Why Diversity and Inclusion in the Workplace Drive Success: Benefits, Activities, and Survey Tips

In today’s global business environment, fostering diversity and inclusion in the workplace isn't just about compliance or corporate responsibility—it’s a strategic imperative. Organizations that actively embrace diverse backgrounds, experiences, and perspectives cultivate a more innovative, collaborative, and resilient workforce.  

A workplace that celebrates differences and creates room for every voice to be heard sees higher engagement, improved morale, and stronger business outcomes. 

To fully understand how organizations can benefit from diversity equity and inclusion in the workplace, let’s explore their meaning, why they matter, actionable strategies to implement them, activities to nurture an inclusive culture, and questions that prompt deeper conversations and awareness. 

What is diversity and inclusion? 

With no single definition of diversity being in place, for simple use and ease of understanding from an organization’s perspective, it can be considered a group of people who are different from each other on multiple human and geographical demographics and are brought together for their skills. 

On the other hand, inclusion focuses on creating and having a culture that nurtures this talent and provides them with a healthy work atmosphere, allowing them to come together and work harmoniously, comfortably, and contribute effectively and confidently. Inclusion ensures that everyone feels valued and adds value. 

Why diversity and inclusion in the workplace is a performance multiplier? 

Why should organizations focus on diversity and inclusion in the workplace through intentional strategies and actions? Because the data is clear: 

Inclusive Workplace = Increased Performance 

Diversity isn’t a passing fad or the newest workplace trend that a business should try and incorporate. Each of our social spectrums – race, gender, sexual orientation, age, education, socioeconomic backgrounds, personalities, interests, and so on, are equally important. 

They are all inherently linked to strong organizational values and environments where people feel psychologically secure. 

If you think about it, it’s simply human nature. Who wouldn’t be able to give their all for your business when they believe that respect, acceptance, and true support are being offered to them, regardless of their background? 

In the wake of social and political turmoil in 2020 – beyond Covid-19 – the collective global awareness for the benefits of diversity equity and inclusion in the workplace and embedding tolerance into the company culture has taken on renewed urgency. 

The evolving urgency for workplace inclusion 

Diversity is not just a nice-to-have. Business leaders are being confronted with strong empirical evidence that a diverse workforce directly impacts their bottom line. Companies that struggle with diversity or give it only lip service are penalized with less-than-optimal performance. 

And yet, organizations are not embracing I&D with gusto. For example, despite years of diversity programs, black representation, as measured through CEOs in Fortune 500 companies in the USA, has decreased from 2012 to 2020 and remains anemic 1%, even though the black population is 13.4%. 

 Inclusion begins with retention, not just hiring 

Moving the needle on diversity remains a big challenge, and much more work needs to be done. 

Diversity as a concept first introduced in the early 1940s has evolved over the past few years immensely. It is one of those strategic initiatives that all progressive organizations invest in. 

While hiring diverse talent is important, retaining this talent over a reasonable time within an organization has gained substantially higher importance in the past few years. Hence the concept of diversity is practiced in conjunction with inclusion. 

According to HBR, in a survey of 1000 respondents run by Glassdoor, it was found that 67% of job seekers overall look at workforce diversity when evaluating an offer. 

The current state of diversity equity and inclusion in the workplace 

Unfortunately, progress for more diversity and inclusion in the workplace remains indifferent. Many programs for more I&D have failed, which is reflected in trailing financial performance. 

1. Challenges in driving diversity equity and inclusion in the workplace 

CG’s research on gender diversity shows that 91% of companies have a program in place. Yet, only 27% of women say they have benefited from it. 

McKinsey notes that a third of the firms they have tracked over the past five years have improved gender and ethnic diversity on their executive teams, while the majority have stalled or gone backward. 

In their data, the laggards were organizations that had an average of 8% female representation on their executive teams—and no ethnic-minority representation at all. 

McKinsey predicts that companies who saw inclusion and diversity in workplace as a strength before the pandemic are likely to leverage it to bounce back quicker. 

2. The opportunity in hybrid and remote work 

For companies that deprioritized I&D during the crisis, the impact will be felt not just on their bottom line but in the lives and happiness of their employees. 

The shift to remote and hybrid working driven by the pandemic presents companies' opportunity to accelerate building inclusive cultures. It’s clear that lip service is not enough. Strategic, data-driven action is required to move the needle meaningfully. 

With its benefits of increased flexibility, remote working can facilitate the retention of women and minorities, who are disproportionately burdened with managing family work. It thus widens access to a pool of diverse talent that may not have been available to these companies. 

8 Transformative benefits of diversity and inclusion in the workplace 

With diversity in the workplace focusing on who is getting hired and inclusion focusing on how they feel at work, let us look at how D&I is redefining the organizations' becoming high-performing organizations. 

 Benefits include economic growth, reduction in employee turnover rate & increase in retention rate, employee satisfaction, increased productivity, and more. Let’s discuss the benefits of diversity and inclusion in detail below. 

According to Glassdoor, 50% of current employees want their workplace to do more to increase diversity. 

1. Better financial results 

Boston Consulting Group (BCG) study, which studied 1,700 companies in eight countries, found that diverse leadership teams result in better innovation and improved financial performance. 

Specifically, companies that reported above-average diversity on their management teams also reported innovation revenue that was 19% points higher than that of companies with below-average leadership diversity. (See Exhibit 1) 

In another large study (2014-2019), McKinsey followed 1039 companies encompassing 15 countries (Australia, Brazil, France, Germany, Norway, Denmark, India, Japan, Mexico, Nigeria, Singapore, South Africa, Sweden, the United Kingdom, and the United States) and determined that the business case for I&D is stronger than ever. 

They concluded that a diverse and inclusive employee base is a significant asset in a fast-moving global economy. In their study, companies that are “diversity winners” are pulling ahead of laggards. 

Their data (see figures below) shows that “companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than companies in the fourth quartile — up from 21% in 2017 and 15% in 2014.” 

Cultural diversity and inclusion in leadership roles resulted in top-quartile companies outperforming peers by 36% in profitability. Companies in the top quartile for both gender and ethnic diversity are 12% more likely to outperform all other companies in the data set. 

• Focus on delivering the best experience at every employee touchpoint 
• Create channels for connection, communication, and collaboration between people 
• Create a sense of shared purpose by aligning employees with company culture, values, and vision 
• Seek regular employee feedback to improve company culture and employee experience continuously. 

2. Better teams 

There is strong evidence that teams with diverse backgrounds and random member selection are likely to be more successful and perform better. 

They do this by being more likely to innovate, be more agile, and anticipate shifts in consumer needs — helping their companies to gain a competitive edge. 

“It’s proven that more diverse companies are often more innovative and creative,” explains Duke Energy Chief Diversity and Inclusion Officer Joni Davis. The main reasons for more productivity and creativity are bringing together individuals from varied backgrounds and experiences, and each will have unique ways to improve your products and services. 

3. Higher retention rate‍ 

A high retention rate of talent and knowledge. With strong inclusion practices, an employee feels heard, valued, and has a sense of belonging to an organization. 

These are clubbed with encouraging policies of growth and advancement, timely feedback processes, reward and recognition, and overall employee-centric culture. The organization provides all the reasons for an employee to thrive and grow. 

Read More: 12 Innovative Employee Retention Strategies that Work 

4. Enhanced employee satisfaction 

For wholesome working experience in an organization, interventions are required at all stages of an employee’s life cycle, along with pre-hiring and post-exit stages. 

With inclusion in the foundation of people policies and practices and culture focusing on employee well-being and development, the engagement scores will result in high CSAT and employee net promoter scores. 

5. A global think tank 

With talent coming in from diverse backgrounds, cultures, nationalities, and perspectives, the organization transforms into a global think tank that allows for the free flow of ideas and suggestions, debate, and brainstorming, resulting in the best and most comprehensive output in any given situation. 

Employees in such a setup go beyond their personal likes and beliefs. As the group is diverse, the possibility of thinking the same ideas or solutions or shying away from sharing thoughts is reduced considerably, allowing freshness in every idea and paving the way for innovation with creativity. 

“As per 2016, Boston Consulting Group study innovation jumps once the proportion of female managers within an organization rises above 20%.” | Glassdoor 

6. Enhanced performance 

As the inclusive culture thrives on openness, transparency and believes in sharing ideas and contributing to each other’s success, it enables employees to seek each other’s help, receive feedback positively, learn and optimize their performance. 

In this process, everybody learns and grows, thereby improving an organization’s performance levels too. 

A study by Enterprise decision platform Cloverpop shows that inclusive decision-making leads to better business decisions 87% of the time, reaching those decisions twice as fast in half the meeting times.” — Glassdoor 

7. A preferred brand image‍ 

With your talent coming from a diverse background that grows with well-placed inclusive practices, your employees become your brand ambassadors, contributing positively to the brand image. 

Not only does it connect you to the specific diverse communities locally, but it allows you to expand your reach far and wide. 

The more you become assertive with D&I, the more diverse and good talent you attract and retain, the more you add to your brand image. 

“A Glassdoor study found that 57% of employees and 67% of job seekers consider diversity an important element of their workplace, which affects recruitment and retention.” 

8. A strong knowledge base 

A diverse workforce is a strong knowledge base of local cultural and societal nuances. They bring good insights into these cultural aspects that can be of immense value as part of sustenance and expansion.

Their links & ties to local communities, self-help groups, memberships in their respective diverse groups can be good sources of information and local talent sources. 

Refinitiv, one of the world’s largest providers of financial markets data and infrastructure, serving over 40,000 institutions in approximately 190 countries, recently announced the 2020 top 100 most diverse and inclusive organizations globally as ranked by the D&I index leading the top 100 D&I indexes were banking, investment services, and insurance firms, followed by pharmaceuticals, telecommunication services, specialty retailers, personal and household products and services. 

The United States leads the Top 100 list with 20 firms, followed by the United Kingdom with 13, Australia with nine, and Canada and France with 7. 

The D&I Index utilizes innovative analytics to rate and score companies across four main pillars: Diversity, Inclusion, People Development, and Controversies. 

In case you are worried that the requirement to substantiate your diversity and inclusion in the workplace modem is failing, try out these engaging methods to create a more inclusive culture. 

Diversity and inclusion training activities 

Increase productivity and happiness with these diversity and inclusion activities for your business. Use these methods to take your business to the next level. 

1. Inclusive vocabulary 

You could generate a list of terms that help people feel more included and acknowledged. You could then encourage people to use these terms using a fun consequence – such as putting money into a pool. 

We bet this will quickly result in your whole team becoming much more mindful of how they use language, creating a far happier and more wholesome environment in the long term. 

Person-first language (for example, saying a person is visually impaired rather than ‘a blind person’ or a person who is hard of hearing versus ‘a deaf person’ and so on) is a great example of such forward-thinking ideology.

Preferred gender pronouns (PGP), gender-neutral terms, and many more such terms can be researched and included are all ways of increasing inclusivity. 

After discussing these terms, ask your team to share which ones they identify with most – the ones they could use in place of others. 

2. “I Am” 

Instead of letting people feel uncomfortable highlighting their differences, you could create a safe space where employees can open up and truly feel free to be themselves. 

Each participant can be given a sheet of paper with the phrase ‘I am and asked to fill it up with ten ‘I am’ statements about themselves. The more you manage to encourage them to be honest, vulnerable, and free from any judgment about any of it, the better the results will be! 

This will allow those who hear these statements to know each other better and accept them for who they are. You could also have people try and guess who wrote each statement, resulting in a fun game that helps your team understand more about each other. 

3. Saying goodbye to stereotypes 

Letting go of stereotypes that have been internalized is something that needs to be addressed. One way to do so is to ask each participant to write the phrase ‘I am _________ BUT I am not _________’.

You could even ask others to add to the lists being read out at the time, helping people bash all the stereotypes associated with that group. This would also help the person feel like others are on their side to fight prejudice. 

4. A snapshot board 

There are few better ice breakers than someone’s life in photos. A bulletin board of memories that bring employees’ personal experiences can be the springboard you need to create the right spark of communication. 

This celebratory display of mementos can positively highlight aspects of employees’ experiences, which leads to mutual respect and dignity at the workplace. 

5. Post the story-links 

Diversity and inclusion can also be achieved by creating a web of inclusions in the form of stories or real-life incidents. For example, One employee starts by saying, “India is my country of origin.”  

The next person keeps it going by adding, “I once visited India when I was a kid.” and so on. This activity allows coworkers an opportunity to start a conversation on various topics and bond better. 

6. Dish-to-pass potluck 

Food is a vital part of our identity, and there is perhaps no better way to celebrate diversity than with food! Organizing a fun potluck lunch party where employees bring dishes from or are inspired by their culture and heritage is a great way to connect better.  

This is a sure-fire way of giving your employees a welcome chance to titillate their taste buds and bond over various delectable dishes they may have never tried before. 

7. Mini events 

Using the office cafeteria or lounge, you could host small events representing different arts and cultures. Discussions on various topics appreciating diversity in the workplace can be held, where you focus on encouraging everyone to ask questions. Sharing feedback can also inspire others to speak up for their rights. 

Diversity and inclusion activities for virtual teams 

Like so many of us have, your organization may have been impacted by the recent unforeseen circumstances that have driven us all to work remotely. However, this is in no way a reason to remove focus from activities that further the cause of diversity and inclusion. Quite the contrary, it’s a reason to focus on them even more! 

In fact, using a technology platform such as Empuls can help you gauge employee sentiments about I&D culture within your organization. This will ensure that working remotely doesn’t result in the feeling of being further apart than ever. 

Ensuring that going virtual makes for a more balanced and healthier individual outlook and personal work experience is imperative. A few diversity and inclusion activities that you can use to your business’ benefit are: 

1. Virtual book clubs and readings 

An accessible activity that everyone can participate in and have fun with can be to assign books written by authors versed in diversity and inclusion. 

Assigning a new book or two every quarter will keep things fresh and fun. Feel free to research books that appeal more specifically to you or your teams, or choose from the list below: 

• Unruly Bodies: Life Writing by Women with Disabilities by Susannah B Mintz 
• How to Be an Antiracist by Ibram X Kendi 
• Privilege, Power, and Difference by Allan G Johnson 
• Yellow by Frank H Wu 
• We Are Everywhere: Protest, Power, and Pride in the History of Queer Liberation by Matthew Riemer and Leighton Brown 
• This Chair Rocks: A Manifesto Against Ageism by Ashton Applewhite 
• What Works: Gender Equality by Design by Iris Bohnet 

2. Speak your truth 

You can dig a little deeper into people's life experiences by encouraging participants to share stories of their own experiences. Some great questions to ask are: 

• When was a time you felt you didn’t ‘fit in’? 
• Have you ever experienced discrimination? 
• Have you ever felt excluded? 

Sharing such stories can be a truly powerful way to help people feel heard. They can also give rise to hard-hitting discussions that can go a long, long way – in a manner that other more lighthearted activities cannot. It can also help team members bond and become more sensitive to the experiences and challenges of others. 

3. What do you prefer? 

Another way to discover and share your team’s personal preferences is to make a fun game of it! 

Dividing people into more inclusive groups based on their personal preferences and having fun little games or lighthearted debates about why they like the thing in question can be a fun, inoffensive way to celebrate our little differences. This list can get your team to share if they are introverted, non-alcohol drinkers, vegetarians, pop-culture lovers, and so on. 

4. How everyone got their name 

Names tend to carry history, fun anecdotes, or familial values. These can also be celebrated by asking each team member (if they’re comfortable) to share the history behind their names. 

To track how well your diversity equity and inclusion in the workplace efforts are performing, consider these 10 questions. 

10 Must ask diversity and inclusion questions in employee surveys 

Here are some examples of diversity and inclusion questions that you might consider including in an employee survey: 

1. How well do you feel the company promotes workplace diversity and inclusion? 

Asking employees about their perceptions of the company's efforts to promote diversity and inclusion can help the company understand whether or not its efforts in this area are effective and well-received.  

It can also help the company identify areas where it may need to improve or change its approach to create a more inclusive and welcoming work environment. 

2. Do you feel you are treated fairly and equally, regardless of your race, gender, religion, or other personal characteristics? 

Asking this question is important in a Diversity and Inclusion survey because it helps gauge the level of fairness and equality in the workplace. This question provides valuable insights into the employee's perceptions of the workplace culture, particularly regarding how they are treated based on their personal characteristics. 

3. Do you feel that the company values diversity in the composition of its workforce and its leadership? 

Asking this question is important in a Diversity and Inclusion survey because it helps assess the company's commitment to diversity and inclusion. This question provides a gauge of the employee's perception of the company's stance on diversity, including its efforts to recruit and retain a diverse workforce, as well as its commitment to having a diverse leadership team. 

4. Do you feel that the company actively seeks to understand and address the needs and concerns of employees from diverse backgrounds? 

Asking this question from employees is important in a Diversity and Inclusion survey because it helps assess the company's efforts to understand and accommodate the needs of its diverse workforce.  

This question provides valuable insights into the employees' perception of the company's sensitivity to their needs, including their culture, ethnicity, religion, gender identity, and other personal characteristics. 

5. Do you feel that your contributions are valued, regardless of your background or identity? 

Asking employees whether they feel that their contributions are valued, regardless of their background or identity, can help the company understand if all employees feel included and respected within the workplace.  

It can also help the company identify any potential issues of bias or discrimination that may be impacting the way that certain employees are treated or recognized for their contributions.  

6. Do you feel that the company provides equal opportunities for development and advancement to all employees? 

Asking this question to employees is important because it helps assess the company's efforts to provide equal opportunities for career growth and development to all employees. This question provides valuable insights into the employees' perception of the company's commitment to providing equal opportunities for growth and advancement, regardless of race, gender, religion, or other personal characteristics. 

7. Do you feel the company creates a welcoming and inclusive culture for all employees? 

Asking this question to employees is important in a Diversity and Inclusion survey because it helps assess the company's efforts to create a culture that is welcoming and inclusive for all employees.  

This question provides valuable insights into the employees' perception of the company's culture, including its values, attitudes, and behaviors toward diversity and inclusiveness. 

8. How comfortable do you feel bringing your whole self to work, including your cultural background and personal identity? 

Asking this question to employees is important in a Diversity and Inclusion survey because it helps assess the level of comfort and inclusiveness employees experience in the workplace.  

This question provides valuable insights into the employees' level of comfort in expressing their cultural background, personal identity, and other individual differences at work. 

9. Have you witnessed or experienced any instances of discrimination or bias in the workplace? 

Asking employees whether they have witnessed or experienced any instances of discrimination or bias in the workplace can help the company identify any potential issues that may be impacting the work environment. It can also help the company take steps to address and prevent discrimination and bias within the workplace. 

10. Do you have any suggestions for how the company can improve its diversity and inclusion efforts? 

Asking this question from employees is important in a Diversity and Inclusion survey because it allows employees to give feedback and suggest ways for the company to improve. This question is valuable because it enables the company to gain insights and perspectives from employees about the company's current diversity and inclusion efforts and identify areas for improvement. 

Strategic DEI goals addressed via Empuls 

Empuls can support and scale DEI initiatives across these four dimensions: 

 How to use Empuls to strengthen DEI 

Following are the ways in which you can use Empuls to strengthen your diversity, equality and inclusion project: 

1. Run diversity & inclusion surveys 

Use Empuls’ survey engine to: 

• Deploy pulse surveys with the DEI questions listed in the blog (e.g., “Do you feel your contributions are valued regardless of your background?”). 
• Segment results by departments, regions, tenure to spot trends and gaps. 
• Automate lifecycle surveys to assess DEI experiences from onboarding to exit. 

Use eNPS + DEI-specific questions to build a sentiment baseline. 

2. Create safe spaces via social intranet & community groups 

Use Empuls’ Social Intranet to: 

• Build internal D&I communities (e.g., LGBTQIA+, Women in Tech, Multicultural Voices). 
• Promote inclusive content like educational blogs, heritage month highlights, or “Inclusive Word of the Week.” 
• Encourage dialogue through polls, Ask-Me-Anythings with leadership, and townhalls. 

Pin content like “How Everyone Got Their Name” or “I Am” activities to foster empathy. 

3. Celebrate differences through recognition 

Set up: 

• Value-based awards aligned with inclusive behaviors (e.g., “Ally of the Month”). 
• Peer-to-peer recognition to call out inclusive actions. 
• Cultural and identity-based celebrations (e.g., Pride Month, International Women’s Day) using Em’s automated nudges. 

Use the Wall of Fame to publicly celebrate DEI milestones. 

4. Run DEI awareness campaigns via hobby & interest groups 

Use Gamification and Community Groups to: 

• Organize fun and impactful DEI activities like: 
• “Stereotype Smash” and “I Am Not…” campaigns 
• Culture-based potlucks or photo boards 
• Virtual book clubs and storytelling sessions 
• Track engagement and reward participation via badges and points. 

Incentivize participation using spot awards or charity-based redemptions. 

5. Offer inclusive and equitable perks 

Ensure benefits and perks resonate with a diverse workforce: 

• Flexible fringe benefits: Offer LSA for mental health, family care, fitness, remote work. 
• Discounts and perks: Let employees pick what suits their lifestyle. 
• Salary advance: A powerful equalizer for financially stressed employees, especially from marginalized backgrounds. 

Empuls’ built-in Cost of Living Index ensures reward parity across geographies. 

Conclusion 

Diversity and inclusion in the workplace are not optional—they are foundational to innovation, engagement, and long-term success. By fostering a truly inclusive culture that values every employee’s unique background and voice, companies not only strengthen their internal teams but also create a sustainable competitive edge.  

From executive decisions to daily interactions, embedding diversity equity and inclusion in the workplace ensures that organizations remain future-ready, culturally aware, and deeply human at their core. The journey may require commitment and introspection, but the reward—a thriving, equitable workplace—is undeniably worth it.