Workplace Dynamics
Fifth-Generation Diversity and Why It Matters to Managers
Workplace diversity has a much different meaning today than 60 years ago.
Updated January 10, 2024 Reviewed by Ray Parker
Key points
- Workplace diversity, equity, and inclusion are more high maintenance today than ever before.
- While definitions of diversity have changed from first to fifth generation, business stakes remain the same.
- Managers who acknowledge the diversity story of individual employees more successfully include them.

Diversity and equity conversations in the workplace are no doubt much different today than in the past. But the stakes today are higher than ever before. That is why inclusivity is an important hot topic for leaders and managers today. Without inclusion, diversity and equity programs don't work.
No matter what those in your workplace don't share in common, there is one thing they do: the work itself. If anyone on the team is excluded, everyone's work suffers. Time is wasted. Resources are squandered. Employee turnover is much more likely, making turnover costs much higher for organizations.
When a diverse team is treated equitably by policies and procedures and included in the day-to-day work by leadership, that team will always outperform teams that lack inclusive leadership. That's what's at stake.
But many leaders miss the mark on inclusion, often simply because they don't understand how it impacts fifth-generation diversity efforts. With so much change in the conversation around workplace diversity and equity from the 1960s until today, there is a growing generational gap.
What is first, second, third, and fourth-generation diversity?
The earliest workplace conversations about workplace diversity and equity were primarily concerned with two things: justice and fairness. Historically, members of the workforce have been excluded from the workplace for reasons that are now (and should always have been) impermissible, whether by race, gender, sexual orientation, or any other way of classifying people. First-generation diversity was about establishing a just and fair workplace where no one was excluded based purely on demographics.
Second-generation diversity thinking shifted from diversity concerns within the workplace to diversity outside of it—diverse markets, customers, and end-users. The diversity of a team needed to reflect the diversity of its target demographics, the theory being that employees would be better able to meet the needs and expectations of clients with similar backgrounds.
Third-generation diversity recognized the importance of acquiring talent from diverse sources and, in other words, not leaving any talent on the table. In short-staffed and overworked organizations, hiring workers who may not have fit the traditional employment profile based on education or experience became an important shift. Many third-generation diversity programs aimed to improve the staffing supply chain.
Fourth-generation diversity efforts were based on valuable research, which began to show that a diverse team meant diverse perspectives and backgrounds, the impact of which had concrete business outcomes. Diverse points of view resulted in lower error rates and accelerated innovation.
From the first to the fourth generation of workplace diversity, the focus has been steadily trending away from a social and moral conversation to a decidedly business-focused one. For better or worse, many boards and CEOs want to know what diversity means for their bottom line.
Fifth-generation diversity required for business success
Fifth-generation diversity is, in many ways, a culmination of the previous generations as well as an entirely new perspective. Many older workers find themselves overwhelmed by the expectations of their Gen Z counterparts. Pronoun identification, racial and cultural distinctions, and mental health awareness are some of the many diversity issues in today's workplace.
The common element of fifth-generation diversity is this: Each individual has their unique diversity story and must be treated accordingly.
If this seems high maintenance for managers, that is because it is. There is no avoiding the fact that managers today must work harder than ever to understand and acknowledge the diversity of each team member. It is no longer enough to categorize employees under broad demographic definitions and assume their needs are being met.
And the stakes haven't changed. Diverse teams still reflect diverse markets, result in better business outcomes, and are necessary to increase employee retention and reduce employee turnover. If organizations want to ensure their success today, tomorrow, and in the long term, managers must approach employee inclusion one person at a time, one day at a time.
That solution may be high maintenance but doesn't have to be complicated. It simply means establishing a routine method of one-on-one communication with each person a manager is responsible for. Highly engaged, highly inclusive managers communicate with structure and substance to achieve the following outcomes:
- Understand each employee's strengths, weaknesses, and everything in between.
- Set employees up for success by setting expectations, goals, and timelines.
- Support employees in their work by tracking tangible progress, solving problems along the way, and providing necessary resources.
- Help employees meet the most important goals by offering opportunities and earning rewards in line with their unique goals.