Creating an inclusive work environment is crucial for fostering a thriving and innovative organization. For HR professionals and people managers, understanding why inclusion is important in the workplace goes beyond ethical considerations—it directly impacts employee engagement, productivity, and retention.
This guide delves into an 11-step approach designed to help you build a more inclusive workplace culture, providing practical strategies to ensure that every team member feels valued and empowered to contribute their best.
What is an Inclusive Workplace?
According to the United Nations Global Compact Organization, an inclusive workplace is a dynamic environment where all employees, regardless of their diverse backgrounds, feel valued, respected, and have equal access to opportunities. It is a culture that goes beyond mere tolerance, actively fostering a sense of belonging and engagement among all team members.
Key characteristics of an inclusive work environment include:
- Diversity
- Equity
- A sense of belonging
Diversity refers to the presence of differences within a given setting, encompassing various attributes such as race, gender, age, sexual orientation, and cognitive diversity. While equity ensures that all employees have access to the same opportunities and resources, tailored to meet their unique needs.
Think of a sports team. Diversity is having players with different skills and positions—some are great at offense, others excel in defense, and some are fantastic goalkeepers. Equity is ensuring each player has the right equipment and training to perform their best. Just as the goalkeeper needs special gloves and specific drills, employees need tailored resources and opportunities to succeed.
You can find more diversity and inclusion in the workplace examples in our specialized blog.
How Does an Inclusive Workplace Benefit the Overall Company Culture?
An inclusive workplace culture profoundly impacts a company's overall environment, driving numerous positive outcomes such as enhanced employee engagement, improved retention rates, increased innovation, and better overall performance. Let’s take a deeper look at it.
- An inclusive culture at work leads to higher levels of employee engagement. When employees feel valued and respected, they are more likely to be motivated and committed to their work. According to a Deloitte study, the relationship between inclusion, engagement, and trust is strong, especially among millennials and Gen-Zs.
- A report from McKinsey & Company found that companies with higher gender diversity are 27% more likely to experience above-average profitability. Moreover, inclusive workplace cultures reduce turnover by 22%, as employees appreciate fair hiring practices, equal opportunity, and a supportive environment.
- Diverse and inclusive teams are more innovative. A study by Harvard Business Review revealed that companies with inclusive cultures are 1.7 times more likely to be innovation leaders in their market.
- Research by the Boston Consulting Group shows that organizations with above-average diversity scores reported 19% higher innovation revenues. Additionally, diverse teams are more effective at problem-solving and decision-making, leading to improved performance metrics across the board.
To discover more about remote work communities and how to make them inclusive, please check our blog on the topic.
What is the Difference Between Diversity and Inclusion?
Diversity and inclusion are interconnected concepts, but they represent distinct aspects of creating an equitable and thriving workplace. Diversity refers to the representation of varied groups within an organization. This includes differences in race, gender, age, ethnicity, sexual orientation, disability status, cultural background, and other dimensions. It focuses on who is present in the workforce and ensuring that a variety of perspectives and identities are represented.
Inclusion, on the other hand, is about the environment and culture within the organization. It ensures that everyone, regardless of their background, feels respected, valued, and empowered to contribute meaningfully. Inclusion focuses on creating a sense of belonging where individuals feel comfortable being themselves and fully participating in the workplace.
The key difference lies in their focus: diversity is about representation, while inclusion is about integration and belonging. A workplace may be diverse without being inclusive, which can lead to disengagement and underutilization of talent. Conversely, an inclusive environment without diversity misses opportunities for innovation and broader perspectives.
For HR professionals and managers, it’s essential to prioritize both. Diversity brings people to the table, but inclusion ensures they have a voice, fostering a workplace culture that drives innovation, employee satisfaction, and long-term success.
11 Steps for Building Inclusive Workplace Culture
Now that the benefits of building an inclusive work environment are clear, it’s time to discover how to make these changes in your organization. Here’s our step-by-step guide to help you build an inclusive work environment that supports all employees and leverages the benefits of diversity.
1. Conduct Diversity Training
- Actions to take:
- Use real-world scenarios and role-playing exercises to teach employees how to navigate difficult conversations about bias and discrimination.
- Regularly update training materials to include current issues and trends in workplace diversity.
- Pair training with follow-up surveys to measure employee learning and identify gaps.
2. Establish Clear Policies
- Actions to take:
- Draft a comprehensive anti-discrimination policy detailing specific actions against harassment, bias, and microaggressions. These should also cover areas such as anti-discrimination, fair hiring practices, equal opportunity, accessibility, and gender equality.
- Train managers on how to enforce these policies consistently.
- Review policies annually to ensure compliance with evolving legal standards and employee feedback.
- Resources: The International Labour Organization (ILO) provides a comprehensive framework for workplace anti-discrimination policies. Explore their guidance here.
Clear policies set the foundation for an inclusive organizational culture and provide guidelines for expected behaviors and practices. You can find examples of how to build an efficient and diverse-focused policy for work in our blog.
3. Promote Open Communication
- Actions to take:
- Conduct quarterly town halls where employees can ask leadership direct questions.
- Introduce anonymous feedback tools, such as Suggestion Box or Lattice, to encourage honesty.
- Train managers to use active listening techniques, such as paraphrasing and open-ended questions, to build trust.
- Resources: Create a safe space for communication by implementing regular “Listening Circles,” where employees share feedback in a facilitated, non-judgmental environment. This fosters trust and collaboration within the inclusive work environment.Create a safe space for communication by implementing regular “Listening Circles,” where employees share feedback in a facilitated, non-judgmental environment. This fosters trust and collaboration within the inclusive work environment.
4. Regularly Assess Progress
- Actions to take:
- Use analytics tools to track metrics like representation in leadership and employee engagement levels by demographics.
- Conduct anonymous inclusion surveys to collect honest employee feedback.
- Share findings transparently with employees to build trust and accountability.
- Resources: Use inclusion scorecards to measure progress on diversity and inclusion goals. Incorporate metrics like employee satisfaction, demographic representation, and promotion rates of underrepresented groups.
5. Leadership Involvement
- Actions to take:
- Establish accountability by tying inclusion goals to leadership performance evaluations.
- Encourage executives to sponsor Employee Resource Groups (ERGs).
- Provide leadership inclusion training, emphasizing empathy and cultural intelligence.
- Resources: Have leaders participate in inclusion training alongside employees and publicly commit to specific goals, such as increasing diverse representation in leadership by a certain percentage. This visibility promotes accountability and embeds inclusivity into the organizational culture.
Remember that leadership involvement signals a top-down commitment to creating an inclusive culture at work. Incase you need more guidance on workplace conflicts, how to communicate bad news from a leadership positions, or even bad news email to employees example, please check our blog on the matter.
6. Establish Employee Resource Groups (ERGs)
- Actions to take:
- Provide financial support and executive sponsors for ERGs to amplify their impact.
- Organize regular ERG-hosted events, such as cultural awareness days or mentorship programs.
- Use ERG feedback to inform company policies and strategies.
- Resources: Check out this Guide to Starting an ERG for actionable advice on launching and supporting ERGs.
7. Implement Fair Hiring Practices
- Actions to take:
- Use blind hiring software to anonymize resumes and focus on skills.
- Advertise job openings on platforms targeting underrepresented talent pools.
- Train recruiters to recognize and mitigate unconscious bias during interviews.
For more information about mental health discrimination examples, please check our blog.
8. Foster Mentorship Programs
- Actions to take:
- Establish mentorship goals that align with broader inclusion objectives.
- Match mentors and mentees based on shared interests or career aspirations.
- Recognize mentorship successes through internal communications or awards.
- Resources: Build a mentorship platform that pairs mentors and mentees based on shared interests or professional goals. Set structured agendas for regular check-ins to track progress and foster accountability.
9. Encourage Cognitive Diversity
- Actions to take:
- Design cross-departmental projects to mix expertise and viewpoints.
- Foster an environment where unconventional ideas are welcomed and explored.
- Incorporate diverse problem-solving techniques, such as brainstorming and design thinking workshops.
- Resources: Edward de Bono’s Six Thinking Hats is a structured tool for encouraging diverse thinking. Learn more about the method here.
10. Ensure Accessibility
- Actions to take:
- Audit office spaces for compliance with accessibility standards, such as ADA guidelines.
- Provide assistive technology, like screen readers or captioning software, for employees who need it.
- Offer disability awareness training to reduce stigma and improve workplace inclusion.
- Resources: The World Wide Web Consortium (W3C) provides guidelines for digital accessibility. Explore their Web Content Accessibility Guidelines (WCAG) here.
11. Celebrate Diversity and Inclusion Milestones
Actions to Take:
- Host annual or quarterly diversity appreciation events to celebrate team diversity and shared cultural experiences.
- Recognize individuals or teams who contribute to inclusivity through awards or shoutouts during company-wide meetings.
- Share progress publicly, such as on social media or in newsletters, to reinforce transparency and accountability.
- Collaborate with ERGs to organize celebratory events around cultural or historical observances like Pride Month, International Women’s Day, or Black History Month.
- Examples and Resources: Use platforms like Eventbrite to manage diversity celebration events and encourage employee participation. Global Diversity Calendar provides a comprehensive list of cultural and historical dates to celebrate inclusivity year-round.
Real-World Examples of Successful Inclusion Initiatives in the Workplace
Now that we understand what is an inclusive work environment and the steps to develop one, let’s take some inspiration from successful companies that already see the benefits of an inclusive culture at work.
Ernst & Young’s (EY) Neurodiversity Centers of Excellence
Ernst & Young (EY) has established Neurodiversity Centers of Excellence to tap into the unique talents of neurodiverse individuals, such as those with autism and ADHD. These centers focus on roles that require strong analytical and technical skills. These centers focus on roles that benefit from analytical and technical strengths, helping create a more inclusive workplace culture that values neurodiverse talent.
- Key Actions Taken:
- Designed tailored recruitment processes to remove barriers for neurodiverse candidates.
- Provided specialized training for managers and teams to support neurodiverse employees effectively.
- Created workplace accommodations, such as sensory-friendly environments and clear communication protocols.
- Results Achieved:
- Increased employee performance and retention in key technical and analytical roles.
- Enhanced innovation through diverse problem-solving approaches.
- Strengthened EY’s reputation as a leader in workplace inclusivity.
- Takeaway:
Investing in programs that support neurodiverse individuals not only builds an inclusive work environment but also unlocks unique talents that drive innovation and business success.
Accenture’s Inclusion Starts with I Campaign
Accenture's "Inclusion Starts with I" campaign is an internal and external initiative aimed at promoting inclusion and diversity. The campaign includes video series, workshops, and open forums where employees can share their experiences and learn from one another. This initiative has led to a greater understanding of the importance of inclusion in the workplace and has fostered a more supportive environment for all employees.
- Key Actions Taken:
- Produced a video series featuring employees sharing personal stories about inclusion and bias.
- Organized workshops to train employees on recognizing and addressing microaggressions and implicit bias.
- Held open forums where employees could share experiences and discuss actionable steps to promote inclusivity.
- Results Achieved:
- Improved employee awareness of inclusion challenges and solutions.
- Strengthened a sense of community within teams, enhancing collaboration and morale.
- Positioned Accenture as a company actively working to create an inclusive work environment.
- Takeaway:
Inclusion is a shared responsibility, and engaging employees through storytelling and open dialogue fosters deeper understanding and collaboration.
Google’s Unconscious Bias Training
Google has implemented comprehensive unconscious bias training for all employees to address and mitigate implicit biases in the workplace. This training is part of Google’s broader diversity and inclusion strategy, which includes fair hiring practices, mentorship programs, and support for diverse backgrounds.
- Key Actions Taken:
- Developed a scalable unconscious bias training module for all employees, including leadership.
- Incorporated training into recruitment and performance evaluation processes.
- Provided ongoing resources to reinforce learnings, such as workshops and digital tools.
- Results Achieved:
- Increased employee awareness of implicit biases and their impact on decision-making.
- Fostered a more inclusive workplace culture, contributing to greater workforce diversity.
- Improved team collaboration and decision-making by reducing biases in interpersonal dynamics.
- Takeaway:
Addressing unconscious bias through comprehensive training is essential for creating a workplace that values fairness and inclusivity.
Salesforce’s Equality Groups
Salesforce has established Equality Groups, which are Employee Resource Groups (ERGs) aimed at fostering a culture of inclusion and belonging. These groups focus on various dimensions of diversity, such as gender, ethnicity, LGBTQ+, and veterans. The groups provide support, advocacy, and networking opportunities, significantly contributing to employee engagement and retention.
- Key Actions Taken:
- Organized ERGs around specific dimensions of diversity, such as gender, ethnicity, LGBTQ+, and veterans.
- Provided funding and leadership sponsorship to empower these groups and amplify their voices.
- Integrated ERG feedback into organizational policies and diversity strategies.
- Results Achieved:
- Higher employee engagement and retention, particularly among members of underrepresented groups.
- Enhanced workplace culture, with employees reporting a stronger sense of community and belonging.
- Strengthened Salesforce’s reputation as an inclusive employer, attracting top talent globally.
- Takeaway:
Establishing and supporting ERGs is a powerful way to build community and drive meaningful inclusion within an organization.
Master Card's Global View
With such a diverse footprint, Mastercard prioritizes creating a workplace where every employee feels valued, included, and empowered. Their commitment to diversity, equity, and inclusion (DEI) is not just an internal initiative but a strategic priority aligned with their vision of connecting everyone to priceless possibilities. Mastercard’s efforts are guided by robust governance and data-driven strategies to ensure long-term impact.
- Key Actions Taken:
- Policy Implementation: Established a global Diversity, Equity, and Inclusion (DEI) policy to guide organizational practices.
- Business Resource Groups (BRGs): Supported nine BRGs with 149 chapters, providing platforms for employees to connect and promote inclusion.
- Leadership Commitment: Integrated DEI into corporate governance, with regular reviews by top executives and the Board of Directors.
- Results Achieved:
- Employee Engagement: Approximately 30% of employees participate in BRGs, enhancing community and belonging.
- Pay Equity: As of September 2023, the median pay for women globally is 96.4% of that for men, and in the U.S., the median pay for people of color is 94.3% of that for white employees, reflecting ongoing efforts toward pay equity.
- Takeaway: Mastercard's structured approach to DEI, supported by clear policies and active employee groups, demonstrates that sustained commitment and governance can lead to meaningful progress in workplace inclusivity.
Lenovo
Lenovo, a global technology powerhouse known for its PCs, servers, and smart devices, recognizes that diversity and inclusion are key to driving innovation and reflecting the global communities it serves. The company operates in more than 60 countries and employs over 71,500 people. Lenovo believes that fostering an inclusive workplace culture not only supports its employees but also strengthens its ability to solve complex problems and meet diverse customer needs.
- Key Actions Taken:
- Diversity Metrics: Achieved 21% female representation in executive roles globally and 29% representation of historically underrepresented racial and ethnic groups in U.S. executive roles.
- Employee Resource Groups (ERGs): Expanded ERGs to eleven groups, supporting various dimensions of diversity, including gender, race, sexual orientation, and ability.
- Global Inclusion Training: Increased participation in inclusion training to 92% company-wide, focusing on inclusive behaviors and anti-harassment principles.
- Results Achieved:
- Enhanced Representation: Met and exceeded set goals for diversity in executive positions, promoting a more inclusive leadership structure.
- Employee Engagement: High participation in ERGs and training programs has fostered a culture of inclusion and belonging.
- Takeaway: Lenovo's commitment to measurable diversity goals and comprehensive inclusion training underscores the importance of accountability and continuous learning in building an inclusive workplace culture.
Uniqlo
Operating in over 25 countries, Uniqlo understands the importance of diversity in driving creativity and fostering a customer-first mindset. Their corporate philosophy, “Changing clothes. Changing conventional wisdom. Change the world,” is reflected in their commitment to creating an inclusive work environment.
- Key Actions Taken:
- Diversity Campaigns: Launched initiatives like the "Made for All" campaign, celebrating diversity through employee stories and promoting inclusivity. Uniqlo
- Inclusive Workplace Practices: Committed to employing individuals with disabilities and integrating them into the workforce, ensuring equal opportunities for all.
- Results Achieved:
- Employee Satisfaction: Employees express pride in working for a company that values respect, freedom, dignity, and authenticity, contributing to a positive workplace culture.
- Brand Image: Uniqlo's emphasis on diversity and inclusion enhances its reputation as a socially responsible and inclusive employer. Uniqlo
- Takeaway: Uniqlo's focus on storytelling and real-life employee experiences highlights the effectiveness of personal narratives in promoting diversity and fostering an inclusive work environment.
Common challenges to creating an inclusive workplace?
As expected, the steps to creating an inclusive work environment are simple and efficient, however, some challenges can arise before, during, and after its implementation. Let’s take a look at the most common challenges, and discuss effective solutions.
- Resistance to Change: Employees and leaders may be accustomed to existing norms and may view changes as unnecessary or disruptive. To overcome resistance, engage in open communication about the importance of inclusion and the benefits it brings to the organization. Discover strategies to introduce change in the workplace and minimize its negative emotional impact in our blog.
- Lack of Resources or Support: Make a business case for inclusion by highlighting its positive impact on productivity, innovation, and employee retention. Secure leadership buy-in and allocate necessary resources to support inclusive initiatives. Seek external partnerships and grants if internal resources are insufficient.
- Limited Accessibility: Ensure that the workplace is accessible to all employees by making necessary modifications, such as installing ramps, elevators, and accessible restrooms. Provide digital accessibility tools, such as screen readers and captioning services. Regularly review and update accessibility measures to keep pace with technological advancements.
- Inadequate Cultural Competence: Employees may lack the cultural competence needed to interact effectively with colleagues from diverse backgrounds. This can lead to misunderstandings and conflict. To change it, provide ongoing cultural competence training that includes practical skills for communication and collaboration across cultures. Encourage the formation of Employee Resource Groups (ERGs) to support cultural exchange and understanding.
Key Takeaways
- Understanding what is the work environment and the factors is based on guides HR professionals on building a safe and productive space for everyone.
- An inclusive workplace culture leads to enhanced employee engagement, improved retention rates, and increased innovation.
- Implementing practical steps such as conducting diversity training, establishing clear policies, promoting open communication, and ensuring leadership involvement are essential for creating an inclusive work environment.
- By leveraging bias training, cultural competence, and inclusive policies, HR and managers can overcome these obstacles and build a thriving, inclusive organizational culture.
- Meditation for companies can help your team develop more empathy, awareness, and understand each other better.
Building A More Inclusive Workplace Culture: FAQs
How can leadership promote an inclusive work environment?
Leadership can promote an inclusive work environment by modeling inclusive behaviors, such as active listening, empathy, and fairness. Inclusive leadership involves participating in diversity training, advocating for equitable practices, and supporting Employee Resource Groups (ERGs).
How can companies measure the effectiveness of their inclusion strategies?
Companies can measure the effectiveness of their inclusion strategies using inclusion metrics, such as employee engagement surveys, retention rates, and diversity demographics. Conducting regular assessments through focus groups and feedback sessions can provide valuable insights into employee experiences.
What role does diversity training play in creating inclusivity?
Diversity training plays a crucial role in creating inclusivity by raising awareness of unconscious bias and teaching employees how to recognize and mitigate their biases. Bias training enhances cultural competence, promoting understanding and respect for diverse backgrounds. This training helps create an inclusive workplace culture where all employees feel valued and included.
How can businesses support employees from diverse backgrounds?
Businesses can support employees from diverse backgrounds by implementing fair hiring practices, providing mentorship programs, and establishing Employee Resource Groups (ERGs). Creating an inclusive company culture involves ensuring accessibility, promoting gender equality, and supporting LGBTQ+ inclusion.
How can feedback from employees improve workplace inclusivity?
Feedback from employees can improve workplace inclusivity by highlighting areas where the organization excels and identifying opportunities for growth. Open communication channels, such as surveys, suggestion boxes, and focus groups, allow employees to share their experiences and perspectives.