IPA Blog

Inclusion Drives Business Success

Written by Hannah Watts | 21 Jul 2025, 09:01 PM

Inclusion Drives Business Success

In today’s evolving business environment, Diversity, Equity, and Inclusion (DEI) are no longer just buzzwords—they’re essential to long-term success. Across industries, companies are coming to realise that a diverse and inclusive workforce is not only the right thing to pursue ethically, but it also makes clear business sense.

Despite growing awareness and investment in DEI programs, many organisations still face real challenges—from discrimination and harassment to cultural misunderstandings and difficulty in attracting and retaining diverse talent.

From our perspective as a company striving to embed DEI in every layer of our operations, we’ve observed that the journey is continuous and requires more than just policies. It demands intentional culture-building, education, and systemic change. Here, we’re sharing our thoughts on the business benefits of inclusion, the obstacles still present in many workplaces, and the strategies we believe can drive meaningful, lasting change.

 

The Tangible Benefits of a Diverse Workforce

Let’s start with the facts. A diverse and inclusive team brings together people from different backgrounds, experiences, and perspectives. This diversity in thought leads to greater creativity, more effective problem-solving, and better decision-making. When people feel safe and valued at work, they’re more likely to contribute ideas, take initiative, and collaborate openly.

In fact, numerous studies show that inclusive companies are:

  • More innovative – Diverse teams are 1.7 times more likely to be innovation leaders.

  • More profitable – Companies with diverse executive teams are 33% more likely to outperform their peers in profitability.

  • Better at retaining staff – Employees who feel respected and included are far less likely to seek new roles elsewhere.

In the context of Australia’s current workforce shortages, particularly in industries like healthcare, construction, education, and tech, tapping into a broader, more inclusive talent pool isn’t just good practice—it’s a competitive advantage.

 

Why DEI Still Faces Resistance

While DEI is a positive goal, embedding it deeply within a workplace is not without challenges. Despite best intentions, discrimination and harassment still occur in many organisations. Unconscious bias, outdated hiring practices, and a lack of cultural understanding can all contribute to environments where some employees feel marginalised or unsafe.

There’s also often a disconnect between leadership intent and employee experience. It’s one thing to write a diversity statement or host cultural awareness events—it’s another to ensure those values are reflected in daily behaviours, team dynamics, and company structures.

Some common issues that organisations face include:

Performative inclusion – Initiatives that are more about optics than genuine change.
Inconsistent accountability – A lack of clear systems to call out and manage discriminatory behaviour.
Insufficient representation – Leadership teams that don’t reflect the diversity of their staff or customer base.
Cultural blind spots – Workplace policies or communication styles that unintentionally exclude or disadvantage certain groups.

These issues aren’t solved overnight, but recognising them is the first step in addressing them.

 

The Role of Leadership in Shaping Culture

Culture starts at the top. Leadership needs to model inclusive behaviour, champion diversity initiatives, and hold themselves accountable. When senior leaders show a genuine commitment to DEI—not just in words, but in action—it sends a powerful message across the business.

At the same time, leadership should not be the only driver. Everyone in an organisation has a role to play. From HR managers to team leaders, every individual interaction contributes to either a more inclusive or more exclusive culture.

Some practical actions we’ve seen make a difference include:

  • Embedding inclusion into performance metrics – Holding managers accountable for the inclusivity of their teams.

  • Diversifying recruitment panels – Ensuring a mix of perspectives in hiring decisions.

  • Culturally inclusive onboarding – Creating a sense of belonging from day one.

  • Encouraging employee resource groups (ERGs) – Supporting peer-led communities around shared identities or experiences.

Building Cultural Awareness Through Education

You can’t change what you don’t understand. Education and training are essential tools in raising awareness of cultural diversity, unconscious bias, and inclusive communication. But for it to be effective, it must go beyond one-off workshops. Cultural awareness must be ongoing, interactive, and integrated into everyday business operations.

This includes:

Unconscious bias training – Helping teams understand how hidden prejudices can influence decisions.
Inclusive language guidelines – Encouraging respectful communication across all touchpoints.
Cultural competency development – Equipping employees to work effectively across cultural lines, both internally and externally.

When employees are more aware of each other’s backgrounds and challenges, empathy grows. And from empathy comes better collaboration, stronger relationships, and improved outcomes for the business.

 

Attracting and Retaining Diverse Talent

With staff shortages across many sectors in Australia, recruiting from a broader and more diverse talent pool isn’t just good social practice—it’s a business imperative. But attracting diverse candidates means understanding what they value in an employer. That might include:

  • Flexible work arrangements

  • Visible career pathways

  • Psychological safety

  • Cultural support

  • Representation at leadership levels

It also means ensuring that once people join, they want to stay. Inclusive cultures don’t just welcome difference—they celebrate it, support it, and adapt around it.

Some ways to retain diverse talent:

  • Conduct regular inclusion surveys to identify gaps in experience and address them.

  • Provide mentorship programs that pair emerging diverse leaders with senior champions.

  • Create transparent growth pathways that minimise bias in promotion or development.

  • Celebrate cultural milestones and events, not just as token gestures, but as genuine learning opportunities.

Looking Ahead: DEI as a Strategic Imperative

Diversity, Equity, and Inclusion aren’t trends. They’re long-term commitments that will define the workplaces of the future. The companies that embrace this now—who see inclusion not just as a box to tick but a business value to live by—will be the ones that thrive in a more complex, global, and socially conscious marketplace.

The journey is ongoing, and none of us have all the answers. But by continuing to listen, learn, and lead with empathy, we can build workplaces where everyone belongs—and where everyone can succeed.

At the end of the day, inclusion is not just about ‘helping others feel welcome’. It’s about unlocking the full potential of every team member, driving innovation, and future-proofing business success in a diverse and rapidly changing world.


The future belongs to inclusive workplaces. Let’s build them together.