Explore how a lack of inclusiveness can have an adverse impact on employee engagement, job satisfaction, and team performance. Learn about the financial implications that this has on company performance, for example ROI, customer service, employee engagement, turnover, opportunity costs, and more.
- I have a confession to make. I've been one of those employees who became disengaged, disconnected, and dissatisfied. I couldn't stand working for my boss. I dreaded going to work, and the work environment was so toxic that it affected my creativity, my productivity, and my attitude. It happened because I was working for someone who was not inclusive, someone who marginalized my efforts and would undermine my credibility yet took credit for my results.
She provided no feedback and no guidance, and it took me leaving that department in order to reengage and become productive and happy again. Have you ever been there? Unfortunately, my story is not uncommon. More and more companies realize that they must focus on developing inclusive leaders, because they have a direct link to employee engagement, job satisfaction, and team performance, which has a direct impact to the bottom line.
So let's look at each of these links, starting with employee engagement. Employee engagement refers to the connection and the commitment that employees exhibit towards an organization leading to higher levels of productive work and behaviors. Here's a trivia question for you. What percent, out of 100% percent, of the global workforce do you believe is actively engaged at work? Meaning they want to work at your company, they are productive and invested in the company, they go above and beyond, and they are ambassadors for the company, both internally and externally.
According to Gallup's latest State of the Global Workplace report, only 15% of workers are actively engaged at work. And the economic consequences of this global norm are approximately seven trillion dollars in lost productivity. As I consult with senior executives on employee engagement surveys and strategy development, I often remind them of these three realities. Many of their employees quit a long time ago, they just didn't leave.
People don't leave bad jobs, they leave bad bosses and toxic workplace cultures. And if you're hiring right, you hire highly engaged, not disengaged, workers. So if they have become disengaged, something most likely happened inside of the organization to cause it. Most of the time, it's a leadership issue. Other issues that drive employee engagement include having challenging work, developing and learning new skills, having a sense of meaning and purpose that is tied to vision, flexible work arrangements, competitive pay, and the workplace culture.
Now let's consider the effects of inclusiveness on job satisfaction. Job satisfaction refers to how employees feel about their compensation, their work environment, career development, and relationships with their manager. When employees feel that they have a fair and level playing field to succeed, and when their supervisor is open to their ideas, and his or her actions are aligned with what they say, employees have greater job satisfaction and higher engagement.
This gets to the heart of inclusive leadership traits, which includes valuing and leveraging different opinions, being adaptable, open, and trustworthy. Lastly, let's look at the effects of inclusive leadership on team performance. A study conducted by Catalyst, including responsive from 1,500 employees from Australia, China, Germany, India, Mexico, and the United States, concluded that diverse teams outperformed homogeneous teams.
It showed that employees who feel included are more likely to go above and beyond the call of duty, they suggest new product ideas, they innovate new ways of getting work done, and they're supportive of one another. Additionally, according to Cloverpop's study on hacking diversity with inclusive decision making, inclusive decision making drives better company performance and gives a decisive competitive advantage. Teams outperform individual decision makers 66% of the time, and decision making improves as team diversity increases.
Inclusive decision making leads to better business decisions up to 87% of the time. Having diversity of thought brings broader perspectives and experiences to the table that would not be possible with group think. Successful organizations recognize that an inclusive workplace culture is a critical ingredient in increasing employee engagement, job satisfaction, and strong performance.
- The business case for inclusive leadership
- Redefining leadership through the lens of inclusion
- Innovation, creativity, and inclusion
- Six key traits that inclusive leaders possess
- Competencies of inclusive leaders
- Best practices for inclusive organizations