As the country becomes more diverse, so too should (and does) the workforce. As such, diversity, equity, and inclusion (DEI) initiatives are growing in importance and visibility for companies of all sizes. In fact, according to a 2023 survey for Incfile, nearly 54% of small businesses are making diversity a “key tenant” of their operations.1
The benefits of having a diverse workplace are clear, from improved employee engagement and retention to increased financial success. Consider the following diversity in the workplace statistics as you determine how to promote employee diversity in your business.
Current State of Diversity
Before we dive into the specific issues and challenges around diversity in the workplace, we need to understand the changing demographics of the US population.
1. Non-Hispanic whites make up 58% of the US population
As of June 2024, the US Census Bureau reported that non-Hispanic white people made up 58% of the US population. Though there was a 0.2% decline in the previous year, they still make up the largest group. Meanwhile, the population of other races—Hispanic, African American, Asian, Native American, etc.—has seen an increase in varying degrees.
2. Half of Gen Z individuals are racial or ethnic minorities
According to the Annie E. Casey Foundation, about 50% of Generation Z and 48% of Generation Z Alpha (those who are born between 2010 and 2024) are white. This goes to show that they are the most diverse generations. As they have grown up with diversity as a norm, they’ll bring multicultural competence to their jobs. This can be a significant asset in an increasingly globalized business world.
3. 77% of the labor force identifies as white
Bureau of Labor Statistics (BLS) data on diversity shows that the workforce is also becoming more racially diverse, but at a slower pace than the overall population. In 2022, individuals identified as white made up 77% of the labor force, while Blacks and Asians made up 13% and 7%, respectively, that year.
4. Women’s labor force participation rate in the US is 57.8%
Just 57.8% of adult women over 16 participate in the labor force. This number hasn’t risen significantly since about 1990. Men’s labor force participation rate is about 10 points higher. However, women in the prime age range (25-54 years old) have a higher labor force participation at 78.4%.
Key DEI Issues
DEI initiatives have gotten much attention in recent years, but as the DEI statistics below show, progress remains to be made.
5. Whites make up 80.9% of management occupations
While the figure dropped from 81.6% in 2022, some positions and sectors, in particular, struggle to reflect the changing nature of today’s workforce. Chief executives are 85.8% white according to the BLS (and around 70% male), while other white people make up over 85% of sales, facilities, and construction manager positions.
6. 87 women are promoted to manager for every 100 men
According to DEI stats from McKinsey & Company, women still lag behind men in management promotions, which creates an even bigger problem with executive-level promotions as there are fewer women managers to choose from. Even worse, the trend for women of color getting promoted is declining, where only 73 were getting promoted in every 100 men—down from 83 in 2022.
7. Median weekly earnings for women are 81.2% of the median weekly earnings for men
BLS data shows that Black women made 92.5% of what Black men made in 2024. White women made 81% compared with white men, while Asian and Hispanic women made 83.1% and 86.3% as much, respectively, as their male counterparts.
8. People with a disability are 2X more likely than those without to be unemployed
Although the unemployment rate for people with a disability declined in 2023, the BLS notes that it is still much higher than the unemployment rate for people without a disability, which is more than double (7.2% vs 3.5%). Part-time work and self-employment are also more likely for workers with a disability.
9. 45% of workers are not aware of their company’s antidiscrimination policy
The US Equal Employment Opportunity Commission (EEOC) received more than half a million calls and 81,055 new discrimination charges in 2023. Yet 45% of workers do not know their organization’s antidiscrimination policy. And the EEOC’s top type of discrimination was retaliation, which represented 51.6% of all cases in 2018.
10. 43% of women experience discrimination and microaggressions in the workplace
This figure shows that gender-based discrimination is still a widespread issue in professional settings. Deloitte’s Women at Work 2024 report further breaks down the type of noninclusive behaviors women experience, which are microaggressions (31%), sexual harassment (4%), and other types of harassment (8%).
11. Half of LGBTQI+ workers have experienced some form of discrimination at work
A 2022 study conducted by the Center for American Progress found that half of LGBTQI+ workers face some form of discrimination or harassment at work. This includes not being hired, being fired, and being harassed. A third of LGBT employees have left a job because of unfair treatment.
12. Fewer than half of HR professionals think their workforce reflects the demographics of their workplace environment
Although about 54% of respondents to a 2022 HR Research Institute survey indicated their company’s culture has become more inclusive over the past two years, statistics on diversity in the workplace reveal that only 45% feel their workforce mirrors marketplace demographics.
13. DEI efforts in the workplace have dropped by 8% over the past couple of years
In the last two years, HR teams’ confidence in building a diverse and equitable workforce culture declined from 85% in 2021 to 77% in 2023. The decline didn’t stop there—DEI efforts that go beyond compliance also dropped from 71% (2021) to 60% (2023). While the reduction does not signify a complete abandonment of DEI programs, it raises concerns about the potential impact on workplace culture, employee retention, and overall diversity.
14. The IT sector’s mature diversity initiatives increased by 11%
While the general DEI initiatives have dropped, the IT sector saw an increase in its DEI policies, from 46% in 2023 to 57% in 2024. These DEI programs, according to TEK Systems, are advanced or mature, which means that a company’s DEI program is deeply integrated into all aspects of an organization’s culture.
Consequently, if a DEI policy is truly incorporated into an organization’s culture, these companies are 35% more likely to conduct a pay equity analysis of long-term incentives. This will allow them to identify and address hidden inequities that might affect underrepresented groups in their organization.
15. Leadership support for DEI initiatives drops by 16%
Culture Amp’s 2024 Workplace DEI survey revealed that support from leadership dropped to 58% (2023) from 74% (2021). This is not surprising since in its 2022 Workplace DEI survey, Culture Amp showed that although nearly 75% of respondents claim to have support from executive leadership for their DEI initiatives, only 34% of the workers if they have the resources to match.
16. Female representation in the C-suite is still significantly low compared with men’s
According to McKinsey’s Women in the Workplace 2023 report, women representation in the management level has improved since 2015, yet it is still lagging far behind men (57% vs. 28%). Women of color are even more underrepresented at only 6%.
17. Fewer than 10% of HR professionals consider their DEI initiatives “very effective”
Simply incorporating DEI initiatives into workplace operations isn’t enough—they must be effective. And according to HR Institute’s 2022 survey, only 9% are considered very effective (scoring 8–10 on a 10-point scale).
Benefits of Diversity in the Workplace
The societal benefits of focusing on diversity, equity, and inclusion may be obvious, but what are the benefits to your business? Investing in any type of initiative costs money, time, and energy, so you want to see a return on that investment. The benefits of diversity in the workplace statistics below show why hiring a diverse workforce and nurturing and growing those talents is good for your business.
18. The global market for Diversity & Inclusion is growing at 12.2%
Diversity statistics in the workplace from Research and Markets’ Diversity and Inclusion Report show that the D&I global market is expected to grow up to $24.4 billion by 2030. The report added that numerous studies showed that diversity and inclusion are major drivers of innovation, better financial performance, and decision-making in companies.
19. 25% of employees won’t seek promotions at companies neglecting DEI
According to the Bias-Free, Leadership, Inclusion, Safety, and Support (BLISS) Index by the Boston Consulting Group (BCG), companies with strong DEI initiatives attract more ambitious employees. Additionally, 25% of employees who are actively seeking a promotion said they will not apply for a promotion, which they perceive has a negative perception of inclusion within their workplace culture.
20. 68% of companies with highly engaged employees have a broadly defined DEI plan
Aon’s 2022 Global Diversity, Equity and Inclusion survey found that nearly 70% of businesses with highly engaged workers define DEI broadly (covering six or more categories). This compares to only 54% of companies with low engagement that do. So don’t limit your DEI focus to race, gender, and ethnicity; consider religious affiliation, national origin, sexual orientation, language, disability, veteran or military status, age, and more.
21. Nearly two-thirds of HR professionals feel DEI initiatives improve an organization’s mission, vision, and values
Sixty-four percent of surveyed HR practitioners felt a focus on diversity, equity, and inclusion enhanced their company’s mission, vision, and values. Furthermore, the HR Research Institute study found that 57% felt it improved organizational performance, and 52% felt it improved compliance.
22. DEI-focused organizations have 31% happier employees
Boston Consulting Group’s BLISS Index further revealed that the number of happier employees increased by 31% and the number of motivated employees increased by 25% when they believe that their organization makes their DEI program a priority.
The fact that employees are happier when employers make the appropriate investment in DEI shows the importance of these initiatives. Happier employees are more productive and engaged and stay with their employer longer.
23. Inclusive companies unlock 3.8× more employee potential
According to the latest DEI report from the World Economic Forum, organizations with inclusive cultures are 3.8 times more likely to maximize the creativity and capability of their employees. These companies also have lower turnover rates.
Diversity in the Workplace Frequently Asked Questions (FAQs)
Expand the questions below to get answers to some of your most-asked questions about workplace diversity.
As the workplace diversity statistics show, having a diverse, equitable, and inclusive business creates many positive outcomes. It can improve your company’s financial performance and your employees’ productivity and creativity. Studies have also shown increased employee engagement, satisfaction, and retention as a result of DEI initiatives. On top of that, customers expect businesses to share their values—and not aligning DEI into your company’s processes can turn away customers.
Illustrating your commitment to diversity and DEI efforts starts at the beginning—with your company’s culture, mission, and values. Integrate diversity into the fabric of your business and promote that as part of your corporate brand. Include a DEI statement or commitment to diversity on your website and in your job descriptions.
During the hiring process, show your organization’s commitment with a diverse hiring team. Finally, for existing employees, make diversity an ongoing focus company-wide, integrating it into company meetings, performance goals, and professional development.
Bottom Line
Diversity is increasingly top-of-mind for both employers and employees, not to mention consumers. The diversity in the workplace statistics we’ve covered above should give you insight into the current issues and environment and explain some benefits of embracing diversity. It not only helps an employer’s profitability but boosts employees’ morale, retention, engagement, and decision-making.
