While many companies are backing away from publicized diversity initiatives, savvy business owners know that there’s power in diversity. In a country like the United States, a workplace where everyone looks and thinks the same can be a risky proposition.
For businesses that want to boost market share and solidify customer loyalty, diversity isn’t just a trending topic or hashtag — it’s a lifeline for longevity. Whether expanding a customer base, or hoping to innovate, prioritizing diversity can be the smartest gamble a business can make. But what does diversity actually look like? These examples of diversity in the workplace can shed light on where hiring initiatives and inclusivity
How a Lack of Diversity Impacts Businesses
Contrary to some viewpoints, diversity doesn’t hinder growth or slow innovation. But the reverse can be true. Not leaning into fostering a truly diverse environment can play out in a variety of unintended ways. While being around people who look and sound similar can feel comfortable, it’s not an ideal scenario. Keep in mind that diversity comes in many forms. It’s not always solely about race, gender or ethnicity. Diversity can also refer to sexual orientation, religious backgrounds, cultures, socioeconomic class, ability and age.
When a workplace is composed of near carbon copies, it can produce stagnation. With no one available to insert a dissenting opinion or even offer a unique perspective, a company’s outlook can easily become complacent. Over time, this can evolve into a nightmare scenario where the company fails to maintain relevance, and eventually loses significant market share. In extreme cases, this can signal the beginning of the end which can translate to layoffs or shuttering doors permanently.
However this worst-case scenario can be avoided by creating a strategy that centers diversity.
Examples of Diversity in the Workplace
People often hear the common saying that diversity improves overall outcomes and makes a company stronger. Here are a few examples of how that plays out in real life both internally and externally.
Gender Diversity
While workplace diversity often spotlights cultural or racial variety, the truth is that the biggest niche where diversity is needed is with genders. However, it goes deeper than simply demanding that an employer hire an equal number of genders. For example, gender diversity addressing representation of women in the workplace shouldn’t just point to a general number of women hired on the team, but the percentage of women occupying executive leadership roles. This is because historically, women are not well-represented in C-suite positions.
This principle extends to gender identity within the workplace as well. Recruiters should be welcoming and respectful of employees who fall under the transgender umbrella, allowing them the same freedom to express their identity that their cisgender colleagues enjoy – as well as the same opportunities for growth and advancement within a company.
Cultural and Racial Diversity
This is an internal and external reality that can directly impact how businesses not only nurture diversity in the office, but how they effectively relate with their customers. A culturally and racially diverse workforce can translate to better understanding between coworkers and ensuring that a business creates a more inclusive working culture.
But having a truly diverse workforce is a boon for business since different cultural or racial perspectives can better fine tune customer outreach and bridge divides that homogeneous work environments might not immediately identify as problems to be addressed.
Sexual Orientation Diversity
Similar to racial and cultural diversity, sexual orientation diversity ensures that the workplace provides space for people outside of heteronormative standards. Gay, lesbian, bisexual, asexual, aromantic, and other sexual identities can offer unique perspectives, especially for brands that seek to reach a broad range of consumers.
Other Forms of Workplace Diversity
While gender, race, culture and sexual orientation are some of the most obvious forms of diversity that should be prioritized in the workplace, they’re not the only ones. Other types of diversity includes:
- Age
- Religion
- Disability
- Neurodiversity
- Education levels
- Hard versus soft skills
- Socioeconomic status
- Linguistics
How Diversity Manifests Positive Outcomes for Workplaces
Having a diverse team isn’t just about pandering to initiatives or creating surface level changes that never go further than the HR department. Having a diverse team can help businesses connect authentically with target audiences, wisely pivot when needed, and avoid gaffes that can tank brands and consumer confidence.
Improved Decision-Making
Diversity of thought that comes with different lived backgrounds or experiences can help teams brainstorm more effectively. People bring different perspectives which can identify common pitfalls, or innovate solutions that might not have been obvious. This is especially true when blending age ranges within a team of people from different professional backgrounds.
Identifying New Opportunities
When a brand is operating for decades or longer, staying nimble and innovative isn’t always easy. Common mistakes can include missing key indicators of market shifts or struggling to better predict emerging opportunities. However, when adding fresh voices into departments, meetings, and even brainstorming sessions, new opportunities are more easily identifiable.
More Authentic Consumer Connections
In a country as diverse as the United States, target audiences are usually diverse. Even for a Black-owned business whose primary target is Black consumers, there will always be fans from other demographics. While this is less of a concern for minority-driven brands, mainstream brands should be mindful of how products or services are received by marginalized groups like women, BIPOC members, or LGBTQIA+ communities.
With a diverse workforce at all decision-making levels brands can ensure that marketing initiatives, messaging, and even visual representations are genuinely inclusive. Marginalized groups don’t want to be pandered to, and having real diversity in the decision rooms ensures that any outreach hits the right notes.
Smarter Crisis Communications
No business wants to find themselves in the middle of a crisis, but it can happen. When the proverbial fires pop up, a diverse team can come in clutch. Sometimes those crises are due to a brand putting its foot in its virtual mouth. Having smart voices in the room can help the communications team craft the right messaging to course correct if the damage might have impacted specific communities.
Attract Better Talent…
No one wants to be linked with a firm that’s known for being stagnant or antiquated. DEI might be a buzzword in some communities, but especially among Millennials and Gen Z applicants, people don’t want to work for a firm where the workforce looks like carbon copies. These generations want to connect with people different from them, and are eagerly seeking the opportunity to learn from different perspectives and reap the benefits of cultural exchange. A diverse workplace can attract top talent.
…And Keep That Talent
Most people have heard horror stories from jobseekers who found themselves being “the only” from their respective demographic in a company or department. An office landscape lacking in diversity can often leave new “diversity hires” feeling isolated and like tokens that were only hired to check off a box instead of being valued for their capabilities and insights. In short, this experience often sends people running for the door within months of onboarding.
Don’t pay lip service to diversity. Bring on diverse talent, but then do the work to ensure that the workplace fosters and appreciates those voices. When people feel respected, seen, and needed, they’re more likely to stick around.
Diversity Isn’t a Buzzword
Diversity, equity and inclusion isn’t just a buzzword that makes a business look good to investors or outside viewers. When implemented correctly, it’s a smart strategy that can improve overall business performance and resonates well with consumers. It can also boost revenue, while reducing expenses associated with onboarding and talent searches thanks to better talent retention. If a true diversity strategy isn’t currently in place, consider meeting with key stakeholders to map out a plan that will support overall business needs.