How to Improve Diversity and Inclusion in the Workplace

The modern workplace is more global and more diverse than ever before. Yet diversity alone does not guarantee results. Research shows that diverse teams are up to 87% more likely to make better decisions than non-diverse teams.

What separates high-performing organizations is not just who they hire.

It is how those people are treated, heard, and supported once they join. Organizations that build genuine inclusion alongside diversity see stronger retention, more innovation, and better financial outcomes across the board. 

Key reasons why businesses are making DEI a priority include:

• Higher employee satisfaction and lower voluntary turnover
• Stronger innovation driven by diverse perspectives
• Better access to global talent pools
• Improved brand reputation with customers and investors
• Greater compliance with evolving labor and equity regulations

You will learn how to improve diversity and inclusion in your workplace by understanding what DEI means, why it matters, what gets in the way, and how to take practical action.

What is Diversity, Equity, and Inclusion (DEI)?

Diversity refers to the full range of differences individuals bring to a workplace, including race, gender, age, nationality, disability, and lived experiences.

Inclusion means creating a culture where every employee feels genuinely valued, heard, and empowered to contribute their best work every day. 

Equity focuses on fairness in systems and policies, ensuring every employee has equal access to opportunities, resources, and growth regardless of background. 

Diversity Vs Equity Vs Inclusion: What's the Difference?

Diversity, Equity, and Inclusion are interconnected but distinct concepts.

While distinct, these three concepts are deeply connected. Diversity is about representation. Equity is about fairness. Inclusion is about belonging. All three must be addressed together for any DEI effort to create real and lasting change.

Why DEI is Important in the Workplace?

The case for DEI is both ethical and economic. Organizations that invest in building diverse, equitable, and inclusive workplaces consistently outperform those that do not across key business metrics.

• Innovation improves: Diverse teams generate more creative solutions by approaching problems from genuinely different angles, reducing groupthink across teams.
• Decision-making is stronger: Inclusive teams make better decisions 87 percent of the time compared to homogeneous groups.
• Employee engagement increases: Workers at inclusive organizations report higher job satisfaction, greater motivation, and stronger commitment to their employer.
• Revenue and profitability grow: McKinsey data shows companies excelling in diversity are 25-36% more likely to outperform industry peers financially.
• Talent attraction broadens: A strong DEI reputation helps organizations reach wider talent pools, including candidates who actively seek employers aligned with their values.

Companies that deprioritize DEI face higher voluntary turnover, weaker team performance, and growing reputational risk. Organizations that build inclusive practices early are better positioned for long-term growth in an increasingly competitive global talent market.

What Are the Challenges in Achieving Diversity, Equity, and Inclusion (DEI)?

Despite its benefits, building a truly diverse and inclusive workplace is no easy feat. Most organizations encounter predictable barriers, and understanding them is the first step toward overcoming them.

1. Implicit Bias 

Unconscious stereotypes shape hiring and promotion decisions, often without any awareness from the decision-maker. Without structured checks in place, organizations may unintentionally exclude qualified talent from underrepresented groups even when leadership believes it is being fair.

2. Resistance to Change 

DEI initiatives often face pushback from employees or leadership wary of shifting workplace dynamics. Addressing this effectively requires consistent education, transparent communication, and visible commitment from senior leaders who model inclusive behavior themselves.

3. Cultural and Communication Barriers 

Global teams frequently experience misunderstandings rooted in cultural differences. Misaligned communication styles, varying expectations around hierarchy, and differences in how directness is perceived can quietly undermine collaboration and trust across international teams.

4. Superficial Efforts and Tokenism 

Tokenism occurs when companies hire diverse candidates without creating environments where those individuals can actually thrive. Representation without inclusion is performative, and experienced employees recognize it quickly, leading to high turnover among the very people the organization sought to attract.

Learn More: Overcoming Common International Employment Challenges

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How to Improve Diversity, Equity, and Inclusion in the Workplace? (7 Step-by-Step Process)

Moving from intention to action is where most DEI efforts either succeed or stall. The following seven steps provide a structured and practical roadmap for organizations that want to build real and lasting change.

Step 1: Run a DEI Audit First

Before making any changes, you need a clear picture of where your organization currently stands. A DEI audit reviews workforce data, hiring patterns, pay structures, and promotion rates to surface gaps that are often invisible without structured data analysis.

• Review workforce representation at every level, including leadership
• Analyze pay data across gender, ethnicity, and other demographic dimensions
• Run employee surveys to capture experience and belonging scores
• Compare promotion rates across different employee groups

The audit findings become your baseline. Every future DEI initiative should be measured against this starting point to track whether real progress is being made.

Step 2: Train Leaders and Employees on Bias

Bias training helps employees and managers recognize how unconscious assumptions influence everyday decisions. Without this awareness, even well-intentioned managers can make hiring, promotion, and feedback decisions that consistently favor certain groups.

• Run structured workshops on recognizing unconscious bias in decision-making
• Include real workplace scenarios relevant to your industry and team size
• Train managers specifically on bias in performance reviews and promotion conversations
• Reinforce learning through follow-up sessions rather than one-off annual events

Organizations like Google have used ongoing, data-driven manager education to create more equitable decision-making at scale. The key is consistency, not a single training session once a year.

Step 3: Fix Your Hiring Process

Inclusive hiring starts before the job description is even posted. Most hiring processes have bias built into them at multiple stages, and removing it requires deliberate structural changes rather than good intentions alone.

• Use structured, criteria-based interviews where every candidate is assessed on the same factors
• Remove identifying information from resumes during early screening to reduce name-based bias
• Expand sourcing channels by partnering with communities that work with underrepresented talent groups
• Set clear diversity goals for candidate slates at senior levels and track where diverse candidates drop out

A broader and more intentional recruitment process consistently surfaces stronger candidates while improving representation across the organization.

Read More: 5 Strategies to Attract a Global, Diverse Applicant Pool

Step 4: Hire Intentionally Across Borders

Building a truly diverse workforce often means looking beyond your immediate geography. Many organizations limit their talent pool without realizing it simply because they only hire locally, missing out on skilled professionals from underrepresented backgrounds across different markets.

• Partner with an Employer of Record (EOR) to hire compliantly in countries where you have no legal entity
• Use global hiring platforms to access talent pools across regions that are historically underrepresented in your industry
• Ensure compensation and benefits are locally compliant and equitable across every market you hire in
• Remove administrative barriers that make international hiring feel too complex to act on

Gloroots makes intentional global hiring straightforward. As a global EOR platform operating across 140+ countries, Gloroots handles local compliance, contracts, and onboarding so your team can focus on building a workforce that is diverse not just by policy but by design.

Step 5: Create Psychological Safety in Teams

Psychological safety is what determines whether inclusion actually works in practice. When employees feel safe to speak up, raise concerns, or share unconventional ideas without fear of embarrassment or retaliation, they contribute far more effectively to team outcomes.

• Hold regular one-on-ones where managers listen actively and follow up on concerns raised
• Run structured team retrospectives that give everyone a turn to share feedback
• Respond to mistakes with curiosity rather than blame to normalize open communication
• Use anonymous feedback tools for globally distributed or remote teams where speaking up is harder

Leaders who acknowledge their own uncertainty and invite dissenting perspectives create the conditions where every team member can perform at their best, not just those who already feel comfortable in the room.

Step 6: Celebrate Your People and Their Cultures

Inclusion is reinforced every time an organization visibly acknowledges and respects the diversity of its workforce. These moments of recognition build a sense of belonging that no policy document can replicate on its own.

• Host cultural learning sessions where employees share their backgrounds and traditions with the broader team
• Recognize a wide range of cultural events and observances throughout the year, not just during awareness months
• Create employee resource groups (ERGs) that give underrepresented communities a structured space and a voice
• Allow teams to shape how celebrations and recognition are done rather than imposing a top-down approach

For globally distributed workforces, intentional investment in cultural exchange builds cohesion across time zones and geographies in a way that strengthens real working relationships over time.

Step 7: Track Your Progress with Data

DEI initiatives without measurement rarely sustain momentum beyond the initial launch. Defining what success looks like and reviewing it regularly is what separates organizations that make lasting change from those that run short-term campaigns.

• Monitor diversity ratios at every level of the organization, including leadership and the board
• Track promotion rates, pay equity outcomes, and voluntary turnover by demographic group
• Run regular engagement surveys with questions specifically about belonging, fairness, and inclusion
• Share progress transparently with the broader organization, including where targets have not been met

Tie leadership performance evaluations to DEI outcomes to signal that this is a business priority rather than a side initiative. Organizations that build accountability into their DEI framework treat it the same way they treat revenue growth.

What Are the Benefits of Implementing DEI?

Investing in diversity, equity, and inclusion delivers measurable returns not just in culture, but in business outcomes that leadership cares about.

1. Enhanced Creativity and Innovation 

Diverse teams solve problems more effectively because they bring varied perspectives and approaches to every challenge. Procter and Gamble's success in creating tailored products for diverse global markets stems directly from its inclusive product development teams.

2. Improved Decision-Making 

Diverse teams are 87% better at making decisions. A workplace that fosters inclusion ensures that every employee feels confident sharing ideas, leading to well-rounded and more impactful outcomes across the organization.

3. Better Employee Retention and Engagement

Inclusive environments lead to higher employee satisfaction and loyalty. Workers are more likely to stay at companies where they feel respected and see clear pathways for growth. Salesforce's equal pay audits demonstrate how equity-driven practices reduce turnover while boosting morale.

4. Increased Revenue and Market Share 

Diverse and inclusive companies attract a broader range of customers and clients. According to McKinsey, companies excelling in diversity enjoy up to 2.5 times higher cash flow per employee and outperform competitors by 35 percent.

5. Stronger Employer Brand and Talent Attraction 

Organizations with visible DEI commitments are more attractive to top candidates, especially among younger professionals. A strong employer brand rooted in inclusion reduces hiring costs and shortens time-to-fill across global markets.

6. Reduced Legal and Compliance Risk 

Building equitable hiring, promotion, and pay practices reduces exposure to discrimination claims and regulatory penalties. Organizations that proactively address bias in their systems protect their long-term business reputation.

Read Now: Benefits and Challenges of Globalization: What Businesses Need to Know

Real-World Examples of Diversity and Inclusion

Microsoft: 

• Microsoft has taken significant strides in hiring neurodiverse talent through its Autism Hiring Program. 
• By creating tailored hiring processes and dedicated workplace support systems, the company has unlocked innovative contributions from neurodivergent employees, demonstrating that inclusive hiring broadens organizational capability in meaningful ways.

Salesforce: 

• Salesforce conducts regular pay audits to address wage disparities across gender and ethnicity. 
• This sustained commitment to pay equity has reinforced employee trust, reduced turnover, and positioned Salesforce as a benchmark for equitable workplace practices globally.

Coca-Cola: 

• Coca-Cola's Women's Business Resource Group promotes gender equity in leadership by providing mentorship and networking opportunities for women employees worldwide. 
• This initiative has directly supported the advancement of women into senior roles across the organization.

Accenture: 

• Accenture publishes an annual global diversity report and has committed publicly to achieving a gender-balanced workforce at all levels. 
• The company ties executive compensation to diversity outcomes, creating direct financial accountability for DEI progress. 

Its approach is widely referenced as an example of how large organizations can embed DEI into core business operations rather than treating it as a standalone program.

How Gloroots Enhances Diversity and Inclusion in the Workplace

Building a diverse and inclusive workforce across borders is complex. Gloroots makes it manageable. As a global Employer of Record (EOR) platform, Gloroots enables organizations to hire, onboard, and manage talent across 140+ countries while ensuring full compliance with local labor laws, pay equity standards, and employment regulations in every market.

Gloroots supports DEI implementation in practical, meaningful ways:

• Equitable global hiring: Gloroots removes geographic and administrative barriers that often limit access to underrepresented talent pools, making cross-border hiring straightforward and compliant.
• Compliant compensation management: Gloroots ensures that compensation, benefits, and employment terms meet local legal standards, helping organizations maintain fair and consistent pay practices across diverse international markets.
• Reduced administrative friction: By handling payroll, contracts, and compliance locally, Gloroots frees HR and People teams to focus on building inclusive cultures rather than navigating legal complexity in unfamiliar markets.
• Access to global talent diversity: With Gloroots, organizations can hire from markets they previously could not access, meaningfully expanding workforce diversity beyond their home geography.

True DEI is not just a policy. It is an operational commitment. 

Gloroots gives organizations the infrastructure to back that commitment with consistent, compliant, and scalable action across every market they operate in. 

Book a Demo with Gloroots today to learn how we can help you build a truly inclusive global workforce.

Frequently Asked Questions (FAQs)

1. What does DEI stand for in the workplace? 

DEI stands for Diversity, Equity, and Inclusion. These three principles work together to promote fairer, more representative, and welcoming workplaces for all employees.

2. Why is diversity and inclusion important for businesses? 

DEI improves innovation, retention, and revenue. Companies with strong DEI practices consistently outperform competitors.

3. What is the difference between diversity and inclusion? 

Diversity is about who is in the room. Inclusion determines whether those people feel genuinely valued and empowered to contribute.

4. How can companies measure DEI progress? 

Track retention rates, pay equity gaps, leadership diversity ratios, promotion data, and belonging scores from regular employee surveys.

5. How does an EOR platform support DEI goals? 

EOR platforms like Gloroots enable compliant global hiring across 140+ countries, helping organizations access diverse talent they could not previously reach.