15 Great Benefits of Diverse Culture and Inclusion in the Workplace

Cultural diversity and equity in the workplace are more than just buzzwords. Gartner research found that a diverse workforce increases performance by 12%. 20% more employees working for companies employing staff from various backgrounds report that they intend to stay put.

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Diversity and Inclusion in the Workplace with Employees

What is Equity, Diversity, and Inclusion in the Workplace?

Diversity and inclusion are interconnected ideas. They are not, however, interchangeable. Diversity concerns itself with the make-up of the workplace. Inclusion is about how well the perspectives and contributions of different groups of employees are valued and integrated.

If a company employs people from several groups (men, women, Millennials, Gen X, Baby Boomers, and different religious beliefs, races, sexual orientations, etc.), it can say that it is diverse. However, that company must also value all employee perspectives equally if it wants to call itself inclusive. Inclusivity also means having women make up a significant number of management positions within the company. The business is not inclusive if most of the workers are female, but all the managers are men.

Equity in the workplace is something that stems from establishing a diverse and inclusive workplace. It is more than simply establishing pay equity (equal pay for equal work). Equity also includes offering equal training opportunities, success, and promotion to higher-level positions within the company:

  • All employees should be offered the same opportunities to learn and better themselves so that they can move on to better jobs.
  • Mentorship programs should be available to everyone.
  • Scholarships or tuition reimbursement programs should also be made available to all employees.
  • Managers need to be held responsible for distributing equitable bonuses to team members. If the system is not impartial, then it is not suitable for the company.

Read more: 20 Ideas to Improve Equity, Diversity and Inclusion in the Workplace

1. Ethnic diversity leads to more creative ideas and problem-solving

When teams are made up of people from various backgrounds and age groups, they bring their experiences and outlooks to the table at work. Each person can contribute to discussions from their perspective. Having several points of view means team members will build off each other’s ideas in a more creative way than if everyone approaches a problem or an idea from precisely the same perspective.

Giving each person the opportunity to participate in conversations results in more creative ideas and better problem-solving. It’s easy to focus on group members who are the loudest and ignore quieter individuals. Find a way to enable everyone to participate in a way that they can feel proud about.

2. Top candidates are attracted to companies with an inclusive workplace culture

Companies that encourage diversity and inclusion have a much greater chance of attracting and hiring high-quality candidates. These talented individuals are more likely to be a good fit for available jobs and the company culture.

Job candidates are researching potential employers to find ones that will be the best fit. Diversity is high on candidates’ list of desirable characteristics when looking for a new job, with more than three-quarters of job seekers stating it is an essential factor:

  • 32% of employees and job candidates said they would not apply to a company where there was little diversity in the workforce.
  • Among Black job candidates and employees, the figure is higher at 41% than white candidates (30%).
  • Diversity in the workplace is essential to LGBTQ job candidates and workers. 41% of this community said it was important to them, compared to 32% of non-LGBTQ job candidates and workers.


3. The company gains a better understanding of customers from specific markets

Companies that employ diverse teams of workers have an advantage over ones with a less diverse workforce. They can communicate more efficiently with customers from specific communities.

For example, if a company hires employees within the Latino community, these employees will have insight into Latino customer habits, regional and cultural differences. The Latino employees can also offer the sales and marketing department tips about the best ways to reach these customers. The company may be looking at an entirely new market segment it had not previously targeted for its products and services.

4. An inclusive company finds it easier to attract international customers

Building an international business may not be the first benefit that comes to mind when you think about the benefits of equality, diversity, and inclusion in the workplace. Connecting with a prospect is the first step toward a successful sale. People of color may feel more comfortable buying goods and services from a company that hires employees who look like them.

Recruiting diverse individuals from various backgrounds means your business will be ready to serve customers from all over the globe. Team members can work remotely, communicate with local buyers, and sell products from locations worldwide.

An employee experience platform allows workers to communicate with customers and each other in their choice of language, from wherever they are located. An internal communication solution allows employees to get to know each other even when they do not work in the same office.

5. Companies with ethnic diversity can potentially offer a wider range of goods

Many companies are taking a global approach to the types of products they offer to their customers. Hiring employees with various backgrounds means that employees can have input when the company is selecting products for sale since they know which items genuinely reflect their customs and culture.

The company can expand its product line to appeal to a wider variety of customers from different backgrounds. In consulting with employees who are members of specific communities, the company will gain a reputation for offering quality products that appeal to a wide variety of groups.

6. The company gains a reputation for being more socially responsible and humane

Businesses with a diverse workforce or who make a concerted effort to advocate for diversity and inclusion are seen by their customers as more socially responsible and humane.

Making a point of hiring employees from diverse backgrounds makes it easier for your customers to interact with team members. The customers know that there is someone at the company who understands their needs and their expectations. Customers may feel more comfortable interacting with those team members when they are making their buying decisions. For some buyers, the knowledge that the company promotes inclusion may make them feel comfortable doing business with that firm.

7. Inclusive companies build trust among workers

Companies that create an environment where everyone feels safe enough to express their opinions freely and honestly have a definite advantage over their competition. Their employees trust the management enough to express themselves honestly. The employees are comfortable with being vulnerable and seeing their colleagues in the same state.

That is the point where the most creative ideas are shared. When people hold back from sharing what they are really thinking, they rob their employer and themselves of some of their best ideas. Some people get very anxious, believing they will be laughed at for their opinions or rejected by their workgroup.

If they are in an environment where the group considers all ideas, nothing gets dismissed out of hand, and then group members feel free to share their thoughts. The company benefits from more creative ideas, and employees benefit from learning how to be patient and tolerant of each other’s points of view.


Inclusion and Diversity Community - LumApps Platform

Inclusion and Diversity Community – LumApps Platform

8. Employee engagement rates increase

Why is diversity and inclusion in the workplace important? If you create an environment where all employees feel welcomed and valued, they will do their best work. Disengaged employees cost their employers a lot of money annually. Research conducted by Gallup found that disengaged employees have 18% lower productivity, 37% higher absentee rates, and 15% lower profitability. These figures translate into a cost of 34% of the disengaged employee’s annual pay rate. In contrast, employees who feel appreciated are more satisfied with their work.

These employees are focused on their job duties and give their best effort on the job daily. They are more likely to share their ideas in team meetings and make a better effort when providing customer service. Engaged employees also share positive information about their employer on social media, attracting higher-level candidates to the company.


9. Employees perform better at work

When people feel their workplace is where they belong, they can focus on making a difference instead of feeling uncomfortable about some aspect of themselves.

We know that a sense of belonging in the workplace boosts job performance by more than half (56%). It makes sense that employees who feel that they are being treated with respect will work harder for the company than those who don’t feel their efforts are being taken seriously or that their supervisor cares about them as people.

10. The employee turnover rates drop

Employees who are happy and feel valued at work are far more likely to stay with their employer. Companies with an inclusive policy could reduce their staff turnover by as much as 50%.

The average cost of replacing an employee at various salary levels is as follows:

  • An hourly-paid Employee $1,500;
  • Technical Position 100-150% of the Employee’s Annual Salary;
  • C-suite Position Up to 213% of the Employee’s Annual Salary.

The costs of replacing an employee include recruiting and onboarding costs. Other costs associated with employee turnover include lost productivity, customer service errors, training costs, and the cultural impact on the company. When employees leave (especially when the turnover rate is high), other employees tend to feel disengaged from their work. Productivity suffers as a result, at least for a time.



Onboarding Center - LumApps Platform

Onboarding Center – LumApps Platform

11. Diversity in the workplace means employees bring a bigger pool of skills and abilities to work with them

When company employees share a similar background, they are likely to share a similar outlook when developing ideas and making decisions. In this situation, the company stays on a safe path, continuing to do what it always has done.

However, diverse teams represent the company. People raised in different parts of the country (or foreign countries), those from other age groups, gender, sexual orientation, and various educational backgrounds can all contribute to the company’s growth. Each employee brings their unique profile of skills, abilities, and experience to the company. The company now has a deeper and richer level of skills to draw on to reach its goals.

12. Cultural diversity can create more opportunities for professional and personal growth

Diverse companies attract high-caliber, ambitious job candidates. These professionals are looking for job opportunities that offer further training and opportunities for growth within the company:

  • Employees learn from colleagues from different cultures.
  • Workers share their perspectives (and traditions) as they interact through their employment.
  • These encounters lead to better understanding between people.
  • They also reduce prejudices and serve to reduce stereotypes.

In short, everyone benefits when the workplace includes people from various backgrounds and with different types of experiences.

13. It demonstrates that the company is committed to working against discrimination

As the Harvard Business Review points out, embracing diversity is often the first step toward combatting discrimination and subordination in the workplace. Diversity is a movement that requires systemic change throughout the organization.

The change has to start from the top-down if it is going to be meaningful. The leaders set the tone for the employees. It is not enough for them to give lip service to the idea of no discrimination in the workplace. They must also “walk the walk” every day in each situation they encounter. This is the only way there will be lasting change in the company.

14. Diversity improves relationships with corporate investors

Inclusion in the workplace extends into the boardroom as well as the shop floor. Corporate investors can include people from different ages, backgrounds, sexual orientations, and religious affiliations. They will, consciously or unconsciously, use these pieces of themselves to make decisions that impact the company.

The company can use its diversity as a factor when attracting new sources of funding. Investors want to put their cash into an investment they can feel good about. They want to back businesses that are progressive, good corporate citizens, and making a profit.

Voting and non-voting stockholders will feel more comfortable investing in a company with board members to whom they can relate. It may make investors choose to invest more funds or invest more often in the company.

15. Diverse companies generate more revenue

A recent study found that organizations that are “highly inclusive” can achieve these results:

  • 2.3 times more cash flow per employee;
  • 1.4 times more revenue;
  • The company is 120 times more able to meet its financial goals.

A business with engaged employees focused on doing their work well and providing the highest level of customer service is more likely to generate sales. It is also more likely to have repeat customers who will push its revenues to meet (or even exceed) its revenue goals for a stated period.

The business exists to generate income to support itself and for its owners and shareholders, if any. Cultural diversity is a powerful tool that can help to build a healthy, successful company. With all the benefits listed above, it would be a mistake not to take advantage of them.

LumApps for Employee Experience


Milton Herman
Content Writer


Corporate Culture Employee Engagement Employee Experience

Published on

December 16, 2021