INCLUSIVE LEADERSHIP: CULTIVATING PSYCHOLOGICAL SAFETY & EMBRACING GROWTH

Reading time: 6 min

The importance of an organization’s leadership cannot be overstated. Leaders serve a huge range of functions within an organization, and they also set the tone for all the organization’s operations. They decide on company policy, they determine how resources will be spent, and they have oversight on hiring and firing, so their impact on equity initiatives is indisputable.

Having leaders who are sensitive, inclusive, and invested in staff morale can revolutionize an organization, and creating this sort of environment is key for equity initiatives. Unless leadership is on board, a lot of People & Culture efforts will struggle to make meaningful change. In many cases, though, leadership is an example of the problems faced by those seeking to increase diversity, rather than a solution.

To make leadership inclusive, we have to understand what that means, and very few people do. It isn’t just about increasing the representation of minorities in leadership positions (although that’s a good step). Inclusive leadership goes a lot further and contains far more subtleties than that! Let’s take this opportunity to understand what we are truly aiming for when we use this phrase.

Inclusive leaders aim for psychological safety

Inclusive leaders put psychological safety at the forefront of their activities. They want to create a culture in their environments where everybody feels safe expressing themselves and their opinions, without having to worry about retaliation.

This is because inclusive leaders recognize that this kind of atmosphere has a multitude of benefits. Firstly, it allows minorities to be their authentic selves, which improves staff morale and boosts loyalty, increasing retention. Secondly, it encourages individuals at all levels of the organization to express their views.

This second point is fundamental to creating strong organizations that are capable of weathering storms, something that should be high on the priority list for all leaders. When everyone in an organization feels that they can express their opinions without fear, people are more likely to identify problems so that leadership can look for solutions.

Let’s look at an example of this!

Miriam leads an organization and has created a culture where she welcomes feedback, gives it careful thought and attention, and engages in dialogue with her employees about the pros and cons of ideas. She wants to introduce a new policy that would give women more sick leave because she wants to help those suffering from menstrual cramps and introduce more flexibility for pregnant employees.

Because Miriam has demonstrated that she’s willing to listen to feedback, her employees are quick to point out that the new policy could be illegal and harmful. It might demoralize men and LGBTQIA+ individuals by suggesting that their own healthcare struggles are irrelevant, and in many parts of the world, it’s illegal to treat men and women differently in the workplace.

Thanks to her efforts to build a safe work environment, Miriam quickly gets the information she needs to determine the new policy isn’t fit for purpose, and she can rework it to be more inclusive for everyone. Imagine what would have happened, though, if Miriam had proven herself to be a punitive leader who took criticism personally and refused to listen to feedback. Would her staff have pointed out the flaws in her plan, or let her plunge ahead with it and get herself into legal trouble?

Miriam’s culture of psychological safety therefore protects her and her organization, and ensures everyone feels safe speaking up about issues!

Inclusive leaders embrace learning

One of the important things to acknowledge when it comes to diversity initiatives is that very few people - if any - truly know everything there is to know in this world. Almost everybody is learning. Additionally, these initiatives are constantly being reshaped and redefined, and the language around them is constantly changing. That means inclusive leaders have to embrace a learning attitude and be prepared to admit when they get things wrong.

Some people who want to appear committed to diversity struggle to do this. They like the idea more than the effort, so when it comes to learning, they’re very reluctant. Leaders in this position will often dig their heels in when presented with new research or new approaches and insist that the old way of doing things is fine.

This quickly creates frustration among staff who genuinely want to further diversity and foster a sense of belonging. They’ll stop trying to help leaders who behave in this way and either give up on the initiatives or just try to find ways to work around the leaders, which can be ineffective.

However, when leaders create a culture of learning, the whole organization can flourish. Let’s look at another example.

John runs an organization and is very keen to improve the lives of LGBT staff, so he creates policies that specifically state LGBT individuals are welcome. Job adverts also express this. However, John hasn’t been keeping up to date with recent developments in this space and doesn’t realize that his language is actually exclusionary to many in this group because the acronym has changed in recent times.

One of John’s staff members explains to him that he should instead be using the term LGBTQIA+. Instead of getting frustrated or insisting that LGBT “covers it,” John decides to take this as a learning opportunity. He spends some time brushing up on the terms used by this community, and decides to run some company-wide awareness sessions on being inclusive so that others can also benefit from his learning experience.

This helps to build a much more inclusive culture, providing an excellent example of how inclusive leadership permeates through a whole organization and helps to create change at all levels, from the top down.

This is what true commitment to inclusivity looks like: a willingness to acknowledge that you don’t know everything and that learning is part of the journey. Because John has shown his staff in the past that he’s eager to learn and willing to hear it when he’s wrong, he becomes a much more effective advocate for the LGBTQIA+ community, and inclusivity is established at a fundamental level.

Inclusive leadership goes beyond just psychological safety and a commitment to learning though; it also encompasses empathy, active listening, equitable decision-making, and a deep awareness of biases. While fostering a safe environment and embracing growth are essential, truly inclusive leaders also advocate for diverse perspectives, build trust across all levels, and create systems that support equity and belonging. Leadership is an ongoing journey that requires continuous reflection, adaptation, and a willingness to challenge the status quo. By integrating these principles, organizations can cultivate workplaces where every individual feels valued, heard, and empowered to contribute their best.

Time to get hands-on!

A structured five-day experiment with small but impactful behavioral changes designed to foster inclusivity, psychological safety, and continuous learning:

• Day 1 – Silence first: In meetings, hold back your opinion and allow others to speak first, encouraging diverse perspectives and giving space to different voices.

• Day 2 – Name the unheard: Actively invite input from quieter team members or those who are often overlooked, ensuring every voice is valued.

• Day 3 – Feedback flip: Instead of giving feedback, ask for feedback from team members about your leadership style, showing openness to growth.

• Day 4 – Assume positive intent: When addressing concerns or misunderstandings, approach with curiosity rather than assumption, fostering trust and psychological safety.

• Day 5 – Celebrate growth: Publicly acknowledge a mistake or learning moment to normalize vulnerability and reinforce the value of continuous improvement.