Why Is Diversity Important In The Workplace? A Detailed Guide

Written By Aleena

Why is diversity important in the workplace? The answer is simple, to foster the culture of any work environment. But let’s get an in-depth answer below.

Our society has becomes increasingly global.

Thus, it’s more important than ever for businesses to have a workforce that represents the diversity of their customers.

Why Is Diversity Important In The Workplace?

By promoting diversity in the workplace, companies can become more innovative.

They’ll be better able to compete in international markets. And serve an increasingly diverse customer base.

There are numerous benefits of having a diverse workforce:

1. Improved Financial Performance:

A study by McKinsey & Company found that:

“Companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians.”

Why Is Diversity Important In The Workplace_

Workplaces with more racial and ethnic diversity see a boost in financial performance.

IBM found that:

Their racially diverse teams outperformed their non-diverse groups by more than 30%.

Teams with a diversity of functional skills generate more revenue than homogeneous teams.

Therefore, companies get enhanced financial revenues when they have a more diverse workforce.

This boost in performance is due to several factors, as discussed below.

2. Increased Creativity/ Innovation:

In diversity, people with different backgrounds and perspectives work together.

Thus, they bring a more comprehensive range of ideas and experiences. This can lead to more creativity and innovation.

For example:

Google is known for its innovative workplace culture. Firstly, part of this is due to the company’s commitment to diversity.

Secondly, they have employees from all over the world with different backgrounds and perspectives.

Creativity is the product of a cognitive process. It pulls together information and experiences from different places to generate new ideas.

To sum up, diversity is the perfect environment for this to happen.

Innovation happens when teams implement new ideas. And a diverse workforce is more likely to come up with creative solutions.

And can turn them into innovative products or services.

3. Improved Employee Engagement:

Diverse workplaces have employees engaged and committed to their jobs.

Likewise, employees who feel like they can be themselves at work are more satisfied with their jobs.

Organizations with a higher proportion of engaged employees had:

– Firstly, lower staff turnover rates

– Secondly less absenteeism and

– Thirdly less need for replacements.

To conclude, companies with more engaged employees have less turnover intentions.

Moreover, they can save on the costs associated with recruiting and training new employees.

Diverse workplaces are also more likely to attract and retain the best talent.

4. Better Customer Service:

If your workforce is diverse, it will be better able to understand and serve a diverse customer base.

This can lead to improved customer service. Therefore, employees will be able to relate to and understand the needs of awide range of customers.

Companies with a diverse workforce were more likely to:

– Firstly have increased market share

– Secondly enter new markets

– Thirdly improve their customer service

Therefore, companies with a more diverse workforce can better serve their customers.

And this can lead to increased market share and improved financial performance.

5. Enhanced Reputation:

Companies with a reputation for being diverse are more attractive to prospective:

– Employees

– Customers, and

– Partners.


Companies with a reputation for being diverse are more likely to:

– Firstly attract top talent

– Secondly win contracts

– Thirdly partner with other companies

A study by Glassdoor found that:

67% of job seekers would not apply to a company with a bad reputation for diversity.”

This means a company’s reputation boosts when it has a good diversity policy.

6. Improved Decision Making And Team Performance:

Diverse teams are better able to make decisions than homogeneous teams. This improves team performance and organizational effectiveness.

Diverse teams are better able to solve complex problems because they are more likely to:

– Question assumptions

– Consider a broader range of options

– Find new solutions to problems

Diverse teams have a more comprehensive range of perspectives and experiences.

Companies can increase their decision-making accuracy when they have a more diverse team.

7. Declining Unconscious Bias:

As people become more aware of the importance of workplace diversity, they are less likely to harbor unconscious biases.

Unconscious bias is when people make judgments about others. The basis of this judgment is their own experiences and beliefs.

This can lead to discrimination in the workplace.

However, people have now become more aware of the importance of diversity. Thus, they are less likely to discriminate against others unconsciously.

Strategies To Promote Diversity In the Workplace

Now we know the importance of diversity in the workplace. Let’s look at some strategies to induce diversity.

1. Promote Inclusive Leadership:

The first step is to promote inclusive leadershipLeaders play a pivotal role in creating a diverse and inclusive workplace.

Leaders need to be aware of their own biases. They should work to ensure that their workplace is free of discrimination.

Moreover, they should also work to create an environment where everyone feels respected.

2. Encourage Employee Resource Groups:

Employee resource groups are a great way to promote diversity in the workplace.

These groups provide support and networking opportunities for employees from underrepresented groups.

Some underrepresented groups are:

– Women

– People of color

– LGBTQIA+ people, and

– People with disabilities.

Therefore, recruiting employees from these groups and providing them with career development opportunities.

3. Implement Unconscious Bias Training:

One way to reduce unconscious bias in the workplace is to implement unconscious bias training.

This type of training can help employees become aware of their personal biases.


In addition, it can help employees learn how to avoid making judgments about others.

Such pieces of training include:

– Micro inequities training

(Note: Micro inequities are small, everyday instances of discrimination.)

– Implicit bias training

– Unconscious bias e-learning modules, and

– Unconscious bias webinars

4. Evaluate Your Recruitment And Selection Processes:

It’s essential to test your recruitment and selection processes. Ensure they are fair and unbiased.

In addition, this includes ensuring that your job descriptions are free of gender bias.

It also includes using diverse panels to interview candidates.

Moreover, you can use blind resume reviews to reduce the chances of biased hiring decisions.

5. Offer Flexible Work Arrangements:

Promote diversity in the workplace through offering flexible work arrangements.

Flexible work arrangements can include:

– Telecommuting (work from home)

– Part-time work

– Flexible hours, etc.

This type of arrangement can be beneficial for employees who have caring responsibilities.

Moreover, it allows employees to have greater control over their work-life balance.

For instance:

Keeptruckin has an all work-from-home task force from different countries. They have employees in customer support, engineering, and product design.

Likewise, they provide much flexibility to their employees. And thus, their profits reached 200% this year.

6. Foster A Culture Of Inclusion:

Fostering a culture of inclusion is essential for promoting diversity in the workplace.

This type of culture values the contributions of all employees. To sum up, inclusion is when everyone feels like they belong.

Moreover, it’s essential to create an environment where everyone feels comfortable and respected.

This can be done by:

– Firstly encouraging employees to share their ideas and perspectives

– Secondly providing training on inclusion

– Thirdly encouraging employees to participate in social activities

– Fourthly recognize and celebrate the diversity of your workforce.

7. Rethink Your Employee Benefits:

Employee benefits are another area where you can promote diversity in the workplace.

Similarly, some companies offer benefits to specific groups of employees.


For instances:

Some companies offer child care benefits or eldercare benefits. Likewise, other companies offer transgender-inclusive health insurance plans.

Therefore, rethinking your employee benefits is a great way to value diversity in the workplace.

8. Celebrate Diversity In The Workplace:

Celebrating diversity in the workplace fosters a culture of inclusion and diversity.

Companies can do this by:

– Firstly hosting events that celebrate different cultures

– Secondly recognizing the achievements of employees from underrepresented groups

– Thirdly displaying posters and artwork that celebrates diversity

– Fourthly celebrating holidays that are important to different cultures.

Therefore, celebrating diversity in the workplace shows you value employee’s contributions.

9. Tolerate No Forms Of Discrimination:

It’s important to tolerate no forms of discrimination in the workplace. This includes:

– Racial discrimination

– Gender discrimination

– Sexual orientation discrimination, etc.

Do not encourage any form of discrimination. Moreover, if you see or hear about any form of discrimination, it’s essential to take action.

You can do this by:

– Providing training on diversity and inclusion

– Creating policies that prohibit discrimination

– Investigating any reports of discrimination

– Disciplining or terminating employees who engage in discrimination.

10. Gather Feedback From Employees:

One of the best ways to promote diversity in the workplace is to gather feedback from employees.

You can do this through:

– Surveys

– Focus groups

– One-on-one interviews, etc.

This feedback can help you identify areas where you need to improve. Likewise, it can also help you assess the effectiveness of your diversity initiatives.

Therefore, when you gather feedback from employees, you value their input.

In addition, you can create a more diverse and inclusive workplace by following these strategies.

This will make your workplace more productive and successful. Moreover, it’ll help you attract and retain the best employees.

So, what are you waiting for? Start promoting diversity in your workplace today!


In conclusion, diversity is vital in the workplace because it can lead to:

– Improved decision making

– Increased team performance

– Declining unconscious bias, etc.

Companies can promote diversity by:

– Implementing inclusive leadership

– Encouraging employee resource groups

– Increasing the representation of underrepresented groups, etc.


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