Getting inclusion right keeps attrition low
According to BCG’s survey of 27,000 global employees.
Why You Should Care
Research by BCG found that inclusion is closely linked with retention.
HR needs to take action, and quickly.
Here are four things to prioritize when building more inclusive workplaces.
Inclusion is no longer a nice thing to have, it is a business necessity. According to Boston Consulting Group (BCG), “in today’s fiercely competitive environment, inclusion is akin to a hidden superpower”; this is because it has real benefits for attracting and retaining talent.
BCG’s survey of 27,000 employees from 16 countries found that work in exclusive workplaces – where they have experienced or witnessed discrimination are 1.4 times more likely to quit. Employees who feel psychologically safe to be their authentic selves are happier, more motivated and are 2.4 times less likely to quit.
Of course, building an inclusive workplace is much easier said than done. A big question for HR leaders is what types of initiatives should they implement to reap these attract and retention benefits?
How to improve workplace inclusion
BCG’s research pinpoints four factors that have a significant impact on inclusion, and ultimately retention.
The first, and most important, is ensuring senior leaders who are openly and publicly committed to inclusion. When this happens, 84% of employees feel valued – when senior leaders are not seen to be committed, just 44% of employees feel respected at work.
Interestingly, the impact was across all demographics, proving that inclusive initiatives don’t alienate majority groups, but make all employees happier. BCG found that 84% of straight, cis-gender men felt valued when senior leaders were committed to inclusion (compared to 47% without committed senior leadership)
An important thing to note is that leadership commitment needs to meaningful and sustained – if there is any misalignment on leaders’ words versus their actions, this has an impact on attrition. To stay on track, HR and senior leadership need to measure and track progress – tech can help here in terms of collecting employee feedback on inclusion and satisfaction at work.
When leaders are committed to inclusion, companies are likely to have five times more diversity in senior leadership. This is the second factor that BCG notes that HR must prioritize.
The third factor – direct managers being committed to inclusion – also links back to the first. Companies with senior leaders committed to inclusion are seven times more likely to have managers who are also committed to diversity, equity and inclusion.
It is no surprise that direct managers being committed to inclusion, and creating safer working environments (the fourth factor), has such an impact on employees’ feeling of psychological safety (86% vs 29%). Managers are known to have a huge impact on employee’s experience at work, and their decision whether to stay or look for a new job.
Now is the time for HR to focus on not getting senior leadership to buy into the need to build an inclusive workplace, but also training managers on the best ways to build an inclusive working environment for employees on a day-to-day basis.
They need help knowing how to start conversations on sensitive topics, and how to help employees open up and share their challenges – rather than hiding their authentic selves away. Leaders can role model this behavior by sharing their vulnerabilities and destigmatizing failure.
If this article caught your interest, you can find more about inclusion here. Enjoy!
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Chief Reporter
Allie is an experienced business journalist and can be reached at alexandra@unleash.ai.
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