Benefits Of Diversity: 8 Ways How Diversity Benefits Organizations

Diversity, in a nutshell, is the inclusion, acceptance, and tolerance of people with different abilities, characteristics more potently, people with other ideas (in case we take diversity to a grass root level), and here’s why tolerance becomes an element.

Highlighting the crux, inclusion is all, making each person in the social setup feel valued, competent, and satiated. To achieve this societal principle, society must ensure that individuals express their authentic selves with security and inherent worthwhile thriving. 

Diversity encompasses a plethora of dimensions such as ethnicity, race, age, style, gender, personality, beliefs, experiences, and sexual orientation. These are concluded under the psychological, physical, and social differences among all individuals in the community. An attached syllable with Diversity is Equity.

Diversity – An Underrated Boon

In a globalized setup, the inclusivity and acceptance of distinction are often amiss. An unarguable fact stands the ground that diversity, although opposed in an incognito sphere, is supremely vital for any civilization. Despite the endurance, it carves its way through. Essentially, diversity is an undisputed and unrivaled phenomenon that is bound to happen irrespectively.

What Distinguishes Equity from Diversity?

Equity offers a level playing field. In other words, for diversity to be holistic, equity needs to be ensured. It guarantees fair opportunity and accessibility with dignified treatment. This is important when a community (not communal-read as a society) strives to eliminate systematic barriers that prevent full and voluntary participation.

Disparities turned discrimination can be of various forms; more commonly, they emerge as-

  • Bullying
  • Harassment 
  • Victimization
  • Exclusion
  • Verbal abuse and Derogatory remarks
  • Anti-semitic remarks

This multifaceted term has broadly four types:

  • Internal
  • External
  • Organizational
  • World view diversity

Coming to a pivotal plot, diversity in America, specifically in North America, is associated with Racial Diversity creeping into workplace disparities, which is a complex problem to address.

Significance in American Context

The white Non-Hispanic are the majority in the USA. People belonging to other races are often called “minorities.” Hispanics and Latino Americans constitute the second-largest groups, followed by African Americans and Asians. At the same time, other racial groups are Native Americans, Alaskan Natives, Native Hawaiians, and Pacific Islanders. No water-tight boundaries. Many Americans are of mixed race.

Nevertheless, America continued to recognize diversity, as it is often described as a ‘Nation of immigrants’ or fondly ‘Melting Pot’. The other confrontation is about the ‘generation gap’ that exists in the country. 

Any law-abiding corporation under the US Equal Employment Opportunity Commission is not allowed to discriminate against the elderly. That is because they possess the same chance if they are otherwise qualified to work. To gauge a wise understanding, have a look at the report on Diversity in the United States (

Diversity in the Workplace

It is often said that when morality goes out, legality flows in from the window. While there are various preventive acts, policies, and law bodies, apart from the established law that abolishes discrimination, this bias is widely practiced. 

But fortunately, there are inbuilt revolutions that are being witnessed amongst the organizations. 

Corporations have discerned why diversity is not just politically correct as an end objective but also offers innumerable benefits to the company’s profitability, efficiency, and productivity. 

How is Diversity Beneficial?

  1. Generates Different Ideas and Perspectives

People from diverse backgrounds bring new ideas to the table, display immense skills, and execute strategies in distinguished manners. Thus, enjoy a more excellent representation in global markets.

  1. Increase Profits

A survey conducted in 2013 concluded that 48% of the companies possessing a more diverse employee pool increased their market share from the previous year, thereby boosting their profitability.

  1. Improves Employee Engagement

Diversity entails cultural learning, primarily through sharing of experience. This engagement boosts employee motivation, in turn enhancing work performance. 

  1. Reduces Employee Turnover

The employee combination radically reduces the chance of employee turnover as experienced candidates get chosen for the positions. According to a poll survey, 57% of employees preferred for their workplace to be more multicultural.

  1. Increases a Company’s Reputation

The threshold of any business is organizational reputation, a diverse workforce that makes it inclusive and socially responsible. A more diverse culture in the organization creates a good and healthy reputation. Organizations that are more diverse are up to 120 percent more likely to meet their financial targets.

  1. Boosts Problem-solving Ability

Inefficient problem resolution can delay the workflow. According to several studies, a diverse team has a better chance of resolving problems efficiently since they rely on the backdrop of life experiences that enables them to conceptualize a solution in a shorter time.

  1. Sparks Innovation

A diverse pool stamps an inclusive cosmos making the company innovative and technologically advanced by taking feedback and suggestions. A study shows that 61% of employees have personally observed or experienced workplace prejudice. 

  1. Abates Language Barriers

Language barriers can prevent a business from expanding globally. On the other hand, culturally prosperous organizations can overcome these language barriers. This aids them to develop both locally and internationally and it potentially increases the client base while enhancing the global image.

Considering, there lies a bone of contention while distinguishing between meritocracy and diversity pronounced discrimination. Meritocracy provides opportunities as per the law of the market, where the qualified people have more arenas without quotas and categories. In contrast, discrimination creates mediocracy.

A Relative Case Study

What Stirred the ‘Silenced No More’ Act?

Ifeoma Ozoma, a global policy administrator at Pinterest, decided to go public with her encounter with racism and financial discrimination in June 2020. Since the company had put out statements proclaiming “Black Lives Matter,” Ozoma faced legal hurdles in sharing her story due to a restrictive non-disclosure agreement. 

As an outcome, California produced a bill known as the “Silenced No More Act,” making it easier for workers to speak up about racism, harassment, and other workplace abuse. This will be done by preventing companies from enforcing non-disclosure agreements and non-disparagement clauses against reports of the cases as mentioned above. 


It presumes – Personal development; awareness of other cultures; smashes stereotypes; breeds productivity leading to exponential expansion; multi-cultural exchange of ideas; prepares one to be a part of Global Society; creates Millennials (Example – P&G, Estee Lauder); increased acceptance and tolerance; fosters Camaraderie; local market knowledge increases;  enhances cultural sensitivity.

Challenges Posed

In this case, as mentioned above, the challenges of diversity are well expressed. A more excellent in-depth look would constitute- Suppression of voices, professional communication; navigating visa requirements; understanding employment laws and the cost of accommodating workplace requisites, misunderstanding of professional etiquette, and conflicting working styles.

Survey Findings

The US welcomes the cultural diversity of its people. According to the Pew Research Center, 58% of Americans believe that increased diversity makes their country a better place. Significantly, this is 22% higher than any of the other ten countries included in the survey. 

Bottom Line

When the benefits of diversity are previewed, it becomes clear why international organizations are focusing on a culturally and socially inclusive workforce. Diversity being a significant milestone offers a chance to make a difference in every community established. It provides the essence of a multilateral world and the vital connection with people from all walks of life. Diversity is, simply put, an ongoing era! 

Related Content


Impactly’s online sexual harassment and diversity, equity & inclusion training packages are used by hundreds of organizations across the country. Impactly is powered by Get Inclusive, one of the largest providers of prevention and compliance training for colleges and universities.