Building an Inclusive Work Culture in Startups: Strategies and Benefits

Explore how startups can build an inclusive work culture with strategies, challenges, and benefits. Learn from successful case studies and future trends in diversity and inclusion.

Introduction

Unlike larger corporations, culture can make or break a startup right from inception. Startups embody high levels of agility and require that their employees exercise high ownership of every task they are assigned. In the midst of all this, it can be easy to lose the essence of what type of startup you’re trying to build and the purpose of your mission as a startup.

Back in the 90s, work culture was seen as a blend of traditional hierarchical structures. Companies often operated under a command-and-control model, where management maintained strict oversight and employees were expected to adhere to established protocols. Work culture has changed dramatically over the years, particularly after 2020. Employees now seek out greater work-life balance in exchange for comfier office spaces, with more people now preferring tangible benefits. With that being said, let’s take a look at what it means to build an inclusive work culture as a startup and how to go about doing that.

Components of an Inclusive Work Culture

Fostering an inclusive work culture begins with robust corporate governance—a growing area of concern for startup leaders, especially in light of recent layoffs. In 2024 alone, startups let go of nearly 9,000 employees, prompting leaders to reevaluate and prioritize inclusivity within their policies.

However, inclusivity isn’t just about governance; it’s about embedding it deeply into the core of your company’s culture from day one.

become a key point of criticism from leaders for startups off late, given the recent number of layoffs that have taken place in the last year, with startups laying off as many as 9,000 employees in 2024. As a result startups are exercising greater caution to practice more inclusivity within their policies.

Besides corporate governance, it’s important to ensure that you bake inclusivity right into the heart of your work culture. “We are focused on building a high performing team where a culture of accountability prevails as we grow the business. Our company values that have been embedded into every employee-facing process right from recruitment, selection, onboarding to performance management and rewards and recognition,” said Priti Shetty, Chief People Officer, WeWork India.

According to Priti, 53% of the people managers employed at WeWork India have undergone some form of meaningful management or leadership development, which can help them make better decisions in the workplace.

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How WeWork India ensures an equitable workplace for all from Priti’s perspective

• Providing Inclusive and Supportive Workspaces: Beautiful, functional, and inclusive spaces—featuring wellness rooms, gyms, libraries, and mother’s rooms—create an environment where employees can bring their best selves to work.
• Focus on Community and Collaboration: A strong emphasis on community-building nurtures talent and drives innovation. At WeWork India, the belief that “we are playing a team sport” underscores the importance of collaboration and mutual respect.
• Embedding Core Values: Aligning company values with every employee-facing process—from recruitment to performance management—ensures consistency and fosters a culture of accountability. This alignment builds trust and engagement as the company grows.
• Equity and Performance-Driven Rewards: A compensation and benefits philosophy grounded in fairness, competitiveness, and linkage to company performance ensures that employees feel valued while driving high performance.

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Challenges and Barriers to Inclusivity in Startups

Since most startups often struggle most with resource management, oftentimes, they can squeeze existing resources thin—which could potentially lead to burnout. Besides this most founders also assume that their interpretation of work culture will be immediately adopted by their employees, which isn’t always the case. To reinforce culture, it's important to set your employees up for success. For companies today, the focus is on providing a greater inclusive space for their employees vis-a-vis more flexibility with work, or greater policies that enable physical and mental wellness.

Strategies for Building an Inclusive Culture

Building an inclusive culture starts with intentional leadership, clear values, and everyday actions that make people feel valued. It’s about creating spaces where diverse perspectives aren’t just welcomed but actively sought out. Open communication, bias awareness, and equitable opportunities all play a role. Real change happens when inclusion isn’t a checkbox but a mindset—embedded in hiring, decision-making, and company culture at every level.

Role of Leadership in Promoting Inclusivity

Leadership sets the tone for inclusivity—what leaders prioritize, model, and reinforce shapes the entire culture. It’s not just about policies; it’s about actions. Inclusive leaders listen, challenge biases, and create opportunities for diverse voices to be heard. They foster environments where everyone feels valued, supported, and empowered to contribute. Ultimately, real inclusivity starts at the top and cascades down through everyday decisions and behaviours.

Future Trends in Diversity and Inclusion for Startups

The future of diversity and inclusion in startups is shifting toward more intentional, data-driven, and systemic approaches. Companies are leveraging AI and analytics to reduce bias in hiring and performance evaluations. Remote and hybrid work models are expanding access to diverse talent pools, while investors are prioritizing DEI metrics in funding decisions. There’s also a stronger emphasis on intersectionality—ensuring inclusivity efforts address multiple dimensions of identity. Ultimately, the startups that embed diversity into their DNA from day one will have a competitive edge in innovation, talent retention, and long-term growth.

Conclusion

Building an inclusive culture isn’t a one-time initiative—it’s an ongoing commitment that starts with leadership and extends into every aspect of a startup. As the landscape of diversity and inclusion evolves, companies that prioritize equity, belonging, and diverse perspectives will be the ones that thrive. The future favors organizations that see inclusion not as a checkbox, but as a core driver of innovation, collaboration, and sustainable growth.

At WeWork Labs, we imbibe the core values of WeWork into everything we do. At our events for instance, we try to enforce a sense of belonging and continuous learning with each event we do. Our team has also embraced a culture of openness and adaptability, mirroring the dynamic energy of the WeWork ecosystem.

What is the work culture you are looking to build? Let us know! See you in the next WeWork Labs blog.