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The power of inclusive leadership in transforming organisations

Future of work
Team photo from Montreux, Switzerland

Imagine stepping into a workplace where everyone feels valued and heard.

We hear you, that should be the norm, but unfortunately, it still isn't.

There are leadership styles that are working to conquer that and provide an inclusive environment for every single person.

One of those styles: Inclusive leadership.

It's a transformative approach that is reshaping how organisations operate. Inclusive leaders create an environment where diversity is not just acknowledged but celebrated.

To help you understand more about this style, we look into exactly what it is, the key traits, benefits and how to become an inclusive leader.

You'll learn how embracing diversity can lead to better decision-making and a more engaged team.

If you're ready to make a change and create a more inclusive workplace, read our insights.

What is inclusive leadership?

Inclusive leadership

Inclusive leadership is a management style that recognises and values how impactful diversity is, creating an environment where all members feel respected and empowered to contribute their unique perspectives.

This leadership style actively seeks to include and leverage the diverse strengths of team members, regardless of their background, identity, or experience.

Why is inclusive leadership important?

An inclusive leadership approach is fundamental in driving organisational success, as it enhances innovation, reduces employee attrition rates and improves the quality of decision-making.

Leadership that prioritises inclusion impacts the way the team performs together and the way the business performs as a whole.

Enhances team innovation and performance

Inclusive leaders create space for all employees to feel valued and empowered to share their perspectives and ideas. This environment is the perfect space for creativity to grow and develop.

A study by Deloitte found that teams under inclusive leadership are twice as likely to meet or exceed financial targets, three times as likely to perform high, and six times more likely to be innovative and agile [Source].

If that doesn't explain why it is important, we're not sure what will!

Improves employee engagement and retention

When you acknowledge your team's diversity, you can inclusively boost employee morale and job satisfaction.

Deloitte found that at inclusive organizations, employee engagement increases by up to 83%. BCG found something similar, that employees who feel their organisation is inclusive are three times more likely to be happy in their roles [SOURCE].

High employee engagement and happy employees mean reduced attrition rates, decreased absenteeism, and boosted productivity. Who wouldn't want that?

Strengthens customer relationships and market position

A CEPC study found that companies prioritising inclusive leadership and diversity are 70% more likely to break ground in new markets than their competitors [SOURCE].

By leading inclusively, you align your organisation with the diverse markets it serves which enhances customer satisfaction and loyalty. Inclusive leadership practices are mirrored in a company's brand reputation. This expands your reach and strengthens your competitive edge in diverse markets.

Leadership traits like empathy, bias awareness, supportiveness and collaboration focus on the internal strengths of the team which boosts their external relationships and productivity.

Having these traits at the forefront of your inclusion strategy means your organisation can thrive.

By having an inclusive leadership style, you position your company as a forward-thinking business. This then drives sustainable growth and boosts innovation.

What are the key traits of inclusive leaders?

As with every leadership style, inclusive leadership has its own set of characteristics for leaders to manage and encourage their diverse teams effectively.

For it to work, these are the key inclusive leadership skills to have and develop.

Empathy

Being understood is the first step in an inclusive team, which is why empathy is one of the fundamental traits of this leadership style.

To understand and share the feelings of their team, inclusive leaders need to be empathetic in order to have mutual respect and a more empowered team.

Awareness of biases

Being able to recognise and acknowledge personal and organisational biases is essential.

Inclusive leaders continuously work on their self-awareness to identify and remove unconscious biases to make sure their team members are treated fairly and equally.

Supportiveness

Being supportive is more than just encouragement; it means doing your best to empower every team member.

Inclusive leaders give the necessary resources and opportunities for professional growth whilst catering to the individual needs of their team.

Courage

It takes courage to challenge the status quo and address inequality and injustice in the organisation. If it was easy, every person would be an inclusive leader.

Not many leaders want to seek out and bring to light the gaps in equality at their company, for fear of being fired. For you to be a successful inclusive leader, this is an essential trait, even when it's difficult.

Collaboration

Inclusive leaders put teamwork and collaboration first.

They create environments where every voice is heard and valued, listening to diverse perspectives which creates a more innovative team.

Commitment to ongoing learning

This is not a 'learn it once and move on'. An inclusive leader knows that in order to be fully inclusive, they need to keep learning and bettering themselves so they can be the best leader possible.

They should be committed to understanding different cultures and other perspectives, so every person on their team feels understood.

How does inclusive leadership compare to other styles?

There are many different leadership styles out there. All of which offer something different to themselves and their team.

Its worth comparing these other popular styles to make sure that inclusive leadership is the right one for you.

Participative leadership

Inclusive leadership and participative leadership both emphasise the value of team input.

The difference? Participative leadership focuses on decision-making processes and encouraging team members to contribute their ideas and opinions.

Other leaders who focus on inclusion, bring broader perspectives together, including those from underrepresented groups, and act on this diverse feedback to drive change.

Agile leadership

Agile leadership is known for its flexibility and adaptability.

While inclusive leadership does share these agile traits, it focuses more on fairness, equality, and respect for differences.

Inclusive leaders use this focus to create a resilient company culture that not only adapts quickly but does so by ensuring all voices are valued equally.

Affiliative leadership

Affiliative leadership, similarly to inclusive leadership, has empathy at the forefront. With this leadership style, there is a focus on creating harmony and team bonding among the team.

It works to create a trusting and positive culture, where everyone feels safe. However, inclusive leadership goes beyond just managing team morale.

It shows a commitment to equality, diversity and inclusion, which means embedding these principles into every policy and practice within the company, something affiliative leadership does not.

The benefits of inclusive leadership

Every leadership style has its pros and cons, which include this one.

Carefully review these so you can make an informed decision about whether inclusive leadership is right for you.

Individual benefits

  • Individual growth is promoted because personal success is tied to collective progress
  • Career development is enhanced for every person in the team, not just a select few
  • Opportunities become more accessible and visible to everyone
  • Job satisfaction significantly improves as everyone feels valued and understood
  • Every person's voice is heard

Team benefits

  • Higher team cohesion and improved collaboration as all team members cooperate and engage more deeply with others
  • Better conflict resolution as more diverse opinions create a more agile team
  • More strategic and innovative ideas as every person has their say
  • Improved camaraderie as everyone feels that they're having their say in work projects

Organisational benefits

  • Heightened innovation and adaptability through a more diverse workforce
  • Improved productivity as team members are energised and excited to share their opinions
  • Reduced employee attrition and improved employee retention
  • Can attract better talent as the company culture is more welcoming

Challenges of inclusive leadership

Addressing resistance to change

As with any new leadership style, there can be some resistance at the beginning.

With many approaches, some of the resistance comes from a lack of awareness of its benefits and the fear of the unknown.

We would never recommend jumping straight into a leadership style without properly researching it, the same goes for your team and senior leadership.

You should educate them on what you've found so you can share clear evidence of why it would work for you. By doing this, you can reduce and remove the scepticism.

If you think it would be easier, do a trial run first. Set up a small team to experience this new leadership style, so they can report back to the wider business of its success.

Navigating difficult conversations

Difficult conversations are inevitable when looking at inclusive leadership, as it addresses sensitive topics like bias, discrimination and cultural misconceptions.

You should start by creating a safe environment where everyone feels respected and heard. Techniques such as active listening and asking open-ended questions show understanding and empathy.

Training in conflict resolution and cultural competency are also great first steps.

It may also be beneficial to involve a neutral third party, such as a mediator or trained facilitator, to help guide these discussions, especially in highly charged situations.

Because this leadership style does address difficult topics, you need to set clear guidelines about acceptable behaviour and communication in the workplace if you haven't already.

Everyone has the right to an opinion and they should be able to share them without feeling judged.

Embrace these challenges and turn them into opportunities for growth. Recognising and overcoming these hurdles strengthens your team and enables you to handle them better in the future.

Steps to become an inclusive leader

If you think inclusive leadership is for you, these are the steps to take to become one.

Encourage open communication

Implement open communication channels to ensure all team members can express their thoughts and ideas.

Set up routines like regular team meetings and one-on-one catch-ups.

Tools like anonymous suggestion boxes or digital forums can help in collecting feedback and ideas from those who may hesitate to speak up in public settings.

Prioritise equity in your workplace

Equity in the workplace means understanding and addressing different needs and barriers that your team members might face.

Have policies that ensure pay equity and equal access to opportunities.

This prevents discrimination and organizational biases and promotes fairness across all levels of your company.

Encourage and commit to continuous learning

This requires constant learning and levelling up to be successful.

Commit to continuous learning so you know your team are receiving the best practices in inclusivity.

This doesn't relate just to you either, provide training and resources for your team's learning and development as well. Promote Equitable Opportunities

Share the responsibility

Inclusive leadership is not a one-person task; share the responsibility of promoting inclusiveness with your team leads and managers.

Encourage them to adopt inclusive practices and hold them accountable for maintaining these standards in their teams.

Create a supportive environment

Creating a supportive work environment that respects individual differences and offers support where needed is an essential part of inclusive leadership.

This might include flexible working arrangements such as flexitime or staggered hours, or providing additional resources for those with accessibility needs.

A supportive culture allows employees to perform to their best abilities without the strain of feeling unsupported.

Diversity in your team

Actively seek to diversify your team, which involves recruiting talents from a variety of backgrounds, including gender, ethnicity, age, and more.

Diverse teams bring different perspectives which can lead to better problem-solving and innovation. Use unbiased recruitment methods to attract a broader range of candidates.

Encourage open feedback

With this leadership style, constructive feedback is needed. Promote an inclusive culture where it is encouraged and valued.

Set up systems that allow for regular feedback exchanges between all levels of staff, including leadership.

This feedback should be a two-way street, where you also seek input on your own performance as an effective leader.

Conclusion

Embracing inclusive leadership is no longer optional but essential for organisations to thrive.

By creating a supportive environment where every voice is heard and valued you'll unlock the full potential of your team. The benefits go far beyond just improved employee satisfaction.

You'll have a better company culture, enhanced productivity and problem-solving and have the edge against competitors. reaching into enhanced innovation productivity and overall business success.

As you move forward remember that inclusive leadership is a journey, not a destination. It requires an ongoing commitment to continuous learning and a willingness to challenge the status quo.

By following the guidance we've shared in this article, you'll be taking crucial steps towards a more inclusive, equitable and innovative company.

The future of leadership is inclusive – are you ready to lead the way?

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