The Importance of Diversity in the Workplace

Senior Manager, People Science at inclusio
March 6, 2023 - 3 min read

Workplace diversity is as important as ever, with many companies understanding the need to increase their efforts in this area in 2023. 

Diversity in the workplace relates to an organisation’s intentional actions to employ a wide range of individuals with different characteristics and perspectives in order to ultimately deliver better outcomes – not just for the organisation, but for society, and the individuals within the organisation itself.  

By intentionally embedding diversity in the workplace and stressing its importance through inclusive leadership and best practice, your organisation can become a more diverse and inclusive workplace for people of varying characteristics, such as age, gender and gender identity, race, ethnicity, religion, sexual orientation, ability, life experience etc. 


Why is Diversity in the Workplace Important? 

Ultimately, workplace diversity leads to better outcomes for the following 5 reasons: 


1. Diverse perspectives 

Workplace diversity offers a variety of different perspectives. Having a greater depth of diversity due to the unique perspectives of each individual, offers the organisation a variety of skillsets, experiences, and perspectives.  

 As a result, this is hugely beneficial as it allows the organisation to have a better understanding of its customers’ needs. Hiring a diverse workforce is reflective of the society around us, allowing the organisation to better understand the needs of its clients, customers, partners, and suppliers.  

At inclusio, we give organisations insights into their diversity profile so that they can better understand how diverse they are, as well as highlight their diversity gaps so that the organisation can make improvements to garner more diverse perspectives. 


2. Higher innovation and Creativity 

Success stems from innovation and creativity, no matter what business you are in. Organisations must be thought leaders and at the forefront of innovation if they are to succeed.  

To this point, diversity in the workplace leads to increased creativity and innovation due to the higher volume of diverse thoughts, ideas, and suggestions available.  According to Josh Bersin's research, inclusive companies are1.7 times more likely to be innovation leaders in their market.  

Key to sharing ideas however is the need for employees to feel psychologically safe within the workplace to raise their voice and share their ideas without retribution.  

At inclusio we measure the psychological safety within an organisation to ensure that the correct environment is there in the first place for individuals to provide diversity of thought and share their ideas. 


3. Talent attraction, engagement, and retention 

The war on talent to find the ideal candidate that will take your organisation to the next level has been well documented; and equally, the correlation between having a diverse workforce and attracting great talent. 

Diversity is the most important factor for today’s young job searchers when evaluating potential new employers. More than three out of four job seekers and employees (76%) said that a diverse staff is a key consideration when assessing businesses and employment offers, according to Glassdoor research; while 47% actively look for diversity when sizing up potential employers. (Deloitte) 

By not emphasizing the importance of diversity, organisations are at risk of losing out potential talent. Not only that, but a lack of diversity leads to a lack of engagement, and detrimentally can lead to great talent walking out the door, ultimately costing the organisation in both monetary terms as well as in intellectual capital.  


4. Increased profits 

Companies with greater workplace diversity achieve greater profits. McKinsey & Co, a global management consulting firm, conducted research that included 180 companies in France, Germany, the United Kingdom, and the United States. They found out that companies with more diverse top teams were also top financial performers. This is due to better decision making as a result of different perspectives coming together, providing more solutions, and more informed decisions and improved processes.  

Companies with a diverse workforce also make better decisions faster, which gives them a serious advantage over their competitors. As a result, companies with diversity in the workplace achieve better business results and reap more profit.  


5. Employee Value Proposition (EVP) and company reputation 

Having a sense of purpose in work is of increasing importance to potential employees evaluating your organisation and assessing your company’s brand and reputation. 

By intentionally creating a diverse workforce and creating a socially responsible organisation that takes diversity and inclusion in the workplace seriously, it opens the door to new markets, customers, business partners, and employees.  

At inclusio, we help organisations tell their diversity story, which leads to a better understanding and awareness of the importance of diversity in the workplace, and better outcomes.  

If you are looking to better understand the importance of diversity within your workplace or wish to get insights into the diversity profile of your organisation to help you better understand your diversity gaps, make data-driven decisions, or tell your organisation’s diversity and inclusion story in a more engaging way, inclusio are here to help. 

About the Author:

Mary is an award-winning author. A strategic and inclusive leader who aims to drive positive change for all, Mary has 20+ years’ of experience in communications, DEI, wellbeing, and its impact on workplace culture.




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