Types of Diversity: All You Need To Know

There are different types of diversity in both societies and the workplace. Diverse businesses are more adaptive, have more steady revenue growth, and set the bar as industry leaders. Workplace diversity refers to a diverse workforce regarding color, ethnicity, gender, age, religion, physical ability, and other factors. Many HR leaders and executives support new rules and programs aimed at promoting workplace diversity. 

Internal, external, organizational, and world view diversity are the four basic categories of workplace diversity. Continue reading to learn more about each sort of variety.

Why is Diversity Important?

Workplace diversity has a strong commercial case. People are the driving force behind your company, and bringing in a diverse group of people has a good impact on your work environment, revenue, and brand reputation. Executive leaders recognize that diversity is critical to the success of their organizations and their ability to remain competitive in ever-changing markets.

Here are a few examples of how diversity affects your workplace, workforce, and bottom line:

  • More Job Applicants

Job searchers will be more interested in working for your organization, providing you with a larger pool of candidates to choose from.

  • Higher Profitability

According to ongoing McKinsey & Company studies, organizations with high levels of racial and ethnic diversity are 33-35 percent more likely to surpass their industry averages monetarily, while companies with high levels of gender diversity are 15-21 percent more likely.

  • Better Problem-solving

According to Scientific American, diverse points of view result in a more well-rounded workforce because it motivates employees to work harder, be more creative, and produce higher-quality work.

  • Larger Audience

Your varied staff demonstrates your dedication to equal opportunity, enhancing your company’s brand and allowing you to capture a larger market share.

  • Increased Employee Productivity

Employee engagement was higher at firms that embraced diversity and inclusion, according to a Deloitte survey. Employees who feel involved are more engaged, perform higher-quality work, and remain with a company longer.

  • More Innovation

Hiring people from various backgrounds allows for a range of new perspectives to be brought to the table. Different personal experiences help people make better decisions and solve problems, resulting in more creative and productive teams.

  • Increased Revenue

Diverse workforce perform better financially, which is one of the top long-term values. According to numerous studies, businesses with diverse leadership teams generate 19% more revenue and capture larger market shares. In terms of a positive brand reputation that aligns with customer values, company diversity is equally important.

  • Larger Pool of Talent

Reduce unconscious bias in the recruitment process to find the best candidates for your job openings. Recruiters can set up a blind resume assessment system while keeping an eye on their company’s particular demographics and diversity goals.

4 Common Types of Diversity

  1. Internal Diversity

What a person is born into has an impact on their internal variety. These demographics are part of a person’s inner being and are something they are born with. Race, ethnicity, age, country of origin, gender identity, sexual orientation, and physical ability are all examples of internal diversity.

While these are personal considerations, they are linked to the Universal Declaration of Human Rights’ 30 rights. An employee should not face workplace discrimination or unconscious bias because of their circumstances.

  1. External Diversity

External diversity kinds are qualities that have a strong influence on a person. These are demographics that a person can influence through external means. Education, personal experiences, socioeconomic background, spirituality, religion, citizenship, geographic location, and familial status are examples of the outward variety.

It’s worth noting that, while these kinds of external diversity can be adjusted, they’re sometimes tough to do due to the economic or political structures in place.

  1. Organizational Diversity 

The influence of diversity and a diversified work environment on the overall organization is favorable. These elements are associated with the work we do or the organizations in which we work. Job function, management rank, seniority, department, and union affiliation are all examples of organizational variety.

Because of its impact on businesses, organizational diversity is vital to track. To increase overall DEI within a company, diversity is required at every level. This means that every job function and the department is staffed with a diverse group of persons from various socioeconomic backgrounds.

  1. World View Diversity

Each of us has a unique perspective on the world that has been influenced by our experiences. On a daily level, events in our lives have an impact on our worldview diversity. Cultural events, political ideas, historical knowledge, and one’s viewpoint on life are all examples of worldview variation.

Different Types of Workplace Diversity

Many employees will have diverse global perspectives and experiences that may not feel relatable to their peers when firms enhance workplace diversity.

  1. Ethnicity and Race

When it comes to workplace diversity, race and ethnicity are critical considerations. Race refers to a person’s biological identity, including physical features such as skin color, hair type, and other physical characteristics. 

Race can impact things like life expectancy and how people are treated by the criminal justice system. On the other hand, the term “ethnicity” refers to a person’s cultural background. It covers a wide range of racial and ethnic identities. It’s about cultural or geographic history, not just biology.

  1. Generation and Age

Although it is obvious that persons of the same age group do not always think the same way, age does define some similarities. Whether deliberately or unwittingly, companies routinely engage in age bias. If you only hire from university campuses, for example, you’re ignoring older folks who could be entry-level workers. Many firms, on the other hand, only hire experienced employees based on their age, leaving out young freshers who have the necessary expertise.

  1. Gender and Gender Identity 

To be considered a gender-diverse firm, you must discuss the gender pay gap, in which women are paid less for the same job as their male counterparts, and the challenges that both genders experience when contributing to the workforce and how they might be alleviated for their employees.

  1. Sexual Orientation

Although it is personal, employees must feel free to discuss their sexuality with their coworkers without fear of discrimination or harassment.

  1. Religion and Spiritual Beliefs

Many religions are practiced and followed by people all around the world. Many employees also follow their own religious beliefs. It’s critical to be aware of your company’s religious unconscious prejudices if you want to foster diversity in the workplace.

  1. Disability

Most individuals believe that impairment is solely related to physical movement. Workers, on the other hand, may have disabilities ranging from visual and movement impairments to learning problems and mental health issues. If you wish to promote diversity, you must make accommodations for those with disabilities as productive as their peers.

  1. Background and Socioeconomic Status

Employees in a company come from various socioeconomic backgrounds and have differing perspectives on various aspects of life, such as money, social position, education, etc. It’s critical to pay attention to whether or not your company prioritizes employing employees from diverse backgrounds. You must also verify that no employee is discriminated against because of their socioeconomic standing.

Understanding the value of diversity in the workplace is critical for every company. As a leader or manager, you must ensure that your workforce is diverse and inclusive to encourage equality, employee engagement, great workplace relationships, and job satisfaction.

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