When many employees hear their company is engaging in a “diversity initiative,” they prepare themselves—often, not so enthusiastically—for a workshop on cultural awareness or a sensitivity-training session. Indeed, for many years, an emphasis on diversity meant a commitment to celebrating under-represented cultures (i.e. Black History Month), and possibly a heightened awareness among the Human Resources department to consider diversity and inclusiveness when developing hiring and promotion practices and protocols.

But too often, diversity and inclusiveness efforts have been considered something extra, an add-on that companies do out of a sense of corporate social responsibility. As a result, these efforts sometimes strike employees as something they have to do—on top of everything else they already have to do.

And the more diversity initiatives are framed as cultural appreciation efforts, the more they feel like a field trip to the “Museum of Cultural Sensitivity.” Maybe visitors see something there that makes them think differently about some things, and maybe after they leave the museum, they remember something they learned. Maybe they even buy something at the gift shop. But at the end of the day, they go home.

This kind of diversity initiative is seen, by management and employees alike, as something nice, but not something essential to the business. Which means that in tough economic times, like other things that are seen as nice but not essential, diversity initiatives become cost-cutting casualties.

“Unfortunately, diversity efforts by many are still viewed as social programs or initiatives with little return on investment,” said Joe Coe, director of diversity at Boyd Gaming, in an interview with In Business in 2010. “Diversity initiatives have not been immunized from the recession.”

This is the old model of diversity.

In recent years, more and more companies have started to see a business value in paying attention to diversity and inclusiveness issues. As these initiatives are factored into the organization’s overall strategic planning and efforts to shape the organizational culture, companies are beginning to see significant bottom-line impact.

We know we can deliver better outcomes for our millions of customers by leveraging and embracing the unique experiences, talents and thinking that our diverse global team has to offer. A commitment to diversity and inclusion has always been, and will continue to be, a competitive advantage in Dell’s business strategy.

– Michael Dell, Chairman of the Board of Directors and CEO, Dell

At Merck we recognize that good intentions are insufficient to address the need for fair representation and equal opportunity for everyone, regardless of race, gender, ethnicity, sexual orientation, religious beliefs, military service or age. We must create and sustain innovative workplace solutions that ensure inclusion for all to achieve a fully engaged and customer-focused workforce.

– Deborah Dagit, Vice President and Chief Diversity Officer, Merck & Co.

Hiring and retaining diverse talent, contracting with diverse suppliers and marketing our brands to all potential customers simply makes sound business sense. At Starwood, we leverage diversity and inclusion throughout the organization to ultimately outperform the competition, increase shareholder value and demonstrate our commitment to the economic growth of all communities in which we operate.

– Frits van Paasschen, President and CEO, Starwood Hotels and Resorts Worldwide

Diversity makes us a better innovator and facilitates our ability to draw top talent to the organization, making us a better company overall. That’s why diversity is a key business strategy.

– John Strangfeld, Chairman and CEO, Prudential Financial

At Booz Allen, our people are our only asset. We don’t sell a tangible product; we sell ideas and solutions. Our people bring diversity of thought and experience, which drives our innovation. For us, diversity is more than the right thing to do, diversity is a business imperative.

– Betty Thompson, Senior Vice President and Chief Human Resources Officer, Booz Allen Hamilton

As organizations look to integrate four generations in the workplace, address inequities globally and compete for top talent, it becomes even more critical to continually raise the bar on expectations and performance. Diversity and inclusion is a journey—a journey of continuous learning, experience and growth.

– Dr. Rohini Anand, Senior Vice President and Global Chief Diversity Officer, Sodexho North America

Navigating an increasingly complex global business environment requires that we fully utilize the rich perspectives and experience of our diverse talent pool. This doesn’t just happen. We have to be highly focused and proactive in fostering an inclusive environment to be able to attract, develop and retain the top professionals.

– Steve Howe, Americas Area Managing Partner, Ernst & Young

What are the potential payoffs from investing in an integrated diversity initiative? The initiative can improve two major areas: organizational effectiveness and employee satisfaction, two target outcomes that each support the other.

Organizational Effectiveness

Communication. Though everyone at your company may speak English, that doesn’t mean they all speak the same language. Different experiences lead to different vocabulary, different communication choices, and different communication styles. An effective diversity initiative can improve organizational communication, which can lead to clearer expectations, fewer errors, and more productive teams, as well as increased employee satisfaction.

Culture. Your organizational culture defines “How we do things around here,” and as a result impacts everything from employee expectations and work ethic to how your people treat clients and each other. An inclusive culture helps people feel not only included, but also invested in the work of your company.

Innovation. Innovation has become the battle cry of the new decade, and one of the keys to being an innovative organization is to be open to and able to embrace and incorporate different ideas and viewpoints. A company that truly embraces diverse perspectives is more likely to foster and cultivate innovation at all levels of the organization.

Adaptability. America’s shifting demographics are a topic in countless discussions of political, economic, and global concerns. What will these shifting demographics mean for business? It’s impossible to say—but a business that embraces diversity and inclusiveness now will be able to adapt to whatever changes may come, as they come, and will be better prepared for the future, whatever it looks like. Such an organization will be, by definition, more flexible, more adaptive, and more capable of including new experiences, perspectives, and skill sets, all of which will be critical for long-term success.

Employee Satisfaction

Recruitment. A workforce that seamlessly integrates diverse people, perspectives, and experiences will be more welcoming to new talent and better able to assimilate that new talent. It will also recruit better, thanks to word of mouth (happy employees recruiting friends, and leading your recruitment marketing efforts voluntarily) and the personal experience of prospects who come to interview with you and meet your employees as part of the interview process. Top recruits are more likely to come work for you if they feel welcome, and feel genuine enthusiasm from the people they meet in interviews than if they worry if they will fit in or don’t feel the love from their future co-workers.

Retention. According to a Psychology Today article from December 2011, a Gallagher Organization statistic “reports that more than 60 percent of current employees are planning to leave their positions as soon as another opportunity presents itself.” As the economy rebounds and hiring picks up, more and more companies will be faced with more and more employees seeking greener grass. But satisfied employees—who value their work environment and get along well with their teams—will be less tempted than unsatisfied employees to jump ship. An integrated diversity initiative can lead to better employee retention through improved communication among employees, and ensuring that all employees feel heard, valued, and validated.