Unleashing The Power Of Inclusion Attracting And Engaging .

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Unleashing the power of inclusionAttracting and engaging the evolving workforce

For the past three years, Deloitte and the Billie Jean King LeadershipInitiative (BJKLI) have collaborated to conduct targeted research thathelps educate and advance how organizations foster inclusion as theworkforce continues to evolve.In our first research paper, The Radical Transformation of Diversityand Inclusion: The Millennial Influence1, we explored how differentgenerations define diversity and inclusion. Millennials tended todefine diversity beyond demographic characteristics, viewing it morealong the lines of cognitive diversity and the variety of experiencesand perspectives that each individual brings to the table, comparedto Gen X and boomers, who typically define diversity along moretraditional measures (e.g., gender, race, ethnicity).1 More so thanprior generations, millennials emphasized that they see inclusion asfundamental to the way that companies do business.In our second paper, The Millennial Majority is Transforming YourCulture2, we discussed what millennials truly value in organizationalculture. Millennials told us that having a sense of purpose in theirwork is essential, and that technology, skills alignment, innovation,and well-being are critical components that they expect from anorganization, challenging traditional talent processes to benefiteveryone in the workplace.In this third paper, we will further explore how definitions of diversityand inclusion as well as expectations for organizational cultureare evolving. Based on the results of our recent survey of morethan 1,300 full-time employees from a range of different sizedorganizations and industries across the United States, we will explorewhat today’s workforce considers when choosing an organizationand what influences their career choices. We will explore whatthey value most in an inclusive culture (defined as “embracing allpeople, making all people feel valued and feel they belong in theirorganization”) and how inclusion may be impacted in the future. Ourkey findings include:To attract and retain today’s top talent, organizations should remain laser-focused on fostering an inclusive culture while being responsiveto the needs and priorities of today’s workforce. BJKLI’s mission is to address the critical issues required to achieve inclusive leadership thatwill lead to significant changes in how leaders operate in the world. This powerful research collaboration identifies specific opportunities tochallenge traditional processes and foster a holistic approach to inclusion that can benefit organizations now and for generations to come.Billie Jean KingFounderBillie Jean King Leadership InitiativeDeborah L. DeHaasVice Chairman, Chief Inclusion Officer and National Managing Partnerof the Center for Board EffectivenessDeloitte LLP

Unleashing the power of inclusion Attracting and engaging the evolving workforceContentsIntroduction1The impact of inclusion on retention and engagement3Redefining and recommitting to inclusion5Recommendations: integrating inclusion for today’s workforce9Conclusion11Meet the authors12Additional information13Endnotes14As used in this document, “Deloitte” means Deloitte LLP,. Please see www.deloitte.com/us/about for a detaileddescription of our legal structure. Certain services may not be available to attest clients under the rules andregulations of public accounting.3

Unleashing the power of inclusion Attracting and engaging the evolving workforceIntroductionAs technology, globalization, and the evolvingworkforce continue to shape the future of work, theneed for organizations to maximize their recruitmentand retention strategies is increasing at a rapid pace.Millennials, born 1980-1995, are the largestgeneration in the world, with over 75 millionpeople that will make up 75 percent of theworkforce by 2025.3 For many millennials,inclusion is a non-negotiable in today’sworkplace — an increasingly importantfactor for organizations to note, asmillennials often change jobs approximatelyevery two years. They often view it as anessential component of business strategyand a factor in deciding whether to stayor to leave an organization.1 As the largestgeneration to enter into the workforce,millennials have frequently been at theforefront of challenging the status quo andadvancing organizational strategies andculture to the mutual benefit of everyone.Yet, from the survey results, we discoveredthat there often remains a disconnectbetween the expectations of today’sworkforce and inclusion in organizations.1Many organizations are diligently attemptingto embed inclusion into their culturethrough programming and trainings, butare struggling to gain traction with theirpeople and produce measurable results.Given the significant amount of attentionand efforts underway, why are organizationsstill struggling to meet the needs of today’sworkforce?To answer this, we will first explore theimpact inclusion has on the perception ofan organization and its ability to attract andretain top talent. Second, we will discusswhat many in today’s workforce prioritizein an inclusive culture. Finally, we willdetermine what organizations can do toinfluence the everyday experiences of theirpeople and continue to advance inclusionnow and in the future.

Unleashing the power of inclusion Attracting and engaging the evolving workforce2

Unleashing the power of inclusion Attracting and engaging the evolving workforce3

Unleashing the power of inclusion Attracting and engaging the evolving workforceThe impact of inclusion onretention and engagementCultivating and showcasing aninclusive culture is an essentialcomponent in talent strategies,and can result in increasedcreativity, productivity, andinnovation.4Every year, many organizations allocate time, resources,and budget towards efforts to foster an inclusiveculture — and interest is still increasing. In a recentstudy5, Deloitte found that the proportion of executiveswho cited inclusion as a top priority rose by 32% from2014 to 2017. Sixty-nine percent of executives rateddiversity and inclusion as an important issue. Whataccounts for this growth? One reason may lie in thecontinued struggle for organizations to attract andretain top talent. For example, millennials are the mostlikely generation to switch jobs, with their turnovercosting the United States economy approximately 30.5billion annually. According to a recent Gallup survey6,60% of millennials are open to a new job opportunityand 21% say that they have changed jobs within the lastyear. The overall engagement rate does not fare muchbetter. Only 32% of workers report being engaged intheir organizations.7 Given that today’s executives andtalent indicate that they view inclusion as a businessimperative and critical component of organizationalculture, could inclusion specifically impact retention?of respondents reported that they would leave their current organization for amore inclusive one. For millennials, inclusion played an even larger role in theirretention, with over half the millennials reporting they would leave their currentorganization for a more inclusive one. Even more astounding, nearly one-thirdindicated they have already left an organization for a more inclusive one.These findings may help explain some of the commonly held questions thatorganizations have about the attraction and retention of today’s workforce. Aninclusive culture may be able to help mitigate some of these trends. The majorityof respondents stated that everyone — their co-workers, themselves, their directmanager, and senior leadership — all have a role to play in inclusion.We also know the senior leaders can have a great impact on fostering aninclusive culture. Recent research has explored the relationship betweeninclusion, engagement, and trust, finding that “trust accounts for a significantdegree of the relationship between diversity practices and engagement.”8 Trustmay play an important role in how today’s workforce perceives leadership,culture, and commitment to their organizations. Fostering inclusion often startswith the tone at the top.Based on the results of our recent survey of more than1,300 full-time employees from a range of organizationsand industries across the United States, the resultsof our survey suggest the answer is a resounding yes.We asked respondents whether inclusion influencedtheir decision when evaluating organizations to workfor. Eighty percent reported that inclusion is importantwhen choosing an employer. But, inclusion doesn’t justplay a critical role in recruitment. Thirty-nine percent4

Unleashing the power of inclusion Attracting and engaging the evolving workforceRedefining andrecommitting to inclusion5

Unleashing the power of inclusion Attracting and engaging the evolving workforceToday’s workforce is looking for organizations to go beyond only addressing howinclusion looks, to meaningfully addressing how inclusion feels.From our previous research, we know that thedefinitions of diversity and inclusion are changing inthe minds of the evolving workforce. For millennialsin particular, diversity and inclusion encapsulates theunique attributes and experiences that each individualbrings. They are less focused on “demographic”representation compared with previous generationsand are more likely to focus on inclusion as an essentialcomponent in business strategy. Additionally, whenmillennials believed their organization was inclusive,they reported feeling more engaged, empowered, andauthentic, compared with millennials in organizationsthat they did not perceive as inclusive.1Our survey underlines the continuing disconnectbetween what today’s workforce is seeking andwhat organizations are providing. When we askedrespondents what were the most important culturalaspects when choosing an organization to work for,they prioritized criteria that reflects the experienceof an inclusive culture. The top three aspects citedwere “An atmosphere where I feel comfortable beingmyself” (47%), “An environment that provides a senseof purpose, where I feel like I make an impact” (39%),and “A place where work flexibility (parental leave,ability to work remotely, flexible scheduling, etc.) isprovided as a top priority” (36%). These were all rootedin everyday experiences and behaviors. Conversely,across generations, respondents indicated they are notlooking for work environments where they are simplysurrounded by people with similar experiences orcharacteristics. When we asked what cultural aspectsthey valued in an organization, aspects regarding“people with similar life experiences” (12%), “A placewhere there are a lot of different social values andopinions” (14%), and “similar social values and opinionsto mine” (14%), were cited as least important.6

Unleashing the power of inclusion Attracting and engaging the evolving workforceToday’s workforce looks for an environment wherethey can be themselves. When they do not experiencethat at an organization, they are often willing to leave.Authenticity in particular emerged as a leading factorin career choices. Of the 23% of respondents whoindicated they had left an organization for one with amore inclusive culture, the most frequently selectedreason for leaving was “the atmosphere did not makeme comfortable being myself” (33%), while the least citedreason for leaving was “there were not a lot of peopleof different demographic groups” (12%), suggesting thatinclusion is increasingly about how people feel and theexperience of an inclusive culture.Today’s workforce is often seeking organizations thatvalue authenticity, where they can feel a sense ofbelonging, can connect with others, and grow without7having to compromise who they are in theprocess. Even if an organization or a team hasrepresentation from a variety of demographicgroups and different backgrounds — doesthat necessarily make it inclusive? Diverseteams are absolutely important, but inclusionunleashes the power of diversity, fosteringan organizational culture where everyone feelscomfortable speaking up and being themselves.Today’s workforce is looking for organizations togo beyond addressing how inclusion looks butalso addressing how inclusion feels.Organizations today often remain fixatedon metrics and categorizing individuals bydemographic attributes instead of investingand measuring engagement and experiences.

Unleashing the power of inclusion Attracting and engaging the evolving workforceBut, today’s workforce is looking for more.When asked what would make their currentorganizations more inclusive, respondentsprioritized how their leaders and peersbehaved in the workplace. Many do notwant inclusion to be solely a programmaticinitiative or an add-on, but inclusion shouldbe a fundamental aspect of corporateculture, embedded throughout theirexperiences. Yet, many organizationscontinue to focus solely on programmingand training without evaluating or facilitatingways to embed inclusion as foundationalto the daily experiences, interactions, andbehaviors of their people.Our survey respondents have told usthat inclusion is an important factor indetermining whether they will stay at orleave an organization. Many do not wantto just participate in a program or activityand leave the inclusion conversation atthe door. Instead, they want inclusion tobe fundamental to their daily experiencesand are willing to leave an organization toget it. It is critical for businesses today torecalibrate how they approach inclusion totruly unleash the power of diversity.Survey respondents do not want inclusion to be solely a programmatic initiative oradd-on. Rather, inclusion should be a fundamental aspect of their experience and feltthroughout everyday aspects and behaviors.8

Unleashing the power of inclusion Attracting and engaging the evolving workforceRecommendations:integrating inclusionfor today’s workforceFrom our survey, the responses indicated that inclusion is bothabout how inclusion looks and how it feels. Many in today'sworkforce are seeking organizations where inclusion is rooted intheir daily experiences. Additionally, they do not view programsas the only way to foster an inclusive culture. They want to seetheir leaders and peers demonstrate inclusion in their behaviors.So how can organizations be more responsive to the needs oftoday’s workforce and continue to advance inclusion in impactfuland meaningful ways?Recommendations for organizations:Reinforcing thetone at the topFor inclusion to advance in anorganization, it is essential for aconsistent commitment from thetop. Our findings reinforce this.Respondents indicated that seniorleadership had a large impact onfostering an inclusive culture.9Embeddinginclusion into theorganizationalcultureToday’s workforce is often looking fororganizations to go beyond positioninginclusion as an add-on or something“separate and distinct” from the overallHR or Talent strategy. Instead, theyare seeking organizations that areintegrating inclusion into their overallbusiness objectives and throughouttheir organizational culture.Focusing on theexperience ofhow an inclusiveculture feelsMany in today’s workforce haveindicated that they are prioritizingthe experiential aspects of aninclusive culture, focusing not just onhow inclusion looks, but also how itfeels in their everyday interactions,and empowered to be truly authenticin the workplace.

Unleashing the power of inclusionBrochure / reportAttractingtitleandgoesengaginghere theSectionevolvingtitle workforcegoes here Evaluations and performanceOrganizations can showcase that inclusivebehaviors are a vital component ofleadership — that being a leader, bydefinition, means being an inclusive leader.To truly emphasize the importance andweight for leaders to model inclusion,organizations should consider includingdemonstrable inclusive behaviors inperformance expectation frameworks forleaders to underscore the importance ofwalking the talk, such as: Mentoring and sponsoring a broad rangeof individuals throughout the organizationfrom a variety of backgrounds andexperiences Embedding inclusion strategies in keyaspects of the talent lifecycle, includingrecruitment, assignments, and successionplanning Building diverse teams by seeking outindividuals with a variety of perspectivesand skillsets, and enabling them to play totheir unique strengths Enabling team members to invest intheir personal well-being in ways mostmeaningful to them Demonstrating the importance ofauthenticity, transparency and building asense of communityEducation and awarenessOrganizations need to reevaluate theirprograms to advance inclusion. Instead ofsiloing inclusion and only focusing onprogramming, inclusive behaviors should beclearly articulated and reinforced throughoutthe development experiences for allprofessionals .Expanding their focus beyond selectdemographic groups, inclusion educationand awareness efforts can provide guidanceon the experience of modeling inclusivebehaviors, emotional maturity, andauthenticity. To truly foster an inclusiveculture across an organization, educationalprogramming needs to raise levels ofawareness and education around unconsciousbiases as well as how to recognize theopportunities for inclusive behaviors ineveryday interactions.Employee engagementWhile many organizations have traditionallyapproached fostering an inclusive culture byproviding opportunities to connectindividuals with similar backgrounds andattributes, from our survey results, manyrespondents are looking for more. To trulyfoster an inclusive culture, organizationsshould strive to bring a mix of diverse groupsof professionals together to engage andconnect on a variety of topics aligned withcommon passions and interests.Organizations should embrace theintersectionality9 of their people, recognizingthat each individual has a number of distinctand unique identities, strengths, andexperiences that overlap and intersect indifferent ways that all contribute to one’sunique and authentic self.Additionally, organizations can enable andencourage their professionals to connect oncommon passions and interests. Suchopportunities can positively impact employeeengagement and productivity as well as inspirecreativity and innovation by driving broaderdiversity of thought.These recommendations are a starting point for organizations to explore andreevaluate how inclusion has been traditionally approached. As the workforcecontinues to evolve, now is the time for organizations to embrace changeby embedding inclusion throughout the daily experiences of their people,acknowledging that, with each generation becoming increasingly diverse thanthe generation preceding it. Fostering an inclusive culture will become bothabout how inclusion looks as well as how inclusion makes employees feel.10

Unleashing the power of inclusion Attracting and engaging the evolving workforceConclusionInclusion is an essential component for attracting andengaging today’s workforce. Our respondents havetold us that inclusion is not a nice-to-have but often acritical factor in determining whether they will stay orleave an organization. They expect organizations to notonly implement programs, but today’s workforce alsowants to experience inclusion in their daily interactionsand experiences with their leaders and peers. Many intoday’s workforce are seeking inclusive cultures wherethey can be themselves, have flexibility, and engage inpurposeful work.While programs remain one way to embed inclusioninto culture, organizations should also recognize thatin order to be truly inclusive, programs are likely notenough. Instead, by reinforcing the tone at the top,creating unique ways for individuals to connect acrossdifferences to find common ground, and raising levels11of awareness around inclusive behaviors, organizationscan foster a culture where inclusion is embedded intoeveryday interactions. This approach rei

an organizational culture where everyone feels comfortable speaking up and being themselves. Today’s workforce is looking for organizations to go beyond addressing how inclusion looks but also addressing how inclusion feels. Organizations today often remain fixated on metrics and categorizing individuals by

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