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Diversity in recruitment isn’t just about ticking a box - it’s about building stronger, smarter teams. For too long, various industries had been hiring from the same narrow pool, missing out on talent that doesn’t fit the usual mould. The good news? Despite a lot of the current discourse, that’s starting to change.
When we talk about diversity in hiring, we’re not just talking about gender or ethnicity. It’s also about different life experiences, educational backgrounds, and ways of thinking. Bringing in people with a mix of perspectives leads to better ideas, sharper decision-making, and a workforce that reflects the real world. And here’s the kicker: companies that get this right don’t just create fairer workplaces. They perform better, attract top talent, and keep employees happier for longer.
Why diversity matters
A mix of perspectives leads to better ideas. When teams are made up of people from different backgrounds, they bring fresh ways of thinking to the table, which drives creativity and smarter problem-solving. The result? A workforce that challenges old ways of doing things and brings new ideas to an industry that’s been stuck in its ways for too long.
It’s the same with decision-making. The more varied the perspectives in the room, the stronger the outcomes. Research backs this up - companies with diverse leadership teams tend to perform better financially.
Of course, none of this happens if businesses keep hiring from the same places. Traditional recruitment methods often pull from a narrow pool, missing out on great candidates. Simple changes to your recruitment pipelines can make a big difference in attracting a broader range of applicants.
And it’s not just about hiring - it’s about making sure people want to stay. A workplace where everyone feels like they belong is one where people actually enjoy working, and that leads to better engagement and retention. Capita’s approach is a good example: their Mutual Mentoring programme pairs employees from ethnic minority backgrounds with senior leaders, creating space for shared learning and real conversations. Again, it’s not just a box-ticking exercise. It’s about making sure diversity isn’t just about who gets hired, but how people grow within the company.
The challenges of achieving diversity in recruitment
Even with the best intentions, building a diverse workforce comes with challenges - some obvious, some more ingrained.
One of the biggest barriers is unconscious bias. It happens without people realising - assumptions based on names, backgrounds, or even where someone went to university. Research shows that candidates with ethnic minority-sounding names are less likely to get called for interviews, even if their experience is identical to other applicants. Strategies such as blind recruitment are a step in the right direction, but bias doesn’t stop at CVs - it needs to be challenged throughout the hiring process.
Then there’s the issue of the talent pipeline - or, as some companies put it, “we’d love to hire more diverse candidates, but they’re just not applying.” In finance, for example, Black professionals remain underrepresented in leadership, but Barclays didn’t wait around for change. They set a clear target: to increase the population of Managing Directors from underrepresented ethnicities in the UK and US by at least 50% (to a total of 84) by the end of 2025. Their strategy to hit this goal? Instead of expecting diverse talent to come to them, they actively seek it out - through targeted outreach, internal mentorship, and opening up clearer pathways to senior roles. It proves that change doesn’t just happen. It has to be built.
And, of course, not everyone is on board. Resistance to change is real. Some companies still treat diversity as a nice-to-have rather than a necessity. KPMG’s former UK chairman made headlines when he called unconscious bias training “complete crap” and told employees to “stop moaning.” He ended up resigning, but the backlash highlighted an important point: diversity initiatives mean nothing if leadership isn’t fully behind them.
Currently, President Donald Trump’s cancellation of DEI policies in the US federal government has already led to Big Tech companies such as Meta and Amazon rolling back their own DEI initiatives. Progress isn’t linear, nor is it guaranteed. It only happens when businesses move beyond PR statements and embed diversity into their hiring, promotions, and workplace culture.
How companies can make diverse hiring a reality
Talking about diversity is easy - actually making it happen takes effort. It’s not just about tweaking policies here and there: it’s about changing how businesses think about hiring. The good news? Some companies are already proving that the right steps can make a real difference.
Start with job descriptions - because words matter. Subtle biases in language can put off certain candidates before they even apply. Using tools like Textio to strip out gender-coded language and focus purely on skills. The result: a wider, more balanced applicant pool.
Expand where you’re looking for talent. If you keep fishing in the same pond, you’ll keep catching the same type of candidates. That’s why Monzo doesn’t just post jobs and wait. They actively partner with groups like Coding Black Females, reaching candidates who might not otherwise have considered fintech. More companies need to take this approach - diverse talent is out there, but you have to go looking for it.
Take bias out of the early stages. Names, universities, even home addresses - these details can all trigger unconscious bias. That’s why companies like HSBC, Google and IBM have implemented blind recruitment strategies, removing personal details from applications so hiring managers focus only on skills and experience. It’s a simple fix that leads to fairer outcomes.
Train the people making hiring decisions. Even with the best intentions, bias creeps in. That’s why HSBC train their hiring managers on unconscious bias and inclusive hiring practices, making sure recruiters and managers are aware of how their decisions are shaped by preconceptions.
Set targets, and stick to them. Businesses that take diversity seriously don’t just talk about it - they put clear goals in place. Lloyds committed to having 40% of senior roles filled by women and backed it up with action. And it worked. When companies hold themselves accountable, progress happens.
None of this is about lowering standards - it’s about widening the lens. The best talent isn’t always where businesses have traditionally looked, and by making recruitment more inclusive, companies aren’t just doing the right thing - they’re making smarter hires.
The long term wins of getting diversity right
Reputation matters. Businesses that genuinely invest in diversity don’t just attract a wider range of applicants - they also become more desirable places to work. Businesses such as Monzo have made a name for themselves as inclusive employers, and in industries like tech and finance, where competition for talent is fierce, that’s a major advantage. The best candidates don’t just want a good salary - they want to work somewhere that values them.
People stick around when they feel like they belong. Retention is just as important as recruitment, and companies that get diversity right tend to keep employees for longer. Lloyds Banking Group proved this with its Returners programme, designed to help professionals - many of them women - re-enter the workforce after a career break. Instead of losing experienced talent, they brought them back into senior roles, strengthening their workforce in the process.
Diversity pays - literally. There’s hard data to back this up: McKinsey & Co. found that companies with diverse leadership teams are 27% more likely to outperform their competitors financially. A mix of backgrounds and perspectives leads to smarter decision-making, better problem-solving, and ultimately, stronger business results. It’s not just about doing the right thing - it’s about making a smart business move.
The bottom line is that companies that take diversity seriously don’t just create fairer workplaces - they set themselves up for long-term success. Those that ignore it? They risk falling behind.
Final thoughts
A workforce that reflects the world around it isn’t just stronger - it’s more creative, more resilient, and better prepared for the challenges ahead. The companies that get this right are shaping the future, rather than just adapting to it.
At Orbis, we help businesses find and hire the best talent - without barriers. From bespoke recruitment strategies to expanding talent pipelines, we work with companies ready to move beyond the usual hiring playbook. If you’re serious about building stronger, more inclusive teams, we’re here to make it happen. Let’s talk.
