Meritocracy: A Dangerous Myth or a Sustainable Model for the Future of Business?

In recent times, public figures and business leaders have amplified the discourse around meritocracy as a natural path to economic success. On the surface, the idea seems appealing: rewarding individuals based on their merit and performance, promoting efficiency.

However, a deeper examination of meritocracy reveals some critical flaws that we cannot ignore, especially when it comes to the impact on diversity and inclusion in the workplace. The notion that success is purely based on merit overlooks complex societal structures and factors beyond an individual’s control, such as access to education, networks, and resources.

The Myth of Meritocracy

The term meritocracy was coined by Michael Young in his satirical book "The Rise of the Meritocracy" (1958), where he critiques a society that values merit above all else. Ironically, Young’s work was a warning, not a celebration, highlighting how meritocracy can lead to a stratified society where existing privileges are reinforced, not dismantled. His critique is especially relevant in today's business environment, where meritocratic practices often marginalize underrepresented groups and stifle diversity.

This leads to the key point made by Pierre Bourdieu in his work "Distinction" (1979). Bourdieu argues that merit is often a reflection of inherited privilege—what he calls capital cultural. This means that individuals who come from wealthier or more educated backgrounds already possess advantages that help them navigate systems deemed meritocratic, making it less about individual talent and more about leveraging inherited resources. When merit is measured without considering these structural factors, diversity in the workplace suffers.

Short-Term Gains, Long-Term Losses

The promise of meritocracy can sometimes bring short-term business success, but it comes at a significant cost to the long-term sustainability of the organization. Robert Frank, in his book "Success and Luck" (2016), discusses how luck, rather than merit, often plays a crucial role in individual and organizational success. 

Moreover, Daniel Markovits, in "The Meritocracy Trap" (2019), explores how meritocracy has not only deepened social inequality but also created a hypercompetitive workforce. This relentless focus on performance often pushes aside more meaningful investments in employee well-being, engagement, and diversity, which are vital for fostering creativity and long-term business growth.

Diversity: A Path to Sustainable Success

Organizations that embrace diversity and inclusion, on the other hand, are better positioned for long-term success. Amartya Sen’s capability approach provides a valuable framework for rethinking meritocracy. In "Development as Freedom" (1999), Sen emphasizes the importance of recognizing the unequal opportunities and capacities individuals have. He argues that success should not be judged solely on outcomes but on the opportunities that people have had access to, challenging the one-size-fits-all view of merit.

Research has shown that diverse teams outperform homogeneous ones, bringing in a variety of perspectives that drive innovation. Jo Littler, in her book "Against Meritocracy" (2017), critiques how the idea of meritocracy has become a myth that justifies inequality and perpetuates a culture of intense competition. 

In reality, prioritizing diversity and inclusion helps create an environment where all employees—regardless of background—have the opportunity to thrive and contribute to collective success.

Rethinking Business Success

The truth is that meritocracy as it is commonly understood can only take businesses so far. It may bring short-term results but often leads to stagnation and exclusion in the long run. To build truly successful and innovative companies, we must move beyond the narrow confines of merit and embrace the value of diversity and inclusion as a central business strategy.

By acknowledging the limits of meritocracy and investing in creating equitable opportunities for all, we can foster environments where everyone has the chance to succeed—ultimately driving more sustainable and resilient business outcomes.