Is your work environment getting more diverse? Do you collaborate with those who have different genders, ages, religions, ethnicities, cultural backgrounds, or sexual orientations? Although the recruitment of people of color in the U.S. workforce has increased by 26% since 1999*, there is still a long way before seeing all minorities equally represented at work. But the many benefits of diversity in the workplace might encourage organizations to understand the influence of DEI initiatives better. The perks of having different communities working together go beyond ethics. It helps your business thrive. Moreover, it is a major pillar for Gen Z, the newest generation of workers. Do you want to learn more about the importance of workplace diversity and its impact on your company? Great! This is the first step towards the future of work and a more heterogeneous, fair, and inclusive work environment. Here are key statistics about this topic and six main advantages of having a diverse workforce.
The importance of workplace diversity: statistics don’t lie
What are the numbers saying about gender diversity?
Gender diversity is the oldest diversity issue in the workplace and these differences between women vs. men still persist. For a long time, female employees were less represented at work. This has now changed as 58% of the U.S. workforce are women. Although working with a mixed-gendered team is more profitable, some major disparities remain:
Women only represent 25% of C-suite and senior vice president positions.
American working-class women earn at best 81% of the wage of American working-class White men.
Businesses with gender diversity make up to 25% more profit.
How does workplace diversity impact recruitment processes?
In 2025, Millennials will represent 75% of the workforce. Meanwhile, Gen Z (people born between 1996 and 2010) have just started to take their first steps in the world of work. These two demographic groups pay very close attention to employee well-being, work satisfaction, employee centricity, sustainability in the office, and DEI initiatives. Therefore, it is fundamental for companies to meet their expectations regarding these topics to retain and attract talents from these generations. A few figures to know about are:
67% of job searchers declare diversity is one of their top priorities.
The number of DEI job openings published on Glassdoor increased by 37% between 2018 and 2019.
32% of Millennials and Gen Z expect employers to take action to improve society.
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Is building a diverse workforce a main component of success?
Success depends on multiple factors, but it always starts by focusing on employee satisfaction. Diversity in the workplace shows your people-first approach and answers the requirements of today’s workforce. Workers want to interact and collaborate with colleagues from different backgrounds and cultures. Wouldn’t you want this as well?
Organizations with cultural and ethnic diversity generate 36% more profit.
The chance of capturing new markets is 70% for organizations with a diverse workforce.
What are other key workplace diversity statistics to know?
Lately, many studies have been conducted about workplace diversity as it is a major topic for organizations. We wanted to give you a first glimpse of the results before jumping into the main benefits of diversity in the workplace. These insights are very interesting; therefore, we strongly recommend you have a deeper look at them. To do so, we have shared our sources at the end of this article. But there are three additional statistics we want to mention in case you don’t have time to read more about the importance of workplace diversity:
Diverse teams are 19% more innovative than others.
48% of Gen Z come from racial and ethnic minorities (29% Baby Boomers).
White and Asian workers earn up to 65% more than Hispanic and Black employees.
30% of LGBTQIA+ men believe their sexual orientation will negatively impact their careers.
The benefits of diversity in the workplace: six major reasons to work with a diverse team
1. Encouraging workplace DEI initiatives fosters employee satisfaction and happiness
Statistics don’t lie. When diversity, equity, and inclusion are made a priority, it fosters happiness and satisfaction. Not only does it enable minorities to succeed professionally but it also encourages all the employees to share their experiences, lift each other up, and thrive together.
If you haven’t read our articles about employee happiness and satisfaction, we strongly recommend you have a look at them. These two aspects are fundamental to triggering engagement, boosting productivity, and retaining talent. Therefore, you need to provide your staff with a working environment that matches their values, fulfils their expectations, and enhances workplace connection.
2. Building a diverse workforce improves your brand image and reputation
Brand image and reputation are two crucial aspects for growth and success. Eventually, not having a DEI approach toward your staff can severely impact your relationships with your partners, investors, customers, and potential job candidates.
Moreover, the Great Reshuffle has hit many organizations globally which completely shakes the world of work. Employees know their values and stand by them, including in their work life. Building a diverse workforce proves your dedication to making your company a better place for everyone.
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3. How the benefits of diversity in the workplace allow for a wider pool of recruitment
Limiting your research to a certain demographic group reduces your opportunities of meeting the best person to fill your job opening. However, opening your recruitment process to everyone, no matter their gender, age, culture, religion, sexual orientation, and ethnicity, gives you a much better chance to find the perfect match.
Focusing more on worker experience and bringing more diversity to the workplace can trigger new challenges for HR departments. Yet, it also facilitates their job in terms of recruiting, answering employees’ expectations, and retaining as well as attracting talents.
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4. Promoting the importance of workplace diversity meets Millennials’ and Gen-Z’s expectations
The invention of the Internet has exposed Millennials and Gen Z to much more information about other cultures and global issues than other generations. They also travel a lot more than Gen X or Baby Boomers and are therefore more open-minded about others. These workers are very sensitive to diversity, equity, and inclusion both in their personal and professional lives. From their point of view, a company that neither promotes DEI practices nor acts to create a better workplace for minorities is unattractive. According to the Glassdoor 2020 Diversity and Inclusion Survey, 32% of job seekers would deny a position at an organization that lacks diversity.
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5. Creating a diverse team makes your business thrive
Having a multigenerational workforce is a huge plus for organizations, but the same goes for teams composed of people with different gender, culture, religion, sexual orientation, and ethnicity. As a group, it improves general efficiency, problem-solving, decision-making, and innovation.
All of these people have had various (personal and professional) experiences in their lives, therefore, they all have different visions and ideas. It opens your business to new perspectives and opportunities to grow and thrive.
Additionally, employees evolving in an inclusive and diverse company tend to feel better at work. Employee well-being and happiness are also two fundamental aspects to fostering an engaged, loyal, and productive team!
6. Building more diversity in the workplace increases business profits
As statistics reveal, gender diversity increases profit by 25%, and this number is even higher when it applies to leadership positions. A workforce with cultural and ethnic diversity is 36% more profitable. But why is this? This results from all the benefits of diversity in the workplace listed above. Workplace diversity improves employee happiness, satisfaction, performance, retention, and attraction (among others). We always say that your workforce is the backbone of your company. They can either make it succeed or fail. Obviously, if you focus on ticking as many of the employees’ expectations boxes as you can, you have a big chance of seeing your business thrive!
The benefits of diversity in the workplace can have a massive impact on how well your business thrives. It creates a positive and healthy work environment, fulfils the needs of the modern workforce, and helps your company grow! Not only does it expand from an HR perspective, but it also boosts your outcomes in terms of finance and performance. The importance of workplace diversity is no longer an option. Do you want to know another key aspect that fosters employee satisfaction among Millennials and Gen Z? Work flexibility! Request a free demo of the deskbird app and discover the best workplace management platform for hybrid teams!
*All the data mentioned in this article comes from the following sources: