A Guide on Common Benefits of Diversity at the Workplace

Diversity and Inclusion

The matter of benefits of workforce diversity and inclusion in the workplace is no longer a point of debate. As per a study by Deloitte, diverse companies encounter 2.3 times higher cash flow per employee. With the globalization of the economy, businesses are more interconnected these days, hence the involvement of employees from different nationalities, race, and culture are seen to be increasing globally.

What are the benefits of workforce diversity and inclusion strategy?

Does your workplace possess 50% of women employees and 0% at the managerial level?
Does your organization have a diversity of employees in every department?
You are going to learn all about diversity & inclusion, its meaning, benefits, and examples.

What is Employee Diversity and Inclusion in the Workplace?

Workforce Diversity and inclusion in the workplace mean that every employee in the workplace is given equal and fair opportunity and treatment irrespective of the employee’s race, gender, caste, place of origin, etc.

Employee Diversity in the workplace is important because it helps create a more inclusive environment, where everyone feels valued and respected, and can contribute their unique perspectives and experiences to achieve common goals. It also enables companies to better understand and serve their diverse customer base, and to leverage the benefits of workforce diversity, such as increased creativity, innovation, and productivity.

This is to ensure that they are supported in all areas of the workplace. The “ all areas” is important here.

Benefits of Workforce Diversity and Inclusion in the Workplace

The benefits of workforce diversity and inclusion in the workplace are stated below:

1. Greater Diversity means Innovations

One of the most important benefits of workforce diversity is innovation. Researchers for Forbes in a study called “Fostering Innovation Through a Diverse Workforce,” found that employee diversity brings a far-reaching set of life experiences and learnings at the workplace which also means that they look at life through different perspectives.
This way of looking at life through different lenses and perspectives opens new ways to address challenges and come up with unique solutions.
As per Harvard Business review, Diversity unlocks innovation by creating an environment where ‘outside the box’ ideas are heard.” The results? Companies practicing diversity are 70 percent more likely to capture a new market.

2. Talent Comes From Diversity

The second benefit of workplace diversity is “grates Talent Acquisition”. As per a survey, 67% of job seekers look out for the benefits of diversity in the workplace as one of the important factors while searching for a job. This, therefore, means that workers nowadays are not only open to the idea of employee diversity at the workplace but also expecting it.
The more your organization meets the expectation, the more you have the chance of hiring and retaining good talent in top positions.

3. Diversity and Inclusion leads to Customer Satisfaction

Customer Satisfaction is an element of any business success and it can be enhanced by diversity in the workplace. As per the Researcher Stephen B. Knouse, Ph.D., of the University of Louisiana at Lafayette, employee diversity leads to more communication with different types of customers. The more a business understands the needs of its diverse customers, the more it leads to customer satisfaction.
To do so, the business needs to have a maximum diverse staff.

4. Brand Image is Enhanced by Diversity

Employee diversity in the workplace enhances brand image. As Goodarzi puts it, “We must have a diverse and inclusive environment to be able to hear all voices. If we want to know what’s important to [our customers], we have to be diverse like our customers.”
A brand that is diverse-minded, customers perceive as more real & forward-thinking.

5. Diversity & Inclusion Enhances Employee Engagement

One of the Great benefits of diversity in the workplace is it enhances Employee Engagement. When you have happy employees in your organization, there can be no doubt about their engagement in work and hence becoming productive.
Therefore, it goes without saying that when you explain to your employees the benefits of diversity inclusion, it creates a much more relaxed and happy environment for them. It is a proven fact that an inclusive workplace shows a higher level of employee engagement.
Read more on Employee Engagement – How to Measure Employee Engagement in the Workplace?

6. Diversity & Inclusion in Employees Improves Overall Reputation

Your workforce diversity improves the overall reputation of your organization. Giving opportunities to every diverse section of society for work shows the noble ethics of the organization. This helps society function more fairly and hence improves your organization’s overall reputation.

7. Enhances Overall Business Performance

Employee Diversity enhances overall Business performance. As per a study by McKinsey, companies with gender diversity in management were 15% more eligible to outperform financially whereas companies with ethnic and racial managerial diversity had 35% chances of outperforming.
As per a Harvard Business Review, more diverse companies generate 19% higher revenue.

8. Faster and Better Problem Solving

Problem-solving was improved through employee diversity. As per research in 2017, decision-making and problem-solving have proven to be faster and easier in the case of organizations promoting employee diversity.
A study shows that a diverse team makes 60% faster decisions than non-diverse teams whereas teams with age, gender, and geographic diversity make the right decision 87% of the time than 58% in the case of all-male teams.

9. Reduced Employee Turnover

A happy and satisfied workforce leads to less employee turnover and hence more retention.
Diversity and inclusion in the workplace cause employees to feel more accepted and valued. This makes employees feel committed and generates a sense of belonging to the organization.

To put it in a nutshell, diversity and inclusion are beneficial for employee retention.


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How does Diversity help Organizations?

Diversity can bring many benefits to organizations. Here are some of how diversity can help organizations:

  1. Increased Innovation and Creativity: A diverse workforce can bring different perspectives, experiences, and skills to the table, leading to new and innovative ideas.
  2. Better Problem Solving: Diverse teams can approach problems from different angles, leading to more comprehensive solutions.
  3. Improved Decision Making: When teams are diverse, they can draw from a wider range of experiences and knowledge, which can lead to better decision-making.
  4. Increased Adaptability: A diverse workforce can better adapt to changes in the market or industry, as they can draw from a wider range of experiences and skills.
  5. Improved Customer Satisfaction: When organizations have a diverse workforce, they can better understand and serve a diverse customer base, leading to increased customer satisfaction.
  6. Enhanced Reputation: Organizations that embrace diversity and promote inclusion can build a positive reputation as socially responsible and progressive employers.
    Overall, the benefits of employee diversity to an organization include increased innovation, better problem-solving, improved decision-making, increased adaptability, improved customer satisfaction, and enhanced reputation.

Examples of Diversity Benefits at the Workplace

Below are some renowned organizations that are representing themselves as examples of diversity and inclusion:

1. AT&T

The organization has a set culture of diversity & inclusion wherein CEO and Chairman Randall Stephenson is a big advocate of diversity and inclusion for employees.
He encourages his employees to speak openly about race, sexuality, religion, etc to increase mutual understanding among employees.

2. Marriott International

Marriott has launched Serve 360 plan wherein he invested $5m for women, people with disabilities, veterans, and refugees to learn about hospitality skills.

3. Accenture PLC

Accenture includes diversity training within the organization wherein it is broken into 3 categories –

  • Diversity Awareness – To raise awareness among people about the importance and benefits of working in a diverse organization
  • Diversity Management – to help team supervisors/leaders to manage a diverse team
  • Professional Development – to develop new skills in minority groups.


The benefits of workplace diversity and inclusion in the office are not merely a trend nowadays but the needs of society altogether. Besides being a source of financial growth in an organization, the culture of employee diversity brings harmony and peace when every race, caste, and section of society is given importance.

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