28 Nov Why Diversity is Essential in the Workplace

Most people have the understanding that diversity in organizations is a good thing, not only the right thing to do but also good for business. But maybe not everyone realizes that diversity is in fact essential for success in business in many aspects. Let’s take a look at some examples.

Diversity Drives Innovation

We are familiar with the idea of diversity of identity – which is differences in who we are, our backgrounds, experiences and identities. Diversity of identity leads to diversity of thought. Imagine your team is working together on a project or solving a problem. If everyone on the team had the same background it could be harder to identify different solutions outside of the lived experience of those in the room. If that team had people with a variety of identities and experiences then there could be increased innovation and solutions you’d never considered are on the table.

This isn’t just hypothetical. A study by Boston Consulting Group found that companies with above-average diversity in their management teams earned 19% more revenue from innovation. Think about that: a fresh perspective can directly contribute to the bottom line!

Take Procter & Gamble, for instance. When the company introduced the Always “Like a Girl” campaign (which ran at the Super Bowl), it resonated globally because of its inclusive message about gender stereotypes. The campaign was created with a variety of team members who had shared lived experiences with target consumers and therefore understood how to speak authentically to audiences like them.

Improved Decision-Making

A study from Cloverpop, a decision-making platform, discovered that diverse teams make decisions 60% faster than homogeneous ones and are 87% better at making decisions.

When you’re exposed to a range of perspectives, you’re forced to challenge your assumptions, be more expansive in thought and avoid automatically going along with the group consensus (which may not be the best solution).

Mastercard’s “True Name” card initiative is a great example of this. This program, which allows people to display their chosen names on credit cards, was created in collaboration with members of the 2SLGBTQIA+ community. This initiative is helpful for transgender and non-binary individuals who may have a chosen name that is different from their legal name.

Their lived experiences informed the design and execution of the initiative, ensuring it addressed real-world challenges faced by the community. 

Attracting (and Keeping) Talent

People want to work where they feel valued and included. It may feel pretty obvious but many organizations miss this critical insight. If a workplace feels exclusive or doesn’t reflect the broader world, talented professionals might pass it up for a more inclusive competitor.

In fact, Glassdoor found that 76% of job seekers consider diversity an important factor when evaluating companies. And this isn’t just about hiring; retaining diverse talent is equally critical. Employees appreciate knowing there are opportunities for growth and feel that their voices are heard.

Salesforce, a software company, is often celebrated for its inclusive culture. Salesforce didn’t just hire diverse talent; they backed it up with transparent pay equity initiatives after identifying that women were paid significantly less. This resulted in an engaged workforce and one of the lowest turnover rates in the tech industry.

Representation Matters

When employees see leaders who look like them or share similar experiences, it sends a powerful message: You belong here. Representation at all levels helps dismantle systemic barriers and fosters a culture of equity. 

An example of this is Starbucks. In 2020, the company committed to tying executive compensation to diversity goals and aimed to have at least 30% of corporate roles filled by racialized people. In 2020 81% of senior VPs at Starbucks were white and in 2024 it was  67%. While there’s still work to be done,  this approach set a clear tone that diversity wasn’t just a buzzword, it was integral to their strategy.

So, What’s the Hold-Up?

If diversity is so great, why aren’t all workplaces there yet? The reality is that building a truly diverse workforce takes time, effort, creativity and money. It means rethinking hiring practices, addressing unconscious bias (that we all have!), and creating an environment where everyone feels safe to speak up, especially marginalized employees. Alongside recent misinformation campaigns from those who want to impede progress, many DEI initiatives can take time to see effects.

Final Thoughts

When companies embrace diversity, everyone wins: employees, organizations, and even customers. And it’s not just those with marginalized identities who benefit – it’s everyone.

What’s your workplace doing to foster diversity? Share your thoughts—after all, this conversation is better with all voices included.

If you haven’t yet had the opportunity, make sure to order a copy of Elmer Dixon’s powerful memoir DIE STANDING: From Black Panther Revolutionary to Global Diversity Consultant and check out what others have been saying about Elmer and his story. 

Check out these other opportunities to see what folks are saying about Elmer and his continued work. 

• See Elmer speak at Stories from the Revolutions’ Front Lines at his keynote at TEDxUTulsa
• Listen to Elmer talk on NPR’s The Jefferson Exchange
• Read about Elmer’s story in a piece featured in The Seattle Times
• Listen to Elmer on The Medium