The Benefits of Cultural Diversity in the Workplace

What are the benefits of cultural diversity in the workplace? BestCompaniesAZ breaks down how companies can succeed at implementing DEI.
A group of diverse employees having a discussion.

Organizations are increasingly seeking to diversify their workforce to tap into the many benefits of cultural diversity. A more diverse workforce can bring numerous advantages, including improved social awareness, creativity, and productivity.

Diversity can also help organizations better understand and serve their customers. With a more diverse workforce, businesses can more effectively communicate with customers from various backgrounds. In addition, a diverse workforce can help organizations better understand the needs of their customers and develop products and services that meet those needs.

This article will explore the benefits of cultural diversity in the workplace and how companies can foster a more diverse workforce. We’ll also highlight some of the best companies for cultural diversity.

What Is Cultural Diversity In the Workplace?

Cultural diversity in the workplace is the representation of different cultures in an organization. This can include employees from different racial, ethnic, and national backgrounds. It can also include employees with different religious beliefs, sexual orientations, and gender identities.

Organizations with a more diverse workforce can benefit from improved innovation and company culture.

Why Cultural Diversity Is Important

There are a number of reasons why cultural diversity is important in the workplace.

First, a diverse workforce can help improve communication. Employees from different backgrounds can bring different perspectives and skills to the table. This can help organizations better understand their customers and communicate more effectively.

Second, a diverse workforce can boost creativity. Different perspectives can lead to new ideas and solutions to problems. A diverse workforce can help organizations be more innovative and responsive to change.

Third, a diverse workforce can improve productivity. Studies have shown that diversity in the workplace can lead to increased productivity and profitability. This is likely because a more diverse workforce can bring different skills and perspectives to the table.

Fourth, a diverse workforce can help organizations better understand and serve their customers. With a more diverse workforce, businesses can more effectively communicate with customers from a variety of backgrounds. In addition, a diverse workforce can help organizations better understand the needs of their customers and develop products and services that meet those needs.

Finally, a diverse workforce can foster a more positive work environment. A Harvard Business Review study found that diversity in the workplace can lead to increased job satisfaction and commitment among employees.

How Companies Can Foster a More Diverse Workforce

The benefits of cultural diversity in the workplace are clear. But how can companies foster a more diverse workforce? There are a number of steps organizations can take to foster a more diverse workforce.

1. Encourage a diversity of perspectives.

One way to foster a more diverse workforce is to encourage a diversity of perspectives. This means creating an environment where employees feel comfortable sharing their unique perspectives. It also means valuing different perspectives and encouraging open dialogue about them.

2. Promote inclusion.

Another way to foster a more diverse workforce is to promote inclusion. This means creating an environment where all employees feel welcomed, respected, and valued. It also means providing employees with the resources they need to succeed.

3. Advocate for diversity.

Organizations can also foster a more diverse workforce by advocating for diversity. This means promoting diversity initiatives within the organization and supporting diversity initiatives at the policy level.

4. Educate employees about diversity.

Another way to foster a more diverse workforce is to educate employees about diversity. This means providing employees with information about different cultures and perspectives. It also means training employees on how to interact with people from different backgrounds.

5. Hire a diverse workforce.

One of the most effective ways to foster a more diverse workforce is to hire a diverse workforce. This means recruiting employees from a variety of backgrounds. It also means making sure that the organization’s leadership reflects the diversity of the workforce.

Top Companies Diversity Initiatives

Below are several companies that have committed to fostering a more diverse workforce.

KUBRA has a number of initiatives designed to promote diversity in the workplace. Through its Diversity and Inclusion program, the company provides access to resources that help employees learn about and celebrate different cultures. The company also offers a mentorship program that pairs employees with mentors from different backgrounds.

Axon is a technology company that has embraced a flexible and hybrid work environment. The company strives to support the needs of all employees, where they are and in every work environment, to bring about their best work self. This can look different for every employee and within different divisions across Axon. For example, a team member working in manufacturing may have very different needs from those working from home. While Axon provides allowances for remote office setup, it prides itself in building unique opportunities for employee connection, social interaction and professional development.

The leadership team at Farmers Insurance considers it a top priority to cultivate a workplace environment that helps promote inclusion, celebrate diversity, and support employees. The organization offers a robust network of Employee Resource Groups, including the Farmers Asian Alliance, the Black Professionals Alliance, and the Disability Inclusion Group. Farmers is proud to be recognized as one of the ‘Best Places to Work for LGBTQ+ Equality’ by the Human Rights Campaign Foundation, one of ‘America’s Best Employers for Diversity’ by Forbes, and more.

CarMax is committed to building a workplace that is diverse, inclusive, and fosters a sense of belonging, purpose, and pride in all its associates. The company’s diversity and inclusion principles are present in all aspects of the business and are formally codified in its D&I Framework, as well as its Commitment to Diversity Policy, which clearly outlines CarMax’s commitment to championing diversity, inclusion, and belonging for their associates, customers, and communities.

GoDaddy continues to be a strong advocate for supporting diversity, equity, inclusion and belonging (DEIB) in the workplace and believes that diverse and inclusive teams build better products and better communities – period. As a result of the company’s efforts, GoDaddy achieved pay parity across the organization beginning in 2015 and continues to earn 100% on the Human Rights Campaign’s Corporate Equality Index. This year, GoDaddy is focused on strengthening its DEIB foundations, increasing engagement and broadening education to further empower the company’s employees and customers through equitable experiences and opportunities.

These are just a few examples of the many companies that are committing to diversity in the workplace. The best companies for cultural diversity are those that are taking steps to foster a healthy work environment that values all employees.

Check Out the Best Companies For Diversity and Inclusion

Are you interested in working for a company that values diversity and inclusion? Check out the Best Companies for Diversity and Inclusion at BestCompaniesAZ to learn more today.

Share this article
Award-Winning Companies

Click on a program below to meet Arizona’s most diverse, veteran-focused, award-winning companies.

Best Employers

The pay is good, the perks are awesome, but it’s more than that. Respect, opportunity, balance, fun, and pride – you don’t want to settle for less. Why should you? Your dream job is looking for you.

Get updates

Join our network for updates on events, career openings, best practices, and more!

Let us elevate your employer brand

Want to build your employer brand in Arizona? Need help applying for a company award? Looking to fill your talent pipeline?

We can help! We’ve been doing this for 20 years.

Two Gen Z employees talking at a desk.
Best Job Seeker Resources

Best Companies for Gen Z

What types of careers are Gen Zers looking for? Check out BestCompaniesAZ’s list of companies offering the best jobs for Gen Z.

Remote employee having a meeting on their laptop.
Best Employer Resources

How to Create a Healthy Remote Work Culture

How do you create a remote work culture that encourages your employees to be at their best? Read this guide to building a successful hybrid work environment.

Learn more about Arizona's best companies!

Get our e-news specifically for employers and job seekers – it includes the latest career opportunities, recruiting and networking events and job search tips. Stay ahead of the game on workplace awards, recruiting events and employer branding best practices.