Diversity and inclusion

in the workplace:
Benefits and
challenges
by Kellie Wong

Updated on March 25, 2024

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The positive impact of diversity and inclusion is profound.

According to Deloitte, diverse companies enjoy 2.3 times higher cash

flow per employee and Gartner found that inclusive teams improve
team performance by up to 30 percent in high-diversity environments.
Yet only 40 percent of employees agree that their manager fosters an
inclusive environment.

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culture of belonging

Find the belonging whitepaper

Popular HR influencer, Brene Brown, says, “we need to do more than

diversity and equity and inclusion. We need to create real belonging
in our culture.” In her own business, Brown has reframed diversity,
equity and inclusion (DEI) efforts as DEIB, which stands for Diversity,
Equity, Inclusion and Belonging. Our philosophy on D&I is rooted in
two themes: connection and belonging. These elements must go hand-
in-hand in the workplace in order to truly make an impact.

IN THIS ARTICLE:

1. What is diversity and inclusion?

2. What is belonging in the workplace?
3. Benefits of diversity and inclusion at work
4. What are examples of DEI?
5. What are 4 types of diversity in the workplace?
6. What are the 4 pillars of diversity and inclusion?
7. What are the core values of diversity and inclusion?
8. Challenges of diversity and inclusion
9. How to foster diversity in the workplace

What is diversity and

inclusion?
Diversity and inclusion is an organization’s effort, policies, and
practices that ensure different groups or individuals of different
backgrounds are culturally and socially accepted and integrated into
the workplace. An organization that focuses on diversity and
inclusion will employ a diverse team of people that reflects the
society in which it operates.
Diversity refers to political beliefs, race, culture, sexual orientation,
religion, class, and/or gender identity differences. In the workplace,
diversity means your staff consists of individuals who bring new
perspectives and backgrounds to the table.
Inclusion means that everyone in the diverse mix feels involved,
valued, respected, treated fairly, and embedded in your
culture. Empowering all employees and recognizing their special talents
is part of creating an inclusive company.
Both aspects of D&I are important 一 diversity without inclusion can
result in a toxic culture, and inclusion without diversity can make a
company stagnant and uncreative. Companies are starting to focus
more on diversity, but many disregard the inclusion piece of the
puzzle. Without a concerted effort towards both inclusion and
diversity, your workforce will feel out of place and unsupported.
The Quick Guide to Diversity and Inclusion in the Workplace
What is DEI&B?

DEI&B stands for diversity, equity, inclusion, and belonging. In the

workplace, these are organizational values demonstrated through
hiring individuals of different backgrounds and perspectives and
encouraging their participation and success. Diversity includes equal
representation of different ethnicities, ages, genders.

What is belonging in the

workplace?
The Achievers Workforce Institute defines belonging as an
experience of connection, security, and community — it’s about
feeling at home in one’s place, without reservation. A true sense of
belonging at work is the deepest outcome measure of engagement.
Benefits of diversity and
inclusion at work
 Bigger talent pool
 Increased employee engagement and trust
 New perspectives and innovation
 Better decision-making
 Improved performance
 Stronger business results and profits
A diverse and inclusive environment establishes a sense of
belonging among employees, making them feel more connected and
productive. Organizations that adopt D&I practices see huge gains in
the form of business results, innovation, and decision-making.

Bigger talent pool

Expanding your recruitment searches to more diverse candidates—including

background, ethnicity, age, etc.—widens your talent pool and
increases your chances of finding the best hire.
Diversity will improve your current business and 67 percent of
workers consider diversity when seeking employment. Hiring more
diverse individuals is crucial in attracting more interested, qualified
applicants.
Increased employee engagement and trust

When employees feel included, they’re more engaged and go the

extra mile for the organization, having a ripple effect on profitability,
team morale, and retention. People working in inclusive workplaces
also tend to have better physical and mental health and take less leave for
health issues. When companies support D&I initiatives, a whopping
83 percent of millennials are actively engaged in their work.
What’s more, by building an inclusive work environment, you can
instill greater trust between employees and leadership. Since only 1 in
5 HR and engagement leaders agree that their employees deeply trust
their company leaders, teaching leaders to recognize and reward
employees for doing their best work can alleviate this issue. To be
truly inclusive, all employees must recognize each other.
Learn how to strengthen engagement and facilitate trust with your workforce

Understand the mechanisms behind a

successful Diversity, Equity, and Inclusion
program

Create a culture of belonging

New perspectives and innovation

The Harvard Business Review found a statistically significant

relationship between diversity and innovation outcomes. The most diverse
enterprises — in terms of migration, industry, career path, gender,
education, age — were also the most innovative, as measured by
their revenue mix. Diverse teams can also better identify products and
services that fit the needs of emerging customer profiles.
Better decision-making

Diverse teams make better decisions. Cloverpop, an online decision-

making platform, examined 600 business decisions made by 200
teams. They found that diverse teams have a 60 percent improvement
in decision-making. In particular, gender-diverse teams outperformed
individual decision makers 73 percent of the time, and teams
diverse in geography, gender, and age made better business
decisions than individuals 87 percent of the time.
Improved performance

Diversity is a competitive differentiator 一 McKinsey found that for

every 10 percent increase in gender diversity, EBIT rose by 3.5
percent. Companies with significantly more racial and ethnic diversity
are 35 percent more likely to outperform competitors. Harvard
Business Review also discovered that diverse companies are 70
percent more likely to capture new markets, which, in turn, yields higher
performance.
Stronger business results and profits

Harvard Business Review found that more diverse companies

report 19 percent higher revenue. Additionally, businesses that are in
the top quartile for racial, ethnic, and gender diversity have a 25
percent greater likelihood of being more profitable than the national
median for their respective industry. This is especially true
during times of crisis. Great Place to Work assessed hundreds of
publicly traded companies before, during, and after a recession.
Highly diverse, inclusive companies experienced a 14.4 percent
gain while the S&P 500 saw a 35.5 percent decline in stock
performance.
What are examples of DEI?
Bringing DEI to life within your organization can take on various
forms. Examples include:

 Celebrating diverse holidays and important dates for different

employee groups
 An address/statement to employees from the CEO/senior
leadership team
 Creating mentorship programs for underrepresented groups
 Publishing content or a video on diversity in your workplace on
your website or social channels
 Revising your employee value proposition to include a focus on
DEI

What are 4 types of diversity

in the workplace?
The four types of diversity in the workplace are:

1. Internal: Situations that a person is born into

2. External: Things related to a person but aren’t characteristics
they were born with
3. Organizational: Differences between people that are assigned
to them by an organization
4. Worldview: A multitude of factors (including the above) that
come together to form our worldview
It’s important for an organization to understand and address each of
these areas to better address diversity in the workplace.

What are the 4 pillars of

diversity and inclusion?
To nurture and drive diversity, equity, and inclusion in the
workplace, it’s important to have a framework that clearly guides an
organization’s efforts. The four key pillars to include in your strategy
should be:

1. Community
2. Growth
3. Education
4. Engagement

How to Combine Recognition and Diversity &

Inclusion for the Best Results

See the diversity webinar

What are the core values of
diversity and inclusion?
Equity and connection are values at the heart of diversity and
inclusion. At its core, diversity and inclusion is intended to support
different groups of individuals, such as those from different races,
ethnicities, religions, abilities, genders, and sexual orientations.
Many organizations build their diversity and inclusion values and
strategies into their overarching core company values, so that they are
an intrinsic part of the organization’s guiding principles.
Challenges of diversity and
inclusion
Creating a diverse and inclusive workplace is easier said than done.
Below are some of the top challenges that organizations face when
it comes to leveling up their diversity and inclusion strategies.
Leadership involvement

D&I initiatives must align with your organizational goals and values.
A study of Fortune 1000 companies showed that 41 percent of
respondents said their organizations had very informal diversity
efforts with no structure because they’re “too busy”. Organizational
change begins at the top. Upper management needs to allocate
resources to D&I efforts, even in the face of uncertainty.
Once you’ve garnered adequate support, ask critical questions
about your company’s workforce. Oftentimes, these questions bring
about tough, but necessary, conversations to drive true change.

HR department and individual managers are responsible for

enacting change and sustaining a D&I-centric culture. These groups
should receive training and present a unified front that upholds D&I
practices while measuring the company’s progress toward D&I
goals.

Measurement

The only way to know if D&I is improving in your organization is to

measure and track it. An annual survey is not enough. You need to
practice continuous listening and collect real-time insights into what
your employees are thinking and feeling.
Continuously give employees the opportunity to voice D&I concerns,
as they have an in-the-trenches view of possible conflicts that managers
may not. Use this feedback to think of new ways to incorporate
people-centric initiatives and build a trustful relationship with
employees to foster better overall performance.
Be sure to measure diversity and inclusion–related KPIs before and
after implementing each new D&I initiative. Look at the change (or lack of
change) in metrics. Coming up with diversity KPIs is relatively simple
if you break down your workforce by gender, race, geography, etc.
Inclusion is tougher to measure, but there are two key ways to do it.
First, look at the Inclusion Climate — equitable employment practices,
integration of differences, and inclusion of decision-making. Second,
measure the Perceived Group Inclusion Scale. This gauges employees’
sense of belonging and authenticity.
Remember: Gathering data is just one piece of the puzzle. You need
to follow up and take action to ensure that you’re using insights to
strengthen your approach and impact.

Find out how to fuel your HR team with data and properly measure
Intervention and training

Manager require training on D&I goals, why they’re important, and

what’s expected of managers. Leadership teams need to lead by
example, from integrating D&I into their hiring interview process to
the way they treat their fellow employees. Every manager should
build an inclusive team environment by recognizing their
biases, listening to their employees and recognizing them for their
everyday efforts. Employees too should receive D&I training to help
avoid and overcome biases.
Training sessions need to show that companies know about current
biases in the workplace and explain how your D&I program is an
opportunity for all employees to acknowledge and improve.

Silos

Many organizations struggle with silos which encourage exclusivity

rather than inclusivity, decrease productivity and productivity, etc.
Before deploying a recognition program, Meijer, a family-owned
superstore based out of the U.S. Midwest, was aware that silos could
severely hinder collaboration. After implementing their recognition
program, the strength of networks in each Meijer store location
increased.
Discover how to strengthen connections across your organization
Breaking down silos and increasing connections across your
company are instrumental in strengthening D&I throughout your
organization. Unsure where to start? Try Meijer’s approach and start
leveraging the power of employee recognition.
How to foster diversity in the
workplace
 Base standards on objective criteria
 Frequently recognize and reward employees
 Leverage tools to measure D&I
 Double down on employee resource groups or committees
 Practice psychological safety
 Gather employee feedback
 Incorporate D&I into hiring practices and beyond
 Document best practices and policies
There are myriad ways to start incorporating diversity into your
workplace. Here are a few of the ideas to get started.

Base standards on objective criteria

Objective criteria reduces the chance of bias or prejudice. Meet as a

team to openly discuss these criteria, and build collaborative actions
plans together to avoid unconscious bias as much as possible. One
way to collect everyone’s point of view is to use something like
Achiever’s Action Builder feature which allows managers and teams
to find a focus, build a plan, and collaborate on effective action.

Frequently recognize and reward employees

Appreciating employees for who they are shows that you care about
them as a person. Take full advantage of an engaging recognition and
rewards program that encourages your workforce to publicly celebrate
their peers’ strengths, but also their uniqueness. Employees should
be recognized by their c-suite, managers, and peers for everyday
wins, both small and big.
“From a leader’s perspective, a tool like recognition should be used
to promote inclusive leadership.” – How HCM Technologies Can
Scale Inclusion in the Workplace by Gartner

Recognition tools should be used to promote your company values,

especially the ones that speak to your company’s D&I initiatives.
Give your employees the ability to tie each recognition to a
particular company value supporting D&I.
Access 4 must-know tips on how to leverage recognition to boost community
Leverage tools to measure D&I

Use staple HR tools to monitor your progress toward becoming a

more inclusive, diverse company. Employee engagement software can
help you better understand your organization’s blind spots. Use your
voice of the employee solution to measure how your workforce is
feeling about current D&I initiatives and gather feedback on areas to
improve. If you have a recognition platform in place, look at your
recognition activity dashboards to immediately identify any teams
or individuals that might feel underappreciated.
Consider adding other typical D&I KPIs like the percentage of
employees belonging to minority groups, average tenure of
employees based on age or ethnicity, etc. Measure these KPIs
before and after you implement new D&I initiatives to understand
where you are improving and where you can do more.

Double down on employee resource groups or

committees

Building employee resource groups (ERG) or networks is a fantastic

way for groups of people to connect at work, especially at large
organizations in which employees can feel disconnected. For
example, consider starting a women’s network, LGBTQ+ network, or
D&I committee.

Pro tip: Jeff Cates, CEO and President of Achievers, shares 11

employee networks to consider for your company to build an inclusive
culture.
You can use your internal platform’s features to announce these
groups so employees can join, to feature upcoming events, or to
request idea submissions.

According to Jeff Cates, employee networks are “perhaps the single

greatest way to promote the type of inclusive culture that helps
people thrive and businesses stand out.” Outside of ERGs, think
about establishing a D&I steering committee that consists of
employees from all areas of the business to drive and advocate for
D&I initiatives.

Companies need to embrace D&I for an improved employee experience.

Ask yourself, “How are my employee networks and other D&I
initiatives guided by an overall D&I strategy?” As you build and grow
your employee networks, remember to focus on creating thoughtful
conversations and strategies around D&I in the workplace.
Practice psychological safety

It’s imperative that a workplace is a safe space for everyone.

Establish a culture where people feel empowered to flag situations
that are alarming, or even just uncomfortable. Workplaces that
ensure psychological safety and trust help employees to speak up.
Gather employee feedback

Surveys and continuous feedback platforms give an opportunity to hear

information directly from employees. Gathering honest feedback on
a frequent, real-time basis allows you to course-correct if something
is awry. If you’re not already, try leveraging pulse surveys to regularly
capture your employee’s input and gather the pulse of engagement.
Ask specific questions related to D&I to get employees’ thoughts on
how to build a more inclusive work environment. Be ready to take
action on feedback—this is critical for employees to provide
feedback in the future. Show them that their voices matter.
Learn how to take the pulse of employee engagement at your company
Incorporate D&I into hiring practices and
beyond

Diversity needs to be part of your hiring practices. Set up diverse

panels of interviewers who will select candidates based on skills and
experience. Train your hiring managers on unconscious bias and
what can’t be asked during an interview, such as aspects of a
candidate’s personal life or religion. Employee too should be open
and conscious of biases they might bring into a meeting or one-on-
one session with a colleague.

Consider virtual coffee chats to connect two employees at random

to meet and talk about anything they want. This helps employees
across various locations and departments get to know each other,
build meaningful relationships, and create a culture of belonging.

Document best practices and policies

A company’s policies and practices should be available to all

workers at all times. The code of conduct should be updated
regularly and outline the company’s approach to diversity and non-
discrimination. Consider adding a non-discrimination module into
your annual employee training to reinforce its importance to the
company. Other policies should clearly summarize the company’s
stances on compensation and benefits, and employment conditions
and termination.

Reap the benefits of a diverse

and inclusive workforce
Not only is D&I a move in the right direction morally, it is also smart
from a recruiting and company growth standpoint. As many as 57
percent of employees believe their companies should improve
diversity among the internal workforce. Furthermore, an increasing body of
evidence suggests that organizations that maintain their values and
commitment to employees during economic hard times are the ones
that continue to thrive.
Today, there are many tools that companies can use for D&I
initiatives. A great platform, however, tackles D&I from many angles
—it helps support your ERGs, rewards employees working on D&I
initiatives, offers public and inclusive recognition, and even infuses
specific values around D&I into your program. The platform should
also help employees feel heard and empower managers to gather
and take action on feedback, especially regarding diversity and
inclusion. The Achievers platform delivers on all fronts.
Achievers is committed to creating a culture of belonging. Our
award-winning platform is a great fit for organizations looking to
strengthen their D&I initiatives. Start reaping the benefits of the
Achievers platform by requesting a live demo.

Written by
Kellie Wong
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Matt Tenney, Author of Inspire Greatness:

How to Motivate Employees with a Simple,
Repeatable, Scalable Process

Diversity and inclusion help us create a thriving and creative

workplace. Despite recent criticisms and debates, the benefits of
both are undeniable and far-reaching. They are not mere
corporate jargon, but the bedrock of a healthy, productive, and
innovative workplace.

Diversity is about representation, about ensuring a mix of

different people in the workplace. Inclusion, on the other hand, is
about making sure these diverse individuals feel valued, heard,
and included. In the words of Vernā Myers, a renowned inclusion
advocate, “Diversity is being invited to the party; inclusion is
being asked to dance.”

When employees from various backgrounds, cultures, and

experiences come together, they bring unique perspectives that
can lead to groundbreaking ideas and solutions. The benefits to
organizations are well-known.

But diverse, inclusive work environments are just as valuable to

employees as they are to their employers.

Diversity and inclusion are important to employees

because they help employees meet their need for
belonging in the workplace. When employees feel like
they belong, they experience greater feelings of job
satisfaction and improvements in their well-being.

In this article, I’ll discuss why diversity and inclusion matter to

employees and how to make these concepts real in your
organization.
The Importance of Diversity in
the Workplace
Diversity in the workplace is more than a social responsibility or a
response to legal requirements. Diversity isn’t about ticking
boxes. And it isn’t about meeting quotas. It is a powerful driver of
innovation, effective decision-making, and organizational
reputation.

Innovation
Diversity fosters innovation. A diverse workforce brings together a
wide range of perspectives, experiences, and ideas. This variety
can spark creativity, leading to innovative solutions and
products.

When employees from different backgrounds, cultures, and

experiences collaborate, they challenge each other’s thinking,
leading to fresh insights and breakthrough ideas.

Decision Making
Diversity improves decision making and problem solving. Diverse
teams are more likely to look at facts carefully, consider a
broader range of approaches, and remain objective.

This thoroughness leads to better decision-making, helping

organizations navigate complex business landscapes.

Reputation
Diversity can significantly improve an organization’s reputation. In
today’s globalized world, customers and clients are increasingly
diverse. They want to see themselves represented in the
companies they do business with.
A diverse workforce signals to customers that the organization
values all individuals and respects differences. It’s important for
company culture, can attract a wider customer base, and fosters
customer loyalty.

Employees also value diversity and representation. They want to

work in an environment where they feel seen, heard, and valued.
When employees see that their organization is committed to
diversity, it can increase their sense of belonging and job
satisfaction.

The Role of Inclusion in

Employee Well-Being

Inclusion in the workplace is a key aspect of employee well-being.

It goes beyond simply having a diverse workforce. As a leader,
you want to ensure all employees feel valued, respected, and part
of the team. This improves morale and supports employees’
mental health.

Respect
Inclusion fosters a sense of value and respect among employees.
When employees feel included, they feel that their contributions
are valued and their individuality is respected.

This leads to increased job satisfaction and productivity.

Employees who feel included are more likely to be engaged in
their work, leading to higher performance levels.

Improves Morale
Inclusion plays a significant role in reducing employee turnover
because it improves morale. Employees are more likely to stay
with an organization where they feel included. They are less likely
to seek employment elsewhere, reducing turnover rates.

Furthermore, an inclusive environment fosters positive

relationships among employees, improving morale and creating a
more positive workplace culture.

Mental Health
Inclusive policies and practices are crucial in supporting
employees’ mental health. Inclusive workplaces are safe spaces
where employees feel comfortable expressing themselves without
fear of judgment, discrimination, or reprisals. This can reduce
stress and anxiety, leading to better mental health.

Inclusive policies such as flexible working hours, mental health

days, and support for employees with disabilities can provide
additional support for employees’ mental health.

Inclusion helps us create an environment where all employees

feel valued, respected, and supported. Recognizing and
appreciating the unique contributions each employee brings to
the table makes organizations more resilient. Inclusion is not just
good for employees; it’s good for business.
Inclusion and Neurodivergent
Employees
While discussions around diversity and inclusion frequently center
on aspects such as gender, race, ethnicity, and sexuality, the
discourse has evolved to increasingly recognize and
incorporate neurodiversity as a crucial element.

Neurodivergence refers to the natural variation in the human

brain in terms of sociability, learning, attention, mood, and other
mental functions. It includes conditions such as autism, ADHD,
dyslexia, and others. In the workplace, recognizing
neurodivergence is crucial as it broadens the understanding of
diversity and inclusion.

Neurodivergent employees often bring unique perspectives and

strengths to an organization. They may have exceptional abilities
in areas such as pattern recognition, memory, or creativity. Their
different ways of processing information can lead to innovative
solutions and ideas, contributing significantly to the organization’s
success.

However, to harness these unique abilities, it’s essential to create

an inclusive environment that supports neurodivergent
employees. This includes providing reasonable accommodations,
fostering understanding and acceptance among all employees,
and implementing inclusive hiring practices.

The inclusion of neurodivergent employees not only enriches the

diversity of the workforce but also fosters a culture of acceptance
and respect. It sends a powerful message that everyone’s
contribution is valued, leading to a more inclusive and productive
workplace.

Going Forward
As demographic shifts continue to rock the population and the
labor force, diversity and inclusion will remain strategic
imperatives for modern organizations that want to compete in an
increasingly diverse world.

Diversity brings a variety of perspectives, fostering innovation,

enhancing decision-making, and improving an organization’s
reputation. Inclusion boosts employee well-being, reduces
turnover, and supports mental health. Recognizing and
supporting neurodivergent employees enriches the workforce and
fosters a culture of acceptance for all.

To create a more inclusive work environment, organizations can

implement inclusive hiring practices, provide reasonable
accommodations, and foster an environment of understanding
and acceptance. Such an environment not only benefits
employees by making them feel valued and respected but also
benefits organizations by driving innovation and productivity.

Embracing diversity and inclusion is not just the right thing to do;
it’s the smart thing to do, and essential for long-term success in a
rapidly changing world.

Matt Tenney has been working to help organizations develop

leaders who improve employee engagement and performance
since 2012. He is the author of three leadership books, including
the groundbreaking, highly acclaimed book Inspire Greatness:
How to Motivate Employees with a Simple, Repeatable, Scalable
Process.

Matt’s ideas have been featured in major media outlets and his
clients include numerous national associations and Fortune 500
companies.
He is often invited to deliver keynote speeches at conferences
and leadership meetings, and is known for delivering valuable,
actionable insights in a way that is memorable and deeply
inspiring.

Business leadership today .com