Why diversity in the workplace is important

Diversity involves cultivating a workplace culture that values a range of perspectives and experiences. For an organization to truly thrive, it must not only serve its communities but also reflect their demographic composition. This connection between diversity and inclusion is essential for ensuring fair representation and fostering a workplace where all voices are heard.

To achieve this, data plays a critical role. The saying "What does not get measured does not count" emphasizes the importance of tracking key metrics. Without measurable data, organizations cannot effectively address issues like inequality or bias.

People analytics is a powerful tool that enables organizations to uncover hidden biases, assess demographic gaps, and implement policies that promote equity. By leveraging data, organizations can align their diversity efforts with business objectives, ensuring that resources are invested where they can have the greatest impact. This approach not only improves decision-making but also helps create a more inclusive and equitable workplace.

Different Types of Diversity in the Workplace

Workplace diversity is a broad concept that encompasses various types of diversity. Understanding these different types can help organizations foster a more inclusive culture.

1. Internal Diversity

Internal diversity refers to characteristics that a person is born with or cannot change. These traits are inherent to the individual and are often permanent. Some examples include: race and ethnicity,  gender, age, disability.

2. External Diversity

External diversity includes traits that a person can change throughout their life, often shaped by their experiences, choices, or environments. Examples include: education, socioeconomic status, geographic location, religion.

3. Organizational Diversity

Organizational diversity refers to differences within the workplace structure or employee roles. These differences are often shaped by the company's design and job functions. Examples include: job function, seniority level, departmental diversity.

4. Worldview Diversity

Worldview diversity covers the unique perspectives and mindsets shaped by a person’s life experiences, beliefs, and values. This type of diversity can influence how people approach problem-solving, decision-making, and collaboration. Examples include: cultural background, political beliefs, life experiences.

Data-Driven Inclusion Example

A strong example of how data and diversity analytics can drive meaningful change in an organization is Google's approach to employee turnover, particularly in addressing gender inequality. Like many large companies, Google initially noticed a gender gap in turnover rates—women were leaving the company at twice the rate of the average employee. Instead of accepting this at face value, Google used data analytics through its People Operations department to dig deeper into the issue.

The data revealed that the problem wasn't just a "gender gap" but specifically a "parent gap." Young mothers, in particular, were more likely to leave the company. Armed with this insight, Google implemented a more robust maternity and paternity leave policy. Instead of the industry-standard twelve weeks, Google offered new mothers five months of paid leave and extended paternity leave to seven weeks. The result was immediate: turnover rates among new mothers dropped to match the company average.

How to Incorporate Diversity and Inclusion in the Workplace

Creating an inclusive workplace that incorporates various types of diversity requires intentional effort and a commitment to ongoing improvement. Here are a few ways to promote diversity and inclusion in the workplace:

1. Develop a Clear Diversity, Equity, and Inclusion (DEI) Strategy

Establish a comprehensive DEI strategy that outlines your organization's commitment to fostering diversity. This includes setting goals, tracking progress, and communicating the importance of diversity to all employees.

2. Create an Inclusive Hiring Process

Ensure that your recruitment and hiring processes are inclusive and free from bias. This includes using diverse interview panels, offering equal opportunities, and sourcing candidates from a wide variety of backgrounds.

3. Promote Open Dialogue and Respect

Encourage open conversations about diversity and inclusion in the workplace. Create a safe environment where employees feel comfortable sharing their experiences, ideas, and concerns.

4. Offer Flexible Work Policies

Accommodate the needs of diverse employees by offering flexible work arrangements, such as remote work options, flexible schedules, and inclusive benefits packages.

5. Celebrate Diversity

Celebrate and acknowledge diversity through events, programs, and initiatives. Whether through cultural awareness days or diversity-focused discussions, these activities help build a sense of community and belonging among employees.

Conclusion:  How can a small or medium-sized business increase its diversity? 

Diversity in the workplace goes beyond meeting compliance requirements. It enhances creativity, drives innovation, improves decision-making, and fosters a more inclusive and productive work environment. By embracing the different kinds of diversity—internal, external, organizational, and worldview—companies can create a culture that empowers employees, attracts top talent, and drives long-term success.

Begin by identifying individuals or groups that are not currently represented within the organization; this can serve as an excellent starting point for enhancing diversity. Examine the similarities among your employees and consider whether there are other viewpoints that could be included. Actively pursuing perspectives that differ from your own is a productive way to begin this process.

This article is inspired by the following resources:

Bohnet, I. (2016). What works: Gender equality by design. Harvard University Press.

McKinsey & Company. (2020, May 19). Diversity wins: How inclusion matters.