An increasing number of companies are realizing the benefits of having a diverse workforce. After all, when workplace diversity mimics the diversity of the surrounding community, employees are more likely to feel like they belong and give their absolute best at work. That can lead to more innovation and greater productivity for companies.
But what exactly does “diversity” mean for companies? What does a diverse workforce look like? How do you build a more diverse workplace? And how do you know where to begin?
What is diversity at workplace?
The “diversity” definition in the context of a workplace means having employees of different backgrounds. That includes people of different races, nationalities, cultures, religions, sexual orientation, age, gender, political views, education, and socio-economic background.
Categories of workplace diversity
Workplace diversity can be thought of as falling into four general categories: internal and external, and organizational and world view.
- Internal diversity refers to characteristics with which people are born, such as their race, ethnicity, and physical ability.
- External diversity refers to characteristics that significantly influence people’s lives, such as education levels, religion, and family status.
- Organizational diversity refers to things such as job function and seniority, which are directly related to people’s roles within their companies.
- The last kind — worldview — refers to how people experience the world as a result of their past experiences, and includes things like cultural events, political beliefs, and general outlook on life.
Discussions about workplace diversity often stop at the first two categories, internal and external diversity. However, companies that take a broader approach to diversity’s meaning create spaces that are more welcoming for all kinds of people — and the varied talents and skills they can offer.
Related resource: DEI Initiatives in the Workplace
What does diversity mean for companies?
Having a diverse workforce isn’t just about caring for the people who make or break your business. In addition to greater innovation and productivity, SCORE.org lists the following benefits to having a diverse company:
- An increased ability to retain employees. People feel happier when they feel like they fit in. That means that employees are more likely to stick around long-term, resulting in rich institutional knowledge and employees who are well-positioned to mentor newer, less seasoned personnel.
- The ability to adapt to changing business needs and challenges. The more diverse your workforce, the more likely someone on your team has encountered the situation before or has the skill set needed to solve the issues at hand.
- An easier time recruiting top-notch job candidates. Having a diverse workforce encourages talent from many different backgrounds to apply. That means a bigger selection of skills sets and expertise to help you fill open positions with the best people for the job.
- Mirror your client population. Your customers and clients are more likely to feel like they’re in the right place if they see employees who share similar backgrounds. Plus, the more diverse your team, the more likely it is there’s someone on it who knows exactly where your client is coming from.
Challenges in achieving workplace diversity
While the benefits of a diverse workforce are clear, companies often face significant challenges in achieving this goal:
- Unconscious bias: This can influence hiring decisions and workplace dynamics without anyone being aware of it.
- Resistance to change: Employees and management may resist changes to traditional practices.
- Integration issues: Ensuring that diverse employees feel included and valued in the workplace can be challenging.
- Lack of leadership support: Without strong commitment from top management, diversity initiatives can fail to take root.
- Customization and frequency of employee engagement surveys: Current engagement and DEI survey tools are often too rigid, lacking customization and the ability to conduct surveys frequently. companies that look at DEI efforts as a strategic necessity need to implement customizable engagement surveys that can be tailored to the unique culture and needs of an organization. This allows for timely, relevant insights into employee sentiment and engagement, which are critical for successful DEI initiatives.
- General inefficiencies and lack of insight: Many DEI efforts are hampered by inefficiencies and a lack of insightful data. Organizations need comprehensive DEI analytics tools that integrate seamlessly with existing HR systems in order to ensure a holistic view of the in-house DEI landscape. Decision-makers need deep insights to focus their efforts effectively and make genuine progress in creating inclusive, equitable workplaces.
Strategies for overcoming diversity challenges
To address these challenges, companies can adopt various strategies:
- Implementing diversity training programs: Regular training sessions can help employees understand and overcome unconscious biases. For instance, Deloitte’s comprehensive inclusion strategy includes training for all employees, leading to increased awareness and inclusivity.
- Developing clear diversity policies: Having well-defined policies can guide behavior and decision-making processes. Microsoft’s global diversity and inclusion strategy includes specific policies that have contributed to a more inclusive culture.
- Encouraging open communication: Creating an environment where employees feel safe to express their views can foster inclusion. IBM’s open-door policy is a good example of promoting an inclusive work environment.
- Monitoring and measuring progress with advanced technology: Using metrics to track the effectiveness of diversity initiatives can provide insights and guide adjustments. Google for example, regularly publishes its diversity report, which helps the company track progress and identify areas for improvement. Diversio offers a comprehensive, AI-powered platform that provides deep, actionable insights and real-time data to help companies navigate and manage their DEI efforts effectively. Robust data analytics enables organizations to track DEI progress, demonstrate clear, quantifiable outcomes, and adjust strategies based on data-driven insights. This approach not only ensures compliance but also builds a compelling business case for DEI by showcasing its value to stakeholders.
How can you support a diverse workforce?
Increasing your company’s employee diversity starts with a focus on how you recruit, hire, and retain new talent. ASME.org provides the following suggestions:
- Leverage diverse job boards. Advertising on job boards that serve underrepresented groups is a good way to make it clear that you want to hire them.
- Highlight your commitment to diversity on your website. Drafting a simple statement about your commitment to diversity and placing it on your career page can be a simple way to do this.
- Provide targeted internships to underrepresented groups. Similar to advertising on select job boards, actively recruiting interns from underrepresented groups is an excellent way to build diversity.
- Create an inclusion team. Shifting to a diverse workforce is too big a task for any one person to handle. Consider creating a team in charge of developing and implementing your new hiring policies and processes.
- Provide training for recruiters. Unconscious bias is a reality and can influence your recruiters without them realizing it. Providing training can increase their awareness and reduce its impact on their hiring decisions.
That may sound like a lot of work. If your company has been traditionally homogeneous, the shift to a diverse workforce could take some time and effort. The benefits, however, certainly outweigh the costs.
Related resource: Best Practices for DEI in the Workplace
How can Diversio help companies in their DEI efforts?
As companies strive to create more diverse and inclusive workplaces, the complexity and challenges of DEI management can be overwhelming. Diversio offers a cutting-edge, AI-powered DEI platform designed to address these challenges head-on, providing organizations with the tools and insights needed to implement effective DEI strategies.
Robust data analytics
One of the key advantages of Diversio’s platform is its ability to provide deep, actionable insights through robust data analytics. By integrating seamlessly with existing HR systems, Diversio pulls in a wide range of DEI-related data, offering a comprehensive view of an organization’s diversity landscape.
AI-powered analysis and recommendations
Diversio’s AI-powered Recommendation Engine™ delivers tailored recommendations based on specific organizational data, helping companies develop clear, effective diversity policies and training programs. These recommendations are designed to address unique challenges of aiming for an inclusive culture that goes beyond superficial measures.
Real-time survey data
Real-time engagement data and customizable surveys provide timely, relevant insights into employee sentiment, allowing organizations to keep a pulse on their workforce and adapt strategies as needed.
A platform to quantify the ROI of DE&I efforts
Additionally, Diversio addresses the common challenge of quantifying the return on investment (ROI) of DEI initiatives. By demonstrating clear, quantifiable outcomes, Diversio helps organizations build a compelling business case for DEI, showcasing its value in both financial terms and social impact.
Diversio has data-tested systems that use artificial intelligence and natural language processing to parse survey data into D&I metrics that help you identify the most important areas to focus on for improvement. Once identified, we partner with you to develop a custom strategy to diversify your team.
What’s next?
- If you’d like to supercharge your workplace diversity efforts, get in touch to book a demo and find out how Diversio can help you.
- Check out our industry-specific DEI guides.
