7 Reasons Why Employers Need Diversity & Inclusion

In this blog, we list and explain a few of the primary reasons why diverse and inclusive organizations experience more success when compared to their competition. With each reason, we explore statistics from credible sources that highlight and prove why diversity and inclusion is necessary for success.

Brooke White, Senior Employer Brand Specialist Written by Brooke White, Senior Employer Brand Specialist

Why Employers Need Diversity and Inclusion: 7 Key Benefits

Research has shown time and time again that organizations with diverse and inclusive workforces are statistically more successful than those without. In this blog, we explore seven of the most influential reasons organizations should prioritize diversity and inclusion based on credible studies and statistics.

“A diverse organization will out-think and out-perform a homogeneous one every single time.” 
A. G. Lafley, Former CEO, Proctor & Gamble

When organizations prioritize diversity and inclusion, it has been statistically proven that they experience lower employee turnover. In a job market where 88% of seekers place importance on culture (Jobvite), it becomes glaringly obvious how D&I correlate with retention. When diverse employees experience a culture that prioritizes diverse hiring, pay equity, and inclusive practices, it impacts their career decision to stay with the organization.

Inclusive work cultures have also been found to foster job satisfaction and knowledge sharing, while reducing aggression and discrimination in the workplace. In 2016, 65% of employees reported that the respectful treatment of all employees was a very important factor in their job satisfaction (SHRM). Employees also reported experiencing trust and increased engagement at work when they felt included and perceived their employer supports diversity practices, such as recruiting diverse job candidates (Catalyst). When employees are satisfied, engaged, and able to share knowledge without conflict, organizations experience efficiency and productivity as a direct result.

Research supports that diverse and inclusive teams tend to be more creative and innovative than homogenous groups. Diverse teams bring different experiences, perspectives, and approaches necessary to solve complex, non-routine problems. Diverse teams are also better able to serve diverse customer markets, such as women, ethnic minority, and LGBTQ+ communities which command an increasing share of untapped consumer wealth. (McKinsey Report) According to a recent BCG Study, organizations with higher diversity at the management level earned 38% more of their revenues, on average, from innovative products and services when compared to companies with lower diversity.

Another common research trend indicates that diverse and inclusive teams make better quality decisions, often faster, and in a more fact-based manner, with less cognitive bias or groupthink (McKinsey Report). When you have a team of diverse opinions that are both heard and valued, decisions are more informed and can be made efficiently. Without diverse leaders, roughly 20% of women, 24% of people of color, and 21% of LGBT employees are less likely to have their ideas endorsed (Harvard Business Review).

An Accenture Study found that 54% of millennials believe retailers have a responsibility and duty toward addressing wider social and political issues with regards to diversity. When retailers aren’t authentically committed to inclusion and diversity, millenials choose to take their business elsewhere. Considering that by 2030 this group will make up roughly 75% of the U.S. workforce, their opinions and wallet hold increasingly more value. Even before the current climate raised the stakes on inclusion and diversity, companies who were leaders benefitted from an enhanced reputation extending beyond their employees to their customers, supply chain, local communities, and wider society (McKinsey Report).

Gender-diverse boards are linked to stronger risk-management practices, greater attention to legal responsibilities, more transparent and accurate financial reporting, and fewer instances of controversial business practices such as fraud, corruption, bribery, and shareholder battles. (Catalyst) From a social responsibility perspective, a Catalyst and Harvard Business School study of Fortune 500 boardrooms found that companies with gender-inclusive teams contributed more charitable funds, on average, than companies without. (Catalyst)

Companies in the top-quartile for gender-diversity in executive teams were 21% more likely to have above-average profitability than companies in the fourth quartile. For ethnic and cultural diversity, top-quartile companies were 33% more likely to outperform on profitability. When considering companies with the most ethnic and culturally diverse boards worldwide, they were 43% more likely to experience higher profits. (McKinsey Report) Overall, companies in the bottom quartile for both gender and ethnic/cultural diversity were 29% less likely to achieve above-average profitability than were all other companies in the data set. In short, not only were these companies not leading, they were lagging. (McKinsey Report)


We’ve all heard the phrase “diversity isn’t only the right thing to do, it makes good business sense” – but after reading through these statistics, it’s impossible to believe otherwise. In today’s global marketplace, organizations have a business responsibility to bring aboard diverse talent and foster an inclusive environment that supports their success.

If your organization is ready to experience the seven benefits listed above, Adverto’s team of specialists can work with you to build a diversity strategy that will attract, convert and retain diverse talent.