Managing Director & Partner
Chicago
Inclusive cultures boost employees’ happiness and empowerment—and slash attrition in half—but business leaders have minimal insight into what works and whether their investments in inclusion get results. BCG’s analytical model, the BLISS Index, shows for the first time that the felt experience of inclusion is not only quantifiable but highly actionable. Four factors enhance feelings of inclusion in the workplace:
- Senior leaders openly and publicly commit to DEI.
- Senior leadership is diverse.
- Direct managers commit to DEI and build safe team environments.
- The work environment is discrimination-free, bias-free, and respectful.
Inclusion Isn't Just Nice. It's Necessary.
Joe Davis
Improving employees’ experience of inclusion in the workplace is one of the most actionable levers companies have to attract and retain talent. When done right, inclusion can slash attrition risk in half.
In today’s fiercely competitive environment, inclusion is akin to a hidden superpower, so why do so few companies view it as a business necessity? The answer is simple: workplace inclusion is hard to define, measure, and influence.
This problem can be solved. To do so, BCG built the BLISS (Bias-Free, Leadership, Inclusion, Safety, and Support) Index, a comprehensive, statistically rigorous tool that identifies the factors that influence feelings of inclusion in the workplace—and meaningfully correlate with retention.
BCG’s BLISS Index shows for the first time that the felt experience of inclusion is not only quantifiable but highly actionable. The model identified the workplace factors that significantly improve inclusion, which in turn reduces the likelihood of attrition:
- Senior leaders openly and publicly commit to DEI. When senior leaders make meaningful and sustained commitments to DEI—internally and externally—we see a massive uptick in the inclusion employees experience.
- Senior leadership is diverse. Companies with a diverse senior leadership team have better inclusion experiences for employees of all identities—including but not limited to traditionally defined diverse employees.
- Direct managers commit to DEI and build safe team environments. Direct managers create a positive work environment by reinforcing inclusive ways of working and adopting practices that support employees’ sense of psychological safety. It’s a top driver of team success—yet often overlooked.
- The work environment is respectful and free of discrimination and bias. Companies that safeguard against discrimination, eliminate experiences of bias, and ensure consequences for disrespectful behavior directly improve employees’ feelings of psychological safety, and thereby improve feelings of inclusion.
The BLISS Index establishes that authenticity at work is highly correlated with feelings of inclusion and retention. Authenticity at work means that employees feel able to share the parts of their identity that they view as important, whether that be their sexual orientation, race, health, socioeconomic background, personal living situation, or anything else.
Employees who can be their authentic selves are happier, more motivated to give their best, feel like their perspectives matter—and are nearly 2.4 times less likely to quit.
Importantly, authenticity is highly correlated with a sense of inclusion for every single group, regardless of identity markers, personality traits, and life experiences. Across and within all subgroups, people who agree that they can be their authentic selves at work achieved a BLISS Index score twice as high as that of people who strongly disagree.
BCG’s BLISS Index reveals the targeted, “no regrets” moves that leaders can take to improve the experience of inclusion in their workplace, based on the drivers of inclusion revealed through this research:
- Demonstrate leadership commitment to DEI.
- Build diversity at the leadership level.
- Equip direct managers (and make them accountable) to create safe teams and environments.
- Build stringent safeguards against discriminatory and biased behaviors.
- Measure outcomes focused on DEI.
Given the profoundly varied experiences employees face at work today, these findings on the power of inclusion in the workplace offer leaders a lifeline—and a mandate for action. Inclusion creates the conditions for every employee to bring their authentic self to work, contribute fully, and realize their full potential—all while delivering a powerful return for companies.
Read the full report
Explore BCG’s BLISS Index
Subscribe to read our latest insights on Diversity, Equity, and Inclusion
Authors
Mario Farsky
Associate Director, Customer Centricity
Hamburg
Gretchen May
Global Diversity, Equity, and Inclusion Director
Dallas
Alex Zborowski
Project Leader
Seattle
What’s Next
The So What Podcast from BCG:
When a Paycheck Is Not Enough
Pay, promotion, and benefits have been the traditional carrots for hiring, exciting, and retaining employees. But feeling safe, challenged, and valued at work can be even more important than a paycheck, says Gabi Novacek, a BCG Henderson Institute fellow researching diversity, equity, and inclusion on this episode of "The So What from BCG" podcast.
Inclusive Cultures Have Healthier and Happier Workers
Supporting employees’ mental and physical health is critical. So is creating an environment where people can be their authentic selves.
Article
Why the First Year Matters for LGBTQ+ Employees
The first 12 months at a new job are a critical time for LGBTQ+ people to present their authentic selves in the workplace. Those who don’t come out professionally then are likely to remain closeted.
Article
How Diverse Leadership Teams Boost Innovation
Want to generate inventive new ideas that can win in the market? Build management teams comprising people with the widest possible range of backgrounds and perspectives.
1 /
5