The Business Case for Inclusion: Why Inclusive Workplaces are Essential for SME Success
For many small and medium-sized businesses, "inclusive workplace" policies can feel like something reserved for big corporates with big budgets and full HR teams. But the truth is, an inclusive workplace isn’t just a social good, it’s a business advantage!
Diversity and inclusion has sadly taken on the role of a "nice to have" recently, something complicated and unnecessary, unless you're a huge corporation. The truth is though, that creating a culture where everyone feels valued, respected, and empowered to contribute is the opposite of unnecessary, and it's actually the opposite of something reserved for huge businesses only.
Fostering a strong and inclusive environment is actually one of the smartest, most cost-effective ways to boost performance, engagement, and retention; even (and especially) for small businesses. And as you know, those things drive profit too.
The best part? You don’t need an elaborate programme or endless policies to make it happen. You just need to understand why inclusion matters and how to start. To make things simple, we’ve got a free checklist for you to self-assess your diversity and inclusion and plan ahead.
Let’s start with engagement: the silent engine of your business
We talk a lot about employee engagement in HR but for SME leaders, it’s not always clear what that means in practice. Here’s the short version: engaged employees care about your business as much as you do. That's the advantage worth creating. They show up with energy, they’re more invested in outcomes, and they’re more likely to go the extra mile without being asked.
What does that have to do with diversity and inclusion? Businesses with a strong organisational culture record 72% higher engagement than their peers. That’s a game-changing difference and an inclusive workplace is at the heart of that strong workplace culture.
Why? Because inclusion builds trust. It signals that people can show up as themselves, that their voice matters, and that their wellbeing is part of the equation.
And that trust converts directly into performance: Engaged employees are 21% more productive than their disengaged counterparts. That’s not a marginal gain. That’s the equivalent of one extra day of productivity per week, per person.
Now imagine that multiplied across a team of five, 10, or 20. The benefits of diversity and inclusion in the workplace start to speak for themselves.
Better decisions, faster outcomes, fewer meetings
Ever felt like your team is stuck in a loop of indecision or endless meetings? You’re not alone. But the solution might be simpler than you think.
Inclusive teams make better decisions 87% of the time, and they make those decisions twice as fast with half as many meetings. That sounds almost too good to be true, right? The documented impact of inclusive teams is no joke, and it's a huge win for SMEs, where time is tight and decision-making agility can make or break growth.
An inclusive workplace helps here because it invites different perspectives. It challenges groupthink, exposes blind spots, and encourages critical thinking. When people feel safe to speak up, they bring better ideas to the table, and they do it faster.
If innovation is on your wish list this year (and let’s face it, for most businesses it is), gender diversity and inclusion in the workplace should be right up there with your other strategic priorities. They really go hand in hand.
want to see where your policies are at? Use our FREE checklist to self-assess where diversity and inclusion sits in your workplace. Get it below!
Inclusion isn’t just about today, it’s about who joins you tomorrow
If you’re hiring in 2025, here’s something you need to know: 31% of New Zealand workers say they wouldn’t accept a job if the company wasn’t making a proactive effort to improve its diversity and equity.
That’s nearly one in three potential hires who will walk away if your business isn’t visibly inclusive.
This stat is especially relevant for SMEs. When you’re up against bigger brands with more name recognition and deeper pockets, your values become your differentiator. An inclusive workplace, if lived and communicated well, becomes a magnet for great people.
But it’s not just about attracting talent. It’s also about keeping the people you already have. And inclusive workplaces are directly linked to better outcomes in this category as well. In fact, diverse and inclusive organisations are 19% more likely to retain employees.
As any business owner knows, retaining great people is far less expensive (and far less stressful) than replacing them. High turnover drains time, resources, and morale but inclusion can be a powerful antidote. When people feel they belong and experience respect in the workplace, they stay there. It really is that simple.
So, what does this look like for a small / medium business in NZ?
Here’s the good news: you don’t need a 50-page policy or a DEI team to build an inclusive workplace. You just need to be intentional and consistent.
Here are a few ways we see SMEs successfully embedding inclusion into the everyday:
Make it part of your onboarding: Let new hires know from day one that your workplace culture is built on respect in the workplace, psychological safety, and open communication.
Use inclusive language in job ads and policies: Remember that one third of people will turn away if your workplace doesn't communicate inclusion. Make sure that job ads and other external communications clearly showcase your commitment to it.
Offer flexible working arrangements: Flexibility supports employees with different needs, life stages, and responsibilities. That could be parents, caregivers, disabled employees, or those who come from different cultural backgrounds. Supporting cultural diversity in the workplace also means acknowledging different ways of working and living.
Talk about inclusion regularly: Not just during onboarding or at performance review time. Celebrate cultural events, create space for feedback, and be transparent about the work you’re doing to improve workplace culture.
Start with your leadership team: Inclusion starts at the top. When leaders model inclusive behaviour, from the way they communicate to how they run meetings, others follow.
Self-Assess: There’s no point doing the above without spotting your gaps first, identifying what needs work, and what instead should be left untouched. To make this exercise easy, you can use our free self-assessment checklist
Inclusion isn’t a value. It’s a business strategy.
When people feel safe, heard, and supported at work, they give more. They stay longer. They think smarter. They solve problems faster. They take pride in what they’re part of.
If that sounds like the kind of workplace you’re trying to build, let’s talk.
Let’s build something better, together.