Leveraging financial incentives for enhanced diversity: A review and new models

Abstract

This review paper explores the efficacy of leveraging financial incentives to enhance organisational diversity. Traditional approaches to diversity management have often proven insufficient in achieving lasting change. Innovative models, such as the Diversity Bonus and Equity Incentive Program, have emerged to incentivise inclusive behaviours and practices. Organisations can drive cultural transformation and promote diversity in measurable ways by aligning financial incentives with diversity goals. However, challenges such as tokenism and unintended consequences must be addressed. Future research should further investigate the effectiveness of financial incentives in diversity management and refine practical applications to maximise impact. Keywords: Diversity, Financial Incentives, Diversity Management, Organisational Culture, Equity, Inclusion.