terms or phrases that may exclude or alienate others. Opt for gender-neutral and culturally sensitive communication.
- Be mindful of communication styles: Adapt your approach to suit different personalities, cultures, and communication preferences.
- Ensure clear and accessible communication channels: Make sure information is shared in formats that all employees can access and understand.
5. Empower and Develop Others
- Provide opportunities for growth and development: Invest in training, coaching, and upskilling for all team members.
- Delegate effectively and share leadership responsibilities: Empower others by trusting them with meaningful responsibilities.
- Support and mentor individuals from diverse backgrounds: Take an active role in mentoring underrepresented groups within your team.
6. Lead with Integrity
- Be a role model for inclusive behaviour: Demonstrate inclusive values through your words and actions every day.
- Hold yourself and others accountable for fostering inclusion: Set clear expectations and address exclusionary behaviour promptly.
- Continuously evaluate and improve your inclusive leadership practices: Seek feedback, assess progress, and adjust strategies as needed.
Exclusive vs. Inclusive Leaders: A Comparison
Understanding the distinction between exclusive and inclusive leadership helps underscore the benefits of shifting towards a more inclusive management style:
Leadership Element | Exclusive Leaders | Inclusive Leaders |
Decision-making | Top-down, relies on limited perspectives | Collaborative, values input from diverse voices |
Growth Potential | Risk of stagnation, limited innovation | Encourages growth, adaptability, and continuous learning |
Resistance to Change | High resistance, fear-driven decisions | Open to new ideas, embraces change |
Communication | One-directional, little room for feedback | Multi-directional, encourages ongoing dialogue |
ECI Coaching Can Help
At ECI Coaching, we specialize in developing inclusive leaders who are equipped to drive change, inspire teams, and foster inclusive cultures.
Through our corporate coaching courses and executive coaching programs, we help leaders enhance their inclusive leadership skills, from building self-awareness to managing inclusive teams effectively. Whether you’re a C-suite executive or an emerging leader, ECI Coaching provides the personalized coaching and practical tools needed to lead with authenticity, empathy, and impact.