Diversity vs Inclusion: Key Differences & Workplace Impact

The terms diversity and inclusion are often used interchangeably. But the two mean different things.

Boiled down, diversity is about numbers. It’s a record of how many people there are in underrepresented groups.

According to the Bureau of Labor Statistics, as of 2022, the U.S. workforce is 77% white, 12.6% Black or African American, 18.5% Hispanic or Latino, and 6.7% Asian.

Inclusion is about how you treat and value people in those groups. In brief, diversity counts heads. Inclusion makes each head count.

When it comes to diversity vs inclusion, both are important. But without inclusion, diversity loses both its purpose and meaning.

Diversity vs inclusion

Diversity brings a mix of talents and perspectives to the table. Inclusion ensures every voice is heard and valued.

Together, they create a dynamic and innovative workplace environment. Let’s further explore the inclusion and diversity meaning.

What is diversity?

Diversity means having a variety of people with different backgrounds and characteristics in the workplace. These can be:

• Race and ethnicity. People from different racial and ethnic backgrounds.
• Gender. Individuals who represent gender diversity (male, female, and non-binary.)
• Age. Having a range of age groups, from younger employees (Gen Z) to older individuals (Boomers).
• Sexual orientation. Including people from the LGBTQ+ community.
• Disabilities. People with physical, mental, or emotional disabilities.
• Socioeconomic status. Individuals that stem from different economic or social backgrounds.
• Education levels. A workforce with a mix of educational and academic experiences.
• Religion. Inclusion of individuals that practice different religions and belief systems.
• Cultures. Having a variety of cultural backgrounds and traditions among employees.

Example of diversity in the workplace

A great example of diversity at work is at Google. The company has been recognized for its diversity and inclusion efforts for quite some time.

Google has recently implemented an initiative, Self-ID, that gathers inclusive global data on race, gender, and other identities. This helps the organization understand the diversity in its workforce better and how individual employees identify themselves.

The results are impressive:

• 7.0% self-identified as LGBQ+ and/or Trans+
• 6.5% self-identified as having a disability
• 5.2% self-identified as being, or having been, members of the military
• <1% self-identified as non-binary

Also, Google increased the leadership representation of Black+, Latinx+, and Native American+ Googlers by 30% since 2022.

What is inclusion?

Inclusion is about making sure everyone feels valued and included, regardless of their background and identities. It means creating a welcoming work environment where individuals participate and contribute equally. In detail:

• Treat people with respect, no matter their background
• Recognize and appreciate each employee’s unique contributions
• Ensure each employee has the chance to participate and be heard
• Offer the support and resources your workforce needs to succeed
• Create a sense of belonging for everyone at work
• Make sure every person has equal access to opportunities and resources
• Encourage teamwork and collaboration among diverse teams

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Example of inclusion in the workplace

Microsoft is a well-known organization that has made impressive contributions to fostering an inclusive environment where everyone can thrive.

Microsoft offers robust and holistic leadership development opportunities to all employees to deepen their understanding of career options and pathways. Managers also support this, investing in the success of all thriving employees at Microsoft.

Asian employees at Microsoft received the ERG (Employee Resource Group) Impact award by Ascend in the category “Fostering Inter-Asian and/or Cross-Culture Allyship.” This demonstrates how ERG supported the community during times of crisis and the efforts in intersectional programming and support for other ERGs.

Key differences between diversity and inclusion

So, what’s the difference between diversity and inclusion?

To better understand diversity vs inclusion, it’s necessary to explore how each term functions in the workplace.

Diversity is about having people from different backgrounds and identities in an organization. The focus is on “who” is in the company in terms of race, gender, age, and more. The goal of diversity is to bring a wide range of perspectives, skills, and experiences to the workforce.

To measure diversity, it’s essential to look at the demographic makeup of the workforce.

Inclusion, on the other hand, is the process of actively creating an environment where people feel valued, respected, and equal. It focuses on “how” people are treated and interact in the workplace. The main goal of inclusion is to ensure each individual feels welcomed, heard, and able to contribute to the collective success.

To measure inclusion, it’s crucial to assess employee feedback, run engagement surveys, and observe the organizational culture.

Diversity vs inclusion in practice

Diversity is like inviting everyone to the party. Inclusion brings everyone at the party together. It makes sure all attendees feel comfortable. And that they all have the chance to show off their own unique dance moves.

Poornima Luthra explores diversity in TalentLMS’ podcast, Keep It Simple, stressing in the episode “Empathy and Inclusivity in the Workplace” that fostering diversity, equity, and inclusion means establishing environments where all individuals feel valued and included, with fair guidelines for everyone.

Having a diverse group of people in a workplace is a good place to start. But, it’s not enough on its own. Striking a balance between diversity vs inclusion requires intentional effort to embrace differences and create an inclusive environment. Being truly inclusive is the next important step.

So, what is diversity and inclusion in the workplace? Let’s see what a truly inclusive workplace looks like.

Diana, a carer, and Mike, a retiree, are two new hires of a company committed to diversity. In a diversity-focused setting, their presence is acknowledged. This means the company can tick the box for hiring diverse employees. Yet, it’s the inclusive actions that make the difference.

Committed to inclusivity, as well as diversity, the unique skills Diana’s acquired from her caregiving experiences are recognized. She’s encouraged to bring her multitasking abilities and empathy to team projects. She’s also offered flexible work hours and resources so she can balance work with her caring responsibilities. All of this means Diana doesn’t just bring diversity to the team and the company. She is actively supported by strategies designed to help her thrive. Similarly, Mike, the retiree, isn’t treated as a token older person. Instead, the company actively seeks his advice and input, valuing the wealth of experience he brings.

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Critical diversity & inclusion benefits

In the “war” between diversity vs inclusion, there’s no clear winner. In fact, the focus is on diversity and inclusion.

Here’s why you need both:

Increase creativity and innovation

Workforce diversity gathers a variety of perspectives and experiences. This leads to more creative solutions and innovative ideas. Having different viewpoints in a diverse workplace helps solve problems more effectively and develop new products or services.

Boost insight

In inclusive environments, peoples’ diverse opinions usually lead to better decision-making. This diverse input helps people consider various (if not, all) angles of an issue. Leading to more well-thought-out and novel solutions.

Enhance employee engagement

Employees who feel included and valued are more likely to be engaged and committed to their work. This contributes to higher productivity levels, better job satisfaction, and lower turnover.

Build a more skilled and versatile workforce

Organizations that embrace diversity and inclusion have a higher chance of attracting and retaining top talent from a broader range of backgrounds. As a result, the workforce becomes more skilled and versatile.

Improve company reputation

Companies that are committed to their DEI efforts have a better reputation. In fact, they attract more customers, investors, and partners who value such principles.

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Boost customer relationships

With a diverse workforce, organizations can better understand and serve diverse customers. Leading to improved customer relations and higher market share.

Align with legal and ethical standards

Companies that promote diversity and align with ethical business practices have a higher chance of avoiding legal issues. In fact, many regions have specific laws and regulations that value diversity and prevent discrimination.

How to achieve workforce diversity

A diverse workforce is the spark that ignites a truly inclusive workplace. It’s the bold, first step towards building a truly inclusive workplace where everyone feels valued and recognized.

Here’s what to consider to set the stage for a workplace that thrives on uniqueness:

Recruitment strategies

• Broaden recruitment channels: Consider posting job announcements on diverse job boards, attending job fairs with underrepresented groups, and connecting with organizations that focus on diversity.
• Make job descriptions more inclusive: Your job descriptions should be written in a way that appeals to a broad audience. Avoid biased language and focus on soft/technical skills rather than formal qualifications. Plus, include your commitment to DEI on the job posting itself.
• Create diverse hiring teams: Hiring committees should be diverse. Or offer your current hiring teams DEI training to make better informed decisions during recruitment. This way, unconscious bias is minimized during the candidate selection process.
• Try blind recruitment: Avoid looking at personal information on applications. Instead, focus only on job candidates’ skills and prior experience.

Equal opportunities

• Provide career development programs: Offer mentoring, L&D opportunities, clear career ladder paths, and resources to all employees. Focus more on those from marginalized groups.
• Be transparent with promotion criteria: Set clear and objective criteria for promotions, regardless of people’s backgrounds. This way, you ensure people are treated fairly and transparently.

Diversity metrics and goals

• Track diversity data: Make sure to measure and analyze diversity metrics in your organization regularly. This provides clear insights into areas for improvement.
• Set clear diversity goals: Specific, measurable goals to increase diversity at all levels of the company are essential to establish.

Ways to build an inclusive workplace

Now that you’ve boosted diversity in the workplace, it’s time to turn these unique perspectives into the powerful, collective force of an inclusive workplace with diversity in mind.

Let’s explore what transforms the workplace into a huddle of collaboration and mutual respect.

Inclusive workplace culture and policies

• Build inclusive policies: Support inclusion with policies such as flexible working, parental/caretaker leave, and other facilitations for those with disabilities.
• Invest in Employee Resource Groups (ERGs): Form ERGs for your workforce’s underrepresented groups. This provides a clear sense of community and advocacy in the company.

Training and awareness

• Focus on unconscious bias training: Offer your employees training on recognizing and mitigating unconscious biases within the organization.
• Don’t forget diversity and inclusion training: Educating all employees on different cultures, traditions, and communication styles is essential. This fosters a more inclusive workplace environment.

Inclusive leadership

• Boost diversity in leadership: Have diverse leadership teams with people in leadership positions from various backgrounds and identities. This will work as a model of inclusive behavior and enhance decision-making.
• Train leadership for inclusion: Leaders must be trained in inclusive practices. For example, active listening, empathy, and equitable decision-making.

Recognition and support

• Celebrate diversity: Recognize milestones and achievements related to diversity and inclusion. Cultural events should also be celebrated to promote cultural sharing.
• Check in on your employees: Run meetings and check-ins to discuss inclusion, and concerns, or celebrate success.
• Have a zero-tolerance policy and support systems: Enforce a zero-tolerance policy regarding discrimination, harassment, and bullying. At the same time, allow access to mental health resources, counselling, and support to individuals that face discrimination or bias.

An inclusive and diverse workplace leads to organizational success

In reality, there’s no war between inclusion vs diversity.

They are just two sides of the same coin. They work in synergy to create a solid foundation for organizational success. Diversity brings a variety of different perspectives and experiences. While inclusion ensures they are heard and valued.

Their combination drives companies toward greater innovation, productivity, and resilience. Thus, embracing both is crucial for creating a thriving and dynamic workplace.