Workplace discrimination affects nearly 61% of employees, who report experiencing or witnessing bias tied to age, race, gender, or sexual orientation. For companies, this leads to lost productivity, higher turnover, and damage to their reputation that can take years to fix.
Today, workers want fair and safe workplaces. Top talent won’t stay where bias is ignored. People now look for companies that respect differences. Fair treatment keeps employees motivated.
This guide breaks down what workplace discrimination is, its different forms, and its impact on people and businesses. Backed by data and real-world strategies, we also outlined practical steps for leaders and HR teams to recognize and address discrimination effectively.
What is Discrimination in the Workplace?
Discrimination in the workplace means treating employees or candidates unfairly based on personal traits unrelated to their skills or performance. This includes traits like gender, race, religion, age, disability, or sexual orientation.
It can appear openly, like refusing to hire someone for their background, or subtly, like unequal pay or missed promotions. Even jokes, stereotypes, or microaggressions can create an environment where certain employees feel unwelcome or undervalued.
At its core, workplace discrimination is about unfair treatment that creates barriers to equal opportunity, harming individuals and the organization as a whole.
Types of Workplace Discrimination
Understanding the types of workplace discrimination helps you identify unfair treatment early. Below are the 6 most common forms of discrimination in the workplace and how they affect employees.
1. Gender Discrimination
When employees face unfair treatment due to their gender, such as receiving lower pay for the same role, being overlooked for leadership positions, or being judged by stereotypes rather than performance.
For example, women in the U.S. still earn only 82 cents for every dollar earned by men. This kind of discrimination within the workplace affects motivation, career growth, and overall trust in the company.
2. Racial and Ethnic Discrimination
Discrimination at work also shows up when employees are judged or excluded because of their race or ethnicity. This can include biased hiring practices, fewer promotion opportunities, or even daily microaggressions like stereotyping or insensitive remarks.
A survey found that 61% of U.S. employees have either witnessed or experienced racial discrimination at their workplace. These discrimination at work examples not only hurt individuals but also damage company reputation and teamwork.
3. Age Discrimination
Another common type of discrimination within the workplace is ageism. Older employees might be pushed aside for promotions in favor of younger staff, or younger workers may not be taken seriously because of their age.
A survey by AARP found that 78% of workers aged 40–65 said they’ve either witnessed or experienced age discrimination in the workplace. These examples show how age bias can hurt morale, lower productivity, and push valuable talent out of the workforce.
4. Disability Discrimination
Discrimination at work also includes unfair treatment of people with physical or mental disabilities. This might look like refusing to provide necessary workplace adjustments, excluding them from projects, or assuming they are less capable than others.
Research shows that employees with disabilities often face higher unemployment rates and limited career growth opportunities due to bias and a lack of accommodation. Such discrimination in the workplace prevents companies from benefiting from diverse talents and perspectives.
5. Religious Discrimination
Another overlooked but common type of workplace discrimination is based on religion. This can include denying employees time off for religious holidays, making fun of their clothing or practices, or refusing to accommodate prayer times.
For instance, in the U.S., the Equal Employment Opportunity Commission (EEOC) recorded 2,111 charges of religious discrimination in 2022 alone (EEOC). These discrimination at work examples show how lack of awareness or intolerance can directly harm inclusion and employee satisfaction.
6. Sexual Orientation and Gender Identity Discrimination
Employees may face unfair treatment because of their sexual orientation or gender identity. This can include being denied promotions, excluded from team activities, or subjected to hostile comments and harassment.
According to the Human Rights Campaign, nearly half of LGBTQ+ employees in the U.S. report experiencing discrimination at work. Such bias not only harms individuals but also creates an unsafe and unwelcoming environment that drives talent away.
These are just a few major categories of discrimination at work, but they set the stage for recognizing unfair patterns. Whether it’s based on gender, race, or age, the impact is the same: employees feel undervalued and companies lose out on their best potential.
Impact of Discrimination on the Workplace
When bias enters the workplace, it doesn’t stay hidden. It shows up in how teams interact, how motivated people feel, and how outsiders view the company. Over time, even small acts of unfairness can build into larger problems that affect growth and stability.
Below are the key ways discrimination leaves a lasting mark on organizations.
1. Lower Employee Morale and Engagement
When employees face bias or exclusion, they often feel undervalued and demotivated. For example, research by Gallup shows that disengaged employees cost companies 18% of their annual salary in lost productivity.
Over time, this creates a toxic work environment where negativity spreads. Teams lose trust in leadership, collaboration suffers, and even employees who aren’t directly affected may feel discouraged.
2. Higher Turnover and Talent Loss
Employees who face discrimination are far more likely to quit. According to a Deloitte study, 39% of employees said they would leave their job if they felt excluded or discriminated against.
Replacing an employee can cost up to 30–50% of their annual salary depending on the role. This shows how discrimination within the workplace directly hits the company’s bottom line by increasing turnover and disrupting team stability.
3. Damage to Company Reputation
In today’s connected world, stories of discrimination at work spread fast through social media and employer review sites. Negative reviews on platforms like Glassdoor can scare off potential hires and even affect customer trust.
This isn’t just about PR, it impacts growth. A study by Edelman found that 60% of consumers choose brands based on their values, including workplace fairness. Once a company is labeled as discriminatory, rebuilding trust can take years.
4. Reduced Productivity and Innovation
Bias stifles creativity and problem-solving. When employees feel unsafe or judged, they’re less likely to share new ideas or take risks. McKinsey’s research shows that companies with diverse and inclusive teams are 35% more likely to outperform competitors.
A culture where only certain voices are heard limits innovation. On the other hand, diverse perspectives create stronger solutions, especially in fast-moving industries like tech, healthcare, and finance. By addressing discrimination, companies unlock the full potential of their workforce.
5. Legal and Financial Consequences
Discrimination can also lead to lawsuits, fines, and costly settlements. In the U.S., the Equal Employment Opportunity Commission (EEOC) receives tens of thousands of discrimination charges each year, many resulting in financial penalties for employers.
Legal battles also drain resources and distract leadership from core business goals. Beyond financial loss, they damage trust with employees, investors, and customers, making recovery even harder.
The impact of discrimination in the workplace is clear: lower morale, higher turnover, reputational damage, and lost productivity. Beyond numbers, it creates real harm to people’s careers and well-being.
How to Address Discrimination in the Workplace
To deal with discrimination in the workplace, companies need to go beyond rules and build a culture that is fair, respectful, and safe for every employee. Below are practical ways organizations can address discrimination effectively.
1. Create Clear Anti-Discrimination Policies
The first step is having clear policies that explain what counts as discrimination at work. This includes unfair treatment in hiring, promotions, pay, or even daily interactions. Everyone should know what is acceptable and what isn’t.
Policies also need to outline the consequences if someone breaks the rules. When people understand that discrimination won’t be tolerated, it helps create a safer space for all employees.
2. Provide Regular Training and Awareness Programs
Policies only work if people know how to follow them. Training helps employees and managers recognize workplace discrimination examples they might not notice, such as microaggressions or biased decisions.
These sessions also teach people how to react when they see unfair treatment. Training keeps everyone aware and ensures discrimination is addressed quickly instead of being ignored.
3. Establish Safe and Anonymous Reporting Channels
Several employees don’t speak up because they’re scared of backlash. Having safe and anonymous reporting options, like hotlines or online forms, gives workers a way to share concerns without fear.
When employees know they can report problems confidentially, they are more likely to raise issues. This helps companies act early and stop discrimination within the workplace before it grows worse.
4. Hold Leaders and Managers Accountable
Managers play a big role in shaping workplace culture. If leaders ignore or allow discrimination, employees lose trust in the system. That’s why managers must be held responsible for preventing unfair treatment.
This means setting clear expectations for leaders and reviewing how they handle team issues. When managers are accountable, it shows that the company takes discrimination at work seriously.
5. Encourage a Culture of Inclusion and Respect
Policies and training are important, but culture is what people feel every day. A respectful culture values different ideas, backgrounds, and experiences. Celebrating diversity and encouraging open conversations are simple but powerful steps.
When employees feel included, they’re more engaged and motivated. This helps reduce discrimination at work examples because people see respect and fairness modeled around them.
6. Ensure Legal Compliance and Regular Audits
Finally, companies should review their practices often to make sure they’re fair and legal. This includes looking at hiring, pay, promotions, and policies to catch any hidden bias.
Regular audits also show employees that the company takes fairness seriously. Staying compliant with laws keeps both employees and the business safe from problems.
Discrimination in the workplace is best tackled through strong policies, awareness, and safe reporting channels. When combined, these steps foster a fair environment where every employee can thrive.
Legal Protections Against Workplace Discrimination
Employee discrimination laws and regulations play a big role in keeping workplaces fair. They give employees the right to work without bias and hold employers accountable when unfair practices happen.
We have listed 5 protections that help both workers and companies know their responsibilities.
1. Equal Employment Opportunity Laws
Most countries have laws that guarantee equal chances for everyone, no matter their race, gender, religion, disability, or age. In the U.S., for example, the Equal Employment Opportunity Commission (EEOC) enforces these rights.
These laws mean employers cannot base hiring, promotions, or pay decisions on personal traits unrelated to performance. If employees face discrimination at work, they have the legal right to file a complaint and seek justice.
2. Anti-Harassment and Anti-Retaliation Rules
Legal protections also cover harassment and retaliation. This means employees should not be harassed because of who they are, and they should not be punished for reporting workplace discrimination examples.
For instance, in the U.S., Title VII of the Civil Rights Act of 1964 prohibits both harassment and retaliation. These protections encourage people to speak up without fear of losing their jobs or facing negative consequences.
3. Disability and Accommodation Rights
Employees with disabilities are protected by laws that require reasonable adjustments at work. In the U.S., this falls under the Americans with Disabilities Act (ADA). It might include providing assistive technology, flexible hours, or accessible office spaces.
Such protections ensure that people with disabilities are not excluded or treated unfairly. Companies that fail to provide accommodations may face legal action for discrimination within the workplace.
4. Equal Pay and Wage Protection Laws
Several regions also have laws to make sure men and women are paid fairly for doing the same job. In the U.S., this is enforced through the Equal Pay Act of 1963.
These protections stop companies from paying employees differently based on gender or other unrelated factors. Fair pay laws are a key way to reduce bias and promote equality in the workplace.
5. Family and Pregnancy Protection Laws
Employees are also protected from discrimination linked to family responsibilities, pregnancy, or parental leave. In the U.S., the Pregnancy Discrimination Act makes it illegal to treat someone unfairly because they are pregnant or planning to have a child.
These protections ensure workers don’t lose opportunities or face bias simply because of family choices. They also help create workplaces that are more supportive and inclusive.
6. Whistleblower Protection Laws
Whistleblower laws protect employees who report illegal or unethical practices, including discrimination, from retaliation. In the U.S., federal and state laws protect workers who report discrimination, harassment, or unsafe conditions.
Employees cannot be fired, demoted, or punished for speaking up. These protections encourage transparency and make it safer for employees to hold organizations accountable.
Legal protections give employees real tools to challenge discrimination in the workplace. For companies, following the law isn’t optional; it’s the foundation of a safe and fair work environment.
Summary - Building Fair and Inclusive Workplaces
Workplace discrimination hurts people, teams, and businesses. From lower morale to higher turnover and even damage to reputation, the costs are real and long-lasting. No company can afford to ignore it.
The good news is that discrimination can be addressed. With clear policies, training, safe reporting channels, and accountable leadership, organizations can create environments where everyone feels valued and respected.
At the end of the day, tackling discrimination is about building workplaces where talent can thrive. When fairness and inclusion become part of daily culture, employees are happier, more productive, and the entire organization benefits.
Frequently Asked Questions
Q1. What is discrimination?
Discrimination is when someone is treated unfairly because of who they are rather than their skills or actions. This could be based on factors like gender, race, age, religion, or disability.
Q2. What is harassment at work?
Harassment at work happens when an employee faces unwanted behavior such as offensive jokes, insults, or repeated negative treatment. It creates a hostile environment and makes it hard for the person to feel safe or respected.
Q3. What is employee discrimination?
Employee discrimination is unfair treatment of workers in hiring, pay, promotions, or daily tasks because of personal traits like race, gender, or age. It denies equal opportunity and harms workplace culture.
Q4. How can employees report workplace discrimination?
Most companies have reporting systems like HR departments, anonymous hotlines, or online portals. Employees can also raise issues with government agencies such as the EEOC (in the U.S.) if internal steps don’t work.
Q5. How can managers prevent discrimination at work?
Managers can set the tone by being fair, following clear policies, and addressing complaints quickly. Providing training, encouraging open communication, and leading by example also help stop discrimination before it grows.
