The business case for inclusive leadership

- Since this topic of inclusion has been around for more than a decade, and leadership has been around since forever or many centuries, let me hear from you first. What are the most compelling business reasons that we need inclusive leadership? Pause the video and jot them down in the Notebook feature. If you said something like, "To gain a competitive edge in accessing a broader talent pool," you are correct. If you said that it boosts employee engagement, productivity, and retention, that's correct, and that it drives innovation and creativity and that it contributes to growing customer loyalty and expanding new markets. All of these are correct. Let's unpack each of these. First, access a larger talent pool. When businesses prioritize inclusivity, they attract a broader range of candidates, those from different ethnicities, genders, abilities, ages, and beliefs, those that bring unique experiences, perspectives, and creative ideas. In fact, numerous studies have demonstrated a positive correlation between diverse talent in leadership and financial performance. As a "Harvard Business Review" article called "Getting Serious About Diversity: Enough Already with the Business Case" from 2020, it states that the case for establishing a truly diverse workforce at all organizational level grows more compelling each year. The financial impact, as proven by multiple studies, makes this a no-brainer. The Women in the Workplace 2023 Study by McKinsey & Company conducted comprehensive research over five years on diversity, equity, and inclusion, spanning over 1,000 companies in 15 countries, and they found that companies with gender diversity in executive leadership were 25% more likely to achieve above average profits than companies who didn't have as much gender diversity in the C-suite. Second, boost employee engagement, productivity, and retention. Inclusivity plays a major role in enhancing the employee experience. In fact, employees who are not engaged or who are actively disengaged cost the world $8.8 trillion in lost productivity, according to Gallup's State of the Global Workplace: 2023 Report. In 2022, only 23% of the world's employees were engaged at work, and today, that number has not grown much. When leaders meet the emotional, social, and psychological needs, and when workers feel connected, included, and valued, their performance, satisfaction, and retention rates increase. Moreover, they are more likely to contribute positively to the overall work environment. I know it may feel a bit overwhelming, but meeting these needs are as simple as asking them what they need, what motivates them, recognizing their hard work, asking for their opinion, noticing when they need additional support, and creating a work environment where they are set up to succeed. Three, driving innovation and creativity. Research consistently shows that diverse teams and inclusive cultures are four times more likely to be innovative. Companies have come to understand that reaching and meeting the needs of a diverse customer and consumer base is critical to expanding market share, exceeding customers' expectations, and outpacing competitors. And fourth, growing customer loyalty and expanding new markets. A workplace culture that values different perspectives, ideas, experiences, and backgrounds is better equipped to anticipate and meet the diverse needs of a broader customer base. This not only enhances customer satisfaction, but also allows companies to tailor their approach and offerings to meet the specific needs of each market. Can you think of other compelling business reasons for inclusive leadership? Take a moment to jot them down in the Notebook feature. Embracing inclusive leadership is not just the right thing to do. It's also a strategic necessity for sustained success and growth, and thus, the business case for inclusive leadership couldn't be more compelling. Now let's talk about today's talent and why this is important to them.