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Researchers of Cornell University and the University of Michigan empirically prove that inclusive leaders increase group functioning and reduce turnover rates in diverse groups. Therefore, due to the ever increasing diversity in businesses (e.g. based on differences of gender, nationality, ethnicity, sexual orientation, age etc.), instilling inclusive leadership practices becomes vital.
This study proposes that leaders can promote norms of equality, inclusion, and power sharing  in diverse groups that lead to better reciprocal exchanges. The authors of the study further propose that this results in improved group functioning and in a lower turnover rate.

In their rigorous study, the authors prove these propositions to be correct. This has far-reaching practical implications. First, turnover rates have often been associated with task structures and reward systems. This study shows that turnover rates are also dependent on leadership styles, especially in diverse groups. Therefore, in order to increase retention of skilled workers, according leadership roles need to be defined and nourished by businesses. This also means to create an organizational climate in which leaders can become inclusive and/or develop skills for creating inclusion in diverse groups. Second, the concept of inclusive leadership should be added to employee surveys, in order to identify groups in which leaders might not nourish inclusion.  Dependent on the findings of these surveys, leadership development or coaching might be a means through which inclusive group processes could be nourished. Third, diversity and the management of diversity should be introduced as important concepts into organizations at large, e.g. through policies, communication initiatives, and diversity training. This would enable organizational members to consider diversity and inclusion not only as moral norms, but also as tools for a more efficient management.

Lisa Nishii, & David Mayer (2009). Do inclusive leaders help to reduce turnover in diverse groups? The moderating role of leader-member exchange in the diversity to turnover relationship. Journal of Applied Psychology, 94, 1412-1426.

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