Why diversity without inclusion will get you nowhere

Failing to build an inclusive culture in your team is a sure-fire way to miss out on the benefits of diversity. Six Degrees Executive explores the reasons why.

In today's rapidly changing work environment, diversity and inclusion (D&I) are more crucial than ever. While many organisations understand the importance of building a diverse team, without an inclusive culture, they miss out on the true benefits that diversity can bring.

TL;DR
Building a diverse team without fostering a genuinely inclusive culture will prevent Australian organisations from realising the true business benefits of diversity, as evidenced by the latest Diversity Council Australia (DCA) report.

Key Takeaways:

• Diversity alone is insufficient; without an inclusive culture, diverse teams struggle with disengagement, lower morale, and a rise in discrimination.

• The DCA's 2023-2024 Inclusion@Work Index highlights a sharp increase in workplace exclusion in Australian workplaces post-pandemic.

• Organisations that actively focus on Diversity and Inclusion (D&I) report more positive outcomes and better business results.

• Creating an inclusive environment is a business necessity that drives better decision-making by ensuring diverse perspectives are heard.

• Inclusive leadership is crucial for fostering a sense of belonging, which is essential for unlocking a team's full potential and achieving long-term success.
  

The 2023-2024 Inclusion@Work Index from Diversity Council Australia (DCA) provides a compelling snapshot of the current state of inclusion in Australian workplaces post-pandemic and highlights why inclusion must be a top priority.

Diversity alone isn’t enough

Diversity initiatives often stop at hiring, but that’s only half the battle. Without an inclusive culture, diverse teams struggle to thrive, much like a high-performance sports car left in the garage. The DCA’s latest report shows that failing to build an inclusive environment can lead to significant challenges, including disengagement, lower morale, and a rise in workplace discrimination.

The alarming trends in post-pandemic workplaces

The DCA’s report reveals some troubling trends in post-pandemic workplaces. Despite a temporary decline in workplace exclusion during the pandemic, these issues have sharply increased in recent years. The data shows:

• Nearly 1 in 5 (19%) Australian workers in 2023 didn’t feel valued, respected, or able to contribute and progress at work—a figure that has nearly doubled since 2019.
• 27% of workers reported that their managers did not behave in an inclusive way, an increase from previous years, with many managers failing to value differences, treat everyone fairly, or address inappropriate behaviour.
• Discrimination and harassment are on the rise, with nearly 1 in 3 (30%) workers experiencing these issues in 2023, up from 22% in 2021.

These statistics underscore the growing disconnect and exclusion that many employees feel in the post-pandemic workplace.

The business case for inclusion

In contrast to these concerning trends, organisations that actively focus on D&I are experiencing more positive outcomes. The DCA report highlights that employees in D&I-active organisations are:

• Twice as likely to belong to an inclusive team and have an inclusive manager.
• Nearly twice as likely to report that their work has a positive effect on their mental health.
• More than twice as likely to provide excellent customer service, collaborate effectively, solve problems innovatively, and put in extra effort at work.

These findings make it clear that inclusion is not just a moral imperative but a business necessity.

Being inclusive drives better decision-making

Including diverse employees in decision-making at all levels dramatically increases the likelihood of better business decisions. Again, there is little point in building a diverse team if you fail to put their richness of experience, background and perspectives to the best-possible use.

Creating an inclusive culture where employees feel heard, valued, and comfortable being their authentic selves is essential for driving engagement, productivity, and innovation. Inclusive leadership fosters a sense of belonging, enabling diverse perspectives to contribute to better decision-making and business outcomes.

The DCA’s report underscores the importance of taking concrete steps to build an inclusive workplace, especially in the post-pandemic world. Organisations that prioritise diversity and inclusion are better positioned to navigate challenges, unlock their teams' full potential, and achieve long-term success.

Inclusion requires action

Accenture’s “Inclusion Starts With I” video is a thought-provoking discussion around the importance of a positive, inclusive work environment, and a great place to start in recognising your own biases and creating a D&I culture. Watch the video here.

So – don’t make the mistake of letting your high-powered sports car (your diverse team) sit idling in the garage. Unlock the power of diversity through a genuinely inclusive culture, put the pedal to the metal and watch the benefits flow.

Talk to Six Degrees Executive about how to D&I can impact your future hiring decisions.