Diversity in the workplace isn’t just a trendy topic. It’s a cornerstone of building successful, innovative, and thriving organizations.
In recent years, companies across the United States and around the globe have made strides toward creating more inclusive environments that reflect the wide range of backgrounds, perspectives, and life experiences of their employees.
However, many of these efforts have been rolled back or scaled down, raising concerns about the long-term commitment to fostering diversity and inclusion. Walmart, Ford, Lowe’s, and John Deere are examples.
From cultural and gender diversity to embracing different generations and unique perspectives, we’ll showcase how companies are fostering inclusion. Along the way, we’ll discuss why diversity matters—not just because it’s the right thing to do, but because it drives better decision-making, fuels innovation, and strengthens team performance.
What Companies Are Getting Wrong
Diversity, Equity, and Inclusion (DEI) has become a hot topic, but not always for the right reasons. After the civil unrest in 2020, many companies rushed to roll out DEI initiatives. While their intentions may have been good, their execution often fell flat.
Rather than implementing thoughtful, long-term strategies, organizations treated DEI like a trendy checklist item. The result? A backlash that hurt their employees, their reputations, and the very goals they claimed to support.
One major misstep has been the reliance on quick fixes like one-off unconscious bias training sessions or superficial celebrations of diversity. These efforts often failed to address deeper systemic issues or create lasting cultural change. Employees, especially those from underrepresented groups, quickly saw through these half-hearted gestures, feeling like diversity was a box to check rather than a true commitment to equity.
Another common issue is how companies set up their DEI leaders to fail. Many organizations appointed Chief Diversity Officers (CDOs) without providing the resources, authority, or structure needed to drive systemic change. These leaders were often tasked with organizing employee resource group events or overseeing Heritage Month celebrations—important work, but not enough to transform workplace culture truly.
When layoffs hit during the tech downturn in 2023, DEI leaders were often the first to go. This move sent a clear and disheartening message: DEI wasn’t seen as critical to the business but as an expendable trend.
The Cost of Getting DEI Wrong
The fallout from poorly executed DEI efforts is significant. Employees lose trust in leadership, feeling that their voices and experiences aren’t truly valued. Workplace morale takes a hit, and companies risk alienating the very talent they worked hard to recruit. Even worse, these missteps reinforce the perception that DEI is unnecessary or divisive, fueling resistance and backlash.
What Companies Can Learn
DEI work requires the same rigor as any other major business transformation. It must be treated as a long-term strategy and embedded into every aspect of an organization from hiring processes and leadership development to day-to-day operations. This approach ensures that DEI becomes a core part of company culture, rather than a temporary program or trend.
By treating DEI with the seriousness and respect it deserves, companies can avoid these common pitfalls and create workplaces where everyone has the opportunity to thrive.
What Does Diversity in the Workplace Look Like?
Diversity in the workplace goes beyond surface-level representation; it encompasses the different ways people contribute their unique identities, experiences, and ideas to an organization. To understand what diversity truly looks like, it’s helpful to break it down into different types.
1. Internal Diversity
Internal diversity refers to characteristics people are born with or develop over time, such as ethnic diversity, gender diversity, age diversity, racial diversity, sexual orientation, and gender identity. These aspects often shape a person’s sense of identity and their perspective on the world.
2. External Diversity
External diversity includes factors influenced by a person’s environment and life circumstances. This includes socioeconomic status, marital status, religious beliefs, and physical abilities. While these attributes may change over time, they still significantly impact how individuals engage with their workplace and colleagues.
3. Organizational Diversity
Organizational diversity focuses on the professional roles and structures within a workplace. This includes diversity in job functions, leadership roles, and team members from various backgrounds. Ensuring representation across different levels of an organization is key to creating a truly inclusive workplace.
4. Worldview Diversity
Worldview diversity encompasses differences in cultural backgrounds, spiritual beliefs, and life experiences. These aspects influence how individuals interpret and navigate the world, bringing fresh ideas and diverse perspectives to the workplace.
When organizations embrace diversity in all its forms, they unlock unique perspectives that lead to innovative solutions and better decision-making. Diverse teams foster a positive impact on team performance, strengthen employee morale, and contribute to a thriving company culture. Embracing these differences not only creates an inclusive environment but also drives long-term success.
Real-Life Examples of Diversity in Action
Diversity isn’t just a concept. It’s a practice that, when embraced, has tangible benefits for organizations and their employees. Let’s look at real-life examples of how companies are fostering diversity in the workplace across various dimensions.
Ethnic and Cultural Diversity
One standout example is Johnson & Johnson, a company that prioritizes building a diverse workforce through inclusive hiring practices and robust employee resource groups.
Johnson & Johnson has implemented a Global Diversity & Inclusion Impact Review, which analyzes how well their teams reflect the diverse communities they serve. This transparent approach holds leadership accountable for fostering a diverse workforce.
Their Diversity & Inclusion Honors program recognizes employees and teams globally who go above and beyond to advance inclusion within the company.
By establishing employee resource groups like the African American Leadership Council and the Hispanic/Latino Employee Resource Group, Johnson & Johnson provides spaces where employees from underrepresented backgrounds can network, receive mentorship, and find support.
Gender and Gender Identity Diversity
Companies that implement gender equality in leadership positions and promote equal opportunities for all genders demonstrate a strong commitment to diversity.
In December 2022, HSBC announced a “gender dysphoria benefit” to support its transgender and non-binary employees. This benefit covers the cost of gender-affirming surgeries and treatments for employees and their dependents, enabling individuals to express their true identities. HSBC has also launched a global diversity and inclusion program focused on improving workplace culture for LGBTQ+ employees.
In addition, by actively ensuring that leadership roles are accessible to people of all genders, these organizations not only attract the best candidates but also enhance employee engagement. This kind of inclusion sends a powerful message about the organization’s values and its dedication to equity.
Religious Diversity and Inclusion
Workplaces that accommodate various religious beliefs by offering flexible work arrangements or celebrating cultural events are paving the way for a more inclusive culture.
Intel stands out as one of the most faith-friendly workplaces in America. The company supports multiple faith-based employee resource groups (ERGs), including groups for Christian, Jewish, and Muslim employees. These ERGs provide platforms for employees to express their faith, engage in interfaith dialogues, and promote mutual understanding within the workplace.
These practices help ensure respect for different perspectives, allowing employees to balance their spiritual beliefs with their professional responsibilities. The result is an environment where individuals feel appreciated for who they are, leading to greater workplace harmony.
Socioeconomic and Educational Diversity
Organizations that prioritize equal access to opportunities for candidates from diverse socioeconomic and educational backgrounds are redefining hiring practices.
Microsoft has been recognized for its comprehensive strategies in promoting equality, diversity, and inclusion. The company actively seeks to create an inclusive environment by implementing programs that support individuals from various socioeconomic and educational backgrounds.
By focusing on inclusion at every stage of the recruitment process, these companies attract employees with fresh ideas and diverse problem-solving skills. This approach not only enriches the workplace but also underscores the organization’s commitment to leveling the playing field for all.
Age Diversity
Companies that encourage collaboration across different generations, from Gen Z to Baby Boomers, are tapping into a wealth of experiences and knowledge.
McDonald’s has partnered with AARP to hire older workers, recognizing the value that experienced employees bring to the table. This collaboration aims to provide opportunities for older individuals and leverage their skills within the workforce.
Promoting age diversity within teams allows businesses to benefit from a mix of perspectives, enhancing decision-making processes and driving innovation. By valuing the contributions of employees from all age groups, organizations create a dynamic and inclusive workplace culture.
These examples show that diversity creates an environment where employees of all backgrounds can thrive. The benefits ripple across the organization, improving morale, innovation, and overall success.
How to Foster an Inclusive Workplace
Creating an inclusive workplace goes beyond simply hiring diverse employees. It requires intentional actions to ensure all team members feel valued, respected, and empowered. Here are key strategies to foster inclusivity.
Implement Diversity Initiatives
Start by creating a diverse leadership team that reflects the varied backgrounds and perspectives of your workforce. Leadership plays a crucial role in setting the tone for inclusivity, so it’s essential to support initiatives that prioritize inclusion strategies at all organizational levels.
Offer Diversity Training
Unconscious biases can often stand in the way of equal opportunity. By offering diversity training, organizations can help employees recognize and address these biases, creating a more equitable workplace. This training should be ongoing and focus on building awareness, promoting empathy, and teaching actionable ways to support inclusion.
Establish Employee Resource Groups
Employee resource groups (ERGs) are a powerful way to support minority groups and employees from diverse ethnic backgrounds. These groups provide a safe space for individuals to connect, share experiences, and advocate for meaningful change within the organization. ERGs can also help foster a sense of belonging and community.
Adapt the Hiring Process
The hiring process should be designed to attract candidates from a wide range of backgrounds. This includes writing inclusive job descriptions that avoid biased language and highlight the organization’s commitment to diversity. Additionally, incorporating blind resume reviews and diverse hiring panels can help mitigate bias and ensure that the best candidates are selected.
Encourage an Inclusive Work Environment
An inclusive workplace celebrates cultural differences and creates opportunities for open dialogue about diversity. Hosting cultural events, recognizing important holidays, and encouraging employees to share their traditions and experiences can help build a culture of respect and understanding. These efforts demonstrate the organization’s dedication to fostering an inclusive environment where everyone feels valued.
By implementing these strategies, companies can build a workplace that not only embraces diversity but also ensures every employee has the opportunity to thrive. Inclusivity is a continuous effort that requires commitment from leadership and engagement from all team members.
The Positive Impact of Diversity
Embracing diversity in the workplace delivers measurable benefits that enhance team dynamics, decision-making, and overall organizational success. Here’s how diversity makes a positive impact.
Enhancing Team Performance
When diverse perspectives come together, teams are better equipped to solve complex problems and approach challenges with creativity. Employees from various cultural backgrounds, age groups, and life experiences bring fresh ideas that drive innovation and improve performance. Research consistently shows that diverse teams outperform homogenous ones in decision-making and productivity.
Improving Employee Morale
A diverse and inclusive work environment fosters a sense of belonging. Employees feel valued when they see their unique identities and contributions being recognized and celebrated. This boosts morale, strengthens employee engagement, and reduces turnover rates. Happy, engaged employees are more likely to stay committed to their organization’s goals.
Cisco has been recognized for its strong (DEI) initiatives, particularly through programs that encourage senior leaders to engage with colleagues from diverse backgrounds.
One effort is the “proximity initiative,” which has led to tangible changes in workplace behaviors and fostered a culture of allyship and mentorship. Cisco’s commitment to practices like pay parity reviews and diverse hiring processes has earned it top spots in diversity rankings and accolades for inclusivity efforts.
Strengthening Company Culture
A workplace that embraces diversity cultivates a culture of respect and collaboration. It becomes a space where employees feel comfortable bringing their whole selves to work, enhancing authenticity and trust. Such a culture not only attracts top talent but also reinforces the organization’s reputation as a great place to work.
Driving Innovation and Creativity
Diverse teams bring unique perspectives and experiences to the table, which fuels innovation. When employees from different ethnic groups, genders, generations, and educational backgrounds collaborate, they challenge each other’s assumptions and think outside the box. This leads to more innovative solutions and a competitive edge in the marketplace.
Fostering Better Decision-Making
Organizations with a diverse workforce make better decisions because they incorporate a variety of viewpoints. By considering multiple perspectives, these organizations are less likely to fall into groupthink and more likely to identify risks, opportunities, and effective strategies.
Contributing to a Positive Brand Image
A company that prioritizes diversity and inclusion signals to employees, clients, and the public that it values equality and fairness. This strengthens its brand, making it more appealing to potential hires, customers, and partners. Companies known for their diversity efforts often rank higher on “best places to work” lists, further boosting their reputation.
Promoting Social Responsibility
In addition to the internal benefits, fostering diversity demonstrates a company’s commitment to addressing social inequalities. By creating equal opportunities and supporting inclusion efforts, organizations contribute to a more equitable society. This aligns with the values of many consumers and employees who want to work with or support socially responsible companies.
Why HR Leaders and Executives Must Lead the Charge
When it comes to building a truly inclusive workplace, HR leaders and executives are the linchpins. They set the tone for the company’s culture, shape policies, and design recruitment processes that either invite diversity or unintentionally shut it out. Their decisions impact every part of the employee experience—from hiring practices and performance evaluations to how inclusion is integrated into everyday workplace interactions.
HR leaders aren’t just gatekeepers; they’re architects of the workplace. Balancing the company’s business objectives with creating an inclusive environment is no easy feat, but it’s essential. Inclusion isn’t just a feel-good initiative; it’s a business strategy that drives innovation, retention, and engagement. When employees feel like they belong, they perform better, stay longer, and bring their best ideas forward.
That’s why HR professionals and executives must step up, lead the charge, and ensure that DEI is embedded into the core of how their organizations operate.
Why Companies Need an Outside Perspective on DEI
Navigating the complexities of DEI can be challenging, especially from within an organization. Bringing in an external expert offers fresh ideas, unbiased insights, and actionable strategies that internal teams might overlook.
An experienced DEI professional can help organizations avoid common missteps, such as performative actions or one-size-fits-all solutions, and instead focus on creating meaningful, sustainable change.
Book Randi B. for Your Next Leadership Session
Randi B. is more than a disruptor, a speaker, and a guide for organizations ready to make inclusion a core part of their business strategy. With over 22 years of leading an award-winning change management company, Randi’s expertise spans government clients and Fortune 500 companies across seven countries and 41 states.
Whether you need a keynote address to inspire your leadership team, a workshop to empower managers, or one-on-one consulting to tackle specific challenges, Randi delivers insights that move the needle. She’s passionate about helping organizations create cultures where employees feel safe, valued, and able to thrive.
Transforming workplaces into spaces where innovation and inclusion go hand in hand.
Let’s get to work on building the workplace your employees deserve.
A Moral Obligation
Creating a diverse workplace is imperative for organizations that want to succeed in today’s world. Embracing people from different backgrounds, respecting cultural differences, and fostering inclusivity are essential steps toward building environments where employees feel valued and empowered to contribute their best.
Companies must take a critical look at their current diversity initiatives and assess where they can do better. By investing in programs that support inclusion, organizations not only improve employee morale and performance but also position themselves as leaders in their industries.
Diversity will unlock the full potential of a workforce and create a thriving workplace where everyone has an equal opportunity to succeed. With intentional action and a commitment to continuous improvement, companies can truly build the best place to work and make a lasting positive impact.
