Why Diverse Teams Win, Regardless of What The Critics Say

Nicole Vergos
Apr 20
4 min read

Diversity isn’t a trend. It’s not a corporate buzzword. And it’s definitely not something organizations should be pushing aside.

Diverse teams work better. They make smarter decisions, create stronger solutions, and outperform homogeneous teams in measurable ways. Study after study has proven it, yet there is a growing pullback on DEI efforts. Some organizations are quietly scaling back their commitments, while others are outright dismantling diversity programs under the guise of neutrality or political pressure.

At PhoenixFire Strategic Consulting, we see the impact of diverse teams every day. When you bring together people with different backgrounds, experiences, and ways of thinking, you get sharper ideas, smarter problem-solving, and a team that’s ready for anything.

So what’s fueling this backlash?

Political and legal pressure: Some states and institutions have moved to limit DEI programs, falsely framing them as exclusionary rather than corrective measures that level the playing field.

Misunderstanding of DEI’s purpose: Opponents argue that prioritizing diversity lowers standards, when in reality, it expands the talent pool and strengthens decision-making.

Short-term cost concerns: Organizations looking to cut budgets sometimes view DEI programs as expendable.

Diverse nonprofit team smiling together during a community volunteer event – representing inclusive leadership and nonprofit collaboration.

Why Diverse Teams Outperform Homogeneous Ones

This isn’t just theory—research backs it up. Organizations with diverse teams consistently see better outcomes across the board, from decision-making to revenue growth.

1. Diverse Teams Solve Problems Faster

When a team is made up of people who think the same way, they’re more likely to fall into groupthink, where no one challenges assumptions or questions ideas.

According to the University of Calgary’s Diversity and Excellence Research Hub, diverse teams are less likely to conform to a single way of thinking. Instead, they bring multiple perspectives to the table, allowing them to identify problems faster and come up with creative solutions.

2. Diverse Teams Make Smarter Decisions

Homogeneous teams often operate in an echo chamber. When everyone shares the same background or experiences, they tend to reinforce each other’s ideas without questioning whether they’re the best options.

According to a study cited in Psychology Today, diverse teams make more logical, well-thought-out decisions because they consider different perspectives and anticipate challenges more effectively. When people approach problems from different angles, they naturally spot gaps, avoid pitfalls, and build better strategies.

3. Diverse Teams Are More Innovative

If you want groundbreaking ideas, you need a team that doesn’t all think the same way.

According to Forbes, organizations that cultivate diverse and inclusive cultures are better equipped to develop innovative solutions that drive long-term success. When teams include individuals with different ways of thinking, they challenge conventional ideas, identify gaps, and approach problem-solving from fresh angles.

4. Diversity Boosts Productivity

Diverse teams get more done.

Businesses that prioritize DEI see a 12% increase in employee productivity, according to studies cited in Forbes. When people feel valued, heard, and included, they engage more in their work and stay committed to the organization’s goals.

On the flip side, workplaces that fail to prioritize inclusion often struggle with low morale, higher turnover, and disengaged employees. People simply don’t want to work in environments where they feel like outsiders.

Nonprofit food service team preparing meals for community outreach – showcasing nonprofit program implementation and teamwork.

Diversity Alone Isn’t Enough

Hiring a diverse team is just the beginning. Without inclusion, diversity efforts fall flat.

Inclusion means creating an environment where everyone feels valued, respected, and empowered to contribute. As Vernā Myers, VP of Inclusion Strategy at Netflix, puts it:

"Diversity is being invited to the party. Inclusion is being asked to dance."

A workplace can have representation across different races, genders, abilities, and backgrounds, but if leadership doesn’t listen to those perspectives, the benefits of diversity are lost.

So how do organizations move beyond surface-level diversity?

✔️ Hire with intention. If the same type of candidates keep applying, the hiring process may be too narrow. Actively expand your job opening to reach more diverse talent.

✔️ Invest in mentorship and professional development. Team members from marginalized backgrounds often lack confidence and access to networks that can support their professional growth. Offer mentorship programs, and training to ensure underrepresented team members can reach their full potential.

✔️ Audit policies for bias. Look beyond hiring - who gets promoted? Who leaves? Analyze compensation, promotions, and retention data to spot disparities.

Nonprofit consultant shaking hands with client – symbolizing strategic partnerships and mission-driven collaboration."

What This Looks Like in Action

Here’s the reality:

✔️ Diversity and excellence aren’t opposites, they go hand in hand. Hiring for diversity doesn’t mean sacrificing quality. It means expanding the talent pool to find the best people.

✔️ If diverse candidates aren’t applying, it’s time to ask why. Are your hiring processes limited to the same networks? Are job postings inclusive?

✔️ Companies that resist diversity are falling behind. The world is constantly changing, and organizations that don’t evolve with it will struggle to stay relevant.

At PhoenixFire Strategic Consulting, we don’t just talk about diversity—we live it.

✔️ We hire and partner with diverse talent. Representation matters at every level.

✔️ We embed equity into our consulting. Nonprofits and businesses need strategies that serve diverse communities and remove systemic barriers.

✔️ We choose our clients carefully. If an organization is actively working against DEI, we won’t work with them.

This isn’t about checking boxes. It’s about real, lasting impact.

Time to Take Action

The data is clear: teams that prioritize inclusion make better decisions, drive innovation, and outperform those that don’t. Yet, despite overwhelming evidence, DEI efforts are under attack. Some organizations are quietly scaling back, afraid to stand firm in their values. But now is not the time to retreat.

At PhoenixFire Strategic Consulting, we work with organizations that believe in building a better, fairer, and more inclusive world, not just when it’s trending easy, but when it matters most.

If your organization is ready to lead instead of follow, to take action instead of backtracking, we’re here to help. Let’s get to work.