Name: The Inclusion Dividend
Rating: 3.5 (26 reviews)
Author: Mark Kaplan and Mason Donovan

What’s in it for me? Discover the financial benefits of making inclusion a key word at the office.

We have all heard of people being left out at work for reasons which have nothing to do with their skills, but with their gender, where they’re from or their religious beliefs. This is usually viewed as an ethical problem, but what if it’s also a business problem? What if a lack of inclusion is actually bad for your bottom line?

In The Inclusion Dividend the authors show how biases and a lack of inclusion influences more parts of business than we might think. They also provide us with ideas and programs to tackle the issues and create a more inclusive environment that isn’t only good for employees, but also good for business.

In these blinks, you’ll discover

why MIT professor Sendil Mullainathan sent out 5,000 applications for jobs;
how Apple extended its inclusion program to vendors; and
why two million of America’s best and brightest left their jobs in 2007.

While a meritocracy may be seen as the basis for successful businesses, the numbers suggest otherwise.

Have you ever had the disappointing experience of putting in long hours and being the best in your workplace, only to discover that success doesn’t always boil down to hard work? That’s because while the idea of meritocracy is deeply engrained in the business world, it might not be the reality.

But what is a meritocracy exactly?

It’s the long-held belief that hard work will be rewarded. In fact, it’s even the basis of the American Dream – the idea that anyone can reap the benefits of a rewarding and comfortable life by putting in the necessary work.

So, if you asked a board member of a Fortune 1000 company whether their corporation abides by a meritocratic system they would naturally say yes. They would maintain that employees are hired, promoted and kept on board solely on account of their abilities.

Unfortunately, this claim doesn’t quite align with reality. For instance, in the United States, about half the population is female, but a census conducted in 2010 by Catalyst found that women only accounted for 15% of all executive positions at Fortune 500 companies. When women were asked why they thought this was, they said the problem was due to a lack of opportunities for promotion and respect.

So, now you know a meritocratic system doesn’t exist, but did you know that low diversity is actually bad for business?

Just consider the fact that global corporations spend about $8 billion annually to foster a more inclusive corporate culture. They don’t just do it to avoid discrimination lawsuits, but because it makes them money.

For instance, take the companies listed on Standard and Poor’s 500 stock index. They’re profitable companies that brought in an 89% return on their investments over a three-year period. But the S&P corporations that also made it onto Working Mother’s 100 top companies for inclusion brought back 98% on every dollar invested!

An exclusive environment creates counterproductive group dynamics.

Most people are right handed and few right-handers ever consider what life is like for their left-handed peers – everything from can openers to tape measures are awkward to use. It’s just one example, but being unaware of more common differences exacerbates insider-outsider dynamics.

What’s that?

Inclusion is best implemented by company leaders.

So you’re ready to make your company more inclusive, but it won’t happen without some effort. While inclusivity is a group effort, it’s best implemented from the top down, and to change their business, company leaders need to change themselves.

That’s because growth in the modern era means reaching a global market that’s both diverse and complex. To do so you’ll need to develop interpersonal relationships with all kinds of people.

Key ideas in The Inclusion Dividend

What is The Inclusion Dividend about?

“I’m not sexist, it’s just that the top candidates are all guys.” “I don’t believe in quotas – surely you should pick the best person for the job, whatever the colour of their skin?” If you’ve ever had thoughts like these, challenge your assumptions with The Inclusion Dividend (2013). It explains how diversity and inclusion actually boost the productivity and business success of any company, while presenting a guide to transforming your workplace for the good.

About the Author

Mark Kaplan is a consultant who has specialized in management since 1986. He holds a master’s degree in HR development and is a prolific writer on diversity in management.

Mason Donovan is a consultant who has contributed his services to most of the Fortune 500 companies. He holds a master’s degree in international business.