Diversity in the workplace is essential for a productive workforce.

Diversity, equity, and inclusion (DEI) discussions have taken over workplace and political conversations. But what exactly is diversity in the workplace, and how does it relate to equity and inclusion? With that question in mind, let's discuss what diversity is, why it's essential, and how it manifests in the workplace. 

What is diversity in the workplace?

A diverse workforce equates to a workforce composed of workers with a variety of characteristics, including age, religion, gender, gender identity, sexual orientation, abilities, cultural background, and more. Workplace diversity is created when employers hire people from various backgrounds and walks of life. When organizations emphasize diversity, they are taking steps that help to foster equity in the workplace and inclusiveness for their populations. 

Why is diversity in the workplace important?

Diversity in the workplace is shown to offer several benefits. It supports equality, inclusiveness, employee morale, creativity, innovation, and overall well-being. 

Research shows that organizations that promote diversity and equality have higher levels of productivity and profitability. Additionally, organizations promoting diversity initiatives often recruit and retain top talent more easily.  

Here are just a few of the stats that support these statements and speak to the importance of diversity in the workplace:

  • Workforces that fall within the top quartile for having diverse executive teams are 25% more likely to have above-average profitability compared to those in the bottom fourth quartile

  • Businesses with over 30% female executives were more likely to perform better than businesses with fewer female executives, with a 48% spread between the most and least gender-diverse

  • Workforces that fall within the top quartile for ethnic and cultural diversity outperformed those in the fourth quartile by 36%

  • Seventy-six percent of job candidates and employees consider diversity a significant factor when evaluating job offers  

  • If diversity is lacking at a company, 32% of job seekers would not apply for a job there

  • About 61% of women and 50% of men indicate that focusing on DEI at work is a good thing

  • Companies that value diversity have 6.8% higher stock prices

  • Employees who believe their company values diversity have 64% points more engagement

  • Employees are 3.3Xs more likely to leave a company in a 12-month period if they believe the company doesn't value diversity

  • Employees are 84% engaged when they strongly believe their organization values diversity, with only 20% engaged who strongly believe their organization does not value diversity 

What is DEI in the workplace?

DEI in the workplace is when employers make an effort to incorporate diversity, equity, and inclusion into their policies, practices, and programs. The goal of DEI programs is to foster supportive, safe, and inclusive environments for all workers within an organization. DEI programs and initiatives can include:

  • Employee training programs

  • Supportive hiring practices

  • Employee resource groups (ERGs) and networks

  • Diversity councils

A few of the benefits of effective DEI programs are:

  • Attracting top talent seeking a diverse workforce

  • Creating a sense of belonging, which in turn improves productivity and retention

  • Connecting people with like-minded peers

  • Improving decision-making through diverse perspectives and ideas

  • Providing resources for learning and increasing a sense of worth and belonging

Examples of diversity in the workplace

Diversity is often narrowly defined to describe individuals of different races and ethnic backgrounds. However, race and ethnicity are only two aspects of the multifaceted composition that diversity involves. With that said, below are 11 examples of how diversity in the workplace comes together. 

Race

When we think of diversity, one of the first aspects we consider is race. Race is a social construct that identifies groups of people based on similar physical traits, like hair texture and skin color. About 76.5% of the U.S. workforce identifies as white, 12.8% as black, 6.9% as Asian, and as 18.8% Hispanic or Latino.

When employers aim to support all races equally at work, it provides several benefits, from offering broader perspectives and improved problem-solving to improving employee morale and fostering a positive company image. Employers need to address system racism and biases to optimize these benefits. 

Ethnicity

Though many use the terms race and ethnicity interchangeably, they are different. Where race is a social construct that one typically inherits based on physical traits, ethnicity is more than one's physical appearance. Ethnicity is linked to one's cultural background and experiences, like:

  • Cultural traditions and practices

  • Ancestry

  • Language

When companies bring different ethnic backgrounds together, they bring together different worldviews and perspectives. Likewise, when a candidate is placed in a position, they bring their unique ethnic perspectives to the position and team. This can lead to numerous benefits, including expanded problem-solving, improved critical thinking, more innovation, and increased creativity. 

Age or generational diversity

There are currently five generations that make up the workforce. A very small percentage from the Silent Generation is still working; the rest of the workforce is made up of Millenials (36%), Gen X (31%), Gen Z (18%), and Baby Boomers (15%).

Age diversity brings different backgrounds, perspectives, knowledge, and experience levels to the table. Younger generations can help older generations with new trends and technologies, and older generations can mentor younger generations regarding career advancements and how business works. 

Gender diversity

Gender diversity has to do with the male-female population within a workforce. The perspectives of both men and women are essential for a work environment. This is especially true for women – about 46.9% of the U.S. workforce – when creating products and services geared toward women.

People have discussed the need for gender equality for years, with people speaking up for females to be treated and paid equally to their male counterparts. Though we've made some strides through the years, research shows that U.S. women still only make 84 cents on the dollar compared to men, so there is still room for improvement.

Gender identity diversity

In recent years, the discussion of gender identity has become more commonplace. Gender identity is how one identifies internally and is defined differently from the gender assigned at birth, which is either male or female. An individual can identify as:

  • Cisgender: A person identifies as the gender they were assigned at birth or the traditional male or female gender.

  • Transgender: A person identifies with a gender other than what they were assigned at birth.

  • Gender-nonconforming: A person does not conform to societal norms related to gender.

  • Genderfluid: The person has no fixed gender. 

  • Agender: The individual does not relate to any particular gender.  

It's vital for workplaces to be inclusive of all gender identities to create a healthy and safe work environment for all employees. 

Sexual orientation

Sexual orientation differs from gender identity. Gender identity focuses on who someone is or how they see themselves internally, and sexual orientation is about someone's attraction – emotionally, physically, and romantically – to others. 

Sexual orientation continues to diversify across a broad spectrum. Generally, when we discuss sexual orientation, we refer to those who are either heterosexual or fall under the LGBTQIA+ community, including:

  • Bisexual

  • Gay

  • Lesbian

  • Intersex

  • Questioning

  • Queer

  • Transgender

  • Asexual

These terms will likely continue to change, so it's crucial for employers to remain up-to-date on what they are and mean to support members of the different communities. It's also necessary to create an inclusive environment, regardless of sexual orientation, so all are comfortable bringing their ideas and thoughts to the table. 

Disability diversity

According to the World Health Organization (WHO), an estimated 1.3 billion people experience a significant disability globally, and almost everyone will experience a disability at some point in their lives. Disabilities not only include visible or physical disabilities, like hearing, vision, and mobility impairments, but they also include invisible or hidden disabilities, like certain mental health conditions, diabetes, and chronic pain.

Employers supporting people with differing abilities is vital to fostering an inclusive work environment. Though the Americans with Disabilities Act (ADA) protects U.S. workers and requires employers to take steps to provide reasonable accommodation for those with disabilities, which helps to level the playing field between those with disabilities and their peers, this doesn't necessarily encourage inclusiveness. It's up to employers to ensure their hiring and employment practices support and promote inclusion for those with differing abilities.

Neurodiversity

Neurodiversity covers the wide variation of how people think and behave and manifests differently in people. Types of neurodiversity include trauma-related disorders, like PTSD, Autism Spectrum Disorder (ASD), Dyslexia, and ADHD. In most instances, these types of neurodiverse disorders also fall under the category of disability. 

About 15 to 20% of the population is estimated to be a neurominority, making up a significant portion of our world. Many employers have taken and continue to take steps to encourage and support neurodiversity in the workplace. For example, some take part in community events or host their own events that support neurodiversity. 

Religious diversity

In today's climate, religion is often a taboo topic at work. As a result, it's not commonly considered or given emphasis. However, ignoring or attempting to shut down an employee's religious aspect can stifle their productivity and potential. On the flip side, productivity, potential, and collaboration can increase when employers find a way to allow employees to practice rituals and beliefs that are important to them during work without fear of repercussions.  

Supporting religious diversity could be as simple as offering a room for individuals to meditate or practice their typical and regular religious rituals during the day. Also, due to perceived sensitivity around religion at work, when allowed, it's vital that employers ensure equality and that employees respect each other. 

Socioeconomic diversity

Another example of workplace diversity is employing candidates from varying socioeconomic backgrounds, which is determined by many factors, like:

  • Occupation

  • Income

  • Education

  • Food and Housing

  • Family

  • Location

Those from privileged and less privileged communities or families can bring their different perspectives together to address workplace challenges. For example, they can provide insights into how to meet the needs of clients or consumers from similar socioeconomic backgrounds. 

Familial status diversity

Companies are composed of employees from a range of marital and familial statuses. Some are married, some aren't. Some have children, some don't. Some are single parents, some are co-parenting. 

Employers can foster familial inclusivity by implementing policies that support all of these populations. For example, time off and scheduling policies can factor in flex time for those with children. 

It's also critical that employers make sure discrimination based on marital or parental status doesn't occur. An example would be an employee being looked over for a promotion solely based on whether they're married or have children. 

Diversity in the workplace matters

The research heavily supports the idea that workplace diversity and inclusion are essential for a healthy and profitable company and staff. As an employer, understand diversity and implement policies to support it for improved recruitment, retention, morale, and profitability. As an employee, seek employers where you'll feel a sense of belonging thanks to their DEI initiatives. 

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