Diversity in the workplace is no longer a peripheral initiative — it’s a core business driver. Companies that prioritise diversity and inclusion aren’t just doing the right thing socially; they’re making strategic investments in innovation, performance, and long-term competitiveness. 

According to McKinsey’s Diversity Wins report, companies in the top quartile for ethnic and cultural diversity on executive teams were 36% more likely to outperform their peers in profitability. And those with greater gender diversity on executive teams were 25% more likely to deliver above-average profitability.

Despite this, many companies still struggle to meet their diversity hiring goals. The challenge isn’t lack of intent — it’s the way diversity efforts are structured. Too often, companies treat diversity recruiting as a standalone initiative or a time-bound project, rather than a systemic transformation woven into the fabric of business.

This is where many diversity strategies break down. Recruiting underrepresented talent without addressing the underlying systems — from biased hiring practices to exclusive workplace cultures — creates a revolving door. Short-lived diversity gains don’t prove to be sustainable. According to a survey, at least 63% of HR professionals acknowledged that their companies struggled to retain diverse talent, even after meeting hiring targets. The problem isn’t recruitment — it’s retention, inclusion, and culture.

Further, a study by Boston Consulting Group revealed that companies with more diverse leadership teams reported 19% higher revenue from innovation. However, this performance gap only materialises when diversity is paired with inclusive practices that allow different perspectives to influence decisions. Without this, companies may end up with representation but no real transformation.

Moreover, research by the Harvard Business Review stresses that companies advancing in DEI go beyond headcount; they redesign systems to accommodate differences. These companies rethink how performance is measured, how meetings are run, and how leaders are held accountable. They don’t rely solely on HR to deliver results — they make DEI a shared responsibility across leadership.

So, diversity hiring is not the end goal; it’s the beginning of a larger cultural shift. For leadership teams, the question is no longer whether diversity matters — it’s whether your infrastructure, incentives, and internal systems are prepared to support it. The real work begins after the offer letter is signed.

Here, we will explore common mistakes companies make in diversity recruiting, along with a few actionable tips to help you build an authentically inclusive hiring process.

Focusing on optics, not outcomes: Companies hire for optics — to meet diversity quotas or improve their public image — without investing in genuine inclusion and equity. For example, a company hires women employees to meet diversity quotas but many of them leave in the next one year. The reason being the workplace culture, which hadn’t changed and shifted — women again felt ignored in meetings, passed over for promotions, and isolated on teams.

• How to fix it: Diversity hiring only works when it’s supported by inclusive culture and equitable systems. Invest in mentorship programmes, clear growth paths, and safe places for feedback — not just PR campaigns.

Job postings everywhere, but still going nowhere: Recruiters blast job postings across platforms but keep getting the same kinds of applicants. For example, even if a company posts job roles on more than five job boards, it would get the similar results. The problem is the company hadn’t changed where or how they were sourcing talent.

• How to fix it: The company should target platforms where underrepresented talent thrives and rewrite job descriptions sans jargons and gendered language that discourages diverse applicants.

Interview bias running wild: Interviewers rely on gut feelings and ‘culture fit’, leading to unintentional bias against diverse candidates. For example, a company after noticing that its diverse candidates were less likely to clear the final-round of the interview, can ask different, and more difficult questions to certain candidates — particularly women and those with non-Western accents.

• How to fix it: The recruiting team can standardise the interviews by structured interview guides, consistent scoring rubrics,  and unconscious bias training. Diversity isn’t just about who you bring at the door — but how you evaluate them fairly once they’re there.

Letting HR do all the heavy lifting work: DEI is generally dumped on the HR or hiring team, while hiring managers stay hands-off. Many times, it happens that a company launches an inclusive hiring initiative. HR did the outreach, training, and recruiting — but managers kept rejecting diverse candidates citing vague concerns.  

• How to fix it: DEI is everyone’s job, especially hiring managers. Make inclusive hiring part of manager KPIs. Hold leaders accountable for team diversity. Inclusion must be baked into performance, not bolted on as an afterthought.

One-size-fits-all diversity strategies: Companies usually apply the same messaging, sourcing, and outreach for all roles and regions — ignoring cultural and contextual nuance. For example, if a global company uses LGBTQ+ inclusive branding in a Middle Eastern recruitment campaign, it would backfire. In those areas, such identities are criminalised — creating risk for candidates and damage to the employer.

• How to fix it: Understand your audience and geography properly. Tailor your strategy to the local context while holding firm on your values. Diversity is global — but the expression of inclusion should be locally informed.

Skipping candidate feedback loops: You lose great candidates — and never know why. 

For example, a company consistently losing first-generation college grads mid-way through the hiring funnel. The company assumed it was salary-related. But a candidate feedback survey revealed something else: intimidating interview formats and overly academic language turned candidates away.

• How to fix it: It can be fixed by asking for feedback, using anonymous exit surveys, posting interview check-ins, dropping-off point analytics. Always remember, if you are not listening, you're not learning.