Diversity and inclusion are two words that often get thrown around a lot as trendy jargon in business talk. But what do they mean, exactly? And how are our workplaces affected by it?

Diversity pertains to the people at work. Diversity in the work place would mean that individuals from various walks of life are represented and are visible at work. Gallup defines it as “the full spectrum of human demographic differences — race, religion, gender, sexual orientation, age, socio-economic status or physical disability.”

Inclusion, meanwhile, pertains to how the people feel at work. It is feeling that they are in an environment and culture where they belong, where they are involved, welcomed, and seen as they are. It is “the extent to which employees are valued, respected, accepted and encouraged to fully participate in the organization.”

Now, while it’s great that people are talking about this, we are living in a time when these words should not only be discussed as vague concepts, but applied as basic guiding principles and as concrete company goals. 

Not only is it the right thing to do, it’s also the more beneficial thing to do.

The numbers are all there: there is a clear and undeniable correlation between diversity and inclusion and overall positive company growth, and companies should hurry to wake up and take notice of these benefits.

Amongst all demographics, it is evident that work place diversity is important for people seeking employment. A survey conducted by Glassdoor reveals that 72% of women, 62% of men, 89% of African Americans, 80% of Asians, and 70% of Latinos ranked workforce diversity as important in their job search. So if a company wants to make sure it finds the best potential employees, it’s going to have to provide an environment that is diverse and inclusive. 

Diversity in the work place also provides a wealth of different perspectives that will be invaluable to a company. Individuals from different backgrounds will inevitably have a variety of talents, experiences and skills. Different perspectives result in different ideas, giving you a robust workforce that is more creative and imaginative. And when the going gets tough, all that experience is going to be useful as well. Studies show that teams that have access to different viewpoints or thinking styles solve problems faster, and companies that are more diverse at the top level also enjoy similar benefits. A more diverse leadership also results in a higher degree of creativity, and according to BCG, companies that had more diverse management teams reported innovation revenue that was 19 percentage points higher than that of companies with below-average leadership diversity—45% of total revenue versus just 26%. 

Having a diverse group of employees also increases the level of accessibility and relativity a company can have with its audience. Simply having at least one individual in the team representing their target consumer’s race, age, sexual orientation, or culture results in a whopping 158% increase in the team’s ability to understand that specific market. This means that the more diverse a team is, the more they can relate to a larger audience, potentially increasing opportunities for the company overall. 

And profits? Companies that have more diversity in the work force produce significantly better revenue that the average. According to a McKinsey study, companies in the top quartile for racial and ethnic diversity are 33% more likely to have financial returns above their respective national industry medians. And the correlation also applies on the opposite end: companies in the fourth quartile on both gender and ethnic diversity are more likely to underperform their industry peers on profitability by 29%. The correlation is clear: more diversity, more profit. 

Imagine going to work and seeing that all around you, people of all shapes and colors and races are present. Imagine going to work with all these different kinds of people, and all of you are encouraged and expected to bring the best versions of all your different selves every day, because it is these different backgrounds and experiences working together that make you all better, and all of you are provided the same opportunities, the same assurances, the same respect. Sounds good right? Well, we’re not there yet. Especially not when we live in a time when among the Fortune 500 CEOs, 25 are women, while 23 are men named John. 

But what’s really stopping us from getting there? During these tremulous times, where divisive rhetoric is rising again and work place discrimination is rife, we are all called to do better for each other. If we work together, then this ideal can become reality. It will be hard work, but I imagine it will be worth it.

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Illustration / Designer: Aj Noguerra
Campaign Strategist: Maria Margaret Cantos
Writer: Chris Ignacio