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7 Benefits of Inclusion and Diversity Within Your Organization

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7 Benefits of Inclusion and Diversity Within Your Organization

In the 21st century, more companies have made inclusion and diversity a priority. These businesses are crafting a more expansive tent through their employees, thus expanding their customer base. 

Being diverse and inclusive makes moral sense, and companies have also seen the economic benefits. These seven reasons show how organizations worldwide benefit from practicing diversity and inclusion.

1. Larger Hiring Pool

The benefits of diversity and inclusion start in the hiring process. Some companies may have similar candidates applying for positions depending on the industry. However, broadening the talent pool for more diverse candidates gives hiring managers a more well-rounded list of prospects. Thus, increasing the odds the company makes the best hire possible for the company.

Diversity has become a higher priority for companies but is also critical for job seekers. A Glassdoor survey reveals that 76% of workers believe diversity is essential when contemplating job offers from various companies. And about one-third of workers say they won’t apply to an organization if they feel its workforce lacks diversity.

2. New Perspectives

Companies that expand their talent pool benefit from a new wave of perspectives and fresh ideas. Organizations with similar candidates for every position are more likely to face stagnation. However, employees from different backgrounds bring perspectives project leaders have never heard. These new views often lead to increased creativity and better problem-solving. A diverse pool of employees gives a well-rounded view to everyone involved.

A diverse and inclusive workplace also brings the benefit of connections to other businesses. International opportunities arise for organizations that have multilingual employees. They can knock down the language barrier, a common obstacle for companies trying to conduct international business. Workers from different backgrounds can connect to foreign organizations and their leaders.

3. More Innovation

Diversity in the workplace goes beyond demographics. It also breeds diversity of thought. Companies with various perspectives often execute new ideas and spur innovation more than other workplaces. Employees from different backgrounds can target their products and services to fit customer profiles and emerging demographics. Often, these workers have faced adversity and used it to improve their problem-solving skills and drive to succeed.

A Harvard Business Review (HBR) study shows a statistically significant relationship between innovation and diversity in the workplace. Companies with an inclusive workforce based on gender, age, ethnicity, career path, education, and industry background averaged 19% higher innovation revenue and 9% higher earnings before interest and tax. The study also found that companies with higher diversity scores were more likely to engage in fair employment practices, such as equal pay.

4. Tax Credits

An inclusive workplace is essential for a diverse set of perspectives from employees, but the benefits don’t stop there. Businesses see incentives for working with other diverse workplaces. Many states provide tax credits to companies that work with a minority-owned or woman-owned business. The incentives depend on the industry and state in which they operate.

The Nixon Administration created the Minority Business Development Agency (MBDA) in 1969, and President Biden made it a permanent agency in late 2021. More than 38 states, including Washington, D.C., and Puerto Rico, have state-funded programs to incentivize entrepreneurship from minority groups. For example, Georgia offers income tax credits for contractors and subcontractors if they use a minority business.

5. Higher Profits

Tax credits are an excellent incentive for companies to promote workplace diversity, but additional financial rewards exist. Inclusive businesses tend to be more profitable.

A report by McKinsey shows a connection between racial diversity and profitability. Companies see a 0.8% increase in earnings with every 10% increase in the ethnic diversity of the executive team. Diversity in race, ethnicity, and gender creates a 25% better chance of a business’s profitability exceeding the national median.

Whether a small business for car washing or a multinational logistics company, the ROI is clear for diverse workplaces. The inclusiveness also helps during times of crisis. Adverse economic times like the Great Recession of 2008 put many businesses through challenging situations.

Researchers from Great Place to Work examined numerous publicly traded companies and their diversity initiatives. The study monitored how these companies fared before, during, and after a recession. Highly inclusive and diverse companies found a 14.4% increase in their stock performance between 2007 and 2009, whereas other organizations saw their stock decline by 36%.

6. Better Trust and Engagement

Diverse companies tend to perform better in times of economic prosperity and adversity. Why is that? One reason is trust. Inclusive workplaces foster more confidence among employees. Workers feel better about themselves when they feel included in the company and don’t fear others in the office judging or ridiculing them based on cultural differences. Happier workers become more productive and engaged with company objectives.

Trust has become an issue in the workplace. About one-third of workers report they don’t trust their employers. Employee faith in the business is a driving force in productivity, results, and bottom line. One way to increase employee trust is to hire a diverse set of management teams. Employees are more likely to trust diverse supervisors because they’re more relatable and understand multiple backgrounds.

Employees who trust their companies are often more engaged and ready to work daily. Active workers go a long way toward an organization’s productivity, which is paramount for businesses dealing with supply chains. These employees are happier and stay with the company longer, leading to higher retention rates and better health across the board.

7. Effective Decision-making

Another significant reason inclusive companies see higher revenue is that diverse teams typically are better at decision-making. A study by Cloverpop shows that an all-male team makes the right decision 58% of the time. However, a gender-diverse team increases that number to 73%. A group diverse in age and gender improves to 80%, and organizations inclusive with age, gender, and ethnicity spike to 87% better decision-making.

It’s not a coincidence that teams with diversity in thought and demographics end up with better results. These diverse teams are 15% more likely to have friction in their decision-making. However, the discourse is a good thing. It forces teams to think critically and present why one path is better. Homogenous groups often end up stale in their decision-making process with little pushback because they’re similar in thought.

Diversifying the Workplace in 2023

Nowadays, organizations are increasing their focus on diversity and inclusion in the workplace. It makes sense based on ethics, and research shows these initiatives drive innovation. 

When diverse in thought and demographics, companies make better decisions, increase employee engagement, and reap higher profits, even during adverse economic times. Diversifying the workplace is vital for businesses across industries.

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How to Measure Your Organizational Culture and Values

The importance of a strong corporate culture and value is undeniable. Undoubtedly, cultivating corporate culture and values takes time, but the result is so much worth it.

Culture IQ researched the results from different companies with a strong organizational culture and values to find that:

-collaboration, work environment, and mission and value alignment are 20% higher at companies with strong cultures

-companies with established corporate cultures saw a 4 times increase in revenue growth

-if a company has appeared on The Best Place to Work list, its stock value increased by 75%

-companies that have strong employer brands have a 50% lower cost per hire

-82% of company leaders believe that culture is a potential competitive advantage

Of course, all corporate cultures are different, depending on how you want to organize your workers and which working environment you want to create. Organizational cultures and values even differ from one country to another.

In one of our recent articles we took a look at the current state of corporate culture in the U.S. While it is quite different from what other countries have as a norm for corporate culture, there is one prerequisite in all organizational culture cases that makes it strong – corporate culture analysis.

To do it, there are several methodologies that can help you take a look at your corporate culture and values.

BNS to Measure Positive and Potentially Limiting Values

BNS (Business Needs Scorecard) is one of the most precise methods to measure organizational values. This method is designed to identify and elaborate on the positive and potentially limiting values to outline the desired and not desired corporate values.

Myctt Values Centre recognizes BNS as a diagnostic tool in cultural value assessment that uses 6 sections to categorize positive and potentially limiting values:

-Finance – values that impact the growth of the company in terms of profits and financial performance.

-Fitness – values that describe productivity and the general performance of your employees.

-External relationships – values that affect your company’s relationship with outside players, including partners and customers.

-Evolution – values that impact creativity and innovation of your company as well as its growth in comparison to your competitors.

-Culture – values that influence communication and trust between the employees and corporate leaders.

-Contribution to society – the alignment of your corporate values with the values of society.

This method allows you to perform a comprehensive analysis of your corporate values, especially from the perspective of leadership and what it takes for you to observe these values as a leader.

OCAI Method to Measure Organizational Culture

Another issue is measuring the methods that dominate and dominate in your organizational culture, in other words – your active and passive values.

Organizational Culture Assessment Instrument or OCAI is a method that can help you do exactly that. It uses the so-called Competing Values Framework. “OCAI is a validated method of assessing organizational culture, actively used by over 10,000 companies. We’ve used it for several years, and it’s been one of the most precise ways to measure values”, says Claire Jefferson, an HR manager at Axonim, an electronic device service company.

This method uses a diagram, which helps you identify the direction that your organizational values work towards:

Image credit: OCAI-Online

As a result, you get an answer, which corporate culture dominates in your company, indicating the changes that need to be made to create the organizational culture you aspire to have.

Employee Surveys for Precise Engagement Rates

Who knows your organizational culture and values better than your employees?

Surveying employees is one of the most informative and precise ways to measure organizational culture. Besides, you actively engage your employees in creating your organizational culture.

One of the most common types of employee surveys is an employee satisfaction survey. This survey can take many different forms, but mostly aims at defining the following aspects of organizational culture:

-The position of your employees in the corporate culture – where your employees see their role in defining organizational culture.

-Motivation rate of your employees – helps you understand how much your employees support your corporate culture.

-Employee insights –what needs to be done and which values need to be adopted to help the employees fit in your organizational culture.

Here’s a great example of an employee satisfaction survey:

Image credit:

This survey can be done in many different forms. The ultimate goal, however, is to give your employees as many choices to answer the questions, possibly avoiding essay questions.

Over to You

The methods that we’ve mentioned above are aimed at assessing organizational culture from three different perspectives:

-a general analysis of your organizational values

-an analysis describing active and passive organizational values

-in comparison to the methods from above, which are used to analyze organizational culture and values from the leadership perspective, you can also take the perspective of your employees by doing employee satisfaction surveys

What is your approach to measuring your organizational culture and values?


Ryan is a passionate writer who likes sharing his thoughts and experience with the readers. Currently, he works as a content strategist at He likes everything related to traveling and new countries.