Diversity and inclusion are no longer just virtue signaling buzz words; they now have proven mental health benefits for employees, as well as huge profit and productivity benefits for businesses that prioritize them. For example, Harvard Business Review found that while the S&P saw a sharp 35% decline in performance between 2007 and 2009, inclusive companies watched their share prices jump by 14% (source).

The problem is that creating a team of diverse individuals who are treated fairly is not as easy as it sounds. Many businesses face challenges in promoting diversity and inclusion due to many factors including biases, lack of awareness, and limited communication, among others (source).

So let's tip the scales a bit towards diversity, equity, and inclusion. Let's talk about what diversity means, how it benefits everybody, and what businesses can do to promote it.

What is diversity and inclusion in the workplace?

Diversity and inclusion simply describe a situation where you have employees and team members of different races, backgrounds, and orientations who feel welcome, respected, and catered to in the workplace.

We should mention that while diversity and inclusion have different meanings, they are two sides of the same coin.

A diverse workplace means that you have team members who bring new backgrounds and perspectives to the workplace. They could be different based on race, ethnicity, gender, age, sexual orientation, religion, and physical ability.

Inclusion, on the other hand, involves creating an inclusive environment where everyone feels respected, and valued, and has equal access to opportunities. An inclusive workplace embraces everyone and enables them to perform at the highest level, providing a sense of belonging.

You can also think about it like this: Diversity is about who is in the room, while inclusion is about ensuring that everyone in the room feels valued, heard, and able to contribute their unique perspectives.

A prime example of diversity and inclusion

One real-world example of a diverse and inclusive workplace is Salesforce. The company believes that diversity fuels innovation and success and has implemented various programs and initiatives to foster inclusion. Some of these include:

Extensive diversity training for employees.

Resources for professional growth and development.

Salesforce’s commitment to diversity and inclusion has not only earned them recognition but has also positively impacted the business’ growth.

We’ve seen studies that sales organizations with leading DEI practices report a 24% increase in customer satisfaction scores, 7% more than non-leading companies. (Quantilope). Figures from Salesforce seem to back this up. The company has reported that its employees who feel heard are more than 5 times more likely to feel empowered and perform their best work.

As we've seen, a diverse and inclusive workforce can help boost productivity and overall customer satisfaction, but that’s just the tip of the iceberg. Businesses that promote diversity and inclusion can also expect...

Having diverse individuals on teams often means a wider range of experiences and perspectives among employees. And when you have people who see differently on a team, they bring their own unique insights to problem-solving.

Providing the business with a competitive edge.

Encouraging different ideas and perspectives from diverse employees can lead to breakthrough innovations and the development of new products or services.

Diverse teams often have a greater ability to tackle complex problems. That’s because their unique perspectives allow for a comprehensive analysis of issues, leading to more effective problem-solving. Findings from LinkedIn support this, as diverse teams have been found to make better decisions 87% of the time.

By promoting diverse teams and inclusive decision-making processes, businesses can tap into a reservoir of solutions that may have otherwise been overlooked. The benefit of this new  perspective includes critical thinking and the ability to consider alternative viewpoints.

3. Greater adaptation to changing markets

Today's business landscape is constantly evolving, and organizations must be adaptable to remain competitive. Diverse workforces have a leg up in this regard because their employees already bring a variety of skills, experiences, and cultural insights.

All of these can enable organizations to seize new opportunities, tailor products or services, and expand their market reach.

4. Improved employee engagement and morale

When employees feel valued and included, their engagement and morale will increase significantly. A diverse and inclusive work environment will foster a sense of belonging and promote equal opportunities for all employees to contribute and succeed.

Employees who feel supported, respected, and empowered are more likely to be motivated and loyal. According to Inc, that means:

All of these are great for the business, but also for employee outcomes.

Diversity in the workplace can help companies attract talent by boosting their employer brand and positioning them as a more desirable place to work. For example, 76% of employees and job seekers say diversity is important when considering new offers. 80% of people also said they prefer to work with a company that values DEI issues. (source).

Diverse workplaces also tend to have a positive office culture where employees collaborate productively and build strong relationships with one another, all of which are attractive factors to potential candidates.

6. Increased access to a diverse customer base

A diverse workforce can help businesses better connect with diverse customer bases, which means a potentially greater overall market share and, most importantly, more revenue.

When employees reflect cultural diversity and echo the demographics and backgrounds of the customers they serve, they can build rapport and trust more easily. This understanding leads to better customer experiences, increased customer loyalty, and expanded market opportunities.

7. Reduced groupthink and improved decision-making processes

Groupthink is a phenomenon where everybody agrees on a point because everyone else agrees, instead of thinking critically. It's like a loop that feeds on itself and tends to happen in hierarchy based organizations where people don't necessarily want to rock the boat.

Groupthink can be damaging for organizations looking to grow because the decision-makers are now less likely to critically assess a situation and instead, go with the flow.

Thankfully, diversity in the workplace can be a great way to counter this because diversity brings together people who have fundamentally different perspectives and viewpoints.

When different groups are involved, decision-making processes become more robust, thorough, and unbiased. This diversity of thought will often lead to a deeper risk and opportunity assessment and result in higher-quality decisions.

Several studies have also shown how diversity and inclusion contribute to improved financial performance and return on investment. For example, LinkedIn found that diverse companies earn two and a half times higher cash flow per employee.

Companies that prioritize diversity and inclusion often outperform their competitors, attract top talent, and experience higher levels of innovation. By leveraging the benefits of a diverse workforce, businesses can drive growth, increase profitability, and create a sustainable competitive advantage.

When discussing workplace diversity, we immediately think of gender and race. But diversity is so much more than racial and gender differences. Here are a few more instances of diversity to consider when trying to build a team with different perspectives.

Gender diversity talks about equal representation and inclusion of people across the gender spectrum. It aims to create a workplace where everyone feels comfortable expressing their gender identity, whether they are binary, non-binary, transgender, or however they identify.

Ethnic diversity, also known as racial diversity, refers to the inclusion of people from various racial backgrounds in the workplace. This includes:

Organizations that embrace racial and ethnic diversity create a rich environment, bringing together different cultures, traditions, and perspectives.

Sexual orientation is an important part of a person’s identity and should be considered when aiming to create truly diverse teams. Traditionally, people are grouped by heterosexual, bisexual, homosexual, or asexual.

But those who are transgender, non-binary or gender fluid also fall under this category and are a growing sector of the workforce.

Disability diversity involves providing opportunities for every person to work, grow, and contribute to the workplace, regardless of their physical or mental handicaps. Some disabilities that workplaces could create inclusion for include:

Remember Salesforce and the unique example they are setting with their inclusive and diverse team? Well, according to Salesforce’s Chief Equity Officer, Lori Castillo, the company leans on 5 principles as they chase its goal to become “the most inclusive workplace possible”.(Source)

We've summed those up here, and also added a few bonus pointers too...

Accelerating representation involves proactively seeking out and hiring employees with different backgrounds who are qualified to do the job. A move like this would ensure that all voices are heard and valued, and quickly help the organization achieve its diversity and inclusion goal.

Organizations can accelerate representation by implementing targeted recruitment strategies like

Partnering with diverse organizations and universities

Attending career fairs focused on underrepresented groups

Leveraging technology to reduce bias in the hiring process

Castillo also believes that creating an inclusive work environment involves prioritizing how employees perceive the workplace. They should feel supported, respected, and valued. There are several ways to do this, including:

Providing opportunities for professional development

Career advancement for employees from diverse backgrounds

This can lead to all the positive workplace contributions we mentioned, like better problem-solving and access to a diverse customer base.

There are several ways organizations can design systems that support diversity and inclusion, including conducting diversity and inclusion assessments, implementing unconscious bias training for employees and leaders, and establishing clear policies and procedures to promote diversity and equity.

It’s also a good idea to analyze existing systems and processes to identify areas where inclusivity can be improved. By tailoring new and existing systems towards diversity, organizations can create a safe space for employees.

Lori Castillo also believes that a truly diverse workplace can’t be defined by a country-centric approach, and instead, businesses must focus on investing in a global team. (source)

Diversity is more than a modern employment buzzword. Being inclusive and diverse is increasingly important for all businesses to thrive and succeed.

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