Understanding Diversity: How to Build a Diverse & Inclusive Workplace

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“Companies that embrace diversity and inclusion in all aspects of their business statistically outperform their peers.” – Josh Bersin.

Diversity in the workplace goes beyond simply meeting legal and regulatory requirements, it helps create an environment where all employees feel valued, respected, and included. This not only contributes to a more equitable and fair workplace but also enhances creativity, innovation, and overall organizational performance. 

In this article, we explore the definition of diversity, the benefits of hiring a diverse workforce, and ways to promote diversity and inclusivity. 

Diversity in the workplace is about creating an inclusive environment where employees from various backgrounds, experiences, and perspectives come together to contribute to a rich and dynamic professional culture.

Diversity in the workplace refers to the inclusion of individuals with varied characteristics, backgrounds, and attributes. Diversity encompasses a variety of dimensions that include aspects related to individual experiences, perspectives, and identities:

• Demographic Diversity: Race and ethnicity, gender, age, and sexual orientation. 
• Cultural Diversity: Cultural diversity encompasses nationality, language, religion, and cultural backgrounds. 
• Cognitive Diversity: Cognitive style, job function, personality traits, and educational background differences.
• Physical Diversity: Differences in physical abilities, disabilities, and health conditions.

Here are 15 workplace diversity statistics that highlight the increasing importance of diversity and inclusion in the workplace:

• According to a study by McKinsey, companies with diverse executive leadership and board teams earn higher profits. 
• 56% of US adults agree that increasing diversity, equity, and inclusion (DEI) efforts at work is good (Pew Research Center).
• Approximately 61% of US adults report that their organization has established policies to guarantee fairness in hiring, pay, and promotion. Meanwhile, 52% of US adults indicate that their workplace conducts training sessions or meetings on diversity, equity, and inclusion (Pew Research Center).
• According to Glassdoor, 67% of job seekers view workplace diversity as crucial when evaluating employment opportunities. While over 50% of employees express a desire to witness a greater level of diversity in their workplace.
• 61% of women value DEI in the workplace, while half of men share the same perspective (Pew Research Center).
• 62% of employees aged 50 and above have indicated that they have personally witnessed or experienced age discrimination in the workplace. While 15% reported instances where they were not hired for positions they applied for due to age (IHRIM).
• Companies with an executive team of more than 30% women are 48% more likely to outperform those with less gender diversity (McKinsey).
• 83% of millennials actively engage with a company when they believe their organization fosters an inclusive culture (Deloitte).
• In 2020, employers who actively shared more about diversity on LinkedIn received 26% more applications from women than companies that posted less on the platform (LinkedIn).
• Cognitive diversity, which includes diversity in ideas and thoughts, increases innovation by 20% (Deloitte).
• 39% of female leaders had their judgment questioned at the workplace, compared to 28% of male leaders. This percentage is especially high for black female leaders (55%) (Forbes).
• For nearly two-thirds of organizations, DEI is important or very important, yet 62% of organizations devote little or no resources to DEI efforts (SHRM).
• More than 81% of employees will leave their jobs when an employer lacks commitment to DEI. Interestingly, 54% of employees are ready to take a pay cut to work for a company with improved DEI (GoodHire).
• According to Accenture, if more disabled people join the workforce, it will boost the US gross domestic product by $25 billion.
• Companies that welcome and embrace diversity are 1.7 times more innovative than those that avoid it (Forbes).

A diverse workplace can bring several benefits that positively impact the employees and the organization.

Here are five key benefits:

1. Better Opportunities for Innovation and Creativity

Diversity brings people with different perspectives, experiences, and backgrounds together. When individuals with diverse ways of thinking collaborate, they can generate fresh ideas and solutions to challenges. Also, they challenge each other’s assumptions and approach problems from various angles. This diversity of thought and critical thinking can lead to smarter business decisions.

2. Increased Employee Engagement

Valuing and promoting diversity in the workplace contributes to higher levels of employee engagement. Employees who feel included, valued, and appreciated are more likely to be committed to their work. This results in a positive work environment, improved morale, and higher job satisfaction.

3. Better Understanding of Customer Needs

A diverse workforce can better understand and connect with a broad range of customers. Different backgrounds and perspectives within the team enable organizations to tailor products and services to a diverse market. This understanding of customer needs can lead to increased customer satisfaction and loyalty.

4. Helps to Attract and Retain Top Talent

Leaders and HR practitioners can use their commitment to diversity as a key factor in recruitment efforts. This helps them attract high-caliber professionals from different backgrounds, creating a dynamic and high-performing team.

Diversity and inclusion are related concepts but have distinct meanings and implications within the workplace. Diversity encompasses the range of visible and invisible differences among individuals. This includes race, ethnicity, gender, age, sexual orientation, physical abilities, and socioeconomic status. 

Alternatively, inclusion is the active, intentional, and ongoing effort to create an environment where everyone feels welcome, respected, and valued. It involves fostering a culture that appreciates and leverages diversity. Inclusion ensures everyone has equal access to opportunities, resources, and benefits.

Several legal frameworks and regulations in the United States address workplace diversity and promote equal employment opportunities.

Some key legislation includes:

Title VII of the Civil Rights Act of 1964

Title VII of The Civil Rights Act of 1964 prohibits discrimination based on race, color, religion, sex, or national origin in various aspects of employment, including hiring, promotion, and termination.

Americans with Disabilities Act (ADA)

The Americans with Disabilities Act prohibits discrimination against individuals with disabilities. This act requires employers to provide reasonable accommodations to individuals with disabilities and ensures that disabled individuals have equal employment opportunities.

Age Discrimination in Employment Act (ADEA)

The ADEA law prohibits age discrimination against individuals who are above 40 years. This protects older workers from discrimination in hiring, promotion, compensation, and other employment practices.

Genetic Information Nondiscrimination Act (GINA)

The Genetic Information Nondiscrimination Act prohibits using genetic information in employment decisions. This act prevents discrimination by prohibiting employers from using genetic information in employment decisions and establishing strict confidentiality requirements to safeguard individuals’ genetic data, ensuring fair treatment in the workplace. 

GINA also restricts employers from requesting genetic information during the hiring process or at any other time, protecting individuals from potential bias based on their genetic makeup.

Executive Order 11246

The Executive Order 11246 applies to federal contractors and subcontractors. This prohibits federal contractors from discriminating on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin.  

Pregnancy Discrimination Act (PDA)

The Pregnancy Discrimination Act prohibits discrimination based on pregnancy, childbirth, and related medical conditions.

Promoting diversity and inclusion in the workplace creates a positive work environment and maximizes the potential of all employees. Here are various ways to promote diversity and inclusion:

Establish Clear Policies and Commitments

One way to promote diversity and inclusion is to develop clear diversity and inclusion policies. These policies should communicate the organization’s commitment to an inclusive environment and should cover various dimensions of diversity, like race, gender, age, disability, and sexual orientation. The consequences of discriminatory behavior and guidelines for reporting incidents or concerns should be clearly outlined.

With regular communication and reinforcement of these policies, it becomes easier to integrate them into the organizational culture. This ensures that everyone is aware of and abides by these policies.

Employee Resource Groups (ERGs)

An ERG is a voluntary, employee-led group that connects individuals with shared characteristics or backgrounds to support organizational diversity and inclusion initiatives.

Encouraging the formation of ERGs is a proactive step to promote diversity and inclusion. These groups provide a platform for employees with shared characteristics or experiences to connect, share insights, and contribute to the organization’s diversity initiatives. 

When companies provide ERGs with resources, leadership development opportunities, and collaboration with senior management, it enhances the effectiveness of ERGs. With the unique perspectives that ERGs bring, organizations can leverage their influence to create a more inclusive workplace culture.

Diversity Training Programs

Diversity training programs educate employees about unconscious biases, cultural competence, and the significance of inclusion. This training aims to promote a more inclusive workplace by raising awareness of diverse perspectives and fostering an environment of mutual respect and understanding.

Additionally, specialized training for leaders and managers can equip them with the skills to cultivate inclusive teams.

Demographic Diversity

Demographic diversity in recruitment efforts is a strategic approach to creating an inclusive workforce. This involves considering candidates from various backgrounds, ethnicities, genders, ages, and other demographic factors. Organizations can set measurable goals for demographic diversity and conduct regular diversity audits to track progress.

By creating a workforce that reflects the diversity of the broader community, organizations can enhance their reputation and bring together a range of perspectives.

Cognitive Diversity

Recognizing and appreciating diverse perspectives, skills, and ways of thinking is essential to create cognitive diversity. Creating a collaborative work environment that encourages the exchange of ideas allows for a more innovative problem-solving approach. 

Embracing diversity in remote and hybrid work models is imperative to build dynamic and inclusive workplace environments. Here are a few ways to promote diversity and inclusion in remote and hybrid work environments:

Geographic Diversity

Remote work dissolves geographical boundaries, which allows organizations to tap into talent from diverse locations. This geographic diversity enriches the workforce and brings a range of perspectives and experiences.

To harness the benefits of a geographically diverse team, it’s essential to implement strategies that promote effective communication and accommodate different time zones.

Cross-Cultural Collaboration

In remote and hybrid work settings, teams frequently encompass individuals from diverse cultural backgrounds, making cross-cultural collaboration essential for success. Organizations should foster an inclusive culture by implementing cross-cultural training and establishing platforms for open dialogue to enhance collaboration, creativity, and overall team effectiveness.

Flexible Work Arrangements

Flexibility is one of the most essential features of remote and hybrid work models. Organizations should embrace diverse work arrangements to meet the needs and preferences of employees. When organizations offer a range of work arrangements, they ensure a productive environment and support employee well-being.

Inclusive Technology Practices

As employees use various tools in remote and hybrid work, it’s essential to focus on inclusive and user-friendly technology practices. Organizations should ensure accessibility to digital tools, including training to enhance digital literacy, regardless of the employee’s skills. 

These new trends are shaping the landscape of workplace diversity:

Neurodiversity Inclusion

Neurodiversity recognizes and values the differences in the neurological functioning of certain employees. This includes conditions such as autism, Attention-Deficit / Hyperactivity Disorder (ADHD), and dyslexia. Organizations are creating inclusive environments for neurodivergent individuals. They can create inclusive environments for neurodivergent individuals by implementing awareness training, inclusive hiring practices, flexible work arrangements, and supportive accommodations.

Technology for Diverse Recruiting

Companies use technologies like artificial intelligence (AI) and data analytics to enhance diversity in the recruitment process and ensure a fair evaluation of candidates. This includes using algorithms to eliminate bias in job descriptions and expanding the reach of job postings to diverse candidate pools.

Although AI is being increasingly utilized to enhance diversity in the recruitment process by eliminating job descriptions and expanding job postings to diverse candidate pools, organizations must simultaneously address inherent biases in algorithms. For instance, in one hiring bias,  AI’s flawed training set penalized resumes mentioning the word “women” or “women’s.” The impact was more noticeable when individuals had multiple affiliations with organizations or universities containing the term “women’s.”

Establishing robust ethical guidelines and governance frameworks for AI systems is crucial to ensure fairness in decision-making processes, particularly in hiring and promotions.

Evaluating the effectiveness of diversity and inclusion initiatives is crucial to ensure progress and make informed adjustments.

Here’s a step-by-step guide:

1. Employee Surveys and Feedback Sessions

Use employee surveys and feedback sessions to gather insights into employees’ experiences, perceptions, and feelings about diversity and inclusion in the workplace. Employees should ask questions about workplace culture, job satisfaction, and perceptions of fairness and equal opportunities.

Example questions employees could ask include:

• Do you feel your contributions are valued and recognized regardless of background?
• Are there any specific instances where you felt the workplace culture positively or negatively impacted diversity and inclusion?
• In your opinion, how effectively does the organization promote equal opportunities for professional growth and advancement?
• Are there any barriers or challenges you’ve encountered related to diversity and inclusion in your day-to-day work?
• Do you believe that leadership actively promotes and supports diversity and inclusion initiatives?
• How satisfied are you with the organization’s efforts to create an inclusive work environment?
• Are there specific recommendations or ideas you have to improve diversity and inclusion within the workplace?

2. Monitor Recruitment and Promotion Metrics

Organizations can assess the impact of diversity initiatives on hiring and career progression by tracking demographic data at various stages of the recruitment and promotion processes. By analyzing and acting upon these metrics, organizations can identify areas of improvement, address biases, and foster a more inclusive workplace.

3. Evaluate the Impact of Training Programs

Conducting pre- and post-training surveys measures the impact of training initiatives on employees’ awareness and understanding of diversity issues. Evaluating the impact of training programs is crucial to ensure that they are effective in contributing to an inclusive workplace. 

4. Retention Rates

To further measure the effectiveness of diversity initiatives, organizations can examine turnover rates and reasons for employees leaving the organization. This identifies whether diverse talent stays with the organization or if there are disparities in retention rates among different groups. 

5. Diversity Audits

The final step is to conduct periodic diversity audits to review policies, practices, and overall diversity metrics. By assessing whether the organization is meeting its diversity goals and identifying any systemic barriers that may hinder diversity and inclusion efforts, the organization can continuously improve.

Here are some common challenges in embracing diversity in the workplace:

Unconscious Bias

Unconscious biases are implicit preferences or prejudices that employees may hold without being aware of them. Unconscious biases can influence decision-making processes, such as hiring, promotions, and team dynamics. This results in unintentional discrimination against certain groups.

Lack of Inclusive Leadership

If leadership does not actively promote inclusivity, it can result in a lack of diverse perspectives at the decision-making level. This hinders the development of a truly inclusive environment.

Tokenism

Tokenism occurs when organizations make minimal efforts to include individuals from underrepresented groups, often to create an appearance of diversity without a genuine commitment to inclusion. It can lead to individuals feeling like they are only valued for their identity rather than their skills or contributions, which undermines the authenticity of diversity efforts.

Fear of Reverse Discrimination

The fear of reverse discrimination is the apprehension among some individuals that efforts to address historical inequalities and promote diversity might result in unfair treatment against them.