Culture of Equality Is Powerful Multiplier of Workplace Innovation, New Accenture Research Finds

A workplace culture of equality is a powerful multiplier of innovation and growth, according to new research from Accenture.

Published in the company’s “Getting to Equal 2019” report, the research found that in the U.S., employees’ innovation mindset — their willingness and ability to innovate — is nearly five times higher in companies with a robust culture of equality, where everyone can advance and thrive, than in least-equal companies. In the Philippines, this innovation mindset is over three times higher than in companies where equality factors are least common.

Accenture’s new research is based on a survey of more than 18,000 professionals in 27 countries, including the Philippines, a survey of more than 150 C-suite executives in eight countries and a model that combines employee survey results with published labor force data. It builds on Accenture’s 2018 research, which identified 40 workplace factors that contribute to a culture of equality, and grouped them into three actionable categories: Bold Leadership, Comprehensive Action and Empowering Environment.

“In this era of widespread disruption, businesses and organizations need to respond with continuous innovation to succeed,” said Ambe Tierro, Accenture’s Advanced Technology Centers in the Philippines Lead and Global AI Capability and Delivery Lead. “Our research makes it clear that tapping the power of workplace culture is essential to unleashing innovation across the company. As culture improves, our employees’ innovation mindset improves as well.”

According to the research, the vast majority of executives around the world agree that continuous innovation is essential: 95 percent see innovation as vital to competitiveness and business viability. A culture of equality is a powerful driver of an innovation mindset — more than other factors that differentiate organizations, such as industry, country or workforce demographics. Among those surveyed, people across all genders, sexual identities, ages and ethnicities show a stronger innovation mindset in more equal workplace cultures. In fact, for every ten percent that the culture factors improve by, the innovation mindset among Filipinos increases by 10.6%. Over 70% of the increase in innovation mindset comes from the empowerment factors.

This year’s research determined that an empowering environment is by far the most important of the three culture-of-equality categories in increasing an innovation mindset, which consists of six elements: purpose, autonomy, resources, inspiration, collaboration and experimentation. The more empowering the workplace environment, the higher the innovation mindset score. For instance, when asked what prevents them from innovating in their organization, 23% of Filipinos in most equal cultures say that nothing holds them back from innovating compared to 13% percent of Filipinos in least equal cultures. This shows us that Filipinos who are part of organizations with most equal cultures are least afraid to fail.

According to Accenture Getting to Equal 2019 research, 23% of Filipinos in most equal cultures say that nothing holds them back from innovating compared to 13% percent of Filipinos in least equal cultures.

However, organizations must close the important gap the research revealed between C-suite executives and employees. While 76 percent of executives globally said they empower employees to innovate, only 42 percent of employees agree. The same finding applies in the Philippines, with 59% of Filipinos surveyed agreeing to this statement. For example, executives appear to overestimate financial rewards, and underestimate purpose, as motivations for employees to innovate. In a more equal culture, the strongest factors underpinning an innovation mindset include providing relevant skills training, flexible working arrangements and respect for work life balance.

Diversity is a critical building block

While diversity factors alone (e.g., a diverse leadership team and a gender-balanced workforce) significantly impact innovation mindset, a culture of equality is the essential multiplier to help companies maximize innovation. The research found that, where cultures are more equal and more diverse, innovation mindset of Filipinos is almost twice as high as typical, and more than four times higher compared with less equal/diverse cultures.

High economic stakes

According to Accenture Getting to Equal 2019 research, globally, 76 percent of executives globally said they empower employees to innovate. The same finding applies to in the Philippines, with 59% of Filipinos surveyed agreeing to this statement.

The new research found that an innovation mindset is stronger in fast-growing economies and in countries with high labor-productivity growth. The opportunity is enormous: Accenture calculates that global gross domestic product would increase by up to US$8 trillion over 10 years if the innovation mindset in all countries were raised by 10 percent.

“Accelerating equality in the workplace has never been more critical for driving innovation,” said Marixi Carlos, inclusion and diversity lead, Accenture in the Philippines. “If people feel a sense of belonging and are valued by their employers for their unique contributions, perspectives and circumstances, they are more likely to advance and feel empowered to innovate. This is why, as a people company, Accenture is committed more than ever to promote equality, foster inclusion and embrace diversity in the workplace.”

Read the global report at Accenture.

Methodology

As part of its “Getting to Equal 2019” research, Accenture conducted an online survey of more than 18,000 professionals in 27 countries — including 1,400 in the United States — during October 2018, as well as a phone survey with more than 150 C-level executives in eight countries in November and December 2018.