When someone says "an institution needs more diversity" they mean that given two people for any job in the industry the minority should be chosen for diversities sake. They want women, homosexuals, and ethnic minorities and religious minorities to be more qualified for available jobs for the sake of being rarer, as opposed to true equality. It's nonsense. And I say this as a weird person - me being weird shouldn't make me more qualified for any job in which my weirdness is orthogonal - nor should any non-job related uniqueness qualify anyone else.
There are too few (good) jobs and too many qualified people, so it's a kind of gatekeeping. College is similar for the most part, but they do you the favor of teaching you something (while fleecing you at the same time, but that's another issue).
