Inclusion is a key performance indicator that one can’t ignore. Inclusion goes far beyond mere representation or tokenism. It’s not just about having a diverse set of individuals in the room; it’s about giving those individuals a voice, a role, and the power to impact decisions. In corporate lingo, it’s about moving from “seat at the table” to “voice in the conversation” and further to “hand in the decision-making.” In an ever-competitive corporate landscape, businesses are continually looking for ways to outperform the competition. Most often, this involves a focus on product development, market strategies, or technological upgrades. However, a crucial yet often underestimated element that can set an organization apart is inclusion. More than just a trending term, inclusion is increasingly becoming a Key Performance Indicator (KPI) that no organization can afford to ignore. From a business perspective, inclusion isn’t just a ‘nice-to-have’; it’s a ‘must-have’.
THE BUSINESS CASE FOR INCLUSION
Improved Innovation
Inclusive environments foster diversity of thought, which is essential for innovation. A study by the Boston Consulting Group found that companies with more diverse teams have innovation revenue that is 19% higher compared to those with below-average diversity scores.
Employee Engagement and Retention
Employees are more engaged when they feel included. According to Deloitte, organizations with an inclusive culture are twice as likely to meet or exceed financial targets. Engaged employees are less likely to leave, thereby reducing turnover costs.
Enhanced Customer Relations
An inclusive workforce better understands and represents a diversified customer base. When a team includes members who reflect its customer demographics, the company is better positioned to meet the unique needs of its clientele.
EMOTIONAL INTELLIGENCE:THE CATALYST FOR INCLUSION
Understanding and managing one’s own emotions, as well as those of others, is key to fostering an inclusive environment. Leaders with high emotional intelligence are adept at empathizing with their team members, thereby creating a culture where everyone feels heard and valued. Such environments naturally lead to more productive teams and a better bottom line.
Measuring Inclusion as a KPI
Surveys and Feedback
Regularly scheduled surveys that anonymously gauge employee sentiment about inclusivity can offer invaluable insights. These should be analyzed alongside other KPIs like revenue growth and customer satisfaction.
Attrition Rates
High turnover among marginalized groups within the company is a strong indicator that inclusion is lacking. If your KPIs already include attrition rates, dissect them further to understand if there’s a pattern.
Performance Metrics
Does an inclusive environment translate to improved individual and team performance? Comparing performance metrics before and after inclusion initiatives can offer some valuable insights.
The Role of Leadership
Leaders play an indispensable role in setting the tone for an inclusive culture. C-Suite executives must not only ‘talk the talk’ but ‘walk the walk.’ This involves everything from transparent communication to ensuring diversity in leadership roles themselves.
Future of Inclusion as a KPI
With increasing focus on Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) metrics, inclusion is poised to become a non-negotiable KPI for companies aiming to be industry leaders. Moreover, consumers are increasingly making choices based on a brand’s ethical stance, of which inclusion is a significant part.
Inclusion is far more than a buzzword or a ‘nice-to-have.’ It is a crucial Key Performance Indicator that directly impacts everything from innovation and employee engagement to customer satisfaction and, ultimately, revenue. If you haven’t already, now is the time to integrate inclusion into your set of core KPIs. Your company’s future competitiveness may depend on it.
