Workplace Diversity Statistics for 2023

Compiled from 22 credible sources, the latest workplace diversity statistics show that the issue of diversity, equity, and inclusion (DEI) is increasingly important to employees and employers in 2023, even if the road to get there isn’t always smooth.

Our workplace diversity statistics cover the following areas:

• Benefits of diversity in the workplace
• The importance of workplace diversity to today’s workers
• The state of workplace diversity in 2023
• Efforts to improve workplace diversity

Benefits of diversity in the workplace

The effects of workplace diversity on business performance are hard to measure, with factors such as company size, industry, culture, and other factors complicating studies. Even so, researchers have shown that diversity in the workplace provides several advantages.

• Companies with the greatest ethnic diversity at the leadership level (top quartile) are 36% more profitable than similar companies with the lowest ethnic diversity (bottom quartile)¹.

• Companies with the greatest gender diversity at the leadership level (top quartile) are 25% more likely to have above-average profitability than similar companies with the lowest gender diversity (bottom quartile)¹.

• Executive teams with more women (equal to or greater than 30% female) are 48% more profitable than teams with less women (less than 10% women)¹.

• In 2020, respondents chose the top reasons to implement DEI at work. Some of their answers included the following²:

• • the right thing to do (50% named it in their top 3)
  • needed to satisfy employee expectations (48%)
  • helpful for attracting, engaging, and retaining talent (48%)
  • providing business benefits, such as increased revenue and productivity (21%)

• 86% of business leaders say that incorporating DEI into everyday work and measuring outcomes is either important or very important to their organization’s success³.

How important is workplace diversity to workers?

Workplace diversity matters to employees, and often affects their decisions when deciding to join a new company or stay at a current one. And to minority groups and younger generations, workplace diversity is even more significant.

General views on the importance of workplace diversity

• 78% of Americans surveyed agree that it’s important to work for a company that values DEI⁴.

• 74% of US workers report that corporate investment in DEI is either somewhat or very important when choosing a new job⁵.

• 76% of females consider corporate investment in DEI to be somewhat or very important when considering a job, compared to 72% of males who thought similarly⁶.

• 32% of job seekers would not apply to companies lacking in diversity⁷.

• 93% of workers consider DEI personally important to them — not just at work².

• 36% of 18–44 year olds believe diversity and inclusion policies are important⁸.

• 18–34 year olds said they would consider turning down or leaving a job if they thought⁵:

• • their manager didn’t support DEI initiatives (72%)
  • there was a gender imbalance in the company’s leadership (67%)
  • the company’s leadership was lacking in racial/ethnic diversity (65%)

• 70% of employees view DEI training as important (61%) or very important (9%), compared to 30% that consider DEI training as only somewhat important⁹.

• 37% of employers say candidates expect to learn about a company’s DEI efforts¹⁰.

• Only 5% of recruiters consider DEI to be among their top 3 priorities¹¹.

Views on workplace diversity by racial/ethnic group

• Racial/ethnic minorities are more likely than the aggregate (74% of all respondents) to think a company’s commitment to DEI is important⁵:

• • Hispanics (77%)
  • Blacks (79%)
  • Asian American/Pacific Islanders (82%)

• 80% of Black workers surveyed said they’d consider turning down or leaving a job if their manager didn’t support DEI initiatives⁵.

• The importance of DEI when choosing a job matters more for⁶:

• • younger than older white workers (77% of Millennials and Gen Zers, compared to 67% of Gen Xers and Baby Boomers).
  • younger than older Hispanic workers (82% of Millennials and Gen Zers, compared to 69% of Gen Xers and Baby Boomers).
  • older than younger Black workers (84% of Gen Xers and Baby Boomers, compared to 77% of Millennials and Gen Zers).

Views on workplace diversity by generation

• Young workers are more likely than older workers to say DEI is somewhat or very important when looking for a new job (80% of 18–34 year olds, compared to 74% of 35–54 year olds and 61% of workers over 65)⁶.

• 53% of Gen Z recruiters emphasize building a diverse workforce¹⁰.

• Men and women differ more in their views of DEI among older than younger generations. When asked if DEI is either somewhat or very important when choosing a job⁶,

• • 70% of women and 56% of men in the Baby Boomer generation said yes
  • 76% of women and 69% of men in the Gen X generation said yes
  • 79% of both Millennial men and women said yes
  • 76% women and 77% men (not statistically different) in the Gen Z generation said yes

The state of workplace diversity in 2023

Several diversity landmarks have been achieved in 2022, such as the growing number of minority CEOs at Fortune 500 companies. But while the US population is becoming more diverse, diversity at companies is lacking, not to mention equity and inclusion.

How diverse are workplaces today?

• Gen Z is more diverse than previous generations¹².

• • Gen Z is 52% white, 25% Hispanic, 14% Black, 6% Asian, and 5% other.
  • When Boomers were the same age as Gen Zers are today, 82% identified as white (compared to 52% of Gen Zers today).

• 10.6% of Fortune 500 CEOs are women (as of January 2023)¹³.

• There are only 6 Fortune 500 companies with a Black CEO (as of 2022)¹⁴.

• Only 1 in 4 C-suite leaders is a woman¹⁵.

• Only 1 in 20 C-suite leaders is a woman of color¹⁵.

• 32% of women in technical and engineering jobs are the only woman in the room at work¹⁵.

• The average US company is projected to reach gender parity among executives in 29 years¹.

How equitable and inclusive are workplaces today?

• 43% of US employees have either witnessed or experienced discrimination at work, including racism, sexism, ageism, and homophobia⁸.

• 47% of Black and 49% of Hispanic workers have quit their job after witnessing or experiencing discrimination at work⁷.

• Women earn 82 cents for every dollar men earn¹⁶.

• For every 100 men who are promoted from entry level to manager¹⁵,

• • 87 women are promoted (the broken rung)
  • 82 women of color are promoted
  • 75 Latinas are promoted

• Women in leadership are 2 times more likely than men in equivalent positions to be mistaken for someone more junior¹⁵.

• 37% of women leaders have reported a coworker taking credit for their idea vs. 27% of men leaders in the same situation¹⁵.

• 12% of women leaders (compared to 6% of men leaders) have had someone say or imply that they’re not qualified¹⁵.

• 39% of women leaders have had their judgment questioned, compared to 28% of men leaders, with the number being especially high for Black women leaders (55%)¹⁵.

• 29% of women working on-site report experiencing microaggressions, compared to 19% of women working remotely¹⁵.

• Globally, the percentage of women hired into leadership roles has increased from 33% in 2016 to 37% in 2022¹⁷.

• Women in leadership are 2 times as likely as men in leadership to spend time on DEI work¹⁵.

• 52% of female leaders (senior managers or higher) are responsible for all of their family’s housework and childcare, whereas only 13% of male leaders are their family’s main caretaker¹⁵.

• The Hershey Company is a special case where women, Black, Latinx, and Asian employees earn the same salaries as white men (as of 2021)¹⁸.

• 71% of employees would be more willing to share their experiences and thoughts on diversity and inclusion if they could do so anonymously⁷.

• 15% of companies are extremely confident that their employees feel belonging, inclusion, and psychological safety, compared to⁹:

• • 61% that feel only somewhat confident
  • 24% that feel somewhat unconfident

Workplace diversity efforts

Workplace diversity efforts skyrocketed between 2019 and 2020 but have since either slowed or stalled in the US. These statistics demonstrate that while employers and employees have good intentions, more needs to be done to fund, implement, and track diversity and inclusion.

General status of DEI efforts

• While 21% of companies reported exceeding industry norms regarding DEI, 49% felt they were on par and 30% felt they were below industry norms⁹.

• In 2020, companies globally spent $7.5 billion on DEI-related efforts¹⁹.

• Global spending on DEI-related efforts is projected to be $15.4 billion by 2026¹⁹.

• In 2021, workers reported on their organization’s DEI efforts, saying their company was doing⁴:

• • “a lot” (33%)
  • “some” (37%)
  • “just a little” (14%)
  • “nothing at all” (12%)

• When asked in 2021 how much of their company’s 2022 budget was allocated to DEI, workers responded that their company would⁹:

• • direct fewer resources and budgeting to DEI (2%)
  • direct the same amount of resources and budget toward DEI (19%)
  • allocate more budget and resources to DEI (79%)

• HR professionals reported that DEI²:

• • has always been important (37%)
  • became important before 2020 (27%)
  • became important in 2020 (18%)

• When asked how COVID-19 has affected DEI efforts, workers reported that the pandemic⁹:

• • boosted commitment to DEI (32%)
  • had no effect on DEI efforts (50%)
  • negatively affected (such as by complicating or delaying) DEI efforts (18%)

• The top 5 metropolitan areas (defined by labor force size) that provide the greatest access to DEI programs are⁶:

• • Seattle (73% of companies on Glassdoor)
  • Las Vegas (71%)
  • San Francisco (70%)
  • Boston (68%)
  • Charlotte (66%)

• 25% of business leaders feel prepared to incorporate and measure the outcomes of DEI in everyday work³.

• Most companies (60%) don’t have any workers whose primary job is to drive DEI (DEI-dedicated roles), while 25% have one and 15% have more than one DEI-dedicated role²⁰.

• 39% of companies in 2020 (compared to 29% in 2019) offered DEI programs as a benefit⁶.

• Down from 43% in 2021, 41% of companies on Glassdoor provide access to DEI programs as a benefit in 2022⁶.

• 47% of recruiters plan to increase DEI efforts in 2023¹¹.

Types of DEI efforts

• 41% of companies have a formal DEI policy²⁰.

• 42% of companies that have a DEI policy don’t have a documented process for enforcing it²⁰.

• 90% of companies have diversity goals²¹.

• 60% of companies hold DEI training²⁰.

• 70% of companies purposefully source underrepresented candidates²⁰.

• 18% of companies have an anonymous screening process²⁰.

• 56% of companies have a DEI council or committee²⁰.

• 18% of respondents named equity in compensation as one of the top 3 components of their company’s DEI strategy².

• The main components of companies’ DEI strategies in 2021 included achieving²:

• • diversity throughout the company (65% of respondents placed this in their top 3)
  • equity in opportunity, contribution, and advancement (45%)
  • team inclusivity (26%)
  • diversity at the management level (25%)

• The top DEI priorities in 2022 were¹⁰:

• • building a diverse workforce (39% of employers)
  • gender pay equity (36%)
  • creating systems/processes to promote DEI, such as mentorship programs (28%)

• More Boomer recruiters (46%) emphasize gender pay equity, compared to 36% across all generations¹⁰.

• 67% of Gen Z recruiters make efforts to recruit from diverse organizations, such as¹⁰:

• • Historically Black Colleges and Universities (HBCUs)
  • community colleges
  • trade schools
  • local organizations that support underrepresented groups

DEI stakeholders

• Conversations advocating for increased DEI usually start with²:

• • executives/management (47% of companies)
  • HR representatives (17%)
  • non-HR employees (16%)

• Entry level workers (29%) were more likely than executives (22%) to think that management should be accountable for DEI initiative outcomes².

• Around 39% of workers, from entry to executive levels, believe that everyone should be responsible for DEI initiatives².

• 24% of respondents believe that HR should be responsible for executing DEI initiatives².

Measuring DEI progress

• When asked to name DEI metrics their organization measures, companies replied that they collect data regarding²:

• • demographics of the entire company (53% of companies put it in their top 3 choices)
  • employee engagement and retention (31%)
  • promotions and advancement to ensure equity (29%)
  • representation at the executive/management level (24%)

• Companies measure and analyze many metrics of diversity, including²¹:

• • gender (81% of companies)
  • age (65%)
  • race (65%)
  • disability status (42%)
  • veteran status (40%)
  • caretaking responsibility (12%)
  • refugee status (11%)

• Companies update employees on DEI goals and progress⁹:

• • every two years (33% of companies)
  • every year (30%)
  • every quarter (29%)
  • more than once per quarter (8%)

• 24% of companies don’t measure the progress of their equity commitments³.

• While 93% of companies discuss meeting business goals in manager performance evaluations, only 34% of companies report progress on diversity, equity, and inclusion (DEI) in their performance evaluations¹⁵.

• 40% of women leaders say that DEI work isn’t acknowledged in their performance reviews¹⁵.

Areas for improvement in DEI

• 11% of recruiters say that DEI programs are the first areas to be cut when reducing costs, along with company events and bonuses¹¹.

• 30% of US employees reported that their employer doesn’t hold the same values regarding DEI⁸.

• 46% of companies report that leadership isn’t held accountable if workplace equity initiatives fail²¹.

• DEI drivers (16%), HR professionals (20%), and employees (17%) are more likely than business leaders (11%) to say that leadership communicates about DEI infrequently or not at all²².

• Most companies (89%) have a formal DEI strategy (while the other 11% don’t but plan to implement one within the next year)⁹.

• 43% of companies have dedicated resources and a budget for their DEI efforts while 57% do not⁹.

• 56% of companies recruit with DEI initiatives in mind, while 24% don’t but plan on emphasizing DEI when hiring in the future².

• Women leaders are more than 1.5 times as likely as men in equivalent positions to have left a job to work for a company that was more committed to DEI¹⁵.

• Minority groups (71% of Black and 72% of Hispanic employees) are more likely than white employees (58%) to think their employer should do more to increase workplace diversity⁷.

• Women (71%) are less likely men (77%) to think that their company is making meaningful progress in DEI².

References

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