Diversity and Inclusion in the Workplace: Why it Matters and How to Achieve it

Businesses flourish when they welcome fresh concepts and diverse individuals. Thus, the most innovative companies worldwide are also the most diverse. According to a 2017 PwC survey, more than half of women (54%) and nearly half of men (45%) check a company’s diversity and inclusion policies before accepting employment offers. These words aren’t just “trendy.” They’re important.

Why do diversity and inclusion matter at work? And how can we achieve these goals? The benefits of a diverse and inclusive workplace are numerous. It increases productivity and innovation, improves decision-making, and promotes a positive company culture. However, there are barriers, such as stereotyping and biases, and poor leadership skills. There is a growing need to strengthen diversity and inclusion programs to become a workplace that is both efficient and attractive to workers.

An inclusive and diverse talent pool is crucial for success. But we have a long way to go before every company embodies these concepts and walks the talk. This should not stop you from being proactive with self-improvement. This article will delve deeper into overcoming obstacles and creating a more diverse and inclusive work culture.

Authenticity in Hiring

Promises are one thing. Delivering is another. Diversity and inclusion are no longer just buzzwords. They significantly influence the present-day international market. They are critical factors affecting essential metrics, like the following:

Job satisfaction
Profits
Productivity
Employee engagement
Retention

Diversity and inclusion have a vital impact on almost every aspect of a corporation. It’s best to be authentic and sincere in implementing initiatives in both contexts.

Job descriptions typically state that companies support a diverse workforce and an inclusive workplace. Thus, employee experience should genuinely reflect your company’s principles.

Applicants may accept job offers from a company. However, staff members may leave abruptly if they learn diverse perspectives are not welcome. Soon, there will be a need to fill positions again.

Before we go further, let us define core concepts first. What is diversity? What is inclusion?

Diversity

According to diversity advocate Vernā Myers, “Diversity is being invited to the party. Inclusion is being asked to dance.”

The concept of diversity encompasses every aspect of human identity. Diversity defines our individuality. It embodies all traits that shape our perspective:

Beliefs
Values
Worldviews
Perceptions

These characteristics shape how we talk and act. They affecting how we get along with our peers. They make us who we are and influence how we connect with others.

More specifically, we can think of the following when we say diversity:

Fundamental factors. Age, race, gender, and sexual orientation.
Secondary characteristics. Education level, marital status, parental status, and religious beliefs.
Workplace aspect. An individual’s job level within an organization, their work shift, and their length of employment.
Style. Work habits, leadership style, and communication style.

We may have no control over some dimensions, like ethnicity or physical and mental ability. But these factors greatly influence how others treat us. They shape the quality of our lives and affect how we view ourselves and those around us.

Other facets of our identity may be determined at birth. These include religion or socioeconomic status. However, they can change with time.

The level of significance attached to each trait depends on our specific circumstances. Certain aspects of our identity may be more relevant in a work environment than in our personal lives.

Inclusion

It’s a common mistake to think “diversity” and “inclusion” are the same. In the workplace, diversity is having a mix of different people. Meanwhile, inclusion makes them feel valued and included. Without inclusion, you won’t get the benefits of diversity, like innovation and business growth.

Inclusion is building a friendly atmosphere where people accept everyone for who they are. In the workplace, it means giving everyone equal opportunities. Employees have them the freedom to participate. Everyone is valued for their skills and potential. It’s about encouraging diverse ideas and recognizing people’s unique identities and experiences. Inclusion means creating a culture where everyone can thrive together.

American Automobile Association (AAA) President Marshall Doney says:

A workplace that’s not only diverse, but inclusive—a place where employees can bring their authentic selves to work every day—is one that will flourish. It’s a place where retention is high because employees know they’re valued. It’s a place where people feel pride in their jobs and their employers. It’s a place where innovation thrives because everyone feels safe and confident contributing their unique perspectives that add value for their customers.

A diverse team is an asset in promoting creativity, innovation, and problem-solving. Companies should incorporate these practices into their operations. It allows them to attract and retain top talent from a variety of backgrounds. These practices also help foster a culture of acceptance and respect.

People often use the terms diversity and inclusion together. However, they are distinct concepts with individual meanings. We delve deeper into each in What is Diversity in the Workplace and Why it Matters and What is Workplace Inclusion And Why Inclusion Matters In The Workplace.

Why Diversity and Inclusion in the Workplace Matter

Diversity and inclusion are critical to creating a strong and sustainable workplace culture. It is given more importance in today’s fast-paced, global business world. Whether you’re a manager or an employee, you can be instrumental in creating a more inclusive space.

Let’s discuss some benefits of embracing colleagues’ diverse backgrounds and experiences. Who would have thought it possible to engage in meaningful coversations? That it can broaden perspectives, and ultimately increase the company’s success?

Good Business Sense

McKinsey analyzed corporate leadership. Results support that diverse representation is beneficial and essential for business success. It also highlights that this is becoming more evident as time passes.

Years of research in business development and behavior have shown that institutions prioritizing these practices are:

More innovative
Have more engaged employees
Able to retain top talent
Better at complex problem solving
Yielding a higher financial performance
With less equal employment opportunity (EEO) complaints

Better Financial Returns

In the same McKinsey study, companies with the highest levels of gender and ethnic or cultural diversity are more likely to surpass their less diverse counterparts in profitability.

Some companies have a higher percentage of women on their executive teams. These businesses are 25% more likely to make above-average profits.

Connect with a Wider Audience

Individuals connect and identify with those who share a similar background. Thus, having a diverse workforce with employees from various backgrounds can be advantageous. These employees understand the needs, desires, and challenges of a wider range of audiences.

It allows you to diversify your communication strategies. You can also effectively market your products or services to a larger customer base.

A More Encompassing Approach to Problems

Diversity is not just about innate traits. It also means diversity of thought.

Working with people with distinct backgrounds and viewpoints can introduce new concepts and innovative solutions. Together, you can analyze risks from all angles.

If everyone had uniform thoughts, you may end up disregarding critical information. With a diverse team, a more extensive problem-solving approach is viable. Assessing, criticizing, and challenging plans is an effective course of action for success.

Professionally Enriching

Companies that do the following are likely to attract talented and diverse professionals:

Prioritize career and professional growth opportunities
Embrace diverse perspectives
Create an inclusive culture

1 in 3 candidates will not apply to a company that lacks diversity. Diverse teams expose teammates to new skills and approaches. Diversity gives way to a broader view of the world. All of these spill over into decision-making and boost workplace etiquette.

Increased Creativity

Diversity can enhance creativity. Businessmen are always on the lookout for the latest innovation. They won’t find that if they keep the team members homogenous. You can’t develop new concepts if you keep thinking conventionally.

A diverse discussion includes a variety of points of view. Participants have unique life histories, experiences, and perspectives on the world.

Paul Block, a strategic consultant and operating advisor, highlights diversity as an advantage. “People with different lifestyles and different backgrounds challenge each other more. Diversity creates dissent, and you need that. Without it, you [will not get] any deep inquiry or breakthroughs,” he says.

There’s no doubt about it. Diversity and inclusion are vital to creating a dynamic and innovative workplace culture. Read Workplace Diversity Effect on Productivity (Benefits, Difficulties and How To Manage Diversity) to know more.

Strategies for Promoting Diversity and Inclusion in Hiring Practices

“Many organizations are good at constructing a diverse workforce. However, many have not yet figured out how to create an atmosphere in which all people feel valued and respected and have access to the same opportunities,” prefaces Gonzalo Shoobridge, a business development director.

Shoobridge adds:

Yes, HR has an important ‘facilitator’ role to play and is a huge partner in the whole corporate diversity and inclusion initiative, but diversity and inclusion must be owned and championed by the business as a whole. If it is not owned by the business, if it is not aligned with corporate strategies, mission and vision, then this initiative will not be sustainable and it simply will not achieve its corporate aims and objectives.

Organizations need to take intentional steps to promote healthy practices in the workplace. Here are eight tips for creating an inclusive hiring process.

Analyze Current Recruitment Efforts to Identify Areas of Improvement

Dedicate time to analyzing the following:

Current hiring practices
Recruitment sources
Interview processes

It’s helpful to gather data on the demographics of job applicants and new hires. It may identify biases or barriers that prevent underrepresented candidates from being hired. In the future, the recruitment strategy should have broad objectives for representation.

Reach Out to Underrepresented Candidates

Purposefully seek underrepresented candidates. We recommend:

Attending virtual career fairs for targeted minority student groups
Partnering with organizations that focus on empowering and supporting diverse job seekers
Being intentional and proactive in seeking these candidates

Use Inclusive Job Postings for a Wider Pool of Candidates

No one wants to work with unwelcoming colleagues. Show that your company values diversity and inclusion by:

Using inclusive job titles and descriptions
Highlighting skills and experience
Using gender-neutral language

Organizational effectiveness consultant Patricia Rebello recommends, “Avoid gender-specific words when addressing a group (e.g. instead of ‘hey guys’, try ‘hey everyone’).”

These steps are simple. Nonetheless, this creates a workforce that reflects the diverse makeup of customers, communities, and society.

Make Sure You Understand Diversity and Inclusion

For an organization to truly embrace these concepts, it must start from within. Leaders should believe in diversity and inclusivity. They can’t just pretend to care about it.

They should be able to explain clearly why diversity and inclusion are necessary. This encourages other leaders in the organization to embody and believe them too.

Encourage Positive Discussions

Management should strongly encourage honest and open discussions about diversity and inclusion. These conversations may generate practical solutions to work challenges.

Celebrate employee differences, too. Invite them to share their backgrounds and traditions in the workplace. Encourage them to talk about religious and cultural practices. Meaningful discussions can promote healthy debates, even if it means having uncomfortable conversations.

Find the Right Leaders to Do the Right Things

Leaders and change agents who dare to drive the agenda should be identified and empowered. Leaders willing to challenge the status quo and lead with resilience are needed to convert a homogenous business to a diverse one. Sadly, having the wrong type of leadership can impede progress.

In addition, organizations could offer diverse mentorship programs. With diverse leaders committed to inclusion, it’s not impossible to develop strategies that increase diversity in the workplace.

Lead by Example

People can be skeptical about these programs. They might believe diversity and inclusion objectives must be set aside to achieve immediate business benefits.

Show commitment while encouraging management to follow through consistently. Walk the talk with actions that align with these values.

Meritocracy, not Hierarchy

Consider having a clear focus on meritocracy. A diverse talent pool can transform a company. Encourage teams from different areas and backgrounds to speak up. The merit of their idea should have value over hierarchy in the workplace.

Follow Your Heart

Diversity is not simply an act of the mind; you must follow your heart. You must be emotional about the subject and have compassion and empathy toward others.

Businesses must make a case for compassion and integrating people who have never been in these environments. Unless they do it from their heart, it will never work.

Encourage Hiring Managers and HR Teams to Practice Diversity Recruiting

Encourage training and provide resources to identify and address biases. These biases establish diverse hiring objectives and interview panels. Diversity should be part of organizations’ policies and procedures. It begins with hiring procedures and extends to performance evaluations, promotions, and benefits.

Technology also likewise play a role in promoting diversity and inclusion at work. Artificial intelligence (AI) and machine learning can now be incorporated into HR software programs. These tools can improve hiring practices for diversity and inclusion. It also helps eliminate unconscious bias, which impacts every aspect of recruiting, retaining, and engaging talent.

Common Barriers Encountered

Creating a diverse and inclusive work culture is a noble and necessary goal. It is especially the case for any modern business. However, despite helpful strategies, certain barriers can prevent such an initiative from being successful.

Stereotyping and Bias Without Awareness

Stereotyping and unconscious bias are ubiquitous in human nature. We are preconditioned to judge and decide based on our preconceived notions.

However, it can become even more pervasive. It happens with affinity bias, where people align themselves with those who share similar experiences or backgrounds. As a result, biased group decisions may exclude potential talent from diverse backgrounds.

An example of non-objective criteria would be a cultural fit. This exclusion can ultimately affect the diversity and inclusiveness of an organization.

Lacking Leadership Skills

The ability to create and oversee diverse teams depends on whether managers can adapt. A company can put in a lot of work to make its team more diverse. But all that effort is for nothing if the leaders don’t know how to manage differences.

Leaders must have the right skills and knowledge to manage a diverse team. If they’re not confident in their abilities, they can get special training to help them learn how to do it better.

Tick-Box Mentality

In many cases, staff members are used to following strict instructions. Some workplaces even encouraged them not to use their natural abilities or innate knowledge. This can result in a tick-box mentality. This mentality is an absolute taboo in promoting a corporate culture based on diversity and inclusion.

Organizations must remove policies solely based on hitting quotas by merely ticking a box. These might look good on paper but rarely work in practice.

Lack of Prioritization

There are companies that value diversity and inclusion when tackling business issues. However, these values are also at the bottom of the list for some. If the latter applies to your workplace, it will likely never prosper as it intends. There’s nothing wrong with focusing on financial targets. But even if that looks good from an accounting point of view, a company that pays little attention to diversity and inclusion will flounder

Selection According to Merit

Organizations may pay particular attention to general employee selection based on merit but may take their eye off the goal when appointing and assessing senior-level staff.

Instead of management of placing them according to their accomplishments, other subjective criteria that have their roots in diversity and inclusion need to be applied.

Wrapping Up

An inclusive culture that empowers the diversity of people, organizations will lay the foundations for companies to thrive and succeed. Along the way, leaders need to keep in mind the barriers that may manifest when creating an organization rich in diversity and inclusion.

Curious if you’re doing a good job at work? Watch out for biases! We tackled them in the article “The Spillover Effect and 14 Other Biases Associated with Performance Appraisals.”

FAQs Covered in this Article

Q: What is diversity and inclusion in the workplace?

A: Diversity and inclusion in the workplace refer to the practice of fostering a company culture that embraces and values individuals from various backgrounds, experiences, and perspectives, and ensures that they feel valued, respected, and included.

Q: Why do diversity and inclusion matter in the workplace?

A: Diversity and inclusion are essential because they lead to increased creativity and innovation, better decision-making, improved employee engagement and satisfaction, and an enhanced company reputation.

Q: What are some common diversity dimensions to consider in the workplace?

A: Common diversity dimensions include race, ethnicity, gender, age, religion, disability, sexual orientation, education, and socioeconomic background.

Q: How can businesses promote diversity and inclusion in their organization?

A: Businesses can promote diversity and inclusion by implementing inclusive hiring practices, providing diversity training, fostering an inclusive company culture, offering mentorship and sponsorship programs, and setting diversity goals and tracking progress.

Q: What role does leadership play in promoting diversity and inclusion?

A: Leadership plays a critical role in promoting diversity and inclusion by setting the tone for company culture, modeling inclusive behaviors, and holding themselves and their teams accountable for creating an inclusive work environment.

Q: What are some potential barriers to achieving diversity and inclusion in the workplace?

A: Potential barriers to achieving diversity and inclusion include unconscious bias, resistance to change, lack of representation in leadership positions, and insufficient resources or support for diversity initiatives.

Q: How can businesses measure the success of their diversity and inclusion efforts?

A: Businesses can measure the success of their diversity and inclusion efforts by tracking key metrics such as employee demographics, retention rates, promotion rates, employee engagement scores, and diversity in leadership positions. Additionally, gathering employee feedback through surveys and focus groups can provide valuable insights into the effectiveness of diversity and inclusion initiatives.

Q: What are some examples of companies that have successfully implemented diversity and inclusion initiatives?

A: The article does not provide specific examples, but many global companies are recognized for their diversity and inclusion efforts, including Google, Microsoft, IBM, and Procter & Gamble. Each of these companies have implemented various programs and initiatives to promote a diverse and inclusive work environment.