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Are Diverse Teams More Productive?

A look into whether diverse teams are more productive in the workplace.

Are Diverse Teams More Productive?

Diversity and inclusion have always been important in the workplace, but from a business perspective, are diverse teams more productive?

The answer is yes!

Research consistently shows that teams with varied individuals contribute to team productivity better than homogeneous teams. 

According to the Harvard Business Review, neurodiverse teams can be up to 30% more productive than other groups. Similarly, a 2017 McKinsey report found a positive link between gender variety in top management and financial profitability. 

Studies like these have shown that workplace diversity has its benefits regarding team productivity. Working with an assortment of people means you have to think in new, different ways. This leads to perceptive teams that are smarter and more effective. 

Recognising Diversity In The Workplace

Diversity doesn’t only cover gender or ethnicity. Workable claim that even though diverse categories are technically endless, there are generally distinct types of diversity at work. 

It’s important to appreciate these categories when it comes to recognising diversity in the workplace. 

1. Age

Age diversity involves working with various age generations and groups.

This may look like middle-aged people working with younger workers in their twenties. For example, Gen X, Gen Z, and millennials working in the same environment.

2. Disabilities

This category covers workers with physical or psychological afflictions. Disability diversity also involves understanding that some disabilities, like mental health conditions, aren’t visible. 

A business may make changes to accommodate disabled employees, like having counselling sessions or providing wheelchair ramps. 

A team of three with one employee in a wheelchair showing how diverse teams are more productive

3. Culture or Race

Cultural diversity is associated with a person’s ethnicity. These are generally social norms we get from how a person is raised, whether that be from society, community, or inside the family home. 

Racial diversity is different from culture, as it categorises individuals according to physical characteristics. Examples include Asian, South Asian, African or Caucasian. 


4. Gender/Sex

Sex is often used conventionally to differentiate between males and females. A business may try to improve its gender balance by hiring roughly 50% men and 50% women. 

However, Scientific American claims that more biologists are beginning to believe that gender covers a bigger spectrum than simply male or female. The term gender diversity may be more acceptable today as we become aware of the gender spectrum. 

5. Religion

Religious diversity covers several spiritual beliefs and religions at work. 

You may be aware of prominent examples, like Christianity or Hinduism, but keep in mind that there are lots of lesser-known religions, like Jainism or Bahai’sm. 

This also includes a lack of a belief, like atheism or agnosticism. 

6. Sexual Orientation

Sexual orientation is different from gender identity or sex as it covers attraction. This may be emotional or physical attraction, including a lack of attraction itself. 

Even though people may use terms to describe their sexual orientation, it’s important to note that sexual identities are complex and may not fit into a distinct label. 

Learn how to be an LGBTQIA+ ally at work from this post. 

7. Neurodiversity

Neurodiversity refers to the concept that individuals encounter society around them in various ways. The idea is that there is no ‘right’ or ‘wrong’ way to recognize the world and that people should welcome these differences. 

Examples of neurodivergent conditions are ADHD, autism, and dyslexia, though there are several others. 

Outline of a head with coloured patches around the brain to indicate neurodiversity. This shows how diverse teams are more productive with neurodiverse members.


How Workplace Diversity Helps Team Productivity

Here are some of the reasons why diverse teams are more productive. 

1. Original Ideas

Recognising diversity in the workplace isn’t about filling a box! It can help you tap into high potential. 

Employing people who think similarly can lead to less creative teams, which may affect a company’s growth prospects. 

On the other hand, workers from diverse backgrounds bring different viewpoints, experiences, and skills into the workplace. This all contributes to an innovative team which becomes better equipped to solve problems. 

Discover some unique hacks to improve workplace productivity here. 

2. Embracing Age

If you think of workplaces from the past, you may picture a group full of old-timers with the occasional new face. Fortunately, today’s teams look a lot different. A blend of generations can contribute to better team productivity. 

Older professionals may present their years of experience, while younger people introduce new, fresh ideas. This mix of different ages can help companies adapt to a modern, fast-developing landscape. 

A group of employees of different ages showing how diverse teams are more productive.


3. Unique Perspectives

Diverse team members will bring their individual perspectives to the table. 

For instance, people with neurological conditions like autism or ADHD experience the world differently and may bring this unique creativity to team sessions. 

Welcoming employees in this way can help your business gain a competitive advantage. 


4. Inclusivity and Positivity

Workplaces should be positive environments for all employees, no matter what their gender, ethnicity, or sexual orientation is.

According to Forbes, happy workers are up to 20% more productive compared to unhappier employees.

Five cutout paper people holding hands. Two are men, one is a woman, one is in a wheelchair and one has a cane. This shows how diverse teams are more productive with inclusion.


Diversity creates an inclusive team atmosphere which contributes to general well-being. A happy team has more chance of being productive and focused on their work commitments.  

Recognising diversity in the workplace shows employees that you hear their voices, appreciate their experiences, and value each member, no matter what their background is. Prioritising a diverse workplace is a tactical choice that can further your team’s potential. 


We are Tramshed Tech: a collaborative community where startups scale up. Tramshed Tech is the best place to start and grow your business because we understand the challenges entrepreneurs face. 

We build beautiful workspaces with business support and skills programmes to help businesses thrive. Find out more about our spaces here, or head over to our blog page for more exciting articles on productivity and growing your business.

Written by Rosh for Tramshed Tech.


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