How to Emphasize Inclusion to Drive Business Impact

Current State

Organizations are experiencing mixed progress in diversity, equity, and inclusion initiatives. According to Brandon Hall Group™ research, while awareness and commitment to inclusion have increased in about one-half of organizations over the past two years, translating this into lasting, systemic change remains a work in progress. Only 27% of managers consistently demonstrate commitment to the principles of inclusion, and merely 45% of organizations report that individuals treat different ideas and opinions with respect.

 

Complexities

Brandon Hall Group™ research reveals several critical challenges in inclusion:

  1. Lack of accountability ─ inclusion goals are frequently not tied to business objectives or leadership reviews.
  2. Narrow recruitment approaches perpetuate homogeneous workforces. Biased talent management processes disadvantage minorities.
  3. Exclusive cultural norms drive turnover among underrepresented groups.
  4. Limited leadership diversity ─ only 45% report their leadership team’s diversity reflects workforce composition.
  5. Traditional approaches to inclusion have given way to a focus on psychological safety, with 60% prioritizing this over improving equity.

Implications

While 49% of organizations report improved diversity in new hires, structural barriers persist. The research indicates many companies focus predominantly on awareness and training rather than building organization-wide strategy and embedding inclusion principles across the enterprise. This limited approach restricts potential for sustainable change. Organizations must recognize that success requires integrating inclusion and equity into every aspect of operations.

 

Critical Questions

Organizations must address several key considerations:

  1. How can an inclusion strategy align more effectively with business objectives?
  2. What approaches will ensure equity in recruitment, pay, and advancement?
  3. How can organizations build cultures of psychological safety and belonging?
  4. What role should leadership play in driving inclusion and equity?
  5. How can organizations measure impact on business outcomes?

 

Brandon Hall Group™ Point of View:

 

Focus on Holistic Integration

Organizations must shift from viewing inclusion as a standalone initiative to embedding it throughout business operations. Organizations should consider shifting from traditional diversity approaches to equity, inclusion, intersectionality and belonging (EIBI) to ensure everyone has resources and opportunities to succeed. This requires examining and modifying company policies, practices and cultural norms while establishing clear accountability metrics at every level. The research shows organizations are twice as likely to focus on psychological safety and belonging than on improving equity of opportunity for under-represented groups, indicating a need for more balanced approaches that address both cultural and structural elements.

 

Build Inclusive Leadership Capability

Less than half of organizations report their leadership team’s diversity reflects workforce composition, highlighting a critical gap. Organizations should establish clear expectations for inclusive leadership behaviors, provide targeted development opportunities, and create metrics that directly connect leadership effectiveness to business outcomes. This includes training on recognizing and addressing bias, fostering psychological safety and promoting equitable advancement opportunities. The emphasis should be on creating sustainable behavioral change rather than simple awareness building.

                           

Leverage Data Show Progress

While only 8% of organizations anticipate high AI impact on inclusion initiatives in 2025, this represents a significant opportunity for innovation. Organizations should implement analytics capabilities that go beyond basic representation metrics to identify systemic barriers, track inclusion indicators, and measure the impact on business performance. Organizations should develop comprehensive measurement frameworks that track multiple dimensions of progress, including recruitment outcomes, promotion rates, pay equity, and employee experience metrics. This data-driven approach enables more strategic decision-making while providing concrete evidence of inclusion’s business impact.

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Matt Pittman

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Matt Pittman

Matt Pittman brings nearly 30 years of experience developing people and teams in a variety of settings and organizations. As an HR Practitioner, he has sat in nearly every seat including Learning and Leadership Development, Talent Management and Succession Planning, Talent Acquisition and as a Human Resources Business Partner. A significant part of those roles involved building out functions in organizations and driving large scale change efforts. As a Principal Analyst, Matt leverages this in-depth experience and expertise to provide clients and providers with breakthrough insights and ideas to drive their business forward.