Culture of equality crucial for innovation

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- Forecast 2028: Empowering employees to innovate could raise global GDP by US$8 trillion

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

Published in the company’s Getting to Equal 2019 report and released to commemorate International Women's Day (March 8), the research found that in Singapore, employees’ innovation mindset—their willingness and ability to innovate—is nearly nine times higher in companies with a robust culture of equality than in least-equal companies.

“Create an environment where employees feel comfortable with the exchange of ideas and collaboration. This encourages creativity, invention and a forward-looking vision,” said
Grace Yip, head of HR, Accenture ASEAN.

According to the research, 87% of employees in Singapore have expressed interest in being innovative. A culture of equality is a more powerful driver of an innovation mindset than factors 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.

Accenture’s new research is based on a survey of more than 18,000 professionals in 27 countries, including 700 in Singapore; a survey of more than 150 C-suite executives in eight countries, and a model that combines employee survey results with published labour 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.

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. Culture factors were also seen to have a stronger influence on innovation mindset than education; where having a bachelor’s, or an advanced degree showed no impact on innovation mindset unless associated with science, technology, engineering and mathematics (STEM).

The more empowering the workplace environment, the higher the innovation mindset score. For instance, Singapore employees in more robust cultures of equality say that nothing holds them back from innovating (37% in most equal cultures vs. 1% in least equal cultures).

While 76% of executives globally said they empower employees to innovate, only 37% of employees agree. This shows us that leaders mistakenly believe that some circumstances encourage innovation more than they actually do.

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 access to training to keep employee skills relevant, freedom to be creative and innovative and company training in flexible times and formats.

“Singapore is a highly competitive market in the global environment. Businesses across all industries are pushing for innovation to deepen their capabilities, increase productivity and internationalise their offerings. Our research shows that if you have a diverse workplace that encourages autonomy, collaboration and experimentation, you have a workforce that supports innovation.” said Teo Lay Lim, Senior MD, ASEAN, and Country MD, Singapore, Accenture.

While diversity factors alone (e.g., a diverse leadership team and a gender-balanced workforce) significantly impact innovation mindset, a culture of equality is an essential multiplier to help companies maximise innovation. The research found that innovation mindset of Singapore employees is fifteen times higher when diversity is combined with a culture of equality, compared to companies where these are least common.

The global research also found that an innovation mindset is stronger in fast-growing economies and in countries with high labour-productivity growth. Most employees want to be innovative and this 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%.

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Read the global report at accenture.com.

*As part of its Getting to Equal 2019 research, Accenture conducted an online survey of more than 18,000 professionals in 27 countries including 700 in Singapore during October 2018, as well as a phone survey with more than 150 C-level executives in eight countries (the US, the UK, France, Germany, Ireland, Greater China, India, and Japan) in November and December 2018.