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7 Benefits Of Diversity In The Workplace And Why It Matters

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If you are not living under a rock or have cut yourself out of this social world, then you must know the importance of diversity in the workplace.

Bringing diversity in the workplace is not a trend to follow nor a quota a company needs to meet. It is also not only a social responsibility to embrace diversity in the workplace. We intuitively know that it’s a pathway where every corporate needs to walk along since it brings better prospects and productivity.

The benefits of diversity in the workplace are immense. It improves workplace productivity, company culture, employee retention, and fights biases. It also helps with your company's reputation and much more. Here is what, Dannie Lynn Fountain, Senior Software Engineering Sourcer, has to say about the benefits of diversity in the workplace.

One of the most promising indicators of Diversity, Equity, and Inclusion initiatives is employee retention. Many companies will be successful in recruiting marginalized talent, others will succeed in including that talent in their marketing efforts. But marginalized employees that choose to stay at organizations long-term indicate strong DEI follow-through.

Diversity may be the hardest thing for a society to live with and perhaps the most dangerous thing for a society to be without. ~ William Sloane Coffin Jr.

Keep on reading to get more clear perspectives on the same.

Diversity in the workplace can be celebrated in diverse ways. One of the ways to celebrate diversity is by accepting employees' cultural and religious beliefs. Supporting them in observing their traditions or practices is a great way to express thoughtfulness.

A very good example of it could be celebrating festivals like Ramadan. Celebrating Ramadan at work by empathizing with fasting employees, creating prayer spaces for them, and hosting Iftar dinner parties will make the employees observing the festival feel more included.


We want our organizations to reach their goals. To put effort and make a fulfilling experience for its workers. A group of people works together to achieve their goals in an organization. And this group of people performs much better when they are diverse.

The world needs all kinds of minds, and so does your workplace. The world of business is changing, and so is the work culture. Bringing diversity in the workplace is one of the topmost priorities for business leaders and managers today.

What is Diversity in the Workplace?

Diversity in the workplace refers to the coexistence of workers with different characteristics (e.g., race, gender, sexual orientation, ethnicity, culture, etc.), skills, and attributes. For example, hiring workers from various cultural, academic, and racial backgrounds with a balance of gender and sexuality is a sign of diversity in the workplace.


Also, you cannot build a diverse team without paying attention to diversity and inclusion in the workplace. In addition, merely hiring diverse candidates does not make you win because the real work is about workplace equity and inclusion. You must make your employees valued and wanted irrespective of their identity. You can see enhanced productivity when they receive equal opportunities, training, and mentoring.

But this procedure takes time. To build inclusive workplace culture, leaders must provide equal rewards and recognition for every employee and change their hiring practices. And ensure every worker gets the respect they deserve without discrimination in the workplace.

Here Are The 7 Key Advantages Of Diversity In The Workplace And Why It Matters

1. Encouraging Diversity In The Workplace Improves Productivity

Productivity is in the effectiveness and efficiency of the employees, employers, and staff in an organization. As the Department of Labour states, “Productive workplaces are built on teamwork and a shared vision of where a business is heading. There’s a willingness at all levels to keep learning and investing in skills".


Productivity is higher in organizations where employees are appreciated and recognized. This keeps them engaged and also helps them contribute without any sense of abandonment.

Diversity in the workplace increases the organization’s morale and creates efficiency and effectiveness. Workers from cultural backgrounds bring their skills to the table. This helps you critically examine a problem or task at many diverse levels. It enables you to understand the customer base from diverse backgrounds. This further results in higher efficiency and effectiveness, which boosts the employees' productivity.

Let’s imagine a small organization with 10 to 15 people. And all from the same gender group, culture, color, and ethnicity. Wouldn’t their ideas and efficiency be limited or alike? They would look at a problem with the same lens, thereby resulting in a unidimensional outcome. And now imagine the same organization with diverse employees. Their collective efficiency would go ten folds in that situation. Do I need to say more? You decide.

2. Improves Creativity And Innovation

Creativity and innovation are not synonymous. Creativity is the mental ability to develop practical, unique ideas and concepts. Innovation, on the contrary, is the extension of creativity. It is the process of transforming these exceptional ideas into new entities.

In this time and age, every other organization is coming up with innovations. Therefore, this is very crucial for any organization to grow and sustain.

Globalization has brought many new changes in the corporate world. Competition is one of those changes which demands innovation and creativity to remain relevant in the business and more.


A diverse workforce helps an organization bring more creativity and innovations. Diversity practice is not only a leveler. It is also an immense possibility for an organization’s growth.

Related Article: 10 Moves To Unleash Creativity At Work For Better Output

3. Hire Employees From Diverse Pool Of Talents

You often listen to successful leaders around the globe speaking how important it is to hire diverse teams from a larger pool of talents. Diversity in the workplace helps you choose a wide range of employees based on their abilities. When business owners do not practice diversity, they also miss out on the widespread possibilities and customer base.

Hiring diverse candidates also helps in employee retention. According to Glassdoor, 57% of employees want their companies to be more diverse and inclusive.


Many companies practice blind hiring to include a wide range of employees from cultural backgrounds. Blind hiring helps to cut down the biases based on gender, age, race, religion, and culture of the candidate.

Many a time, these biases stop a recruiter from hiring the right people. When you fail to hire the candidate, you waste your resources. As the president of Pixar and Walt Disney Animation Studios, Edwin Earl Catmull said-

Getting the right people and the right chemistry is more important than the right idea.

Related Article: A Definitive Guide on Diversity and Inclusion in the Workplace

4. Fight Unconscious Biases

We make our presumptions with our preconceived notions. We do it without any proof or validation, and that’s what results in unconscious biases. Don’t we unconsciously judge people from the color of their skin or the ethnicity they belong to? And even from the names in their resumes.


Yes, we do, and most of the time, we do it unconsciously. These unconscious biases many times stops you from hiring the best talent. Therefore, companies with diverse teams help fight these biases very effectively.

5. Improves Employer Brand And Global Reputation

It’s pretty impossible to be in the room and not be a part of the discussion. Especially when you run a business, you can’t afford to miss out on what your competitors are doing. So, almost every small/big organization wants diversity in the workplace to be relevant. The criteria are to meet up the quota or diversity policies and all the goodwill it brings.


Diversity in the workplace plays a vital role in building an excellent reputation for the company. This leads to increased profitability and equal opportunity for the company and its employees. Thus, organizations that commit to diversity enjoy a global reputation. This improves the employer’s brand and respect for their fair employment practices and ethics.

6. Improves Company Culture

Company culture varies from company to company. Some follow an informal and casual approach. On the other hand, some follow specific dos and don’ts. It also depends on the company's size, work ethics, goals, and work environment.

Company culture is the personality of the company. Your employee’s beliefs and actions in internal and external matters tell a lot about your company. Their behavior, feeling and thinking determines the way they perform.


It is documented from various statistics that diverse workplaces improve company culture. Employees enjoy working with diverse groups. It keeps them at ease and not fear unwelcoming biases. Also, it builds respect and also healthy workplace relationships. Cultural Diversity in the workplace broadens the employees’ perspective and keeps the company culture growing.

Related: 7 Ways to Build a Strong Company Culture

7. Millennials And Diverse Workforce

Millennials now are more perceptive towards their work environment. They want satisfaction in their work and enjoy their work to reflect in the society they live in.

According to Glassdoor), 67% of job seekers weigh diversity as a factor before evaluating companies and job offers.


Another survey from Deloitte) also reveals that 83% of millennials are engaged when their organization has a diverse work culture. And the stats lower to 60% without workplace diversity.

Millennials have a unique outlook on diversity. For them, it is a mix of identities, experiences, ideas, and opinions.

This proves how important it is for millennials to break the norms and barriers. And also to work in an environment that fosters progressive change and collaborative team works.

Wrapping It Up!

The list doesn’t end here. Since the above-discussed points, themselves starts many discussions and ideas. Comment in the box below and share to keep the conversation going even if the views differ. As Stephen Covey said-

Strength lies in differences, not in similarities.

This article is written by Braja Deepon Roy. He works as a Content Creator and Digital Marketer at Vantage Circle. He actively participates in the growth of corporate culture and keeps himself updated in this space. For any related queries, contact editor@vantagecircle.com

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