The 4 Types of Workplace Diversity Explained

The benefits of workplace diversity go beyond quotas, boosting your bottom line, supercharging creativity, and fueling problem-solving. The problem is, most companies have too narrow a definition of what diversity actually is. 

While factors like race and gender diversity do play a role, diversity in the modern world of work isn’t just skin-deep. According to expert researchers Anita Rowe and Lee Gardenswartz, there are actually four layers of diversity that inform a person’s experience. 

From internal dimensions like age and physical ability to external factors like income and religion, there may be different types of diversity you’re overlooking. To create a productive working culture that’s truly inclusive, start by getting familiar with the full spectrum of diversity.

1. Internal diversity

Internal diversity refers to inborn traits or characteristics that impact a person’s internal identity. From race and gender to sexual orientation, these factors are often considered protected characteristics under the Universal Declaration of Human Rights and accounted for in diversity, equity, and inclusion policies.

Race

Race is a social construction that categorizes people into groups based on skin color and other physical qualities. Though it has no real genetic or scientific basis, race is often leveraged to grant or deny benefits and privileges.

Whether it’s Black workers being passed over for promotions, white people receiving preferential treatment, or Asian Americans feeling alienated at work, workplace racism manifests in many ways.

Sex

Assigned by a doctor at birth, sex is a biological category based on anatomy, physiology, genetics, and hormones. However, not everyone’s body fits neatly into the male-female binary. These people are known as intersex.

While some intersex people undergo surgery as children to “correct” their gender (often nonconsensually), others live their lives outside of the binary. And many intersex people identify as part of the LGBTQ+ community.

However, while only 15% of non-intersex LGBTQ+ respondents suffered from discrimination during the hiring process, nearly 40% of intersex individuals say that discrimination has negatively affected their ability to be hired.

Gender

While sex is biological, gender is socially constructed, referring to certain norms, behaviors, and roles typically associated with being male or female. While gender roles vary by society and can change over time, the gender hierarchy creates inequalities, especially for women.

From the gender pay gap to the double-whammy of housework and 9-to-5’s, women’s labor is often undervalued. Women are also often underrepresented in leadership and face rampant sexism in the workplace. Even if they succeed in breaking through the glass ceiling, women still perform more “office housework” tasks than men.

Gender identity and gender expression

Gender identity refers to an individual’s internal gender experience, which doesn’t always match up with the person’s assigned sex at birth. Gender identity can change over time, and doesn’t exist inside a binary. 

Gender expression is the way you communicate your gender identity to others through style, behavior, voice, and other forms of self-expression. Transgender and nonbinary people, for example, don’t align with the sex they were assigned at birth, so they may express their gender differently or use different pronouns.

Transgender and nonbinary workers face particular bias in the workplace. 54% have been misgendered by colleagues, and over half have experienced gender-based harassment at work.

Sexual orientation

While gender identity is about who you are, orientation is about who you want to be with. Sexual orientation is the way a person experiences romantic, emotional, or sexual attraction to others. From straight and gay to bisexual and pansexual, there are many different orientations, all of which also impact a person’s social identity and lived experience. 

Many LGBTQ+ employees are not comfortable sharing their sexual orientation with coworkers. Data shows that only 31% are “out” to their entire company, and 26% are not out to anyone in the office. 43% are not out because they’re worried about discrimination, and 24% fear it will negatively impact their career advancement. With only 14% of companies taking action against anti-LGBTQ+ legislation, queer employees may be understandably hesitant to express themselves at work.

Age

Age is just a number – but age diversity can have a major impact on how you’re treated at work.

Whether you’re a young person who isn’t taken seriously or an older person struggling to get promoted or learn new technology, ageism in the workplace impacts employees across the spectrum. 

According to HBR, 65% of workers have experienced age-based discrimination. And oftentimes, ageism happens unconsciously, such as job posts calling for “digital natives” or older coworkers referring to young female coworkers as “girls.”

Physical disabilities

A physical disability is a bodily impairment that impacts someone’s functioning, mobility, dexterity, or stamina. From epilepsy to muscular dystrophy, physical disabilities often impair a person’s bodily structure or function and limit their activity.

But just because physically disabled people move through the world differently doesn’t mean they can’t add value to your workplace. Nearly 23% of disabled people are currently employed. However, they also earn 42% less than their non-disabled peers and are 10% less likely to earn a pay raise.

Cognitive disabilities

From down syndrome to sleep disorders, cognitive disabilities are conditions that impact an individual’s ability to think, learn, remember, and make judgments. It includes everything from autism spectrum disorders to brain injuries.

Though 44% of people with intellectual abilities are in the workforce, only 20% of Fortune 500 companies hire applicants with severe mental disabilities.

Neurodiversity

From ADHD to anxiety, neurodiversity refers to the full spectrum of natural neurological differences, recognizing that everyone learns and processes information differently. And when companies adopt a neuroinclusive mindset, they can make the workplace more welcoming and productive for all types of thinkers, creating spaces where innovation and creativity can thrive.

Autistic workers, for example, can process information more quickly than others, and people with ADHD are more open to creative risk-taking and multitasking. It’s all about creating a culture where difference is seen as a differentiator, not a deficit.

Ethnicity

Ethnicity is all about cultural identification and expression. From language and customs to arts and cuisine, a person’s identity is often rooted in the ethnicity they grow up with and around.

The idealized multiethnic society is even older than the American “melting pot”, but ethnodiversity is a key aspect of cultural diversity and is important for fostering mutual understanding, respect, and cooperation among different groups. It contributes to social cohesion and enriches the cultural fabric of a society or workplace by promoting a more inclusive and dynamic environment.

National origin

National origin refers to a person’s birth country or their ancestors’ birth country, including everything from linguistic characteristics to physical features and cultural practices. 

Like race, national origin is sometimes used to treat people unfavorably depending on their country or region of origin. However, employers are technically not allowed to discriminate against employees based on their accent or language proficiency unless it’s essential to their job duties.

2. External diversity

While most DEI strategies firmly account for things like gender, disability, ethnicity, and race, external elements are often overlooked as different kinds of diversity. However, external factors that a person was not born with still have a profound impact on their lived experience. 

Socioeconomic status

Socioeconomic background determines the resources available to a person. From income and educational attainment to occupational prestige, socioeconomic status is closely tied to wealth. 

And while companies are often viewed as meritocracies, class still shapes people’s career paths. According to one study, workers from lower-income backgrounds were 32% less likely to attain manager positions when compared to workers from a higher social class.

Education

From degree requirements to institutional elitism, education plays a big role in who gets hired and who doesn’t. Candidates who didn’t attend Ivy League institutions and applicants with all the required skills but not the degree are often overlooked. 

But when we assume that all of the best apples come from the same bunch, we shrink our hiring pool. By opening the door to candidates from all kinds of educational backgrounds, you can help your teams think deeper and more creatively than a homogeneous group.

Language

Linguistic diversity highlights the many different ways people communicate with each other. And while having team members who are fluent in multiple languages can increase a company’s reach and improve their customer service, it can also be a barrier if there is no common tongue.

According to some sources, this lack of shared language proficiency can reduce productivity because it can slow down communication. That’s why it’s important to be proactive and have systems in place to improve cross-cultural communication and idea-sharing – especially when more confident speakers tend to dominate group discussion.

Location

Geographic location diversity refers to employing people from different countries or regions. This can lead to a wider range of perspectives and opinions, helping companies connect with more diverse groups of consumers.

However, hiring out-of-state can be a headache for HR departments juggling various local regulations. This can prompt companies to narrow their search to the surrounding area only. 

But the ability to choose from qualified candidates from all over the world vastly increases the depth and breadth of your talent pool, bringing in a variety of perspectives from different cultures and backgrounds.

Parental status

Whether or not someone has kids at home can drastically change the pace of their workday. And because nearly 98% of couples who are married with children are also employed, that means a sizable chunk of the workforce is pulling double duty.

Whether they’re running kids to doctor’s appointments between meetings or working from home with a sleeping baby in the background, parents have extra responsibilities to contend with outside of the office. 

And when companies don’t create supportive policies with working parents in mind, they can alienate the caregivers in their workforce. That’s why generous parental leave and a commitment to work-life balance is crucial for companies looking to attract working parents.

Marital status

Marital status discrimination occurs when an employer treats an employee differently based on whether or not they’re married. 

Historically, marital status has been used to discriminate against women in the workplace. From denying single employees certain benefits to refusing to hire someone because of their spouse, marital status discrimination can affect anyone regardless of gender. And as modern Americans start getting married later and less often, these trends will continue to shape how we approach marital status in the workplace.

Citizenship status

Citizenship status refers to whether or not you’re a citizen of the country you work in. In the US, The Immigration Reform and Control Act makes it illegal to discriminate against an employee or applicant based on their citizenship status. 

However, supporting workers of all different backgrounds goes beyond the letter of the law. Though immigrants make up 19% of our workforce, they make significantly less than naturalized citizens, who out-earn them by 50%-70%. But by helping immigrant workers at your business attain citizenship, you can maximize their earning power and company loyalty.

Personality

Personality diversity acknowledges that people have varying ways of thinking, feeling, and behaving, influenced by their unique backgrounds and temperaments. In a professional setting, personality diversity can lead to a more dynamic, creative, and effective team – if you tailor your coaching style to different kinds of personalities.

Oftentimes, the model of an “ideal employee” looks like an extrovert: sociable, assertive, collaborative. But this narrow definition of success leaves more reserved people behind.

Though they might not be as chatty, introverts can be equally effective leaders and workers. And while they’re at a disadvantage for promotion and raises, they bring amazing qualities to the table such as analytical thinking, strong listening skills, and emotional intelligence.

Criminal background

According to HR Dive, having a criminal background can impact an employer’s decision to hire, even when they don’t have a complete view of all the factors involved. And because a disproportionately high number of Black Americans have been (often wrongfully) imprisoned, this bias often negatively impacts minority groups. 

By waiting to perform a background check until you get to know candidates, you can form personal connections and look beyond their past convictions, eliminating bias. And because nearly 70 million adults have a criminal record of some kind, you can also dramatically widen your talent pool.

Military experience

Some employers have misconceptions about veterans, based on stereotypes like mental health issues (PTSD), fear that they’ll be deployed, or worries that they lack certain kinds of education and experience. 

As a result, veterans often struggle to find jobs that match their skill sets, and employers struggle to interpret military resumes. As of 2022, only about 10% of veterans were currently employed by professional and business services, despite having high-level skills like STEM proficiency, integrity, leadership, and ability to work under pressure.

3. Worldview diversity

Past life experiences shape a person’s worldview, meaning no two are totally alike. Whether they’re influenced by their cultural background, political beliefs, religion, or travel experiences, there are many different factors that influence the way we interpret the world. And when businesses nurture worldview diversity in their offices, it creates an innovative and inclusive environment.

Religious beliefs

Though 3 in 4 Americans are religious, only a tiny percentage of Fortune 100 companies account for religious diversity in their approach to diversity. 

And while some leaders believe that open talks about religion at work will invite dissent, not talking about faith at work is even riskier – especially with recent research revealing that honoring religious identity spurs employee engagement. 

By offering floating holiday days off so everyone can celebrate their holy days or setting aside space for prayer rooms at the office, you can ensure everyone feels comfortable bringing their whole selves to work.

Political beliefs

Political differences can cause tension – but there’s no denying they have a powerful impact on our perspectives. And by keeping political diversity in mind at the workplace, companies can avoid tunnel vision and spur workers to make stronger arguments. 

As long as you prioritize respect, you can reap the performance benefits of an ideologically diverse team.

Morals

Moral diversity refers to the presence of differing moral perspectives, values, beliefs, and ethical principles within a group. It encompasses the various ways individuals interpret what is right and wrong, just and unjust, or good and bad. 

This diversity often arises from differences in spiritual beliefs, and employees who identify as atheist or agnostic often face judgment from coworkers and are at times even fired for not attending company prayer meetings. That’s why it’s important to promote tolerance of all religious beliefs and moral perspectives in the workplace.

4. Organizational diversity

Another key element of diversity is ingrained in the workplace itself. From job function to seniority, a balanced workplace has employees from all walks of life working at all different levels.

Seniority

Seniority diversity in the workplace refers to the presence of employees with varying levels of tenure and experience within an organization. From employees who have been with the company for years to freshly graduated new hires, seniority diversity facilitates knowledge-sharing and productive mentorship opportunities.

Skill set

What’s the purpose of a team if everyone has the same strengths and weaknesses? By prioritizing skill set diversity, companies can create a team with complementary skill sets. Because when you tap into strengths-based strategies, you can maximize performance, filling gaps and strengthening the team's overall capabilities.

Job function

A job function outlines a role’s primary tasks and responsibilities. However, certain roles, especially secretarial or administrative ones, are often underappreciated in the workplace. 

Whether it’s erasing the powerful history of support roles or underpaying female administrators, these positions frequently suffer from a lack of recognition and fair compensation. It's crucial for organizations to acknowledge the importance of these positions, ensure equitable treatment, and foster an environment where all roles are valued and rewarded appropriately.

Benefits of diversity in the workplace

Creating a working environment where diversity is not only welcomed but actively celebrated can give you a well-earned edge in your industry. 

Here are just a few of the potential benefits a diverse workplace can deliver:

Higher revenue

Ethnically and culturally diverse companies are 36% more profitable than less diverse ones. And according to Fast Company, companies who commit to DEI initiatives across their organization will continue to outperform businesses with less representation in their workforces.

Increased innovation

When you have a diverse team bringing a variety of ideas and perspectives to the table, you’re bound to be more creative as a collective. According to research from BCG, diverse companies produce a greater proportion of revenue from innovation than non-diverse companies, which translates into stronger financial performance overall.

“Diversity creates stability,” CEO of Knopman Marks Financial Training Liza Streiff explains.  “[I]t ensures that decisions won’t be over-indexed by groupthink or personal preferences, because you’re balanced in your approach. The more diverse the room and conversation, the bigger perspective you have.”

Superior customer service

When you have a diverse team, especially one that’s globally diverse, you can provide superior customer service across time zones.

“For instance, while your local staff in the United States are asleep, a team in New Zealand can be working efficiently and vice versa,” James Peters, founder of Global Expansion explains. “It [also] enables the development of culturally sensitive marketing strategies and products that resonate with different customer segments, leading to increased market share and business growth.”

Better problem-solving

“If you’re trying to solve a problem for someone whose shoes you’ve never walked in, you’re not likely to hit the mark,” Shannon Lucas, CEO of Catalyst Constellations explains. “We go beyond our own experience bubble and design solutions that can serve the needs of a broader customer base or solve problems for underserved markets.”

And according to Harvard Business Review, teams that are also cognitively diverse solve problems faster, allowing different perspectives and thought patterns to combine in powerful ways.

Wider applicant pool

By recruiting globally, you can tap into top talent from all over the world, and by writing inclusive job ads, you can attract candidates from all walks of life. With an inclusive hiring strategy, you can tap into the 76% of job seekers and employees who believe a diverse workforce is a major draw when applying for jobs. It’s a win-win-win.

How do you define diversity?

As the world of work evolves, your definition of diversity can and should change with it.

Because when it comes to defining diversity in the workplace, it goes beyond just gender, race, and ethnicity. When you say you want to hire diverse employees, what does that really mean?

From automatically posting to the top diversity job boards to creating scalable blind hiring assessments and structured interview guides, you can bring consistency to your recruitment strategy and free up more time to connect with candidates on a human level.

Learn how Breezy can help make your recruitment more inclusive and effective. Get your free 14-day trial today.