Why Diversity Matters
A lot of organisations are working to increase their diversity for some very good reasons.
Globalisation
Globalisation is the increasing trend of businesses to transcend national borders in their production, sales of goods and services and international financial activities. – Australian Bureau of Statistics
Benefits of Globalisation
The World Bank reports the flows of goods, services, and finance reached $117.2 trillion in 2025, up from $111 trillion in 2024 and the trend is likely to increase. This means that it is likely that economies will be even more global with time, and the speed of growth is also increasing.1 A global economy is more resilient and countries notice an improvement in their residents’ quality of living the more globalised their economy is.1
Globalisation drives cultural diversity in the workplace, because culturally diverse workforces are better at understanding global customers and clients. Experts suggest that the diversity of the workforce should match the diversity of the customer base2. As well as cultural diversity, it is important to achieve diversity in gender, physical abilities, LGBTIQ+ community, neurodivergence and age.
Equal opportunity and diversity
Diversity in the workplace means having employees from a wide range of backgrounds. This can include having employees of different ages, gender, ethnicity, physical ability, sexual orientation, religious belief, work experience, educational background, and so on. – Diversity Council Australia2
Why Diversity Is Important in the Workplace
As well as moral and human rights reasons for promoting diversity and inclusion at work, the business case for diverse teams is well established. The Diversity Council Australia’s Inclusion@Work Index, which surveys over 3,000 working Australians, shows that inclusive organisations have improved performance and innovation, better customer service, more satisfied and secure staff, and less harassment and discrimination.2
Studies by McKinsey and Co. show the business case for diversity in leadership. Their 2020 report found that companies with greater gender and ethnic diversity were more likely to perform better and have higher profits than their competitors.3,4
Employees in diverse teams value that diversity and report better job satisfaction, mental health and they are more likely to stay in their jobs.4,5
If you’d like some assistance increasing the diversity of your team at work, or if you want to create better cohesion among your diverse team, you can access the Manager Assist service as part of your EAP by calling
1800 629 277 in Australia,
0800 327 669 in New Zealand,
or email support@akg.com.au.
- The global economy in five charts
- Inclusion@Work Index – Diversity Council Australia
- Xu, Q., Guy, D. F., & Schneible, R. A. (2022). Age diversity, firm performance and managerial ability. Review of Accounting & Finance, 21(4), 276-298. doi:https://doi.org/10.1108/RAF-09-2021-0232
- How diversity, equity, and inclusion (DE&I) matter | McKinsey
- Brown, E. R., Phills, C. E., Kahn, J., & Mukundan, S. (2025). Feeling a sense of belonging is associated with more motivation within organizations that value diversity and equity. Scientific Reports (Nature Publisher Group), 15(1), 23201. doi:https://doi.org/10.1038/s41598-025-04456-9
