Employer Resources

5 Benefits of Diversity in the Workplace


Diverse workplaces employ people of different genders, ages, races, cultural backgrounds, languages, ideologies, sexual orientation, physical and mental abilities, and national origin. Why is diversity important in the workplace? Here are five major advantages to fostering a diverse workplace:

  1. Expanded creativity and problem-solving
    A diverse workforce brings a wide variety of people with different experiences, skills, perspectives and insights together to solve problems. Diversity increases innovation, creativity and strategic thinking because teams of people who come from different backgrounds can draw upon their unique experiences and wider range of knowledge to spark new, innovative ideas.

In fact, according to a study by social scientist Adam Galinsky, people who have close relationships with someone from another country score higher on creativity tests.

  1. Better decision-making
    Diverse groups of employees pull from a wider range of sources and experiences. That can help them make sounder decisions, leading to improved results for your business. Diverse teams make better decisions than non-diverse teams up to 87% of the time, according to one study. Scientists believe that inclusive teams often outperform homogenous ones when it comes to decision making because they process facts more carefully.
  2. Increased profitability and productivity
    Ambitious professionals are often more attracted to inclusive companies. This can result in a more motivated, efficient workforce and increased productivity and profitability. In fact, according to an Indeed survey, 55% of job seekers say it is very or extremely important to work at a company that prioritizes diversity and inclusion.*

Not only are diverse teams more productive, but diversity also pays off in terms of profitability. One study shows that companies in the top quartile for gender diversity on their executive teams are 15% more likely to generate above-average profitability compared to companies in the bottom quartile whose executive teams are predominantly white males.

  1. Enhanced employee engagement and retention
    Employees often feel more comfortable and happier in inclusive environments. They also tend to be more loyal and apt to stay longer at companies where their unique contributions are recognized and respected.

Overall, workplace equality can increase confidence and encourage employees to achieve their best. Teams often have higher morale and are more productive, innovative and loyal to the organization.

  1. Better company reputation
    When businesses promote diversity, they’re perceived as more relatable, socially responsible and human by a greater number of people. This can improve your overall brand reputation, leading to new customers, partnerships and markets.

Not only that, but an Indeed survey shows that 17% of job seekers say that inclusivity and diversity displayed in the hiring process is one of the top factors for helping them develop a feeling of positive connection or camaraderie with a company during the interview stage.**

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