Diversity vs Inclusion: Key Workplace Differences

Diversity focuses on the presence of different backgrounds, while inclusion ensures everyone feels valued. Effective D&I drives innovation, performance, and retention.

By Brad Nakase, Attorney

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What is the difference between diversity and inclusion?

In most contexts, the terms diversity and inclusion (D&I) are used interchangeably, rather than as alternatives to one another. There are two distinct ideas here, even though they go hand in hand and are obviously essential to one another. This article will examine seven workplace diversity and inclusion initiatives, as well as diversity and inclusion (D&I) and its relationship to organizational performance. Alright, let’s get started!

Diversity vs. inclusion

First, we need to define diversity and inclusion so we can grasp their differences.

When employees come from a wide range of demographics, including age, race/ethnicity, religion, gender, sexual orientation, geographical location, ability level, and disability, we say that we have diversity in the workplace.

However, these (social) categories do not encompass genuine diversity in the workplace. This encompasses the myriad ways in which workers differ from one another, including their viewpoints, tastes, traits, and even biases.

Employees are more likely to feel valued and appreciated when they are part of a team that strives for a common goal—the realization of a workplace free from discrimination and harassment.

What exactly is the difference between diversity and inclusion, then? To put it plainly, diversity is all about the who and what of your staff.

However, inclusion is concerned with the how – making sure that all employees are able to participate and succeed in the workplace.

The role that diversity and inclusion play in achieving organizational goals

Diversity and inclusion are not mutually exclusive ideas; rather, they complement one another. You can achieve your workforce diversity goals by increasing your diversity hiring efforts all you want, but if your culture doesn’t foster an inclusive environment, there’s no point.

Let’s examine the many ways diversity and inclusion contribute to the success of organizations.

1. Maximized financial gain 

Companies with the highest levels of racial and ethnic diversity had 35% higher financial returns than their national industry medians, according to a 2015 Diversity Matters analysis by McKinsey. This works out to 15% for businesses that rank in the highest 25% for gender diversity.

2. D&I stimulates creativity

Multiple studies have found a correlation between diverse teams and more creative solutions. For innovation and the development of new ideas, it is important to have a broad mix of backgrounds, experiences, and viewpoints.

Companies that had a more diverse workforce in terms of migration, industry, gender, education, and age had 9% higher EBIT margins and 19% greater innovation revenues, according to a Harvard Business Review research.

According to Deloitte’s 2018 report, The Diversity and Inclusion Revolution, inclusive cultures are associated with increased innovation and agility. This is because, among other things, inclusive cultures allow employees to perceive problems from different perspectives, come up with more complex and intelligent solutions, and identify biases in their own work.

Every employee in a diverse and inclusive company has the support of higher-ups who will listen to their ideas and help them secure funding to implement them. This is much more challenging for women, people of color, and LGBT individuals in non-inclusive companies, which means that these businesses miss out on a lot of fresh perspectives, ideas, and possibilities.

3. Recruiting and retaining top personnel 

Companies that actively seek out candidates from diverse backgrounds have access to a more robust pool of qualified individuals. Because more people from all walks of life can identify with the company, they will attract a more diverse pool of applicants to fill their open positions.

Retaining talent is no different. Staff members who are able to express and receive positive feedback on their unique perspectives, gender, age, and sexual orientation are more invested in their work and less inclined to quit.

Similarly, businesses that invest in diversity and inclusion programs to boost morale in the workplace often find that their employees are happier overall.

4. Increased efficiency and output 

Evidence suggests that companies benefit from having employees from different generations working together, according to a Society for Human Resources executive briefing. Furthermore, it demonstrates that HR strategies can boost performance by fostering a more diverse workforce in terms of age.

Teams consisting of employees of varying ages are more productive overall, according to the same briefing.

Six examples of workplace diversity and inclusion initiatives

Okay, so now we know what diversity and inclusion are, how they differ and how they contribute to an organization’s success. Here are six simple diversity and inclusion initiatives that highlight the unique qualities of each employee.

Diversity is great, but inclusion is what really makes diversity work, as these numerous efforts demonstrate.

  1. A Conversation about Respect

First, a basic one, but a crucial one. The point is for workers to introduce themselves to a coworker—ideally someone they don’t normally speak to—and see what happens. After settling into a conversation, they each share their personal definition of respect and offer examples of its practice in the workplace.

The group will get back together after this chat is over to share and talk about the different examples of respect. The purpose of this activity is twofold: first, to consider other perspectives on respect; and second, to consider how other people’s experiences could color their perception of an individual’s behavior.

If you want your staff to reevaluate their interactions with one another, try implementing the Respect Discussion.

  1. Theme meals

There’s no better way to bring people together and celebrate variety than through food, right? Have a breakfast, pick-nick, lunch, or 4 o’clock snack where workers bring in (homemade) food that is either directly related to or inspired by their heritage and culture.

In addition to providing a wonderful opportunity to sample a wide variety of tasty foods, this type of event also provides a unique setting for employees to bond and share stories.

  1. The jar of money

The next part will be easy to understand if you know what a swear jar is. There are many possible variations on the theme of the money jar. One possible usage is to promote gender-neutral terminology in the workplace in an effort to increase diversity and inclusion.

As an example, using the phrase “men” can make female employees feel left out and ultimately unhappy. To raise awareness about the use of gendered language in the workplace, we can start by having everyone who uses the word “guys” in the improper context put a dollar (or any other amount) in the jar.

  1. Step Apart, Step Together

The purpose of this diversity and inclusion exercise is to demonstrate to workers that despite their differences, there are many things that unite us all. The process is as follows.

Two people can step forward and face each other as the group stands in front of them. After that, the remaining members of the group will take turns naming characteristics that might distinguish one individual from another.

Consider things like their religion, shoe color, hair color, ethnicity, etc. The volunteers physically separate from one another whenever they perceive a difference. They reunite when they find they have similar ground, though.

To put it plainly: we can always find something in common, no matter how dissimilar we are.

  1. The Diversity Calendar

From a diversity and inclusion standpoint, this one is totally logical. After all, not every employee will feel like they’re a part of the family if you just keep track of and celebrate the “traditional” holidays.

Moreover, celebrating multicultural festivals and maintaining a diversity calendar are both wonderful means of raising awareness.

  1. I am… But I am not

Once again, this diversity game is both easy to learn and play. You have the option of doing it verbally just or giving out paper copies to everyone in the group. “I am… but I am not…” is a phrase that each participant completes.

One example of a diversity and inclusion statement is: “I’m over 60 but I am not counting the days till my retirement.” The purpose of this initiative is, maybe unsurprisingly, to eradicate prejudice and stereotyping in the workplace.

To wrap things up

And that concludes it! What we’ve learned about diversity vs. inclusion is that the latter is essential for the former to be effective. Organizations that are successful in their diversity and inclusion initiatives have better financial outcomes, more creativity, and higher employee retention rates. Naturally, it will take time to establish an inclusive culture. Nevertheless, the seven examples of diversity and inclusion initiatives in the workplace that we provided can serve as a useful guide.

Have a quick question? We answered nearly 2000 FAQs.

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