Defining Diversity

BU Logo
BetterUp Studios

6 min

Different looking wall frames

Diversity refers to the variety of different perspectives represented on a team. These perspectives will vary depending on an individual's race, culture, abilities, gender, and sexual orientation.

Research has shown that the more diverse a team is, the better it performs. Companies with gender-diverse executive teams are 21% more likely to see above average profits than those without diverse leadership; companies with ethnically diverse executive teams outperform others by 33%.

Diversity can also lead to greater creativity. Social psychologists have found that people who maintain a strong relationship with someone from a different country score higher on routine creativity tests.

This spike in creativity and productivity can be attributed to the “edge effect.” In a term borrowed from ecologists, the edge effect refers to the areas in which two ecosystems meet. The rich diversity of these places creates a habitat in which new organisms thrive. It is much the same in business—when different perspectives come together, new and exciting things are created.

BetterUp Studios
BetterUp Studios creates and curates research-backed content, activities, and tools to help people everywhere pursue their lives with greater clarity, purpose, and passion.

Recommended Resources

Card image cap

Finding Your Flow

Flow states can help you improve your productivity. In this article, learn how.

5 min

Card image cap

Cognitive Reframing: A Case Study

Cognitive reframing means tracking self-defeating thoughts, labeling them, and coming up with rational alternatives that will propel you forward. This activity outlines a case study to illustrate how you can apply cognitive reframing in your life.

10 min