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This chapter explores the critical role of workforce diversity and talent management in enhancing the performance of higher education institutions (HEIs). It highlights how diversity among faculty, staff, and students contributes to a dynamic academic environment, fostering creativity, inclusivity, and improved decision-making processes. By leveraging theories such as Social Identity Theory and the Resource-Based View, the chapter demonstrates how diverse teams create an environment that promotes engagement, innovation, and academic excellence. The chapter also examines HEIs’ challenges in achieving and maintaining workforce diversity, including systemic, organizational, and individual barriers. Strategic diversity management approaches are discussed to address these challenges, focusing on key practices like inclusive recruitment, diversity training, and creating supportive environments. Additionally, the importance of talent management is underscored, covering aspects such as recruitment, onboarding, development, performance management, and retention to sustain institutional effectiveness and operational efficiency. To illustrate these concepts, the chapter presents selected case studies from leading universities, highlighting successful diversity and talent management initiatives. Ultimately, this chapter serves as a guide for HEIs to strategically manage workforce diversity and talent to enhance their organizational performance, reputation, and the overall quality of education and research.

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