Diversity and Its Impact on Companies ... it is imperative that employers learn how to manage cultural differences and individual work attitudes. This, in turn, fosters mutual respect among colleagues who also value the diverse culture, perspectives, and experiences of their team members. An inclusive atmosphere of cross-cultural cooperation is an excellent way to bond colleagues and teams across the business. 13 benefits and challenges of cultural diversity in the workplace, Hult International Business School is a 501 (c)(3) non-profit educational organization registered in the Commonwealth of Massachusetts and accredited by, Diverse cultural perspectives can inspire creativity and drive innovation, Local market knowledge and insight makes a business more competitive and profitable, Cultural sensitivity, insight, and local knowledge means higher quality, targeted marketing, Drawing from a culturally diverse talent pool allows an organization to attract and retain the best talent, A diverse skills base allows an organization to offer a broader and more adaptable range of products and services, Diverse teams are more productive and perform better, Greater opportunity for personal and professional growth, Colleagues from some cultures may be less likely to let their voices be heard, Integration across multicultural teams can be difficult in the face of prejudice or negative cultural stereotypes, Professional communication can be misinterpreted or difficult to understand across languages and cultures, Navigating visa requirements, employment laws, and the cost of accommodating workplace requirements can be difficult, Different understandings of professional etiquette, Download a brochure to find out more about the programs at Hult, emphasis on the independence of the individual, How volunteering prepared me for business school, Hult MBA ranked #15 in the world by the Economist Which MBA? Dissatisfied employees that feel like the work environment is unsafe will leave. 3. Time: Cultures differ in how they view time. The Virgin Group is recognized as a leader in promoting workplace diversity and fostering a positive working culture. As the labor force becomes more diverse there are both opportunities and challenges to managing employees in a diverse work climate. By studying around the world and learning with peers and professors from over 150 different countries, you will master the skill of communicating effectively across cultures and embrace the value of diversity in the workplace. Moreover, local connections, native language skills, and cultural understanding can boost international business development exponentially. Fundamentally, an inclusive and culturally diverse business will attract talented, ambitious, and globally minded professionals who will appreciate the opportunity for personal and professional growth. Different perceptions of time can cause a great misunderstanding and mishap in the workplace, especially with scheduling and deadlines. Two-thirds of hiring managers say that a diversity initiative helped their company grow, creating new positions and opportunities for … Of course, these considerations and accommodations can sometimes be an added business cost as well as a logistical challenge. A diverse set of colleagues can be professionally enriching too—exposing you to new skills and approaches to work, and developing an international network that can take your career in exciting new directions or abroad. Do these influence your professional life today? Cultural diversity affects the businesses in many ways including the staff recruitment/retention, management styles and decision-making processes, and relationships within organizations. By drawing from a culturally diverse talent pool, companies benefit from hiring professionals with a broad range of skills that are often not accessible when hiring locally. Not only does hiring from a more diverse talent pool makes your business attractive to ambitious, globally minded candidates, it also helps you to keep them on board. Even in an office where everyone speaks English, comprehending a range of accents, or understanding a native-speaker’s use of idioms, can be difficult. What Is the Advantage for a Business to Have Diversity Training for Its Employees? A memorable McDonalds print ad in Finland may have been considered clever locally, but it was seen as confusing and even grotesque by foreign audiences. Let us know in the comments below. According to a Glassdoor survey, two thirds of job hunters indicated that diversity was important to them when evaluating companies and job offers. Workplace cultural diversity and productivity are closely related. For example, high quality and culturally sensitive translations of websites, brochures, and other assets are essential. Employee resistance is just one of the potentially negative effects of a diverse workplace. Globally oriented companies can add to their service range by leveraging the skills and experience their international employees bring to the table. Important edge when expanding into new markets these can be quicker to spot a gap in the balance between and!, DiversityInc selects the 50 most diverse companies a negative effects of cultural diversity in the workplace or service needs to be adapted succeed. Offering a platform for the status quo ’ Oréal attributes much if its impressive success in emerging markets to multicultural! Cross-Cultural communication comes down to much more than just words spoken what your career has to offer with culture... Employees from different cultural backgrounds have different opinions, … 1 be adapted to succeed overseas to in... 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