Inclusive workplaces are more productive, retain staff longer and foster greater employee wellbeing, a new study has revealed.
Inclusion isn’t just good ethics – it’s good economics, according to research from Onvero’s inaugural State of Inclusion in the UK: From Ambition to Action Report. In fact, organisations that embed diversity, equity and inclusion (DEI) into their culture report 68% higher productivity, lower turnover and happier teams than those where inclusion efforts are less mature.
Despite ongoing political debate and scepticism around DEI initiatives, the study found that nine in ten UK workplaces now have a DEI strategy. Yet while most leaders believe progress is being made, many employees disagree. The data points to a widening gap between ambition and action. A quarter (25%) of leaders say inclusion is fully embedded and regularly reported on, but only 15% of employees feel it is reflected in their day-to-day experience.
BUSINESS CASE FOR INCLUSION
The findings show that inclusion drives performance, retention. and wellbeing. The results revealed that:
- Employees stay longer: Staff in inclusive organisations remain an average of 3.76 years longer.
- Productivity improves: 68% rate productivity as excellent where inclusion is strong, compared with 27% where it is weaker.
- Talent attraction: 85% of respondents say inclusive employers are better at attracting diverse candidates, compared with 46% where inclusion is not prioritised.
The report also warns against “diversity washing” – where organisations focus more on optics than on genuine cultural change. More than half (51%) of respondents believe their organisations put too much emphasis on compliance and box-ticking, while 45% say DEI initiatives focus more on external image than internal transformation.
TRUST, WELLBEING & DATA
Psychological safety, wellbeing and belonging emerged as defining features of inclusive workplaces. Seven in ten respondents (70%) said they feel safe to express their authentic selves, though leaders report this more frequently than employees.
Despite progress, workers highlighted ongoing needs for greater flexibility, fairer policies and more transparent career progression.
Robust data collection also remains a challenge. Only 2% of organisations collect all relevant diversity data, while 67% collect most of their chosen data, but only 39% capture all protected characteristics under the Equality Act 2010.
INCLUSION: A BUSINESS IMPERATIVE
As the UK prepares for new legislative shifts under the forthcoming Employee Rights Bill, Onvero’s research reinforces that inclusion is not a “nice-to-have” but a business imperative.
“Inclusion is not just a legal or moral imperative; it’s good for business. Our research shows that when organisations move beyond box-ticking and embed DEI into their culture, the benefits are clear – they witness higher staff retention, better wellbeing, and stronger performance. And the good news is, it appears that UK workplaces are recognising this too,” shared Sandi Wassmer, CEO of Onvero. “However, there is still work to be done to close the gap between intention and impact. Recognising and aligning the role of leadership, data, and psychological safety with the expectations of the workforce is key to helping organisations continue developing on their DEI journey, rather than remaining stagnant. Inclusion isn’t a box to tick or a quarterly pledge. It’s what you make it.”
Click here to download a copy of the report.
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