Diversity in the workplace can offer a plethora of benefits to your company, including adding the diversity of thought and general cultural intelligence to your workplace. However, there are other tangible, impactful benefits of diversity in the workplace, backed up by statistics.
We’ve compiled a list of 13 diversity in the workplace statistics that will provide you with unique insights of trends and benefits of diversity. Within each section, we’ll discuss the stat impacts business results and how you can truly value people in your organization.
Let’s get started.
Why is diversity important in the workplace?
Diversity in the workplace is essential for several reasons.
First, it helps to ensure that all voices and different perspectives are represented and heard. This can be especially important in decision-making situations. In addition, a diverse workforce can help to foster a climate of creativity and innovation. When people with different backgrounds and experiences come together, they can share ideas and find new solutions to problems.
Diversity can also help businesses better reflect the communities they serve. By hiring a diverse workforce, companies can send a message that they value inclusion and respect for all. Diversity is an essential component of any thriving business.
Finally, as we’ll discuss in upcoming sections, diversity can have a positive impact on your business’ profits.
13 Useful diversity in the workplace statistics
All of this belief is backed up by raw statistics that prove the benefits of diversity in the workplace. We’ll break these statistics down into categories (benefits, trends, gender, etc.), and discuss how they can be of service to your business.
Benefits of diversity in the workplace statistics
1. Companies with diverse executive leadership and board teams earn more in profits.
According to a 2021 McKinsey study, companies with diverse boards and executive leadership earn more in profits.
Specifically, companies in the top 25 percent in gender diversity were likely to out-earn companies in the bottom 25 percent in gender diversity by… 25%. Also, the top ethnically and culturally diverse companies out-profited the least ethnically and culturally diverse companies by 36%.
Companies need to make an effort to recruit board members and executive leadership from a range of backgrounds. While contributing to the diversity of thought in the most important space, it also clearly leads to better results financially.
2. Diverse businesses can capture new markets better
According to a 2013 study, more diverse companies are 70% more likely to enter and capture new markets.
One the reasons is because diverse management teams can better identify opportunities and solve problems. The diversity of thought leads to a diversity of ideas on how to capture new markets. To take advantage of this, companies need to ensure that they are recruiting and promoting from various backgrounds.
Additionally, they must create an inclusive environment where all employees feel comfortable sharing their ideas. By prioritizing diversity, companies can position themselves to succeed in today’s global marketplace.
3. Diverse companies produce higher innovation revenues
A 2020 study found that companies with more diversity had 19% higher innovation revenues. This showcases the connection between diversity and innovation.
The explanation for this? The study said that “increasing the diversity of leadership teams leads to more and better innovation and improved financial performance.” Highly innovative teams bring new ideas into being faster through brainstorming sessions and exchanges of differing perspectives on problems or projects. However, these insights can only occur when there’s full representation across racial, gender, ethnic, and cultural lines.
Diversity trends in the workplace statistics
4. By 2044, minority groups will reach majority status
This shift has far-reaching implications for businesses, which must adapt their diversity practices to reflect the country’s changing demographics.
While 2044 may seem a long way off, businesses must start making these changes (if they haven’t already) to stay ahead of the curve. By preparing for the future and making their operations more inclusive, companies can position themselves to succeed in an increasingly diverse America.
General population info
5. Racial and ethnic minorities make up 48% of Gen Z
According to a report from Pew Research Center, nearly half of Gen Zers (people born between the mid-1990s to mid-2010s) are non-white.
As the workforce grows increasingly diverse by the generation, companies must do more to ensure that their teams reflect the society they operate in. Gen Z is already pushing companies to do this, as we’ve discussed in a previous article. More than 80% of Gen Zers surveyed by Monster said a company’s commitment to diversity practices was “important when choosing an employer.” Another poll found 75% of people in Gen Z would reconsider applying at a company if they weren’t satisfied with their diversity and inclusion efforts.
This statistic is a powerful reminder that the needs of minority groups must be considered when making decisions about company policies and practices. By prioritizing diversity, equity, and inclusion, organizations can stay ahead of the curve and position themselves for success in the 21st century.
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6. According to the 2020 Census, whites and non-Hispanics are shrinking
In 2020 in the United States, individuals who self-identify as white or non-Hispanic dropped below 58% of the population for the first time in history. It fell from 63.7% in 2010.
This shift is driven by several factors, including immigration, fertility rates, and population aging. Consequently, we can expect the workforce to become increasingly diverse in the years to come.
This shift has profound implications for businesses and organizations across the country. As the workforce becomes more diverse, companies must ensure that their policies and practices are inclusive of all employees from all backgrounds. This includes everything from ensuring job descriptions are free of bias to offering training on unconscious bias and cross-cultural communication.
The benefits of such diversity are well-documented. A more diverse workforce can lead to improved creativity and innovation and a better understanding of and sensitivity to different cultures. In an increasingly global economy, these are invaluable skills.
Gender diversity in the workplace statistics
7. Organizations with an equal number of men and women generate up to 41% more revenue
We’ve discussed how general diversity is good for business, but this stat hammers down how gender diversity and equality can impact profits.
Companies should invest in gender diversity initiatives and promoting women to leadership positions across their company.
8. Women are underrepresented at every level of the corporate ladder
According to a 2021 study by McKinsey, “women remain underrepresented across the corporate level.” The worst levels of underrepresentation come at the C-suite and senior vice president level, where women make up between 25% and 30% of all positions despite making up just over half of the workforce. Gains have been made from 2016 to 2021, but nevertheless, underrepresentation is present across the board.
By understanding that there is a general underrepresentation of women at many levels of an organization, companies can take steps to address the issue. This will include implementing policies that promote equal pay for work, better parental accommodations, and more.
Racial/Ethnic diversity in the workplace statistics
9. White job seekers are 2.1% likelier to receive an interview callback than black applicants
This statistic is a harsh reality of today’s job market. (The study surveyed over 83,000 job applicants–a large pool.) Studies have consistently shown that white job seekers are more likely to receive interview callbacks than their black counterparts.
While many factors contribute to this disparity, one key reason is that employers often unconsciously favor applicants who share their race or ethnicity. As a result, white job seekers often enjoy a slight but significant advantage in the hiring process, especially when contacted by white hiring managers.
So what can companies do to address this issue?
One solution is to adopt blind application processes, where personal information like names and addresses are removed from applications before they are reviewed. This helps to level the playing field and ensures that all applicants are evaluated purely on their qualifications.
In addition, companies can also make an effort to diversify their hiring committees to better reflect the population as a whole.
By taking these steps, companies can help to ensure that all job seekers have an equal chance of success.
10. White and Asian employees typically make more money than Hispanic and Black individuals
White and Asian employees’ median salaries are around 35% to 65% more than Hispanic and Black employees’ median salaries. But what can companies do to use this stat to make better decisions and improve racial and ethnic diversity in the workplace?
One way is to ensure that all employees have access to the same opportunities for advancement. This includes training and development programs, mentorship initiatives, and leadership roles. They also need to make sure everyone makes the same amount of money when starting in a position, especially when all candidates have the same experience.
By leveling the playing field, companies can give everyone a chance to succeed professionally and financially, regardless of their background.
Additionally, companies should work to increase the overall representation of Hispanic and Black employees at all levels within their workforce. This can be done through targeted recruiting efforts and creating an inclusive culture that values diversity.
Age diversity in the workplace statistics
11. The number of workers over age 75 is expected to rise between 2019 to 2029, while the number of employees aged 16 to 24 is expected to decline in the same period
The aging workforce is one of the most pressing issues facing employers today. This trend has major implications for businesses, which will need to adapt their policies and practices to meet the needs of an older workforce.
One way to do this is by implementing flexible work arrangements, such as telecommuting or part-time work, which can help older workers stay employed.
Employers should also consider investing in training and development programs catering to older workers and adopting recruiting and retention strategies focusing on age diversity. By taking these steps, businesses can ensure that they are prepared for the aging workforce and positioned to take advantage of the valuable skills and experience that older workers offer.
LGBTQIA+ diversity in the workplace statistics
12. LGBTQIA+ persons confronted a higher degree of unemployment during the COVID-19 pandemic’s peak than the general public
According to a poll, “17% of LGBTQ people had lost their jobs because of COVID-19, compared to 13% of the general population.”
As the COVID-19 pandemic forced businesses across the country to make difficult decisions about layoffs and furloughs, data suggests LGBTQA+ Americans were disproportionately impacted by job loss.
While the reasons for this disparity are not entirely clear, experts suggest that LGBTQIA+ workers are more likely to work in sectors that have been hard hit by the pandemic, such as hospitality and retail. These findings underscore the need for businesses to ensure that their workplace is inclusive and supportive of all employees, regardless of sexual orientation or gender identity. This includes implementing nondiscrimination policies, offering inclusive benefits to LGBTQIA+ families, and providing training on sensitivity and inclusivity.
13. LGBTQIA+ individuals are concerned that their gender identity or sexual orientation would harm their professional prospects
Three in 20 LGBTQIA+ women and six in 20 LGBTQIA+ men believe their sexual orientation will harm their professional prospects.
Companies should focus on creating policies and programs that support LGBTQIA+ employees, such as comprehensive nondiscrimination protections, domestic partner benefits, and fully inclusive health care coverage. It should also make investments in hiring and advancing LGBTQIA+ employees.
Companies should make these investments and show LGBTQIA+ employees they are valued team members.
The general population is becoming more diverse, and the workplace needs to follow suit. Our shared diversity in the workplace statistics provide insights into how diversity practices affect profitability, inclusion (or lack there of), and why your company needs to invest in diversity now rather than down the road.
For a company’s culture (and business) to thrive, it needs the employees who feel they can authentically be themselves. Your company needs to make an investment in diversity in order to achieve this, though.
If you need DEI solutions focused on talent and training, contact us today!