Companies that embed inclusion into their culture and management practices significantly outperform less-inclusive peers on financial and organisational metrics, according to new research from McKinsey & Company released this week. The study, which analysed over 1,000 companies across 12 countries, found that organisations in the top quartile for gender diversity were 21% more likely to report above-average profitability, while those in the top quartile for ethnic and cultural diversity were 33% more likely to outperform on profitability.

For HR leaders in Singapore and the broader Asia Pacific region, the findings reinforce the business case for inclusion — moving the conversation from values to value creation.

What inclusion looks like in practice

The research distinguished carefully between diversity (the demographic composition of a workforce) and inclusion (the experience of belonging, voice and opportunity within that workforce). Companies that scored high on inclusion metrics shared several characteristics:

• Leaders who publicly modelled inclusive behaviours and were held accountable for inclusion outcomes
• Structured, bias-mitigated hiring and promotion processes
• Psychological safety — employees felt able to voice dissenting views without fear of retaliation
• Active sponsorship of underrepresented talent into leadership pipelines

Singapore’s inclusion landscape

Singapore organisations surveyed in a companion study showed mixed results. While the city-state’s workforce is inherently diverse by nationality and ethnicity, structural inclusion — the extent to which all groups have equitable access to opportunity and voice — lagged behind the headline diversity numbers.

Women remain significantly underrepresented in senior leadership across most industries, and employees from minority ethnic backgrounds reported lower scores on belonging and psychological safety metrics. The survey also found that employees with disabilities and those aged 50 and above reported the lowest inclusion scores across all dimensions.

The HR agenda

For HR professionals, the research offers both a mandate and a roadmap. “The data is now unambiguous,” said one CHRO. “Inclusion is not a nicety — it’s a competitive capability. The question is no longer whether to invest in it, but how to do so with rigour and accountability.”

Recommended actions include conducting an inclusion audit to benchmark current employee experience across demographic groups, reviewing talent processes for structural bias, and embedding inclusion metrics in leadership performance frameworks.