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Home Blog 22 Powerful Diversity in the Workplace Statistics

22 Powerful Diversity in the Workplace Statistics

by Ethan Michael Carter

Being a diverse company means employing people with various characteristics such as race, gender, age, religion, etc. The benefits of inclusion and equality are numerous, and these diversity in the workplace statistics provide truth to it.

Companies that have more diversity are not only seen as more desirable to work for, but they also manage to outshine and outperform their competitors. It’s beneficial for every organization to have a broader perspective, which, in turn, will portray a positive image to the public eye.

Having such an approach to doing business can only increase your employee’s productivity, services improvement, client list, and profits.

Workplace Diversity Statistics (Editor’s Pick)

  • 57% of employees want to see their company increase diversity
  • 6.6% of all Fortune 500 companies have women as their CEOs
  • 69% of executives believe that diversity and inclusion are the most important issues
  • Companies who had higher female members in the top management sector saw a higher returns
  • Diverse management boosts revenue by 19%
  • Women constitute 50.8% of the US population
  • Men are 30% more likely to be promoted to a managerial role
  • 34% of people believe that male executives are better at risk assessment.

Diversity Facts and Statistics

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1. Companies that are inclusive are more likely to lead and capture new markets.

Around 70% of diverse companies are better positioned to capture new markets. And with the higher number of markets comes much better performance and a lot more money.

2. 43% of companies with diverse management exhibited higher profits.

Among the top facts is the increase in profits. Those types of companies have notably enjoyed a hefty increase in profits compared to their competitors.

3. Companies with racial and ethnical diversity are 35% more likely to perform at a higher level.

This goes hand in hand with the increase in profits, as it is increasingly clear that the lack of diversity in the workplace can only hamper your work and your company.

4. Diverse teams are 87% better decision makers than individuals.

Teams that had geographical diversity, members of different genders and races, as well as an age gap of at least 20 years, were recorded as making better business decisions.

5. Companies employing an equal number of men and women manage to produce up to 41% higher revenue.

It’s no secret that companies with diversity issues perform worse compared to their counterparts without such problems. When men and women are treated equally, they perform better, according to key statistics and revenue growth.

6. Highly inclusive companies are more likely to hit their financial target goals by up to 120%.

When companies improve the working environment and create an inclusive workplace, people not only feel empowered, but they also band together and work harder to meet the target goals of the company.

Moreover, the positive effects of such improvements are pretty much evident. As the latest diversity in the workplace statistics suggest, these companies see 1.4 times more revenue than their competitors.

7. A staggering 78% of people think that diversity and inclusion offer a competitive advantage.

In today’s modern global business environment, the diversity issue has become overly important. Even employees understand the importance of this matter. The staggering 78% of people believe this can lead to a competitive advantage, while about 39% truly believe it offers a significant advantage over the competition.

Minorities in the Workplace Statistics

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A much more challenging topic many companies endure is discrimination in the workplace, regardless if it is subtle or overt in any way. Discrimination can truly hamper an employee’s productivity and work experience. This usually happens to members of a minority group that can be of racial, ethnical, color, or any other classification.

Most of the time, it occurs when members of these groups are treated in a different way compared to their colleagues or other employees, mostly because they belong to those groups.

Needless to say, if these issues aren’t addressed the right way, especially issues related to race diversity in the workplace, a company cannot move forward and be a leader of innovation.

8. Racially diverse teams provide 35% better performance compared to their competitors.

Today, we live in a world that is deeply connected and global. Companies with an impeccable diversity and inclusion perform three times better compared to less diverse companies and also report financial returns up to 35% higher than national industry medians.

9. US workforce diversity statistics show that 20% of workers are of Latin and Hispanic origin.

The percentage of Latin and Hispanic workers has increased over the past 30 years, and it is predicted that this number will continue to rise. Many Americans celebrate the Hispanic Heritage Month from September 15 until October 15 as the month that honors the contributions of all Latin and Hispanic Americans to the history of the United States.

10. Companies with high racial diversity see 15 times more revenue and sales.

This is yet another reason why diversity is of great significance when it comes to increasing sales and revenues. A study found that companies with the highest levels of racial diversity reported up to 15 times more revenue and sales generation compared to companies with low or average levels of racial diversity.

The same study found that the difference is larger for gender-diverse rates.

11. By 2020, minorities in the United States are expected to make up to 37% of the workforce.

The benefits of diversity in the workplace are numerous because statistics show that minorities are expected to make up at least a third of the total US workforce by next year.

12. An astonishing 40% of people believe there are double standards when hiring women.

Equality among men and women is an everyday topic that never goes out of fashion. Numbers suggest that there is still an enormous amount of bias regarding the hiring of women. Such figures further prove that the latest diversity and inclusion statistics of 2019 are not just facts, and really need to be taken seriously.

One fact portrays this clearly. The total number of men named David and John as CEOs of Fortune 500 companies (9.8%) is greater than the number of women as CEOs of all Fortune 500 companies (4.1%).

13. 41% of all managers state “being too busy” as a reason to implement any kind of diversity and inclusion initiatives.

It is safe to say that this is not how a business should operate with the intent of moving forward. Executive teams might want to invest time in addressing this issue, as statistics show that lack of diversity in the workplace is detrimental to a company’s success.

14. African Americans are 50% less likely to receive callbacks compared to white candidates.

Minorities in the United States are being called up less often for interviews. It makes this statistic relevant for immediate action to be taken for every person to have an equal opportunity to succeed in life.

Individuals should be evaluated and hired based on their skills, experiences, and performances instead of background or name. Managers or employers should take such matters into consideration and prevent bias from interfering with the hiring processes.

Diversity in the Workplace Statistics 2019

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15. The millennial generation is 16% more diverse than baby boomers.

Around 72% of all baby boomers are white. While the millennial generation accounts for more individuals, only 56% of them are white.

16. By 2025, the workforce is expected to account for up to 75% of the millennial generation.

The values of millennials offer a huge opportunity for the future of corporate America, mostly due to this generation’s approach to life and culture.

In the coming years, most Americans will strive to demonstrate a strong desire for the well-being of society and be less troubled for individual success.

17. The 2019 diversity statistics predict that by 2044, the current “minority” groups will reach a “majority” group status.

Diversity is not just about accepting job seekers from various demographic backgrounds in the workplace. Innovation and performance play a huge role as well. Companies that exhibit both gender and ethnic diversity see an increase in performance by up to 15-35%.

18. The foreign-born workers’ unemployment rate hit 3.1% in August 2019.

Comparingly, the native-born workers’ unemployment rate in August was slightly bigger – 3.9%. The employment rate has improved for both foreign and native-born workers in just one month. September projections for foreign-born workers unemployment rate saw a heavy decrease to 2.6%, while the native-born workers’ unemployment rate decreased to 3.5%.

If we compare these rates with workplace diversity statistics over the same period in 2018, we can see that there were similar unemployment stats – 3% for foreign-born and 3.7% for native-born workers.

19. 83% of all millennials are more likely to be actively engaged if they believe their company stimulates a diverse and inclusive culture.

Millennials believe programs aimed at diversity and inclusion can improve business opportunities. Fairness and the acceptance of different cultures and demographics can only boost productivity, lead to innovation, collaboration, and outstanding teamwork.

20. In 2020, the total caucasian population in the United States will decrease to 63%.

From 1980 to the present day, the total caucasian population in the US is estimated at 82%. However, it is anticipated to decline to 63% by 2020. By contrast, the minority population will likely double and see an increase from 18% to 37%.

21. The 2017 diversity in the workplace statistics recorded the unemployment rate in the US at a total of 4.4%, varying across different races and ethnic groups.

Not all labor differences among associated race and ethnic groups are measurable, and many factors play a role in determining the true value of an employee.

Bearing in mind the unemployment rate, in 2017, almost two-thirds of all executives rated diversity as the most important issue, and did their best to lower the rate across all races and ethnic groups.

22. A 2018 survey on the cultural diversity in the workplace shows compelling statistics that up to 80% of people valued diversity.

People agree that a diverse workforce will lead to more ideas and innovations, which can only benefit the company.

Companies look to improve in this area and value the importance of the matter because it benefits their current and future employees.

FAQ

Is the workforce becoming more diverse?

The United States workforce is increasingly becoming more diverse every day, and this is evident everywhere we look. It is safe to say that this is not a new trend because workforce diversity has been on the rise for decades and doesn’t look like stopping anytime soon. As you can see, the future for US workers is bright.

According to the Bureau of Labour and its diversity in the workplace statistics, the workforce is going to become even more diverse within the next six years across almost all demographic categories.

For an organization to get started down this path, it needs to look first in the mirror and correct all relevant internal policies. It needs to take a look at them through these diverse groups’ point of view. Secondly, an organization needs to open a dialogue with its respective leaders about inclusion and create simple processes with the intention to ensure all voices are heard.

What is considered diverse?

An organization is considered to be diverse when all human differences are well represented within its structure. These characteristics include race, gender, ethnicity, sexual orientation, physical abilities or attributes, religion, and political views. Any given group can be called diverse if a variety of these demographics are represented.

Inclusion is also necessary for people to be more involved and feel more empowered. This is achieved by recognizing everyone’s inherent dignity and value.

This, however, is not an easy task to accomplish. Many companies struggle with this issue and fail to undermine its importance. They officially value diversity, but when push comes to shove, they fail to implement relevant programs.

What is the percentage of minorities in the workforce?

Diversity includes willingness and openness to differences, cultures, and perspectives. To have a multitude of people with different backgrounds who work together towards the same goal can only benefit society and the community. Every issue at the workplace could be observed from several different perspectives, for example, and the reached solution could benefit all employees.

It’s clear that the United States becomes open to accept diversity and inclusion, as testified by workplace diversity statistics.

However, only 1% of all 500 fortune companies have African Americans as their CEO. The inequalities for men and women of different colors is even greater when it comes to the workplace.

Furthermore, every one in five employees is of Latin or Hispanic origin, which is staggeringly low, seeing as how statistics show that an increasingly diverse team leads to better results.

How diverse is the workplace?

The percentage of diversity in the workplace is rather low but has been on the rise for the past several years. Positive signs show that this trend will continue as more and more women continue to enter the workplace. However, at this moment, only 5% of all Fortune 500 companies are run by women.

Diversity is one of the United States’ core strengths. Economic data and statistics outline the facts about diversity in the workplace, which will become even more diverse, as minorities are projected to make up the larger portion of the population. With homosexual and transgender people included, as well as people with disabilities, a diverse workplace will continue to play a crucial role in the growing economy of the US.

Having said that, diversity is the key to creating a strong and inclusive economy, and those businesses that embrace diversity as it is will only reap the benefits of true performance and productivity.

Why is diversity important in the workplace?

The benefits of having a truly diverse workforce supersede all challenges when faced with an unfamiliar circumstance or responsibility. Growth-oriented companies are the ones that are most likely to carry out and embrace diversity to fuel innovation, giving them a competitive advantage.

Diverse and inclusive companies are also better able to attract top talent and improve client orientation. Not only that, but employee satisfaction and refined decision-making skills will lead to a rewarding cycle of increasing profits.

What is workforce diversity?

Workforce diversity is bringing together various people in the workplace. These people have a wide range of characteristics, backgrounds, and experiences. In a working environment, this means promoting acceptance, respect, and teamwork despite all the differences in demographics.

These are the fundamental values that contribute to a successful inclusive and diversified workplace. The more diverse a company becomes, the better the overall productivity it has.

Diversity stats in the workplace show that the key characteristics include, but are not limited to, race, gender, age, ethnicity or religious beliefs, abilities, sexual orientation, and political views.

It’s important for a business to embrace diversity and inclusion to grow and become more competitive than ever.

No two individuals are alike, and people are different in many ways, especially in their perspectives, which can be a truly positive thing.

What are workforce demographics?

Workforce demographics identify certain characteristics and traits of people with various backgrounds in a specific workplace. These demographics include age, gender and ethnicity, education, service, salary and seniority, and last but not least, family and marital status.

All of the above play a vital role and businesses use these characteristics to target the ideal audience for their product placement. Job seekers can also use these demographics to connect with the ideal employer.

For these reasons, it’s important to understand and value the workforce diversity statistics as they can provide the most relevant and necessary insights, especially those relevant to job seekers.

Understanding the demographics in the workplace can benefit a company in the long-run. It could perform better compared to the competition.

Conclusion

A diverse and inclusive workforce includes people of various characteristics. It implies that a company is employing a wide range of unique and diverse individuals. This was not always the hottest subject of discussion among HR representatives, but it has become a major goal for all companies in the past few years.

A business’ benefits of adopting diversity and inclusion policies are numerous, as it can grow its talent pool, improve employees’ performances, acquire valuable and various talents, skills, and experiences, and create innovation.

These diversity in the workplace statistics will help you to better understand and grasp this concept, which can ultimately take a company’s culture and business score to a whole new level.

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