Inclusive leadership is center stage as organizations across the world search for ways to balance performance and people. At the fulcrum of this intersection sit two powerful indicators: psychological safety and employee engagement.

From this perspective, inclusive leadership serves as a kind of unifier – expanding and amplifying the talents of a workforce that feels psychologically safe, has a deep sense of belonging, and has well-being as a driving force in their work lives. As the rocket fuel for leaders and companies, inclusive leadership is a strategic advantage. It propels organizations forward, ensuring that they are adaptive, resilient and ready to seize opportunities on the global stage.

I recently sat down with Kurt Merriweather, vice president of innovation at The Diversity Movement, to discuss inclusive leadership in depth. Kurt and I co-authored the forthcoming book, The Inclusive Leadership Handbook: Balancing People and Performance for Sustainable Growth. We discussed how leaders can nurture sustainable success via inclusive leadership, with a focus on effective communication.

Donald: So, when we think about employee experience and engagement, we know that employee engagement is critical to workplace success. But how do we understand and measure employees’ perspectives on the workplace culture that we’re building?

Kurt: In working with clients and leadership teams, we’ve seen this common priority. To understand and measure workplace culture, we need to actively solicit feedback from employees through various channels, such as surveys, focus groups and one-on-one discussions. This will help us gain insights into their experiences, perceptions and needs within the organization. The need for better communication is always part of the equation.

Donald: That makes sense. But how can we ensure that we are effectively addressing the challenges inherent in employee engagement, such as work-life balance issues and conflicts with managers?

Kurt: The value of inclusive leadership is that it is a people-first model. As leaders, we should be asking ourselves how to address issues through a multifaceted approach. For example, have we prioritized a supportive work environment that promotes work-life balance through flexible work arrangements and wellness initiatives? Many companies are struggling with issues around remote and hybrid workers. In these situations, leaders can use their resources to address programs that enable employees to more effectively manage their personal and professional responsibilities.

Donald: For naysayers or people skeptical about investing in employee engagement during difficult economic situations, what are some of the benefits that might sway their decision?

Kurt: Engaged employees are more productive, innovative and loyal, which has almost immediate bottom-line consequences, including increased sales, higher customer satisfaction and improved financial performance. At an even more basic level, engaged employees are better equipped to weather challenges, because resilience and adaptability are main tenets of the culture. In this era in which talent management is key to long-term success, we have also seen that engaged employees are also more likely to advocate for the organization, leading to enhanced brand reputation and employee retention.

Donald: Let’s delve deeper into the importance of communication. We know this is a critical leadership skill, but why is it even more important for inclusive leaders in today’s work world?

Kurt: I think the major transition is moving from talking to employees to talking with them. As inclusive leaders, we need to shift from conveying messages to building culture, which means shaping a culture centered on trust, understanding and engagement. What we’ve seen over and over is that employees want more and better communication. When it is clear, consistent and inclusive, the resulting environment is built on a sense of belonging and alignment.

Donald: Your thinking aligns with my work with executive teams. When leaders develop better communication skills they see tangible results, including lower turnover rates and an increase in productivity. Inclusive communication is about reaching all audiences, regardless of background or role, with clarity and empathy. It means eliminating jargon, listening actively to understand different perspectives and being intentional about nonverbal cues.

Kurt: Looking at psychological safety, how should leaders be thinking about the link between that critical topic and effective communication?

Donald: Psychological safety is a foundation for a healthy workplace culture. Without it, employees may feel anxious, isolated or disengaged. The priority for inclusive leaders is to prioritize adequate staffing, mental health support and zero tolerance for harassment and discrimination. The result is a culture of trust and accountability that is essential for enhanced innovation and better collaboration.

Kurt: Diversity, equity, inclusion and accessibility (DEIA) initiatives are another way inclusive leaders can use communication to strengthen workplaces. By embracing diversity, promoting equity and ensuring accessibility, organizations can create an environment where all employees feel valued and empowered to contribute their best work. Effective communication plays a significant role in driving these initiatives forward, since it enables dialogue, understanding and collaboration across diverse teams. Can you discuss why it is important for leaders to drive this culture across their organizations?

Donald: Certainly. Given the challenges we face, leaders must transition from being the sole source of ideas to curators who cultivate innovation within their teams and across the company. Fostering an environment that promotes innovation hinges on the principles of inclusive leadership. Empowering the entire team to succeed collectively creates the foundation for a culture of creativity and collaboration. Additionally, making space for team challenges enables the expression of diverse perspectives, nurturing a sense of belonging and enriching the organization’s cultural intelligence.

By embracing diversity in all its forms, teams can harness the power of different viewpoints to tackle challenges more effectively and drive innovation forward. In essence, it’s through inclusive leadership, better communications and a commitment to diversity that organizations can unlock their full potential and thrive in an ever-evolving business landscape.

About Donald Thompson

Donald Thompson, EY Entrepreneur Of The Year® 2023 SE Award winner, founded The Diversity Movement (TDM) to fundamentally transform the modern workplace through diversity-led culture change. TDM was recently acquired by Workplace Options, which brings holistic wellbeing services to more than 80 million people in more than 200 countries and territories across the globe. Recognized by Inc., Fast Company and Forbes, Thompson is author of Underestimated: A CEO’s Unlikely Path to Success, hosts the podcast “High Octane Leadership in an Empathetic World” and has published widely on leadership and the executive mindset. As a leadership and executive coach, Thompson has created a culture-centric ethos for winning in the marketplace by balancing empathy and economics. His next book is The Inclusive Leadership Handbook: Balancing People and Performance for Sustainable Growth.

Follow him on LinkedIn for updates on news, events and his podcast, or contact him at info@donaldthompson.com for executive coaching, speaking engagements or DEI-related content. TDM has created LeaderView, a leadership assessment tool that uses cultural competency as a driver for improving whole team performance. To further explore DEI content and issues impacting your work and life, visit TDM Library, a multimedia resource hub that gives leaders a trusted source of DEI content.