Benefits of a Diverse Workforce (and 7 Tips for Recruiters)

True workplace diversity means having employees from different races, ages, sexual orientations, physical and mental abilities, and nationalities. Learn the benefits of diversifying your workplace.

Blog Author - Janelle Watson
Janelle Watson
Dec 19, 20235 minutes
Blog Author - Janelle Watson
Janelle Watson

Janelle Watson provides content marketing for the international team at Justworks. With a background in higher education and journalism, Janelle helps tell stories that make international expansion and EOR accessible.

64 postsAuthor's posts
25 1920x1080 benefits-of-a-diverse-workforce

It’s no secret the benefits of a diverse workforce and how hiring diverse talent can drive productivity and improve team collaboration. Statistics indicate that diversity in the workplace increases profits, creativity, and returns for your overall business. In addition to all of these benefits, diverse workplaces help businesses attract top candidates from the LBGTQ+ community, different cultural backgrounds, and other historically marginalized communities.

Here is a breakdown of how diversity benefits company expansion, as well as some tips and insights for how employers can implement inclusive hiring practices.


Taking your business global?

An EOR offers flexibility, scalability, and peace of mind to businesses venturing into international markets. Learn more about hiring easily and compliantly across borders.

Download now

Why diversity is good for business

Having employees from all walks of life can make your team more productive and encourage more strategic decisions.

1. More opportunity for collaboration

When businesses focus on cultivating diverse teams and inclusive work environments, they open avenues for collaboration between team members. Encouraging your employees to work together with people from different ages, racial backgrounds, nationalities, languages, and gender identities ensures that new ideas are flowing freely. In the long run, this helps businesses solve problems faster.

Collaboration also allows employees to gain perspectives that they may not encounter in their day-to-day lives. This can help your company understand the needs of a wider customer base.

2. Increase in profits and returns

Employees from diverse backgrounds have the advantage of reaching more customer demographics. Workplace diversity leads to improved products, better services, more meaningful marketing and social media campaigns, and increased profits. Research suggests that more diverse workplaces lead to 35% more profits, on average, than companies that do not prioritize hiring employees from different backgrounds.

3. Access to better talent pool

Diversity not only gives your company a better reputation for potential clients, but also shows that you recognize employees from underrepresented groups. 62% of job seekers said they were more likely to apply for open positions with businesses where the business is actively committed to improving diversity and inclusion

4. Retain employees

To retain more employees, consider implementing diversity programming strategies.

Employees are likely to stay with a company if they feel that they are being seen as both a unique individual for their creativity and innovation, and as someone that makes up the collective group.

Studies at UC Berkeley suggest that diversity programing should:

  • Focus on the group over the individual while recognizing everyone's unique backgrounds

  • Have strong leaders that inspire employees to do their best

  • Encourage employees to think about new perspectives

  • Take things into perspective from other viewpoints

Once employers have a better understanding of how to build a team with employees from a variety of backgrounds, they are much more likely to retain the best workforce.

Challenges of building a diverse workforce

Although building a diverse team can boost overall company profits and morale, there are some challenges employers will need to understand before switching to diverse recruiting strategies.

Language barriers and different communication styles can make the process challenging, especially if you’re hiring across borders. As an employer, you need to recognize your own biases and how they cloud your decision making in the workplace.

How can employers implement diverse recruiting?

As businesses begin to approach hiring with inclusivity and equity in mind, there are quite a few strategies that can make the process more fluid.

1. Recognize your own potential bias

Everyone has unconscious biases. Even the most well-educated employers will have biases from their own backgrounds and unique life experiences.

Once you begin to make the recruiting process more equitable and inclusive, try to do your best to unpack your own biases. Consider using data-driven tools that help eliminate any unfair decision making in the recruiting process for your business.

2. Create equal and fair pay

Create pay and benefit packages that are fair and equal. The gender pay gap is real, so when hiring queer, non-binary, gender non-confirming, trans, or female candidates for a job, double-check that you’re offering a salary that matches their qualifications.

The Supreme Court ruled in 2020 in Bostok v Clayton County that discrimination against LGBTQ+ and transgender employees was illegal. Before this ruling, only 21 states protected LGBTQ+ employees against anti-discrimination based on their sexual orientation. As a result, creating employee compensation packages that are equal is one of the main steps in fighting anti-discrimination in the workplace. These laws should influence decision making, especially when it comes to creating a work environment that promotes inclusivity.

When creating benefit packages, make sure that all employees doing the same work, no matter their background, are receiving the same compensation. In addition to creating equal pay packages, promote employees based on their personal work ethic and contributions to the organization, and not based on their race, gender identity, or other factors that could be considered discriminatory.

3. Build a diverse talent/HR team

Another step towards building a diverse team is to create a recruiting program that has a large team behind it that embraces diversity, instead of having one singular recruiter or a limited number of hiring managers.

Hire a recruiting/talent team that comes from a variety of cultural and social backgrounds. As the foundation in any organization, diverse HR leaders help develop and advance top talent from nontraditional backgrounds. 

Most importantly, build a strong careers page that highlights your company's focus on diversifying your workforce. This will not only help you attract candidates from different cultures, but will improve your company’s reputation.

4. Offer diversity training, especially for leadership positions

Employers should have mandatory diversity and equity training for hiring managers across the organization and make hiring managers use cognitive diversity practices. This will encourage the recruiting managers to see different viewpoints from other managers, and motivate them to hire employees from a wide-range of backgrounds.

5. Employee education on diversity

You can also encourage diversity by educating your employees on how to see different perspectives while collaborating. Hold online training or have guest speakers that open up avenues of conversation for employees to think about diversity in productive ways.

6. Listen to your employees’ concerns

Show your employees that they are seen and heard. Build a strong HR team that is socially responsible and allows employees to feel comfortable enough to report any discrimination or harassment that they may see or experience. Ensure that your HR team is properly trained on how to handle any occurrence of discrimination in a way that promotes safety and inclusivity.

7. Reward and value employees equally

One of the biggest challenges of making employees feel valued is rewarding them for their work. If an employee feels that their work is directly impacting the company, they are more likely to be productive and take initiative, which can increase employee engagement.

Create incentive programs that boost employee morale. Studies show incentive programs that reward individual employees increase employee performance by 44%.

Some examples of incentive programs that reward employees are:

  • Health and wellness

  • Profit sharing

  • Individual awards and recognition for performance

  • Choice of projects

  • Increased time off

Showing employees their worth, especially in diverse businesses, helps them to feel like their differences are an asset instead of a problem. Set up these programs in a way that treats them equally.

How Justworks Provides International EOR Services for Small Business

For some businesses, hiring diverse teams can mean hiring across borders. Through Justworks, you can now expand the boundaries of your talent search without setting up a local entity. Focus on building your team, and leave worrying about the nitty-gritty of HR and international compliance to us. 

Our team of local labor lawyers and experts ensure that your small business always remains compliant while expanding internationally. We handle the responsibility side of things so you can focus on what matters: managing your team. 

Learn more about how you can expand your international business through Justworks, and get started today


What is diversity in the workplace? 

Diversity in the workplace encourages a wide range of employees from different backgrounds to collaborate together and come up with fresh ideas using their own unique worldview. Encouraging a diverse workplace has payoff not only for employees but also for employers, who can attract and retain top talent. 

What is diversity and why is it important in the workplace? 

For employers, diversity typically refers to having employees from different races, ages, sexual orientations, physical and mental abilities, nationalities, and other backgrounds. Diversity in the workplace not only allows employers to have a larger customer base because of their employees unique backgrounds, but also includes perspectives that more homogenous companies may overlook. 

What are the five elements of diversity in the workplace? 

The elements of diversity in the workplace are cultural diversity, racial diversity, gender diversity, physical diversity, and neurodiversity. A successfully diverse company should have employees from all five elemental backgrounds. 

What are the 4 types of diversity in the workplace? 

The four types of diversity in the workplace are internal, external, organization, and world view.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.
Discover more of what you like
PEOHealth InsuranceBenefits & PerksPayroll & TaxesExpenses & FinanceEmployment LawsInternational

Check out our newsletter

Monthly tips on running a business in your inbox.

Check out our newsletter

Monthly tips on running a business in your inbox.
Written By
Blog Author - Janelle Watson
Janelle Watson
Dec 19, 20235 minutes

Janelle Watson provides content marketing for the international team at Justworks. With a background in higher education and journalism, Janelle helps tell stories that make international expansion and EOR accessible.

Learn more with Justworks’ Resources

Scale your business and build your team — no matter which way it grows. Access the tools, perks, and resources to help you stay compliant and grow in all 50 states.