Meritocracy, the concept of reward based on individual merit, has been used in corporate discourse. However, the traditional view of meritocracy ignores the inequalities that prevent everyone from having the same opportunities. It is in this context that inclusive meritocracy - or even, as recent studies point out, diversified meritocracy - emerges, concepts that seek to balance the recognition of merit with the promotion of diversity, EquityInclusion and Belonging (DEIP).
What is inclusive meritocracy?
Inclusive meritocracy recognizes that success is not only the result of individual effort, but also of the opportunities and context in which each person is placed. It seeks to create a fair and equitable work environment, where everyone has the chance to develop their potential and be recognized for their contributions, regardless of their origin, gender, race, sexual orientation, outlook and other characteristics.
The term inclusive meritocracy, although not yet widely consolidated as a technical concept, has been used by experts and organizations to describe practices that reconcile excellence and equity.
Connection with the concept of diversified meritocracy
Another concept that is gaining momentum is that of diversified meritocracy, worked on by consultancies such as McKinsey. It reinforces the importance of intentionality in building more equitable environments and actively generating opportunities. By integrating diversity and meritocracy, companies align their values with practice, promoting sustainable and inclusive results. In this context, McKinsey itself has publicly demonstrated that it will continue to invest in diversity and inclusion policies as a strategy for valuing merit in a fairer and broader way. This decision is in line with the idea of a diversified meritocracy, as highlighted in the article "Against Trump, McKinsey says it will continue with diversity and inclusion policies" (Bloomberg Línea, 2023).
Background and origin
The term "meritocracy" was coined by sociologist Michael Young in his book "The Rise of the Meritocracy" (1958). Young, however, did not defend meritocracy as an ideal, but rather as a critique of a system that, in his view, perpetuated social inequalities. Inclusive meritocracy emerges as a response to this critique, in a bid to consolidate dynamics based on the recognition and identification of all people.
Practical applications in companies
Implementing inclusive meritocracy in companies requires a change in culture, a review of concepts and the adoption of actions that promote DEIP. Some practical strategies include:
- Recruitment and selection: Adopt affirmative selection processes that value diversity and look for candidates with different profiles and experiences.
- Development and promotion: Offering growth opportunities to all employees, respecting their multiple characteristics.
- Performance evaluation: Use fair and transparent criteria that take into account the context, skills and conditions of each employee.
- Inclusive culture: Creating an environment where everyone feels valued, respected and safe to express themselves, promoting belonging e psychological safety.
Teaching examples
Imagine a company that only values sales performance, without considering the different realities of sales people. A salesperson who lives in a region with a high rate of insecurity and poor infrastructure will find it more difficult to achieve their goals than someone with more favorable conditions. Inclusive meritocracy recognizes these differences and offers support so that the whole team has the chance to develop their careers in a sustainable and healthy way.
Another example is a company that offers development opportunities only to employees who perform well on traditional curricula - disregarding unequal contexts and access to training or networks. Inclusive meritocracy seeks to offer opportunities for all people to progress, with access to training and multiple development tools - including skills such as confidence, positioning and leadership.
The misunderstanding between merit and diversity
The idea that diversity and meritocracy are mutually exclusive concepts is still common, but wrong. Inclusive meritocracy is based on the principle that people don't start from the same starting point, which is why it is necessary to recognize inequalities in order to promote equity.
The study Diversity Matters More and More (Diversity Matters) - the fourth report in a McKinsey series investigating the importance of diversity in companies - reinforces this view.
It shows that companies with diverse and inclusive teams have better financial performance, greater capacity for innovation and greater satisfaction among their employees.
- Companies with greater ethnic and gender diversity in their leadership are, on average, 9% more likely to outperform their peers.
- On the other hand, companies at the lower end of both diversities are 66% less likely to outperform - a figure that was 27% in 2020.
- The latest analysis also shows that companies with more diversity on the Board of Directors are more likely to have superior financial performance.
- For the first time, the correlation between board diversity and financial performance is statistically significant for both gender diversity (27%) and ethnic diversity (13%).
- These findings confirm the hypothesis that the benefits of diversity extend throughout the top corporate leadership, all the way up to the Board of Directors, where DEIP policy decisions are often made for the entire organization.
This data confirms that diversity does not diminish merit - it enhances it.
Conclusion
Inclusive meritocracy is an essential concept for companies that want to align performance with responsibility. By recognizing the value of diversity and promoting inclusion, it is possible to build environments in which all people are able to achieve their best - personally and professionally. This is the path to a culture of belonging, innovation and sustainable results.
Do you want to understand how to value merit with fairness and concrete data? Contact PlurieBR and discover how our solutions support your company in building a fairer and more inclusive culture in practice