Diversity, equity, and inclusion (DEI) programs are a persistently hot topic in workforce operations. Despite some companies rolling back DEI programs, these policies have existed under many different names over the years, and they’re unlikely to vanish entirely.
Cultural diversity is a cornerstone of thriving businesses — and shift-based businesses are no exception. With women and people of color making up significant proportions of shift workers, implementing and maintaining effective DEI programs is one way to prioritize the needs of all your employees.
Learn about the importance of cultural diversity in the workplace and how it can improve both your relationships with employees and your business as a whole.
“If everybody inside an organization looks the same — shares the same political values, and represents the same racial, ethnic, gender, and age profile — it is going to make decisions that reflect that narrow perspective.”
— Jo-Ellen Pozner, professor of management at Santa Clara University’s Leavey School of Business
Cultural diversity and DEI programs
Cultural diversity in a workplace is the range of cultures and experiences its workforce represents. The modern workforce is made up of people of different genders, ages, ethnicities, religions, and nationalities. A workplace with high cultural diversity represents a wide range of demographics from across this spectrum, with varied cultural practices, values, traditions, and beliefs. Initiatives like DEI can play a vital role in fostering cultural diversity.
Another piece of the DEI puzzle is equity. Equity means treating people fairly and creating an equal playing field for all workers — no matter their education level, age, gender, or race.
Finally, inclusion is building a sense of belonging among all staff, regardless of their cultural differences. It means creating a workplace that makes everyone feel welcome and values the perspectives of people from all cultures equally.
“Being genuinely valued and respected involves more than just feeling included. It involves having the power to help set the agenda, influence what — and how — work is done, have one’s needs and interests taken into account, and have one’s contributions recognized and rewarded with further opportunities to contribute and advance.”
A brief history of DEI
Some people may think DEI programs are new, but they’ve been around for a while. The foundations for DEI programs were laid in the 1960s, driven by social movements and a changing legal landscape, gradually evolving into the programs we know today.
Over time, equal rights laws designed to prevent discrimination in the workplace were implemented, such as these US laws:
Civil Rights Act
Equal Pay Act
Age Discrimination in Employment Act
Pregnancy Discrimination Act
Americans with Disabilities Act
These laws, alongside economic globalization and growing awareness of the importance of cultural diversity in the workplace, helped make DEI a key facet of the working world today.
A 2023 Conference Board survey of almost 200 chief human resource officers found “support for maintaining, if not intensifying, DEI efforts … with 63% actively seeking to further diversify their workforce.”
Types of diversity in the workplace
Shift work tends to invite a diverse staff, which means you’re likely to see a wide array of demographics represented in your workforce. Here are nine common examples of cultural diversity in the workplace:
Race: In a racially diverse country like the US, race is a major component of workplace diversity, and it often intersects with other types of diversity in this list. In 2023, the groups with the highest employment rates in the US were Mexican American, Hispanic/Latino, and Asian people, making these groups a major part of many workplaces.
Education: Your staff likely includes people from a variety of educational backgrounds.
Ethnicity: Ethnic diversity might bring about language barriers or cultural differences in your staff.
Age: Age can significantly influence people’s perspectives, experiences, and physical abilities. With the US workforce encompassing people aged 16 through 75 and older, many workplaces see significant age variation among their employees.
Gender: While most businesses employ both men and women, there’s still a lot of work to be done to ensure they are treated equally.Additionally, gender isn’t confined to a binary, and many organizations now embrace this broader understanding.
Religion: Religious diversity can impact your staff’s dress, dietary requirements, and requests for particular days off.
Sexual orientation: The LGBTQI community is made up of distinct groups and individuals who have unique needs and experiences. With 47% of LGBTQ workers having experienced harassment or discrimination at work, ensuring these workers are treated with fairness and respect is essential.
Disability: Employees with disabilities may need certain accommodations to do their jobs comfortably and effectively. They’re also more likely than others to work part-time, with 29% of disabled US workers working part-time in 2023. It’s important to note that disabilities can be both visible and invisible and require different accommodations.
Veteran status: Veterans may need a company’s assistance in transitioning from a military environment to a workplace.
Benefits of cultural diversity
Cultural diversity in the workplace can bring a wealth of benefits for employees, customers, and businesses alike.
1. Better employee engagement and retention
When your staff feels safe, respected, and welcome at work, they’re likely to be more engaged — which is also good for retention. Engaged workers are also more likely to collaborate with coworkers and be willing to jump in for extra shifts to cover their peers.
With 56% of US workers indicating they consider increasing DEI programs a good thing, most employees are likely to welcome DEI efforts. This is especially true for workers under 30, with 68% feeling positively about focusing on DEI at work — worth bearing in mind if your shift-based business relies heavily on younger workers.
2. Easier to hire more employees
Most shift-based workplaces have relatively high turnover, so being able to hire employees quickly is essential. An established DEI program can help with that — 76% of job seekers say diversity is important when deciding who to work for.
Additionally, having a culturally diverse workforce often improves current employees’ reviews of the business. This is important because 66% of job seekers trust employees more than leadership on the quality of DEI in a workplace.
3. Improved customer experience
A diverse workforce brings a variety of unique perspectives and skills to help solve problems and assist customers. For example, staff who speak multiple languages can assist a wider range of people. This can be especially valuable in industries like hospitality and healthcare, which see a variety of people and require a personalized approach to service.
4. Better reputation
A commitment to diversity demonstrates that a company values fairness and equality. This can have a positive effect on its reputation with suppliers and consumers. Now more than ever, people are careful about which businesses they support. In 2021, 50% of Gen Z consumers said they usually buy from brands that support a social justice cause, and recent years have seen a string of boycotts based on the stances of companies.
4. Increased productivity
A company’s level of diversity can also impact employee productivity. Forbes’ Fostering Innovation Through a Diverse Workforce report found that 77% of companies use productivity to gauge the success of diversity programs. Respondents indicated that their companies experienced an increase in productivity due to a diverse workforce.
5. Improved compliance
Businesses need to comply with both federal and state laws that ban them from engaging in discriminatory practices. Promoting a diverse workplace where everyone is respected helps companies obey the law and also ensures that every employee is treated with the respect they deserve.
6. Increased profits
Ultimately, diversity can yield more profits for your company. Research shows both ethnically diverse companies and those with greater representation of women are 39% likely to financially outperform the average company. These increased profits can come from a combination of diverse perspectives, happier staff, better customer service, and an overall healthier workplace.
Workplace issues involving cultural diversity
Almost every company has faced issues getting people from different groups to work together cohesively. The following are some common workplace diversity issues HR personnel and company leadership should watch out for.
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1. Bias
Bias is a difficult challenge to tackle because, while conscious bias is easy to spot, unconscious bias is often more nefarious.
Consider the stereotype that people who don’t attend college are less intelligent. Consciously, we may know this isn’t true. But an unconscious bias could mean that, on some level, we believe this — and allow it to shape our behavior — even if we don’t realize it. This could potentially lead to treating workers without a college degree differently.
Internal bias can infect all levels of your business, from hiring to leadership to front-line employees. If not addressed, it can result in an oppressive and discriminatory work culture. For example, one study found that “distinctively Black names” reduced candidates’ chances of being hired compared to “distinctively white names.”
To help correct conscious and unconscious bias in the workplace, focus on education and leading by example instead of punishment.
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2. Harassment
Harassment comes in many forms — including sexual, racial, physical, and verbal. Companies should provide training on what constitutes harassment and the consequences of being caught doing it.
Training should also teach staff members how to report harassment and emphasize that there will be no retaliation. Creating a safe way to report harassment is crucial to tackling the problem.
Like all other issues arising from diversity in the workplace, harassment can have a devastating effect on employees and the company as a whole. Failing to act can lead to staff departures, lawsuits, and public scrutiny over the lack of effort to minimize harassment.
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3. Lack of accessibility
Working with diverse people requires flexibility to ensure accessibility in business operations. For example, some disabled employees may need additional assistance to work, such as ramps to move around or chairs to sit in at checkout. Another example is flexible scheduling that ensures staff who need certain days off for religious reasons can get them, even if they’re not federal holidays.
Employers need to lead the way in creating a comfortable workplace for all employees, irrespective of their needs. During the onboarding process, be sure to ask employees about accommodations they may need. Starting the conversation makes it easier for staff with accessibility needs to speak up instead of feeling like outcasts.
4. Wariness of change
Some workers can be resistant to change — whether in policies or perspectives. For example, one survey found that more older workers see DEI as a bad thing compared to younger workers.
Leadership must be willing to exercise assertiveness with these employees without alienating them. Try to show understanding for their feelings and perspectives while remaining firm on the company’s policies and direction. Offer educational resources and meetings to help them adjust.
5. Culture clashes
Cultural differences in the workplace can lead to cultural clashes, whether from prejudices, negative stereotypes, or simply different values and approaches to work.
Mediation between workers may be necessary to help them understand one another’s points of view and work together more effectively. Additional diversity training may also be needed to help workers unlearn harmful prejudices.
In especially difficult cases, see if it’s possible to ensure the workers rarely work the same shift.
6. Communication issues
If your staff speaks multiple languages or uses different communication styles, mutual understanding and collaboration can become difficult. Misunderstandings can lead to both hurt feelings and confusion on the job, so it’s important to take steps to resolve or prevent communication issues.
A great start is to have instructions, policies, and other information available in multiple languages. You can also ask other employees who may speak multiple languages to assist you with translation. Additionally, make sure all employees know they can come to you with any questions if they’re unsure of what’s being said or concerned about another worker’s comment.
“Inequality is bad for both business and society. Organizations limit their capacity for innovation and continuous improvement unless all employees are full participants in the enterprise: fully seen, heard, developed, engaged — and rewarded accordingly. Moreover, such treatment can unleash enormous reserves of leadership potential too long suppressed by systems that perpetuate inequality.”
Examples of cultural diversity in the workplace
Here are some examples of cultural diversity that are handled well by major companies. While smaller companies may not receive as much public recognition for their diversity initiatives, companies of any size can also provide positive examples of diversity and experience its advantages.
Nike
Nike has proudly showcased its various DEI initiatives, such as 51% of its global workforce being women, 100% of its vice presidents having credentials in inclusive leadership education, and investing $10 million in historically Black colleges and Hispanic-serving institutions. It has also led the way among major retail brands in offering Juneteenth as a paid company holiday.
Johnson & Johnson
Johnson & Johnson has repeatedly been recognized as one of the top companies for diversity. Starting with recruitment, Johnson aims to stop gender bias with the use of technology.Interviewers are also trained to fight bias during interviews.
The company works with Harvard University to train its managers on how to reduce unconscious bias. This training is supplemented by additional resources that remind managers of the concepts that they’ve already learned.
AT&T
AsAT&T celebrated its 50th anniversary, it committed to spending $3 billion with Black suppliers, having spent about $158 billion working with women, minority groups, and service-disabled veteran businesses throughout the history of its supplier diversity program.
The company also requires a college degree for less than 5% of its job positions, providing ample opportunities for people of all educational backgrounds. Additionally, it has worked with a job placement agency to provide internships for adults with cognitive disabilities at its Dallas headquarters.
Costco
Costco made news in early 2025 by defending its DEI initiatives. The company believes creating a diverse workforce improves employee satisfaction, which in turn improves the customer experience.
“Our efforts around diversity, equity, and inclusion follow our code of ethics: For our employees, these efforts are built around inclusion — having all of our employees feel valued and respected. Our efforts at diversity, equity, and inclusion remind and reinforce with everyone at our company the importance of creating opportunities for all. We believe that these efforts enhance our capacity to attract and retain employees who will help our business succeed.”
Shake Shack
In 2022, Shake Shack awarded 55% of its internal promotions to women and 77% to people of color. The company also increased the number of women and people of color among its leadership by 33% and 18%. Additionally, it was recognized by the Human Rights Campaign as a “Best Place to Work for LGBTQ+ Equality.”
Managing diversity in the workplace
Workplace diversity issues can be managed and mitigated if employers take active steps to ensure their companies exemplify tolerance and acceptance.
Here are some tips for managing diversity in the workplace:
Create written policies: Companies should include their DEI policy in their employee handbook. The policy should contain information about non-discrimination laws, the code of conduct, and the compensation and benefits policy.
Provide sensitivity training: To create a better workplace culture, employees should be provided with sensitivity training. Sensitivity training can help them understand views and experiences different from their own and how certain words or actions can cause offense.
Create an accountability plan: Use regular surveys to check in on your progress, and have a plan in place for how you’re going to ensure staff uphold these policies.
Address micro-aggressions:Micro-aggressions are “thinly veiled, everyday instances of racism, homophobia, sexism (and more) that you see in the world.” Examples might be commenting on how well an ethnically diverse person speaks English or saying that a Black coworker is well-dressed. Use trainings to help address these micro-aggressions.
Impose a zero-tolerance policy: After staff receive the handbook and training about diversity issues, the company needs to set the tone for how violations will be dealt with. Employees should be aware that inappropriate behavior will not be tolerated and every reported incident will be taken seriously.
Pay attention to scheduling needs: As mentioned previously, employees may request time off on cultural or religious holidays. Your time-off policy should outline how to respond to these requests fairly and consistently for employees of all backgrounds.
Manage multicultural staff easily with Deputy
The importance of cultural diversity in the workplace can’t be understated. Companies that have a clear DEI policy — and are seen to enforce this policy — benefit from happier and more productive employees as well as a great reputation.
A key area where companies that employ an hourly workforce need to demonstrate fair treatment is the allocation of leave. Schedule a call with a Deputy rep and see how the leave function will help you keep track of your employees’ time off and easily monitor your compliance with various laws.
