Why Inclusion Matters for Every Workplace

What is inclusion?

“If you do not intentionally include, you unintentionally exclude.”

Neil Lenane, Business Leader of Talent Management

Inclusion is about ensuring that all employees, regardless of background, feel respected, valued, and empowered to contribute. Key elements like belonging and psychological safety are critical, as they enhance engagement, innovation, and overall performance.²

Inclusion in the workplace is much more than an exercise in making workers feel good. It creates a better work environment that enhances employee wellbeing, performance and reduces risk. Employees in inclusive teams report several benefits, outlined below, that employees in non-inclusive teams do not.

Advantages Of Workplace Inclusion

Studies by the Inclusion@Work Index, measured the following benefits:

Job Satisfaction

Workers in inclusive teams are 10 times more likely to be very satisfied than workers in non-inclusive teams.

Mental Health

Workers in inclusive teams are 4 times more likely to feel work has a positive impact on their mental health.

Turnover

Workers in inclusive teams are 3 times less likely to leave their organisation than those in non-inclusive teams.

Feedback

Workers in inclusive teams are 2.5 times more likely to have been given feedback that they found useful.

Many studies^2,3,4 find a strong link between inclusion at work and team performance, with similar results for inclusive managers and inclusive organisations.  The Inclusion@Work Index’s most recent review identified the following performance indicators:

Innovation

Inclusive teams are 9.5 times more likely to be innovative than non-inclusive teams.

Teamwork

Inclusive teams are 8.5 times more likely to work together effectively.

Customer Service

Inclusive teams are 4 times more likely to provide excellent customer service.

Motivation

Inclusive teams are 2.5 times more likely to have members willing work extra hard to help their team succeed.

In Australia and New Zealand, there is legal requirement for workplaces to provide an environment that is free from discrimination¹. Over and above this, there is much to be gained from having an inclusive and diverse workforce. More businesses are becoming global; markets are expanding internationally and those organisations that can adapt are succeeding. Researchers⁴ summarise extensive studies which reveal that diverse organisations are more innovative, and are better able to move into emerging markets.

Diverse teams have broader knowledge and experience, which increases their effectiveness and ability to solve problems with creative thinking. Expression of diverse opinions can force team members to be more alert and critical in their valuation of problem solving strategies, which may result in more effective decision making.

However, there is also evidence of greater conflict in diverse teams, which can impact their ability to realise these benefits⁵. Poor communication, biases and conflict, can prevent diverse teams from excelling.

When diverse teams are able to develop a mutual understanding, they far outperform more harmonious homogenous teams. They also have a higher job satisfaction and sense of belonging at work. There are many things that diverse teams can do to achieve this:

• Understanding different cultures, for example people from some cultures are less likely to speak up in a group, because they are more comfortable sharing their ideas with an individual;
• Respecting a person’s ability, for example, allowing a person with a disability to define what they can and can’t do and creating an environment that allows them to function optimally;
• Appreciating that people of all ages have experiences and perspectives of value, for example, a younger person may be able to contribute a good understanding of a digital interface and an older person may be very good at adapting to change having done so many times.
• Knowing that people’s abilities and ambitions may be unrelated to their family situation, for example a person who is a primary care giver to children or an older person may be very willing to accept a promotion that requires more travel.
• Understanding an individual’s perspective of their faith might be different to others with the same faith, for example people who belong to the same church or even the same family will have very different views about aspects of their faith.

Very often, the differences within a group is greater than the difference between groups⁵. Those who take the time to understand the individuals within their group and to appreciate their unique perspective, will find their efforts are rewarded. This means having a respect for the strengths team members bring to the workplace regardless of culture, ability, gender, sexuality, faith, age, and work life flexibility.

Inclusion occurs when a diverse group of people (e.g. of different ages, cultural backgrounds, genders) feel valued and respected, have access to opportunities and resources, and can contribute their perspectives and talents to improve their organisation.⁵

If you would like to enhance your ability to thrive in a diverse workgroup, contact your EAP on
1800 628 277 in Australia and
0800 327 669 in New Zealand.
Or email support@akg.com.au.

1. https://www.dca.org.au/key-diversity-areas/inclusion.html#sthash.GC8MjR8p.dpuf
2. Inclusion@Work Index – Diversity Council Australia
3. https://www.business.gov.au/info/run/employ-people/equal-opportunity-and-diversity
4. Ioannis, Z., & Emmanouil, S. (2025). HRM strategies for bridging the digital divide: Enhancing digital skills, employee performance, and inclusion in evolving workplaces. Administrative Sciences, 15(7), 267. doi:https://doi.org/10.3390/admsci15070267
5. Olu-Ogunleye, I., & Akanji, B. (2025). Impact of workplace diversity on employee performance. Organization and Human Capital Development, 4(1) doi:https://doi.org/10.31098/orcadev.v4i1.2999