The State of Diversity in the Workplace in 2019
Diversity and inclusion are hot topics among HR professionals and scholars. The topics are so complex, in fact, that universities have established degrees from Associate to PhD in Diversity and Inclusion. While we don't expect HR professionals to obtain a degree in the topic, it's important to remember that D&I requires continuous education — even if you do have that PhD.
In this article we are going to start with the basics by covering the differences between diversity and inclusion. We’ll also share some statistically backed benefits of diverse and inclusive workplaces along with 13 examples of initiatives and activities from real companies.
Feel free to skip ahead by clicking on the links below or keep reading.
Table of Contents
- What is Diversity in the Workplace?
- What is Inclusion in the Workplace?
- Benefits of Diversity in the Workplace
- Diversity in the Workplace Statistics
- 13 Diversity and Inclusion Activities and Initiatives
What is Diversity in the Workplace
Simply put, diversity in the workplace means that an organization employs a diverse team of people that’s reflective of the society in which it exists and operates.
Unfortunately, determining what makes a team diverse isn’t so simple.
Diversity incorporates all of the elements that make individuals unique from one another, and while there are infinite differences in humans, most of us subconsciously define diversity by a few social categories, such as gender, race, age and so forth.
In the United States, the Equal Employment Opportunity Commission (EEOC) enforces laws to protect individual employees in the workplace based on specified social categories that commonly face discrimination in American culture. These social categories are typically defined in some version of a Non-Discrimination Statement and Policy, such as this one by the US government.
“The United States Government does not discriminate in employment on the basis of race, color, religion, sex (including pregnancy and gender identity), national origin, political affiliation, sexual orientation, marital status, disability, genetic information, age, membership in an employee organization, retaliation, parental status, military service, or other non-merit factor.”
There are certainly more visible and invisible elements that make individuals diverse from one another than those defined by these statements, but these broad categories can help companies identify gaps in diversity. They also provide measurable metrics for companies to set goals and make concerted efforts to boost diversity in the workplace.
What is Inclusion in the Workplace
Although often used in tandem with diversity, inclusion is a concept of its own.
SHRM defines inclusion separately from diversity as “the achievement of a work environment in which all individuals are treated fairly and respectfully, have equal access to opportunities and resources, and can contribute fully to the organization’s success.”
It can be helpful to think of the differences between diversity and inclusion in the following terms:
Diversity refers to the traits and characteristics that make people unique while inclusion refers to the behaviors and social norms that ensure people feel welcome.
Not only is inclusivity crucial for diversity efforts to succeed, but creating an inclusive culture will prove beneficial for employee engagement and productivity.
Benefits of Diversity in the Workplace
Aside from being a clear social, political, ethical and moral responsibility, there are some serious benefits associated with diversity in the workplace.
Benefit 2 - In the US, companies that increase racial and ethnic diversity on senior boards enjoy a 0.8% increase in earnings before interest and tax (EBIT), while their counterparts in the UK see a 3.5% increase.
Benefit 3 - A recent BCG study found a strong, statistically significant positive relationship between diversity and corporate innovation. The study’s author explained her findings in a TED Talk, which is a must see for anyone interested in the topic.
Benefit 4 - Glassdoor found that 57% of employees and 67% of job seekers consider diversity an important element of their workplace, which affects recruitment and retention.
Benefit 5 - Diverse companies are 70% more likely to capture a new market audience.
Benefit 6 - When employees perceive their organization as committed to diversity and inclusion, and they actually feel included, employees are 80% more likely to rank their employer as high performing.
Benefit 7 - A study published in the American Sociological Review found that companies with the highest percent in racial or gender diversity have higher sales revenue, more customers, higher than average market share and profitability.
Diversity in the Workplace Statistics
Those figures alone should be enough to convince any business that fostering a diverse workplace is a top priority, but when we break down the latest statistics it’s evident that we still have a long way to go.
- 97% of senior executive boards in the US fail to reflect the country’s labor force and population demographics.
- As of March 2019, 25 (4.8%) of Fortune 500 CEOs are female (up from 2.4% in 2008). To put this disparity into perspective, that’s barely more than the 4.1% of Fortune 500 CEOs who are named David and less than the 5.3% named John.
- Research studies done in New Zealand, Canada and by the National Bureau of Economic Research have indicated that people with minority names receive fewer opportunities for jobs.
- Inversely, another study indicated that people with traditional American names, like John or William, enjoy an average of 14% better financial returns.
- In addition to white men, as of 2018, there are more white women at every stage of the corporate pipeline than men or women of color.
- $16 billion is lost each year due to unfair treatment of employees and turnover.
- Compared to every 100 men promoted to a managerial position, only 79% of women are promoted.
- Of people who post personal religiously affiliated content on social media, Muslims are 13% less likely to receive a callback for an interview.
- Only 17.9% of people with a disability were employed in 2016 compared to 65.% of people without a disability.
- Men earn a 6% higher wage when they have a child, whereas women earn 4% less when they have a child.
The tech industry, in particular, has some startling diversity statistics. information is beautiful created an interactive infographic showing diversity statistics for 23 of the largest tech companies. Here are some of
- Indiegogo is the only company with at least 50% women representation, slightly less than the US population, which is 51% women.
- NVIDIA has the lowest representation of white employees at 37%. They also have the highest Asian representation at 45%, compared to 6% of the US population.
- Apple and Amazon both have the highest representation of Latino employees at 13%, compared to the US population at 18%.
- Amazon also has the highest representation of Black Americans at 21% followed by Dell at 10%, compared to the US population, which is 13% black.
13 Diversity and Inclusion Activities in the workplace
If you’re reading this article, you’re likely not among the 41% of managers who are “too busy” to focus on diversity initiatives, which means you’re ready to roll up your sleeves and tackle the challenge head on.
To help get you started, we’ve gathered 13 examples of how forward-thinking companies are working toward diversity in the workplace and broken them down into actionable tips.
1. Start with a plan
When it comes to diversity in the workplace, good intentions aren’t enough. When Panorama Education decided to get serious about its diversity and inclusion efforts, the company put pen to paper and outlined exactly what it wanted to accomplish. “In 2019, [we] will implement a Diversity, Equity and Inclusion Strategic Plan, which comprehensively outlines the goals, key milestones and activities that will support the organization in achieving its goals,” says Presceia Cooper, Account Manager at Panorama Education.
Understanding what it is you want to accomplish before you begin is the most reliable way to ensure you end up where you want to be. In Panorama’s case, this meant establishing some key definitions. “An important step in drafting this plan was defining what diversity, equity and inclusion mean to our company, recognizing that each pillar deserves its own definition and focus,” says Cooper.
Bonus Example: On their careers page, Panorama Education shares some statistics about the diversity on their team and why diversity, equality and inclusion matter to their team
2. Don’t skip the basics
Kicking off a formal diversity and inclusion plan is a good start, but it can be easy to lose sight of the forest for the trees. Don’t forget to ensure you’ve accounted for everything that’s within your control before casting a wider net. For Medallia, that meant starting with its internal policies and training.
“We have the basics for ensuring all employees are safe and respected, like a clear code of conduct, an anti-harassment and bullying policy, an anti-discrimination policy and mandatory trainings on these policies,” says Lauren Jackman, Inclusion Practice Lead at Medallia.
The company also ensures its employees are paid what they’re worth, regardless of their background. “We’ve also made an equal pay commitment and conducted our first-ever pay equity analysis to ensure that compensation for U.S. Medallians is equal across gender and race,” says Jackman.
Bonus Example: Medallia goes out of its way to celebrate diversity and individual characteristics, welcoming candidates on their website with the phrases you see above followed by this statement: "At Medallia we value people for all of the aspects that make them whole. We believe that people should not be defined only by a job title — nobody is “just an engineer” or “just a salesperson”. We are each partners, parents, children, siblings, friends, and former classmates."
3. Get buy in
A diversity and inclusion initiative cannot simply be an edict from senior leadership. To succeed, it must be a company-wide effort supported by all members of the team. When Rapid7 kicked off its formal diversity and inclusion plan, the company learned that employee buy-in has to be a top priority. “We are just getting started, but the biggest lesson learned so far is that to really achieve this goal, we need to inspire every person in the company to understand the role they can play in making it happen,” says Christina Luconi, Chief People Officer at Rapid7.
The company works with its teams to ensure they understand the impact they can make, helping to set the company up for continued success. “This means not only broadening their mindsets in terms of what makes for an amazing team member, but ensuring every person who joins their team is made to feel embraced and included,” says Luconi.
4. Be purposeful about it
Diversity and inclusion happens where the rubber meets the road. A clearly-defined plan and employee buy in are a good starting point, but it’s critical that companies make purposeful and tangible efforts to promote diversity in the workplace.
“Quite simply — companies must be intentional about diversity,” says Eric Jones, VP of Brand and Communication at WP Engine. “Balance doesn’t just happen; you have to create an environment where differences are valued and encouraged.”
Specific (and measurable) initiatives are necessary to ensure progress is made. “Where there is focus there is progress,” continues Jones. “In order to empower future generations of workers, regardless of race, religion, sex or orientation, companies must do the work necessary to open their doors wider.”
Bonus Example: WP Engine also includes some high level stats about diversity representation in their company on their careers page. One unique stat they include is the number of employees that do not have a college degree. College degree requirements on job descriptions are overused and can unnecessarily disqualify top candidates who didn't take a traditional path.
5. Level up on training
Creating a diverse and equitable environment isn’t an easy task. Getting it right is difficult for even the most senior executives, let alone your newest hires. It’s unrealistic to expect your team to know every step to take to foster a diverse workplace, so training is almost always needed.
“To foster an inclusive environment, we offer unconscious bias training, which is mandatory for people managers,” says Stacey Kraft, Chief People Officer at Enova.
The company is also piloting additional steps, like interviewing for cultural add vs. cultural fit and removing resumes from the engineering interview process.
But Enova doesn’t treat its diversity and inclusion training as a “one and done” approach. “Our employee-driven diversity council focuses on providing opportunities for learning, community building and celebration during nationally recognized months of diversity,” says Kraft. By investing in continuing education, Enova has taken the steps necessary to ensure its team is always up to the challenge.
6. Work with like minded partners
When it comes to diversity in the workplace, it’s important to know that you don’t have to go it alone. Just about every company out there recognizes the benefits of corporate diversity, and thousands of them are working toward improving the status quo.
For companies like HubSpot, this offers the opportunity to partner with like-minded partners and enhance their efforts. “We partner with Wayfair and TripAdvisor on the [email protected] initiative and I was lucky enough to speak at a MITX Influence(her) event at LogMeIn just last week,” says Katie Burke, Chief People Officer at HubSpot, in reference to several other Boston-based companies.
Partnering with local companies has exposed HubSpot to a plethora of new ideas and perspectives and allowed Burke to gauge their own efforts against those of other businesses. “There are lots of smart folks who care deeply about this issue, but more work to be done to get us all to the next level.”
Bonus Example: HubSpot dedicates an entire page of their website to their Diversity and Inclusion efforts. They also make an effort to remain transparent about how diverse social categories are actually represented at their company, providing statistics on employee representation by gender, ethnicity and age across teams. They delve even deeper into their diversity statistics with the HubSpot 2019 diversity report.
7. Use the right tools
As with training, having the right tools in place is critical to the success of your diversity and inclusion efforts. You couldn’t expect your engineering or sales teams to be successful without the right tools, and the same is true for your diversity and inclusion efforts. Appropriate tooling can also help save hundreds of hours of repetitive work, which is an added bonus.
“We run all of our job descriptions and internal policies through a software platform called Textio, which provides guidance on how to word our job posts in a way that will appeal to applicants of all genders,” says Cynthia Mason, Senior Vice President of Glowforge.
“We are also working with a local company called Diverse City, which specializes in diversity and equity assessments, training, coaching and accountability systems,” says Mason. “They help us build sustainable diversity and inclusion strategies.”
Bonus Example: Most companies have an employee referral program, but Glowforge brings more meaning to their program, offering employees $5,000 for referring under-represented minorities that lead to a hire.
8. Get granular
Improving diversity at the top line level is a worthwhile goal, but remember that businesses don’t operate as one single entity. They operate as a collection of individual teams, and the true benefits of diversity in the workplace will only be felt if each team is also a reflection of the company’s overarching efforts.
“As we continue to grow, we’re addressing diversity not only at a company level but, most importantly, at the team level,” says April Himel from Relatable’s People Operations Team. “If Relatable is 60 percent women, yet all of those women are on one single team, they’re still clearly underrepresented.”
Breaking down your diversity and inclusion efforts to the team level may add more work, but as Himel notes, “You won’t feel the true impact of diversity unless all groups are distributed and able to influence the decisions across the whole company.”
9. Track your metrics
The old saying “That which gets measured gets done” is as true with diversity as any other objective. Simply put, if you aren’t measuring your progress, how do you know you’re making any?
The KPIs you track will vary by the state of your diversity and inclusion efforts and the objectives you’re trying to accomplish, but your recruiting pipeline is always a good place to start.
“We have mandated that there must be a diverse slate of candidates for every open role, and to measure our success, we track how diverse the slate was along with the hiring outcome,” says Kim Norwesh, Chief Human Resources Officer at 4C.
Performance tracking may seem like an intimidating task, but don’t overthink it. Something as basic as a shared spreadsheet is a great way to get started.
10. Don’t forget about senior leadership
We’ve already touched on diversity and inclusion at the team level, but it’s time to address the elephant in the room: senior leadership.
Executives have more influence over the direction of a company than any other group, so it’s critical that they accurately reflect the company and industry as a whole. Unfortunately, this is rarely the case. According to a recent study, 70% of Fortune 500 executives are white men.
We can do better, and companies like RetailMeNot already are.
“Our diversity and inclusion program started with a realization that our leadership needed to reflect our internal demographics and our customer base,” says Christine McCarey, Head of Diversity and Inclusion at RetailMeNot. “This work began as a women’s initiative, but it quickly pivoted to be more inclusive.”
This is one of the most difficult areas of diversity and inclusion to get right, but it’s arguably the most important, so don’t overlook it.
Bonus Example: The company has also dedicated a section of their careers page to explain what diversity and inclusion means to their team and how they are committed to incorporating it in their mission and implementing change through recruiting.
11. have the tough conversations
The path to ruin is paved with good intentions, and ruin certainly shouldn’t be the fate of your diversity and inclusion program. In order to be successful, conviction and strength in the face of adversity are must have attributes.
“Hope and good intentions do not yield results,” says Tasha McCormic, Head of Diversity and Inclusion at ThoughtWorks in North America. “When it comes to diversity and inclusion, you have to be intentional and have a plan otherwise you will not see the change or progress you desire.”
Aside from sticking to your plan, being intentional also entails having some difficult conversations. This is never pleasant, but it’s an important part of the job.
“Do not shy away from tough conversations,” continues McCormic.
“Conversations about gender, race, sexism, ageism, etc. can be challenging, but you should not avoid them. In order for your diversity and inclusion efforts to be meaningful, you have to navigate through some uncomfortable areas, but your organization will be better off as a result of it.
Bonus Example: As an international organization with a wide range of diverse employees representing their workforce, ThoughtWorks takes diversity and inclusion very seriously. Their teams have over 60 active diversity programs and initiatives that focus on improving their workplaces and the greater tech industry.
12. Be patient
Rome wasn’t built in a day, and neither will be your diversity and inclusion efforts. When tackling an issue this complex, it’s important that you take a long view and give yourself ample time to accomplish your goals.
“Change may not happen overnight, especially when it comes to demographics,” says Tasha McCormic, Head of Diversity and Inclusion at ThoughtWorks in North America. “Do not get discouraged. If you continue to put time and effort into creating a more diverse and inclusive workplace, you will see results.”
13. If you’re serious, make the investment
We may have saved the awkward money conversation for the end, but it’s too important to skip. If diversity and inclusion is something your organization is truly serious about, you’re going to have to make the necessary investments. There’s just no getting around it.
And the more ambitious your objectives, the larger that investment will likely be.
“Our program is designed to focus on three key areas: internal connectedness, community outreach and inclusive infrastructure led by a D&I team that develops programs and initiatives to support our vision,” says Trey Boynton, Manager of Diversity and Inclusion at Duo. “In just our first year, we’ve heavily invested people, time, resources, tools, partnerships and old-fashioned hard work. This is only the beginning, and we are excited about what lies ahead.”
Bonus Example: Duo focuses their careers and culture pages on diversity and individual characteristics with a variety of videos, employee testimonials and content from their social campaign #WeAreDuo that further highlights their diverse culture.