Time For Action: The Business Case For Inclusive Workplaces

The economic and social challenges that the UK faces have been thrown into sharp relief by Brexit, in particular around issues like productivity, inclusion and opportunity. As businesses, it is up to us to seize the opportunities that exist to make some positive changes, becoming firms that will be competitive into the middle of the 21st Century. If we get it right, business growth and greater opportunity will go hand in hand. CBI believes that inclusive businesses will deliver better economically as well as socially. It is often said that the workforce is a business' greatest asset, but we are missing an opportunity if our actions don't back this up, and if we lack the focus needed to help every person reach their best. An inclusive workplace is one in which diversity – the differences of gender, sexuality, race, age, social background, physical and mental ability, and even differences of thought and experience – are welcomed because they improve the performance of a team and, ultimately, a business' results. It's where leaders, managers and employees are clear about the role that they play in fostering it. Inclusion is an approach to running organisations which focuses on ensuring that every aspect of the business contributes to helping employees perform at their best. It means more than eliminating direct discrimination that is already illegal. An inclusive workplace is one in which action is taken to ensure that practice and culture does not indirectly disadvantage any group and encourages all. Increasing female employment and productivity to the levels of men... is estimated to be worth 35% of GDP. The business case for inclusion isn't new. Just one in four businesses are confident that they will be able to access the highly-skilled employees they will need in the future, and drawing on a diverse pool of talent will be key to addressing the shortfall. And this case is getting stronger. Research suggests that increasing female employment and productivity to the levels of men would have a greater impact in the UK that in all but three EU countries. It is estimated to be worth 35% of GDP. Business performance would improve too. Firms with the highest levels of gender and ethnic diversity are 15% and 35% more likely to outperform their rivals. In part, this is explained by the impact of diversity and inclusion on employees and the teams in which they work. Workplaces that are both diverse and inclusive are associated with higher individual performance because employees are better able to innovate and more engaged. It's also associated with higher collective performance because a diversity of thought and experience leads to better decision making owing to more careful processing of information than in homogeneous groups. Employees say they’re 83% more likely to innovate and more than twice as engaged in workplaces that are both diverse and inclusive. Business and society do not operate in isolation. Each relies on the other to be successful. Businesses of all sizes and in all parts of the country are the drivers of prosperity. Where this works well it creates a positive cycle in which society supports business success, and businesses create the jobs and deliver the pay rises that lift living standards. The problem at the moment is that this cycle isn't always working well. Business can make a real difference by taking actions that make their workplace more inclusive.