Increase profitability by 23%
Boost productivity by 21%
Increase profitability by 23%
Boost productivity by 21%
We’ve worked with thousands of organisations to measure and improve belonging in their companies, and our experience has taught us one thing. Building a genuinely inclusive workplace is no easy task. If you want to do so, you need to understand and support the different types of diversity that shape individual perspectives, affect working styles and influence how people engage with their work and one another.
Focusing on these differences can create better communication, stronger collaboration and higher performance across the board.
Related: What’s the difference between equality, diversity and inclusion?
There are several types of diversity that contribute to a more inclusive and high-performing workplace. Each one offers unique insights, experiences and ways of working. By understanding and embracing these differences, organisations can improve employee engagement, reduce turnover and create a workplace where more people feel they belong.
Let’s look at the eight types of diversity that have the biggest impact.
This is often the first thing people think of when the subject of diversity comes up. Demographic diversity refers to characteristics such as race, ethnicity, gender, age and sexual orientation. According to a McKinsey report, companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability. Ethnic and cultural diversity also correlate with better financial outcomes.
Despite progress, there’s still a long way to go. For instance, the UK’s Parker Review found that 96 out of the FTSE 100 companies had at least one minority ethnic board member in 2022 but ethnic minority representation in senior leadership remains limited.
Cultural diversity refers to differences in customs, beliefs, language and values shaped by people’s backgrounds and experiences. In a workplace context, this type of diversity can influence communication styles, attitudes to authority and decision-making processes.
Language differences, for example, may impact how people contribute in meetings or interpret feedback. Managers who recognise these nuances are better equipped to create environments where employees feel heard and understood.
Workplaces that respect and integrate cultural diversity often see higher employee engagement and stronger relationships across international teams.
Disability diversity includes physical, mental, sensory and cognitive disabilities. It’s been shown that disabled people are almost twice as likely to be unemployed compared to non-disabled people.
Creating accessible work environments, flexible working policies and inclusive hiring practices is not just the right thing to do — it also helps attract and retain talented individuals who may otherwise be excluded.
Employers that invest in disability awareness training often report better retention and productivity outcomes.
Educational diversity reflects differences in academic backgrounds, qualifications and types of education. This includes everything from traditional university degrees to vocational training and apprenticeships.
Teams made up of people from different educational paths tend to bring more creative solutions and broader viewpoints. It also helps reduce groupthink as varied educational experiences shape how people analyse problems and arrive at conclusions.
Having diverse levels of education also makes companies more relatable to a wider customer base. People with different types of education often have distinct problem-solving approaches contributing to innovation and productivity.
Experiential diversity refers to people’s professional backgrounds, industry experience and career paths. Two employees might be the same age and have the same degree but bring completely different skills to the table depending on where they’ve worked or the roles they’ve held.
Hiring for different experiences — not just qualifications — helps businesses stay adaptable and responsive. It encourages knowledge sharing and allows newer employees to learn from seasoned professionals and vice versa.
This type of diversity also helps companies identify blind spots. Someone who’s worked in a small startup, for example, may have a very different perspective compared to someone who’s only worked in large corporate environments.
Cognitive diversity involves different ways of thinking, problem-solving and processing information. Some people are more analytical and data-driven while others rely on intuition or prefer to think visually.
This type of diversity has been linked to improved team innovation. A Harvard Business Review article found that teams with higher cognitive diversity solved problems faster than more homogeneous teams.
Bringing together diverse thinkers encourages constructive challenge leading to better decisions. It also supports adaptability — essential in organisations navigating complex change or disruption.
Religion and spirituality can influence people’s values, behaviours, holiday preferences and dietary choices. Religious diversity includes people of different faiths as well as those who are non-religious.
Workplaces that accommodate religious practices — whether that’s providing prayer spaces or respecting time off for religious holidays — help create a more respectful and inclusive culture. This approach can reduce workplace conflict and contribute to employee wellbeing.
Being aware of religious diversity also helps organisations avoid unconscious bias in scheduling, communication and policies. A more considerate approach benefits the wider organisation not just the individuals directly affected.
Socioeconomic diversity relates to people’s economic background, upbringing and access to resources. Someone from a working-class background may have had fewer educational opportunities while another person may have had access to private schooling or unpaid internships.
A 2023 report by the Social Mobility Commission found that employees from lower socioeconomic backgrounds are still underrepresented in many high-paying sectors such as finance and law.
Improving access to development opportunities, mentoring and fair hiring practices can help reduce inequality and improve outcomes for everyone. Socioeconomic diversity also makes organisations more representative of the society they operate in. It’s a meaningful way to widen the talent pipeline and support social mobility.
Understanding the different types of diversity is all about reflecting the reality of the world people live and work in. When companies take this seriously and listen to what employees are experiencing, it becomes easier to make meaningful changes that improve workplace culture.
Employee surveys are a powerful way to uncover how different groups are experiencing your organisation — and where there’s work to do. If you’re ready to build a more inclusive workplace, get in touch with us to learn how a diversity and inclusion survey can support your goals.
