Wow! Growth Faculty's 2024 Year in Review

Leadership Purpose: Insights from Patrick Lencioni's The Motive

4 Burnout Triggers in the Workplace (and Tips for Exhausted Teams)

 _The business case for gender and ethnic diversity in top teams is stronger than ever._  Deloitte

Studies show people highly value diversity and inclusion in the workplace.

67% of **job seekers** consider workplace diversity when evaluating a job, and 75% of senior managers say theyd consider **jumping ship** to a more diverse and inclusive organisation. \(1\)

In fact, most care enough about it so much that theyre willing to sacrifice a higher salary to consider working at a more inclusive company, writes Maggie Overfelt in a 2022 article for Stanford Graduate School of Business. \(2\)

Organisations are being **scrutinised** closely. But if we know diversity, equity, and inclusion \(DEI\) are so important  why are there still companies who dont prioritise it?

On this **International Womens Day \(IWD\)** **2023** we look at what our speakers say about DEI  and offer their expert tips for us all to do better.

[FREE DOWNLOAD: Building the Workplace of the Future with More Women Leaders](https://thegrowthfaculty.ac-page.com/whitepaperbreakthebias)

Before we continue, its worth recapping the definitions of diversity, inclusion, and equity.

* **Diversity** has been defined as the range of human differences, including such things as ethnicity, gender, gender identity, sexual orientation, age, physical ability, and religion.
  *  **Inclusion** has been defined as involvement and empowerment, where everyone [feels belonging](https://www.thegrowthfaculty.com/blog/inclusionandbelongingatwork), has support, and is respected.
  *  **Equity** refers to equal access, resources, and opportunities. \(3\)

In essence, diversity and inclusion mean bringing your whole self to work  and feeling safe and supported once there. Conversely, a non-inclusive workplace is terrible for employee wellbeing.

As New York based inclusivity expert Jennifer Brown told Growth Facultys [IWD event in 2022](https://www.thegrowthfaculty.com/blog/HowtobeinclusiveleaderIWD), covering or **playing down your identity** to manage others reactions can be exhausting.

It can lead to burnout, create a [toxic workplace](https://www.thegrowthfaculty.com/blog/Toxicworkplaceculture), and indicate a culture where [psychological safety](https://www.thegrowthfaculty.com/blog/psychologicallysafeworkplaces) is lacking.

What is Diversity and Inclusion?

The shared global experience of COVID-19 has heightened peoples sensitivity to their workplace culture, which includes a commitment to diversity and inclusion.

One of the Stanford [study](https://www.gsb.stanford.edu/faculty-research/working-papers/do-jobseekers-value-diversity-information-evidence-field-experiment)s authors Jung Ho Choi said of his own job search:

_I wondered_ \[about a major accounting firm\] _, Whats the culture like? How diverse is it? Are diverse opinions valued?_

Put simply, he was searching for evidence of [inclusion and belonging](https://www.thegrowthfaculty.com/blog/inclusionandbelongingatwork) at that workplace, and a [positive workplace culture](https://www.thegrowthfaculty.com/blog/positiveworkplaceculture) \(or warning signs of [a dysfunctional one](https://www.thegrowthfaculty.com/blog/positiveworkplaceculture)\).

Knowing diverse team members are welcomed and treated with respect and care is a good basis for gaining an employees **trust** , **loyalty** , and **dedication**.

Its also great for widening the talent pool, making better decisions, setting employees up to thrive, and improving its chance of success. Lets look briefly at each.

4 Reasons Why Diversity & Inclusion is Essential in the Workplace

_Good to Great_ author Jim Collins famously talks about the importance of people decisions.

_Those who build great organisations make sure they have the right people on the bus, the wrong people off the bus, and the right people in the key seats before they figure out where to drive the bus._

_"They always think first about who and then about what._

Who we recruit, evaluate, promote, and retain will depend on **who is in our talent pool** in the first place. Drawing from a pool that includes everyone can help the bottom line.

As McKinsey & Companys 2020 paper _Diversity Wins: How inclusion matters_ says, The most diverse companies are now more likely than ever to outperform non-diverse companies on profitability.

It Broadens The Talent Pool

Theres a great analogy for why a diverse team makes better decisions in [our interview](https://www.thegrowthfaculty.com/blog/GreatIdeasDreamTeamsbyShaneSnow) with Shane Snow, author of _Dream Teams_.

Shane says any problem can be represented by a **mountain range**  each peak is a good, better or best solution.

But trying to choose the best solution is like hiking through fog. You may not be able to see everything.

A team that has people with different, even **REALLY different** , perspectives and approaches to problems is like having them **dropped off by helicopter** on a different part of the mountain.

It Strengthens Decision Making

In other words, a diverse team sees more of the mountain\!

Growth Faculty Pass holders can watch the [interview replay](https://library.growthfaculty.com/Play?pId=6ea6c1c9-027e-449c-9393-4d8362007db41d) in the On Demand portal.

And read our blog [HOW DIVERSITY HELPS BETTER DECISION MAKING: DR STEFANIE JOHNSON](https://www.thegrowthfaculty.com/blog/howtomakecorrectdecisions)

An inclusive environment is one where employees can not just turn up and work but thrive.

Thats because, to a large extent, the culture is **built on empathy**.

Dr Kirstin Ferguson, author of _Head & Heart_, says that with better understanding of what it is like for others, we can be better leaders.

Better leaders \(with [Multiplier traits](https://www.thegrowthfaculty.com/blog/multipliersanddiminishers)\) encourage, coach, believe in, grow, trust, and assume the best of their employees. Its like fertiliser for staff  if we are noticed, supported, acknowledged and valued at work, we are much more likely to give our best.

It Sets Employees Up to Thrive

McKinsey & Company research shows companies in the top quartile of gender diversity on executive teams were **25% more likely** to experience above-average profitability than peer companies in the fourth quartile. \(4\)

_We found the higher the representation, the higher the likelihood of outperformance._

McKinsey discovered companies with more than **30% women** on their executive teams were significantly more likely to outperform those with between 10 and 30 percent women.

_There is a substantial performance differential48% between the most and least gender-diverse companies._

It Fosters Better Organisational Performance

Like anything worth pursuing, there are challenges around diversity and inclusion.

Given bias and stereotypes can be sprinkled throughout organisations, it can be **hard to pinpoint** who is responsible for tackling the problem \(more on that in a moment\). Aspects of DEI can be hard to measure.

It relies on self-aware leaders who have empathy at their core.

What are the Challenges of Diversity & Inclusion?

Working in a silo cuts team members off from working collaboratively with colleagues who think differently.

Psychological safety expert Amy Edmondson and colleagues Sujin Jang and Tiziana Casciaro wrote about the need for **cross-silo** leadership in 2019 in Harvard Business Review. \(5\)

Their research shows that diverse teams containing a **cultural broker** outperformed diverse teams without one. A cultural broker is a go-between who can link diverse groups.

They also recommend encouraging lots of questions, being a role model in taking an interest in others, hiring for curiosity and empathy, and coaching people to consider others points of view.

Organisational Silos

How do you measure if someone feels included? Or feels a sense of belonging? You can set targets and measure diversity in representation but its **trickier** to keep tabs on equity and inclusion.

Given the measurements here are largely qualitative, leaders need to be curious, observe carefully, ask questions, look at their processes, role model inclusive behaviours, and invest in their own professional development.

Associations Now recommends focussing on **retention rates** , using specific questions in **surveys** \(Do you feel like you have a safe space to speak up in meetings, to your boss, and to your colleagues?\) and **defining goals** using benchmarking data. \(6\)

It Can Be Difficult to Measure

Without a leader who proactively champions DEI, progress will stall.

Inclusivity expert Jennifer Brown recommends leaders work through the Inclusive Leader Continuum:

**Phase 1:** **Unaware** - You think diversity is someone elses job.

**Phase 2:** **Aware**  You educate yourself on how best to move forward.

**Phase 3: Active** -You shift your priorities and take action to support others.

**Phase 4: Advocate**  You are proactively and consistently using your privilege to the advantage of others. You consider their issues your issues and stand in solidarity with them.

Leaders Must Champion Change

Weve already talked about ways to bolster diversity and inclusion at work. Given its importance, here are some more ideas from our expert speakers and authors.

How to Strengthen Diversity & Inclusion in the Workplace

Kylie Lewiss [masterclass on psychological safety](https://www.thegrowthfaculty.com/event.php?eventId=a1J9g000000FKGyEAO) in the workplace will include practical advice to establish such a workplace.

To understand what it looks like, she points us to Timothy Clarks **Four Stages of Psychological Safety**.

The 4 Stages of Psychological Safety

1. **Inclusion Safety:** I am worthy, I belong, and I feel safe to be here. 
  2. **Learner Safety:** Im growing, its safe for me to be a learner, I can ask questions and I can show up and not have all the answers. 
  3. **Contributor Safety:** I am making a difference somewhere where its safe to contribute my ideas, vision, hopes and dreams. 
  4. **Challenge Safety:** Here it safe for me to challenge the status quo and help to fix whats not working.

Create a Psychologically Safe Workplace

Given there is no standard way to measure diversity and inclusion, organisations must decide what is best practice for them.

The key is to start somewhere; as Peter Drucker says, is **Whats measured, gets done.**

Include-Empower.com says _representation, retention, recruitment, selection, promotion, development, pay and benefits, employee engagement, employee focus groups,_ and _exit interviews_ are some metrics that a company could track. \(7\)

It gives the examples of:

- A media distribution company with aggressive growth targets in Asia extending its diversity metrics to include individuals born or raised in Asia.

- A mining company seeking to improve retention of women by implementing a flexible work policy extends its diversity metrics to track employment and parental status.

Implement D&I Measurement Tools

Acknowledgement is recognising something **exists** or is **important**. Its a pillar of diversity of inclusion.

Kylee Stone, in her [masterclass on purposeful leadership](https://www.thegrowthfaculty.com/blog/purposefulleadership) for Growth Faculty, says there are two parts to acknowledging:

- **Truth-telling:** This is acknowledging others, acknowledging yourself and acknowledging what is so. What do we mean by that? It means noticing, hearing, and appreciating others, being kind to yourself, and acknowledging setbacks and challenges.

- **Gratitude:** Giving gratitude is simple but is often overlooked as a way to inspire people. You dont need to start big. Just show people they are appreciated.

Recognise & Reward Employees

Dont write your D&I Policy then file it away. Ensure policies are **up to date** and reflect the latest **best practice** standards.

Make sure the company clearly communicates the behavioural standards expected of all employees and leaders. Publishing your D&I Policy engenders trust amongst your stakeholders.

To see a sample of one such policy, look at [CPA Australias Inclusion and Diversity Policy](https://www.cpaaustralia.com.au/about-cpa-australia/corporate-responsibility/inclusion-and-diversity-policy).

Update your D&I Policy

_The same thought processes that make people smart can also make them biased._  Payne et al, 2018

20 million people have taken Harvard Universitys online test to see if they have implicit bias tendencies.

[Project Implicit ](https://implicit.harvard.edu/implicit/takeatest.html) shows that about **75% of people** have some unconscious bias associating men with work and career and women with home and family.

If this is the case, it becomes very hard to take women seriously in the workplace, says Sarah Kaplan in her book  _The 360 Degree Corporation_.

Take the Harvard University Biases Test

Building a diverse and inclusive workplace **requires upskilling** in areas such as empathy, self-awareness, inclusivity, psychological safety, trust, team-building, communication, unlearning, and adaptability.

These skills and more are among core topics included in our Growth Faculty Pass.

If you'd like to increase your professional and personal development why not consider becoming a [Growth Faculty Pass](https://join.thegrowthfaculty.com/growthfacultypass/) holder?

Unlimited access to 40 live virtual masterclasses and Global Headliner virtual events  PLUS year-round leadership content at On Demand with videos, podcasts and book summaries.

Join a community of knowledge seekers who are inspired by the best. [See whos up next.](https://join.thegrowthfaculty.com/#live-virtual-events)

References:

1\. Rebekkah Smith, _11 Eye-Opening Workplace Diversity Statistics in 2023_ , NorthOne

2\. Maggie Overfelt, 2022, _Hey, Employers: Job Hunters Really Want to See Your Diversity Data_

3\. Adapted from _Diversity and Inclusion Definitions_ , Ferris State University website

4\. _Diversity Wins: How inclusion matters_ , 2020, McKinsey & Company

_5._ Edmondson, Jang, Casciaro, 2019, _Cross-Silo Leadership, Harvard Business Review_

_6._ Michael Hickey, 2020, _Four Ways to Meaningfully Measure Your DEI Efforts_ , Associations Now website

7\. Felicity Menzies, _Meaningful Metrics for Diversity and Inclusion_ , Include-Empower.com

Photo by [Brock DuPont](https://unsplash.com/@brockdupont?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText) on [Unsplash](https://unsplash.com/s/photos/diverse?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText)

Why Diversity and Inclusion in the Workplace Matter More Than Ever

Our speakers share their thoughts on diversity and inclusion best practice

Keep informed
Stay Inspired

Why Diversity and Inclusion in the Workplace Matter More Than Ever

Our speakers share their thoughts on diversity and inclusion best practice

Keep informedStay Inspired

Keep informed
Stay Inspired