Organizational Wellness

How to Harness the Transformative Power of Inclusive Leadership

Last Updated Nov 20, 2024

Time to read: 10 minutes

Want your team members to feel included, empowered, and happy at work? It all starts with inclusive leadership. What leaders say and do can make up to a 70% difference in how included an employee feels, according to Harvard Business Review.

In other words, inclusive leaders power stronger teams. But what does that look like in practice?

Inclusive leadership is more than just a nice idea. It plays a role in all kinds of business practices, from diverse hiring to offering valuable benefits.

Here's what you need to know about the benefits of inclusive leadership, plus strategies to harness it in your workplace so you can foster a positive work culture that supports healthy organizational growth.

What Is Inclusive Leadership?

Inclusive leadership is a management style that promotes diversity and inclusion in the workplace. Leaders embodying inclusive leadership ensure that diverse perspectives are heard, considered, and integrated into decision-making processes. They actively promote inclusion by seeking diverse viewpoints and experiences, ensuring everyone on their team feels fairly represented. This style emphasizes fairness, empathy, and collaboration, ensuring every team member feels a sense of belonging and psychological safety.

If that sounds complicated, don't panic! At the end of the day, it's just part of being a good leader. The best way to incorporate inclusive leadership into your business is to weave it into everything you do, practicing it until inclusion isn't just a value, but a habit.

Key Characteristics of Inclusive Leadership

Inclusive leadership is all about embodying the values that support a thriving organizational culture.

Authenticity

It's not just about what you say — it's about what you do. Inclusive leaders build authentic relationships with their team members instead of acting superior. They follow through on their promises and turn company values into real-life action.

Empathy

To practice inclusive leadership, you must empathize with every employee's unique experience. Try to put yourself in their shoes and find out what will help them feel included. Understand that everyone's identity is multifaceted — a person's race, culture, gender identity, mental wellbeing, and sexuality can all shape their experiences in the workplace.

Willingness to Change

Great leaders should always be open to change. To practice inclusion, understand your organization's current values and practices might not vibe with your team's work style. Be willing to change the rules, adopt new systems, and listen to your employees when they point out areas for improvement.

Introspectiveness

Another important element of inclusive leadership is the ability to address your own biases. We all have inherent biases, even if we aren't aware of them. If you find yourself resistant to change, take a moment to consider your feelings and understand why you might disagree with another person's point of view. Is your reasoning just, or might bias be at play, however unwittingly?

The Benefits of Inclusive Leadership

Inclusive leadership is more than just a nice idea. It has tons of real-world, practical benefits for employees and organizations alike.

For Employees

Inclusive leadership benefits all employees in your workplace. Diversity, equity, inclusion, and belonging (DEIB) efforts have been shown to raise employee happiness by 31% and employee motivation by 25%, according to a 2023 study by the Boston Consulting Group.

Employees of inclusive leaders may experience:

An increased sense of belonging and value
Higher engagement with their team members and motivation to work together
Improved collaboration
Increased innovation with more diverse viewpoints at the table
Enhanced psychological safety, or comfort learning and sharing in their environment

For Organizations

Those employee benefits help drive organizational success. When you include people of all backgrounds and experiences, it fosters better teamwork and even increased productivity. In other words, employees who feel their best perform at their best — and that helps your organization reach its goals.

Businesses that incorporate inclusive leadership into their strategies will benefit from:

Better talent attraction
Increased employee retention
Stronger decision-making and problem-solving among team members
Increased profitability
Improved brand reputation
Increased customer loyalty

Fostering Inclusive Leadership: Strategies for HR Leaders

There's no denying the benefits of inclusive leadership. Fortunately, implementing it in your business isn't hard — it just takes open communication and strategizing.

Recruitment and Hiring

An inclusive workplace starts with inclusive hiring processes. Diverse hiring not only leads to a more diverse workforce but can also help you attract and retain top talent. It broadens your potential hiring pool and makes your business more attractive to people of all races, cultures, abilities, and identities.

Over half of US adults think focusing on DEI at work is a good thing, according to a Pew Research survey. Unfortunately, that same survey reveals that many believe being male or white is an advantage in their workplace. Inclusive hiring will help to remove that stigma in your organization.

Here are some tips to keep your hiring practices as diverse as possible:

Take steps to prevent subconscious biases, such as using gender-neutral language or implementing a standardized scoring system.
Train hiring managers on the latest DEI standards.
Make sure your hiring team includes diverse employees.
Consider fair chance hiring practices.
Ask interviewees what makes them most comfortable in a workplace and discuss your organization's inclusive benefits.

Onboarding and Training

Inclusive hiring goes beyond the initial interview process. Every new team member should feel welcome throughout onboarding and training.

One way to do that is to create inclusive onboarding experiences. That might mean:

Offering flexible scheduling and start dates
Ensuring all training and onboarding materials are in gender-neutral language
Encouraging trainers to wear name tags with their pronouns, or having them on their GChat profiles
Asking new hires how you can make them feel more welcome

Inclusive leadership should also play a role in your training and development programs. Whether training new employees or re-training your team on new developments, dedicate at least part of the program to diversity and inclusion principles. Training sessions should cover:

The importance of DEI policies
Steps your business is taking to be more inclusive
Ways to address internal biases
Processes to report instances of bias or unfair treatment in the workplace

This training is of utmost importance when promoting employees to leadership positions. Leaders within your organization must embody inclusive values and set an example for other team members.

Performance Management

Performance evaluations are another business process often impacted by bias. An employee's race, gender, ability, or identity should not affect your evaluation of their work. Unfortunately, it's all too common in many organizations — for example, reviewers tend to prioritize kindness when addressing women, according to one Harvard Business Review study.

To keep your performance reviews as equitable as possible, consider:

Setting clear criteria for the review process
Creating diverse review teams for each department
Training reviewers to use inclusive language and consider their own biases
Screening employee feedback for potential prejudices before incorporating it into the review
Evaluating employees based on a standardized point system

Inclusive behavior should be common practice every day, not just around annual reviews. Set clear expectations for behavior and language use with your team members. Employees should know exactly what is considered acceptable behavior and what is over the line regarding jokes, treatment of colleagues, and communication.

Implement a reporting system to help enforce these standards. Make sure any employee who experiences unfair or prejudiced treatment can safely report the problem and discuss potential solutions. An effective reporting system should be:

Anonymous
Overseen by multiple HR team members to ensure fair evaluation
Solutions-oriented
Inclusive of all instances of unfair treatment

Employee Engagement

Inclusive leadership doesn't just come from the top down. Employees at all levels of your business should engage with and be excited about contributing to an inclusive space. When you encourage inclusivity rather than enforcing it, your workspace can become a more positive environment for all.

Here are a few tips to keep your employees engaged as you strive to create a more inclusive workplace:

Encourage open communication between employees and team leaders.
Establish a routine feedback system to spot areas for improvement.
Discuss healthy workplace communication in regular training sessions.
Hold regular team bonding events to encourage positive relationships between all team members.

For a more practical way to build inclusiveness, consider implementing employee resource groups. These groups offer team members with similar experiences an opportunity to bond and discuss any challenges they may face at work. Likewise, peer mentorship programs can help new employees find their place on a diverse team.

Leadership Development

Managers and team leaders within your organization are responsible for maintaining an inclusive workspace. They should do this by:

Using inclusive language (avoiding gender biases or outdated terms in their inter-office communication)
Ensuring all hiring, evaluation, and performance management processes are as inclusive as possible
Maintaining open communication with their team members
Embodying the values of an inclusive leader in their everyday practices

Effective training is vital, whether you're onboarding new leaders or inboarding to retain your existing talent. Invest in inclusive leadership training for your managers at all levels. Regular training sessions will remind your team leaders of the importance of DEI and help them develop more inclusive practices every day.

It's also important to hold managers accountable. Ensure you have systems for reporting unequal behavior and handling employee misconduct. All employees should understand their inclusive leadership qualities make a difference in obtaining and retaining leadership positions.

Inclusive Benefits

Inclusive benefits aren’t just about supporting employees—they also reinforce your organization’s commitment to inclusive leadership. By offering benefits that address diverse needs, leaders show they value every individual’s unique circumstances, helping to build a culture of trust and belonging.

Flexible wellness programs: Providing mental health support, gender-affirming care, and varied fitness options sends a clear message that everyone’s wellbeing matters, reflecting inclusive leadership in action.
Family-friendly policies: Offering flexible parental leave and caregiving support demonstrates that leadership understands and accommodates diverse family dynamics, further fostering an inclusive environment.
Work-life wellness: Flexible hours, remote work options, and sabbaticals empower employees to balance personal needs with professional responsibilities, showing leaders are committed to individual success.
Financial wellness: Tools like student loan repayment and financial coaching help all employees manage stress, particularly those from underserved communities, reinforcing equity and care.

By aligning benefits with inclusivity, leaders model behaviors that build stronger, more diverse teams and a workplace where everyone thrives.

Measuring and Sustaining Inclusive Leadership

How can you be sure you're successfully implementing inclusive leadership? The bad news is many organizations have work to do: over half of Millennial and Gen Z employees aren't satisfied with their current employer's progress in creating a more equitable and inclusive work environment, according to a 2022 Deloitte survey.

The good news is reviewing and troubleshooting processes will help you get (and stay!) on the right track. Make your team members proud and reduce employee turnover by striving for better progress.

Collect Data

Like other workplace values, inclusive leadership can't always be measured in numbers. But there are some ways you can use data to measure your progress.

Take a look at your employee demographics and recent hiring statistics. Does your business hire people from a diverse range of backgrounds and identities? Is your organization's leadership structure representative of your overall diversity?

Employee satisfaction surveys also offer vital insight. They can complete these surveys anonymously, which will help you gather feedback on your current inclusive practices, learn about challenges your employees face, and spot areas for improvement.

Set Goals and Track Progress

Establish clear goals so you can track your progress throughout the year. Some examples of DEI goals are:

Receiving high scores on employee satisfaction surveys
Meeting diversity metrics in a given hiring timeframe
Achieving a certain ROI for investments in training, hiring, and employee engagement practices

Celebrate Successes

Don't forget to celebrate success as you work toward your goals. Recognize team members who successfully embody inclusive leadership practices by honoring them as Employee of the Month or offering other rewards. Share DEI milestones with your employees so they can take pride in the progress you've made as a team.

Continuously Improve

Remember that inclusive leadership is an ongoing process. Progress never stops, so continue collecting data, setting new goals, training leaders, and communicating with all your team members. Altogether, this will ensure you meet their expectations.

Maximize Inclusive Leadership with Flexible Wellness Benefits

Inclusive leadership isn’t just a buzzword—it’s a game-changer that HR leaders should weave into every business practice, from diverse hiring to unbiased performance reviews. When you invest in inclusivity, you’ll tap into a broader talent pool, slash turnover, and build a culture where employees feel safe, valued, and energized.

But it doesn’t stop there! Wellness programs are a powerful way to supercharge inclusivity. Offering flexible, personalized benefits—like fitness classes, mental wellbeing resources, and nutrition support—ensures your team members of all backgrounds and abilities can thrive.

Want to improve your workplace culture? Speak with a Wellhub Wellbeing Specialist today to see how tailored wellness programs can help any organization thrive!

Company healthcare costs drop by up to 35% with Wellhub! (* Based on proprietary research comparing healthcare costs of active Wellhub users to non-users.) Talk to a Wellbeing Specialist to see how we can help reduce your healthcare spending!