Diversity in the work environment broadly refers to initiatives that prioritize [diversity, equity, and inclusion](https://www.masterclass.com/articles/dei-guide) (DEI) to improve the employee experience and create an inclusive environment. Diversity speaks explicitly to the identity makeup of those in the company, from age and [gender](https://www.masterclass.com/articles/gender-inequality) to race and disability. Equity involves equal opportunities for advancement and fairness of pay among employees. Inclusion initiatives in the workplace hold companies accountable to ensure they hire people from different backgrounds, bringing in different perspectives. 

> “The best companies do not set DE&I aside. It becomes the center, the moral compass of the company. It becomes the center of your DNA. It becomes what you get the opportunity to talk about in terms of your values and the way you want to respect individuals, not only from the customer base you’re addressing but the people who work for you. And so, when you think about this whole concept of DE&I—it should be the center of who you are and not the work you need to do.” 
> — Rosalind Brewer
Many [types of diversity](https://www.masterclass.com/articles/types-of-diversity) and identities may fall under the diversity umbrella. Some identities include:

1. __Disabilities__: Many disabilities are invisible, and workers do not have to disclose their disabilities. Nonetheless, businesses must operate in service of the Americans with Disabilities Act, which means their workspace must meet employee accessibility needs.
2. __Gender identity__: Diverse teams also include an equal distribution of men, women, and those who may be transgender or do not conform to gender norms. Gender diversity is significant to younger generations, such as millennials and Gen Z. Companies wishing to appeal to that age talent pool should give everyone equal access to apply.
3. __Racial ethnicities__: Ethnic diversity refers to race and [cultural](https://www.masterclass.com/articles/understanding-cultural-bias) backgrounds. Some companies use the terms “minorities” or “diverse talent” to refer to Black and brown people that specific workplaces historically excluded. Today, more companies and business leaders refer to such groups as the “global majority.” This more empowering phrase speaks to the fact that people of color make up most of the world’s population.
4. __Sexual orientation__: People who identify as LGBTQ+ are also under the diversity umbrella. Some inclusive workforces will have a Pride contingency so people know the workplace is welcoming for the queer community.
Diversity in the workplace refers to the people who make up a company and how diverse their identities are. Still, inclusion speaks to how well a company outreaches to, supports, and compensates diverse workers. [Inclusive leadership](https://www.masterclass.com/articles/inclusive-leadership-explained) comprises people with varied experiences to show various perspectives and life experiences. Inclusive companies might also start having regular DEI training, focus groups, and other inclusion initiatives that demonstrate their proactivity to foster a welcoming space capable of accountability, mutual support, and growth.

Traditionally, some [workplace cultures](https://www.masterclass.com/articles/business-essentials-what-is-company-culture-and-why-is-corporate-culture-important) have been homogeneous. White men have historically dominated some industries, such as the business field. Today, there is a greater emphasis on workplace diversity to welcome employees of more varied demographics, from entry-level job seekers to those vying for a place among the [C-Suite](https://www.masterclass.com/articles/c-suite-meaning) executive team.
An inclusive, diverse workforce can make employees feel welcome. If certain employees do not feel supported in a company, retention for the said group may wane. This can cost the company profit, given its high turnover and reputation. Poor press around inequities can sink a company. 

However, companies should not create a diverse workplace for optics: An inclusive work environment can give a company a competitive advantage thanks to the varied perspectives different employees bring together to enrich [problem-solving](https://www.masterclass.com/articles/creative-problem-solving) and improve [teamwork](https://www.masterclass.com/articles/team-work-explained). “I hope people realize that diversity, equity, and inclusion have now expanded far beyond reaching numbers because this is not a numbers game,” Rosalind says. “This is about equity and value. This is about a true meritocracy. This is about earning your way, regardless of your background.”
Diversity, equity, and inclusion can highly benefit workplaces. Companies with solid DEI practices may have the following advantages:

1. __Better reputation__: Public perception plays a significant role in sales and companies that the public view as being exclusive or don’t treat employees with respect may suffer in the market.
2. __Fresh perspectives__: Companies grow when they try out new ideas, and cultural diversity can enact new policies, strategies, and initiatives that eventually lead to higher revenue. Companies should regularly offer bias training to the entire staff to recognize [unconscious biases](https://www.masterclass.com/articles/unconscious-bias-explained) and better understand the [company values](https://www.masterclass.com/articles/company-values) concerning DEI. Human resources sometimes hire an outside professional to be an objective coordinator.
3. __Improved engagement__: DEI efforts can improve employees' work experience, making them feel more engaged. Employees often work better when they think a company values them. Companies can support [employee resource groups](https://www.masterclass.com/articles/employee-resource-groups), like a Jewish Affinity Group or a Lesbian Affinity Group, where peoples of different demographics gather regularly to discuss their identity and how it intersects with their work experience. Funding these groups with a budget for activities, [mentorship](https://www.masterclass.com/articles/how-to-ask-for-mentorship), and other programs speaks volumes.
4. __More expansive applicant pools__: If people see others like them working at a company, they may feel there is a place for them and will be more likely to apply. Statements emphasizing diversity, equity, and inclusion should be part of companies’ [mission statements](https://www.masterclass.com/articles/how-to-write-an-effective-mission-statement-in-3-steps) and hiring copy. This will tip off applicants that the company takes its work seriously and it also operates as a way to be held accountable.
There are several ways companies can foster a more inclusive culture. Consider these tips from business leader Rosalind brewer:

- __Advocate for diverse hiring practices__. Rosalind works to open the door for others looking to lead companies. “I need to make sure that all of the [CEO](https://www.masterclass.com/articles/what-is-a-ceo) community recognizes how critical it is to bring others like me along,” Rosalind says. “So I have spent quite a bit of time sharing my story with other CEOs and exposing my background to various industries.”
- __Give employees the spotlight__. Being an inclusive leader requires giving all employees time and attention. “As a leader, you have the opportunity to set the culture of the company. And I think where we have fallen down, once we get our numbers in order, we tend to leave those people of differences standing alone by themselves. Sometimes they're not seen, they’re not heard, they’re not given the top projects, they’re not promoted, and they’re not invested in. But you have to create an environment where their voice is heard so they can show off their wares and give them the spotlight.” 
- __Look at the data__. Sometimes, employees and applicants will take surveys (which, for privacy, must legally be voluntary), so the company has metrics to define how well it is performing concerning diversifying the groups of people it hires. “I sit with my HR team, and I actually like to look at the numbers,” Rosalind says. “I took over one organization, and I was really curious about the pay scale of women versus men at the vice president level and above. So I asked for those reports to be run, and lo and behold, I saw very clear examples of women being paid probably 70 cents on a dollar compared to men. And I was able to spotlight those individuals, get them on a sheet of paper, and within a month, we were able to change their salary level.” 
To climb the corporate ladder, you must first learn the fundamentals of leadership and innovation. Discover Rosalind’s approach to change management and agile teams, plus learn how to lead through crisis when you sign up for the [MasterClass Annual Membership](https://www.masterclass.com/).
Fostering an inclusive workplace is essential for enriching company culture, diversifying decision-making, and ensuring all people—regardless of background and life experience—enjoy a strong sense of belonging.

Fostering an inclusive workplace is essential for enriching company culture, diversifying decision-making, and ensuring all people—regardless of background and life experience—enjoy a strong sense of belonging.

Rosalind Brewer on Diversity and Inclusion in the Workplace

Diversity in the work environment broadly refers to initiatives that prioritize <a href='https://www.masterclass.com/articles/dei-guide' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/dei-guide","linkCopy":"diversity, equity, and inclusion","category":null}'>diversity, equity, and inclusion</a> (DEI) to improve the employee experience and create an inclusive environment. Diversity speaks explicitly to the identity makeup of those in the company, from age and <a href='https://www.masterclass.com/articles/gender-inequality' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/gender-inequality","linkCopy":"gender","category":null}'>gender</a> to race and disability. Equity involves equal opportunities for advancement and fairness of pay among employees. Inclusion initiatives in the workplace hold companies accountable to ensure they hire people from different backgrounds, bringing in different perspectives. <blockquote class="mc-text--italic mc-opacity--hinted mc-my-8 mc-mr-0 mc-ml-6 mc-pl-6">“The best companies do not set DE&amp;I aside. It becomes the center, the moral compass of the company. It becomes the center of your DNA. It becomes what you get the opportunity to talk about in terms of your values and the way you want to respect individuals, not only from the customer base you’re addressing but the people who work for you. And so, when you think about this whole concept of DE&amp;I—it should be the center of who you are and not the work you need to do.” — Rosalind Brewer</blockquote>

What Is Diversity in the Workplace?

Many <a href='https://www.masterclass.com/articles/types-of-diversity' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/types-of-diversity","linkCopy":"types of diversity","category":null}'>types of diversity</a> and identities may fall under the diversity umbrella. Some identities include:<ol class="mc-m-4"><li class="mc-my-4"> 1. Disabilities: Many disabilities are invisible, and workers do not have to disclose their disabilities. Nonetheless, businesses must operate in service of the Americans with Disabilities Act, which means their workspace must meet employee accessibility needs. </li><li class="mc-my-4"> 2. Gender identity: Diverse teams also include an equal distribution of men, women, and those who may be transgender or do not conform to gender norms. Gender diversity is significant to younger generations, such as millennials and Gen Z. Companies wishing to appeal to that age talent pool should give everyone equal access to apply. </li><li class="mc-my-4"> 3. Racial ethnicities: Ethnic diversity refers to race and <a href='https://www.masterclass.com/articles/understanding-cultural-bias' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/understanding-cultural-bias","linkCopy":"cultural","category":null}'>cultural</a> backgrounds. Some companies use the terms “minorities” or “diverse talent” to refer to Black and brown people that specific workplaces historically excluded. Today, more companies and business leaders refer to such groups as the “global majority.” This more empowering phrase speaks to the fact that people of color make up most of the world’s population. </li><li class="mc-my-4"> 4. Sexual orientation: People who identify as LGBTQ+ are also under the diversity umbrella. Some inclusive workforces will have a Pride contingency so people know the workplace is welcoming for the queer community. </li></ol>

4 Types of Diversity

Diversity in the workplace refers to the people who make up a company and how diverse their identities are. Still, inclusion speaks to how well a company outreaches to, supports, and compensates diverse workers. <a href='https://www.masterclass.com/articles/inclusive-leadership-explained' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/inclusive-leadership-explained","linkCopy":"Inclusive leadership","category":null}'>Inclusive leadership</a> comprises people with varied experiences to show various perspectives and life experiences. Inclusive companies might also start having regular DEI training, focus groups, and other inclusion initiatives that demonstrate their proactivity to foster a welcoming space capable of accountability, mutual support, and growth.Traditionally, some <a href='https://www.masterclass.com/articles/business-essentials-what-is-company-culture-and-why-is-corporate-culture-important' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/business-essentials-what-is-company-culture-and-why-is-corporate-culture-important","linkCopy":"workplace cultures","category":null}'>workplace cultures</a> have been homogeneous. White men have historically dominated some industries, such as the business field. Today, there is a greater emphasis on workplace diversity to welcome employees of more varied demographics, from entry-level job seekers to those vying for a place among the <a href='https://www.masterclass.com/articles/c-suite-meaning' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/c-suite-meaning","linkCopy":"C-Suite","category":null}'>C-Suite</a> executive team.

What Is Inclusion in the Workplace?

An inclusive, diverse workforce can make employees feel welcome. If certain employees do not feel supported in a company, retention for the said group may wane. This can cost the company profit, given its high turnover and reputation. Poor press around inequities can sink a company. However, companies should not create a diverse workplace for optics: An inclusive work environment can give a company a competitive advantage thanks to the varied perspectives different employees bring together to enrich <a href='https://www.masterclass.com/articles/creative-problem-solving' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/creative-problem-solving","linkCopy":"problem-solving","category":null}'>problem-solving</a> and improve <a href='https://www.masterclass.com/articles/team-work-explained' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/team-work-explained","linkCopy":"teamwork","category":null}'>teamwork</a>. “I hope people realize that diversity, equity, and inclusion have now expanded far beyond reaching numbers because this is not a numbers game,” Rosalind says. “This is about equity and value. This is about a true meritocracy. This is about earning your way, regardless of your background.”

Importance of Diversity and Inclusion in the Workplace

Diversity, equity, and inclusion can highly benefit workplaces. Companies with solid DEI practices may have the following advantages:<ol class="mc-m-4"><li class="mc-my-4"> 1. Better reputation: Public perception plays a significant role in sales and companies that the public view as being exclusive or don’t treat employees with respect may suffer in the market. </li><li class="mc-my-4"> 2. Fresh perspectives: Companies grow when they try out new ideas, and cultural diversity can enact new policies, strategies, and initiatives that eventually lead to higher revenue. Companies should regularly offer bias training to the entire staff to recognize <a href='https://www.masterclass.com/articles/unconscious-bias-explained' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/unconscious-bias-explained","linkCopy":"unconscious biases","category":null}'>unconscious biases</a> and better understand the <a href='https://www.masterclass.com/articles/company-values' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/company-values","linkCopy":"company values","category":null}'>company values</a> concerning DEI. Human resources sometimes hire an outside professional to be an objective coordinator. </li><li class="mc-my-4"> 3. Improved engagement: DEI efforts can improve employees&#39; work experience, making them feel more engaged. Employees often work better when they think a company values them. Companies can support <a href='https://www.masterclass.com/articles/employee-resource-groups' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/employee-resource-groups","linkCopy":"employee resource groups","category":null}'>employee resource groups</a>, like a Jewish Affinity Group or a Lesbian Affinity Group, where peoples of different demographics gather regularly to discuss their identity and how it intersects with their work experience. Funding these groups with a budget for activities, <a href='https://www.masterclass.com/articles/how-to-ask-for-mentorship' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/how-to-ask-for-mentorship","linkCopy":"mentorship","category":null}'>mentorship</a>, and other programs speaks volumes. </li><li class="mc-my-4"> 4. More expansive applicant pools: If people see others like them working at a company, they may feel there is a place for them and will be more likely to apply. Statements emphasizing diversity, equity, and inclusion should be part of companies’ <a href='https://www.masterclass.com/articles/how-to-write-an-effective-mission-statement-in-3-steps' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/how-to-write-an-effective-mission-statement-in-3-steps","linkCopy":"mission statements","category":null}'>mission statements</a> and hiring copy. This will tip off applicants that the company takes its work seriously and it also operates as a way to be held accountable. </li></ol>

4 Benefits of Diversity and Inclusion in the Workplace

There are several ways companies can foster a more inclusive culture. Consider these tips from business leader Rosalind brewer:<ul class="mc-m-4 list-styled"><li class="">Advocate for diverse hiring practices. Rosalind works to open the door for others looking to lead companies. “I need to make sure that all of the <a href='https://www.masterclass.com/articles/what-is-a-ceo' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/what-is-a-ceo","linkCopy":"CEO","category":null}'>CEO</a> community recognizes how critical it is to bring others like me along,” Rosalind says. “So I have spent quite a bit of time sharing my story with other CEOs and exposing my background to various industries.” </li><li class="">Give employees the spotlight. Being an inclusive leader requires giving all employees time and attention. “As a leader, you have the opportunity to set the culture of the company. And I think where we have fallen down, once we get our numbers in order, we tend to leave those people of differences standing alone by themselves. Sometimes they&#39;re not seen, they’re not heard, they’re not given the top projects, they’re not promoted, and they’re not invested in. But you have to create an environment where their voice is heard so they can show off their wares and give them the spotlight.” </li><li class="">Look at the data. Sometimes, employees and applicants will take surveys (which, for privacy, must legally be voluntary), so the company has metrics to define how well it is performing concerning diversifying the groups of people it hires. “I sit with my HR team, and I actually like to look at the numbers,” Rosalind says. “I took over one organization, and I was really curious about the pay scale of women versus men at the vice president level and above. So I asked for those reports to be run, and lo and behold, I saw very clear examples of women being paid probably 70 cents on a dollar compared to men. And I was able to spotlight those individuals, get them on a sheet of paper, and within a month, we were able to change their salary level.” </li></ul>

How to Improve Diversity and Inclusion in the Workplace

To climb the corporate ladder, you must first learn the fundamentals of leadership and innovation. Discover Rosalind’s approach to change management and agile teams, plus learn how to lead through crisis when you sign up for the <a href='https://www.masterclass.com/' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/","linkCopy":"MasterClass Annual Membership","category":null}'>MasterClass Annual Membership</a>.

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Fostering an inclusive workplace is essential for enriching company culture, diversifying decision-making, and ensuring all people—regardless of background and life experience—enjoy a strong sense of belonging.

Fostering an inclusive workplace is essential for enriching company culture, diversifying decision-making, and ensuring all people—regardless of background and life experience—enjoy a strong sense of belonging.


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Rosalind Brewer on Diversity and Inclusion in the Workplace