top of page

What is Diversity Management and Why Organizations Need it

Globalization has brought borders down and made moving from one place to another simpler. A perfect example is the European Union, where European citizens can move freely from one European country to another for leisure or work. The common European labor market has expanded the job opportunities for EU workers and has brought organizational diversity management into the spotlight. This article will define diversity management and provide three reasons why diversity management is vital for organizations.

What is diversity management?

Diversity management inside an organization is actively trying to create a diverse and inclusive workplace. That means two things. First, to realize the importance of diversity in the workplace, and second, to develop the best solutions for the social inclusion of everyone working inside your organization.

Why is diversity management Important?

The increased movement of people and the creation of global markets for goods and services has made businesses realize the importance of diversity to their success. Let’s find three reasons why companies should invest more in diversity management:

1. Diversity creates innovation

If we all agreed with each other and had the same background and experiences, there would be no value in having group discussions or brainstorming sessions. Creative thinking and innovation can only happen in our disagreements with others. That is why organizations should consider creating diverse teams. The diversity of opinions and worldviews can benefit the business and avoid “groupthink.”

2. Talent takes all shapes and colors

It is reasonable to assume that businesses want to attract the best talent they can find to work for them. However, talent does not have a specific gender, age, or nationality. Based on that, the most diverse organizations tend to attract the best talent and find ways to retain them. That is why diversity management should be something organizations strive for and are vocal about it on their company website or their social media.

3. Brings cultural intelligence

A diverse workforce improves our understanding of other cultures and increases intercultural competence. This is extremely important in the context of globalization. Now companies aim to sell or promote their goods and services in the international markets. At the same time, their supply and value chains are more global than ever. Cultural intelligence equip organizations with the skills they need to succeed in culturally diverse situations.


Isn’t it evident that diverse organizations can fare much better than homogeneous ones? Diversity management has become one of the top priorities of modern organizations and a determinant of success. Diversity management can go a long way in a world with an increasing number of people goods and people moving around the world. Increased cultural understanding at the organizational level coupled with inclusion practices can help businesses innovate, attract the best talent, and increase their chances of becoming global leaders in their market.


bottom of page