Inclusion is Not a Dirty Word — The Importance of Aligning Business Strategy with People Strategy.
Inclusion is not just a moral or social imperative but also a strategic advantage that drives innovation, enhances employee engagement, and fosters resilience in the face of complex challenges.
In today’s fast-paced and competitive business environment, aligning business strategy with people strategy is more than a best practice — it’s a necessity. Yet, the concept of inclusion is often misunderstood or overlooked in this alignment, dismissed as a feel-good buzzword rather than recognized for its strategic importance. Research by McKinsey shows that diversity is not enough, “even relatively diverse companies face significant challenges in creating work environments characterized by inclusive leadership and accountability among managers, equality and fairness of opportunity, and openness and freedom from bias and discrimination.”
Inclusion is not a dirty word; it is a powerful driver of innovation, collaboration, and resilience. When organizations prioritize inclusion, they create workplaces where diverse perspectives are valued, employees feel empowered, and collective potential is unlocked. This article explores how embedding inclusion into your business and people strategies can not only enhance organizational performance but also position your company for long-term success.
In the business context, inclusion refers to creating a workplace environment where all employees, regardless of their background, identity, or circumstances, feel respected, valued, and able to contribute fully. It involves intentionally engaging diverse employee perspectives to strengthen decision-making, enhance problem-solving, and reduce security risks and allows organizations to tap into a broader range of insights.
Inclusion aligns with the evolving priorities of society. By adapting to the broader societal shifts toward a more diverse workforce and higher inclusive expectations, organizations can foster loyalty and engagement among employees, attract a more diverse talent pool, and improve retention.
In the early days of strategic management, business leaders and thinkers recognized that aspects of ethics were central to how businesses operated and the decisions managers made. They understood that businesses don’t exist in a vacuum — they affect people, communities, and society. However, as the field of strategy evolved, it became more focused on numbers, models, and economic efficiency, often sidelining the human aspects of decision-making (Fontrodona et al., 2018).
Today’s workforce, particularly Millennials and Gen Z, places high value on working for organizations that align with their personal values. Companies that prioritize inclusion demonstrate that they are attuned to societal changes and employee concerns. Further, employees’ contributions are valued and their unique perspectives respected — they are more likely to feel connected to their workplace, fostering higher engagement and loyalty.
Inclusion is not only the “right” thing to do. It is good for the business. Companies that fail to prioritize inclusion create workplaces where employees may feel undervalued or excluded, leading to disengagement and higher turnover. This not only hinders their ability to attract and retain a diverse and skilled workforce but also increases recruitment and training costs. In contrast, organizations that actively foster inclusion cultivate environments where employees feel valued and accepted, enhancing engagement, reducing turnover, and ultimately strengthening their bottom line.
The good news is that fostering an inclusive workplace can align seamlessly with maintaining strong financial performance — even amid a rapidly changing business landscape. Inclusive environments empower diverse teams to bring unique perspectives, which improves problem-solving and creativity. They also create a sense of belonging that boosts morale and productivity. In addition, inclusivity attracts top talent from a broader pool and strengthens organizational reputation, ensuring resilience and success in a dynamic business landscape.