For instance, professionals from Asian countries such as Vietnam or Japan may feel less comfortable speaking up or sharing ideas, particularly if they are new to the team or in a more junior role. Business Insider put together this useful infographic to highlight the differences in handshakes and professional greetings around the world: Despite the clear benefits, hiring talent from overseas can present an HR challenge. Adaptability means faster and more effective planning, development, and execution. And being more competitive ultimately means being more profitable. Additionally, different approaches to punctuality, confrontation, or dealing with conflict can prove an issue. A negative byproduct of diversity in the workplace … Constantly replacing employees lost to ill will or a general feeling of discontent is costly as the company has to pay to hire and train replacements. It is imperative that companies train employees on cultural awareness and tolerance of differences to encourage them to openly discuss their different viewpoints on things as opposed to avoiding interaction or getting into conflict. There may also be communication issues, such as employees needing more explanation on … Whereas others, such as Germany and America, put emphasis on the independence of the individual. 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. Globally oriented companies can add to their service range by leveraging the skills and experience their international employees bring to the table. In a competitive global job market, demonstrating that your business is invested in fostering a multicultural and inclusive environment can make you stand out to the right candidates. Interested in giving your cultural competency and business acumen a boost? Social segregation often occurs when speakers of two mutually unintelligible languages live side by side. Diversity, on the other hand, can breed healthy competition, stretching a team in a positive way to achieve their best. These are all advantages, but it can become a problem if hiring managers are bringing in people who all want to be in charge. Diversit… 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. Workplace cultural diversity and productivity are closely related. 3. Here are the top 10 wrong (yet persistent) cultural stereotypes and the truth behind them: While quality translations are key for effective marketing, there can also be a real risk of communication getting lost in translation among multicultural colleagues. What Are the Elements of a Diverse Workforce. A variety of viewpoints along with the wide-ranging personal and professional experience of an international team can offer new perspectives that inspire colleagues to see the workplace—and the world—differently. This atmosphere of healthy competition can lead to the optimization of company processes for greater efficiency. Moreover, local connections, native language skills, and cultural understanding can boost international business development exponentially. 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. While these can be enriching and even beneficial in a diverse professional environment, they can also cause misunderstandings or ill feelings between team members. Other differences include the perception of overtime, or even the exact meaning of a deadline. Even brand taglines can get badly lost in translation. However, working styles and attitudes towards work can be very different, reflecting cultural values and compounding differences. When there is a lack of acceptance of the diverse culture and beliefs among employees, conflicts may arise. Likewise, emphasis on order, rigor, and organization in the workplace versus flexibility and spontaneity can also reflect underlying cultural values. To learn more, take a look at our blog How volunteering prepared me for business school, or give your employability a huge boost with an MBA in international business. Download a brochure or get in touch today to find out how Hult can help you to explore everything about the business world, the future, and yourself. When employees feel like they cannot reach a point of agreement in conflict they may give up and simply let the ill feelings fester and create a negative tone. That would add up to the stress and make the environment even more negative. Working across cultures can be a truly enriching experiencing, allowing others to learn about perspectives and traditions from around the world. Our culture influences the way in which we see the world. Market-specific knowledge and insight is invaluable when it comes to for imagery and design,too. The business risks losing top talent to competitors if the workplace does not provide a safe and motivating culture where employees from diverse backgrounds are welcomed and treated fairly. 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. Why Cultural Diversity In The Workplace Is A Win-Win Teams and companies that make diversity a priority offer a variety of ideas, perspectives and learning opportunities. Many companies hire trainers to come in and give background on differences and to teach the importance of accepting others and valuing their opinions. Hiring managers focus on leadership qualities too often.Diversity in the workplace seeks out experts who excel in their chosen career, job function, and team environment. Mandatory diversity and inclusion training can net an immediate and negative … Employee resistance is just one of the potentially negative effects of a diverse workplace. Too many opinions can also be hard to sift through and waste valuable time, while potentially creating fog around the best answers, says FDI. For instance, providing a quiet space for prayer can make a workplace more welcoming and inclusive for employees with a range of beliefs, as can taking into account different cultural or religious holidays. 1. Language barriers are just one challenge. Effects of Multiculturalism on Job Performance & the Workplace. Negative Effects "When people fail to fundamentally understand each other," explains Karsh, "tension can arise." And while outright prejudice or stereotyping is a serious concern, ingrained and unconscious cultural biases can be a more difficult challenge of workplace diversity to overcome. If a workplace has employees from different … Where working in homogeneous teams can seem easier, it can cause a business to settle for the status quo. In a diverse workplace, employees are more likely remain loyal when they feel respected and valued for their unique contribution. Diversity and international exposure have always been important to the decisions I have made in my career.”, Vishnu Subramanian, Hult MIB Class of 2017. Hear how Richard Branson makes culture work in a multinational business by being flexible and open to different working styles: In many ways, the Hult classroom mirrors this experience, immersing you in a diverse and collaborative working environment from day one. Making diversity an important part of the recruiting process will broaden your talent pool of prospective employees. The goal is to create a series of strengths that allows everyone to grow over time. Oppression, high stress and low job performance are just a few effects of cultural stereotypes in the workplace. For example, they differ in the balance between work and family life, and the workplace mix between work and social behavior. Bonding over similarities and differences can help you to become a global citizen, abandoning prejudices or an ethnocentric world view—something that is increasingly valuable. If a workplace has employees from different countries with different native languages, communication is especially difficult. If not recognized and accounted, conflicting approaches to work can put the brakes on productivity. One negative effect of cultural diversity in the workplace is the increased tendency of organizational personnel to indulge in interpersonal conflicts. Cross-cultural understanding, along with local market knowledge, lends itself the production of more effective marketing strategy and materials. Requirements and regulations are different in each country and between countries, and can change frequently. What is Diversity and Definition of Diversity. In 2020, it found that employees who felt included in their workplace … It is good to get fresh perspective, and have many different eyes with different inputs on the same problems to get to solutions faster. Here are the three common missteps: When it’s mandatory. Elements of culture, such as language and dress, may clash with established norms within a workplace, giving rise to resentment and mistrust. A significant bottom line effect of poorly managed diversity is high turnover. A multicultural workforce can give an organization an important edge when expanding into new markets. Poor communication fuels conflict and can be one of the biggest negative effects of diversity in the workplace, according to This Way. As our students develop into the global business leaders of tomorrow, they can certainly expect to encounter these 13 key benefits and challenges of cultural diversity in the workplace. As national politics and discourse seem to grow more inward-looking and divisive across America and Europe, successful businesses must continue to think inclusively and globally. Originally from Michigan in the U.S., she relocated to the U.K. in 2010 to pursue a master’s degree at Hertford College, Oxford. What Are the Dangers of Employees Talking Negatively at Work? According to Frank Dobbins, a Harvard Sociologist focused on diversity training, there are three primary reasons D&I efforts can go wrong– and hurt a company’s culture. By offering a platform for the open exchange of ideas, businesses can reap the biggest benefits of diversity in the workplace. Beyond visas, further accommodations for a recruiting and retaining a culturally diverse workforce should be taken into account. Acceptance fosters mutual respect and prevents conflicts from arising. When employees accept the differences between each other, it results in a sharing of ideas and effective collaboration. Not least among this is the complicated process of navigating employment laws and visa requirements for international workers. To critically understand the benefits that diversity brings into the workplace, one must completely understand the term ‘diversity’.The Committee on Diversity of the Chancellor describes it as: “The variety of experiences and perspectives that result from differences in race, culture… For instance, the expectation of formality (or relative informality), organizational hierarchy, and even working hours can conflict across cultures. From the business' perspective, the benefits of diversity must outweigh the time and expenses involved in managing it. Culturally diverse workers have different opinions, … According to a Glassdoor survey, two thirds of job hunters indicated that diversity was important to them when evaluating companies and job offers. This can be particularly challenging for colleagues from polite or deferential cultures. However, the presence of diverse brain power alone is not enough. Diversity of thought has been shown to breed creativity and drive innovation, helping to solve problems and meet customer needs in new and exciting ways. Often, a product or service needs to be adapted to succeed overseas. Over the past two decades, as scholars have sought to quantify the economic effects of workplace diversity, a growing body of research has emerged. Moreover, effective cross-cultural communication comes down to much more than just words spoken. Greater differences in a workplace produces more potential for conflict among employees. Benefits of Cultural Diversity in the Workplace . Have you experienced any particularly positive or negative aspects of working in a culturally diverse team? But effects of lack of diversity in the workplace can also be detrimental. The range of experience, expertise, and working methods that a diverse workplace offers can boost problem-solving capacity and lead to greater productivity. A company with cultural and cognitive diversity can be quicker to spot a gap in the market. Non-verbal communication is a delicate and nuanced part of cultural interaction that can lead to misunderstandings or even offense between team members from different countries. Workplace diversity creates opportunities for companies to get broader perspectives on business situations and to improve global reach, but it does often create some negative impacts in the company. Diversity in the workplace helps companies begin growing. Different perceptions of time can cause a great misunderstanding and mishap in the workplace, especially with scheduling and deadlines. This Way: 7 Biggest Diversity Issues in the Workplace, FDI: Top Challenges of Diversity in the Workplace, Advantages & Disadvantages of Having a More Diverse Workforce, Benefits of Accommodating Workforce Diversity. 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? 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. Conversely, assertive colleagues from the U.S. or Western Europe, or those from Scandinavian countries who emphasize flat organizational hierarchy, may be more inclined to speak up meetings or negotiations when others don’t. Make the most of what your career has to offer with a Masters in International Business from Hult. People that come from different cultural backgrounds have different perspectives on how to handle issues or concerns that arise. A broader skills base and a more potentially diverse offering of products and services can help your business to have the competitive advantage of adaptability. Diversity and Its Impact on Companies ... it is imperative that employers learn how to manage cultural differences and individual work attitudes. Two-thirds of hiring managers say that a diversity initiative helped their company grow, creating new positions and opportunities for … Culture is known to be profoundly negative in places where the diversity of cultures is not celebrated. By and large, diversity and inclusion initiatives … Time: Cultures differ in how they view time. When it works, diversity increases workplace productivity and profits. There are pros and cons of diversity in the workplace, particularly if diversity is poorly managed. Although not all stereotypes are necessarily negative—like the notion that Americans are confident or Asians are intelligent—all are simplifications that can prove limiting or divisive in the workplace. The Virgin Group is recognized as a leader in promoting workplace diversity and fostering a positive working culture. For instance, the centuries-long antipathy between the British and French, or the Polish … Diversity means the workplace has employees from a wide range of backgrounds with regard to culture, race, gender, age, income level and other defining traits. Sometimes, this conflict turns to animosity and may even effectuate situations of violence. Perceptions of time underscore the importance of cultural diversity in the workplace, and how it can imp… An inclusive atmosphere of cross-cultural cooperation is an excellent way to bond colleagues and teams across the business. A potential benefit is an increase in creativity … The danger of making a serious marketing blunder, which can cause irreparable damage to a brand or business abroad, can be mitigated by employing a diverse workforce with local marketing savvy. This can be a challenge to overcome, particularly if there are underlying prejudices between cultures, making them less inclined to work together. Diversity in the workplace is far more complex than applying good and bad labels and often has both positive and negative effects. For instance, approaches to teamwork and collaboration can vary notably. Where a Japanese colleague may not feel it appropriate to leave work before their manager (or, indeed, anyone else), a Swedish professional may be used to a 6-hour working day. Some cultures, including many in Asia and Central America, value collective consensus when working towards a goal. Diversity, it turns out, does pay. Negative cultural stereotypes can be seriously detrimental to company morale and affect productivity. According to Kravitz, both these claims are naïve and inaccurate. DiversityInc annually recognizes the top 50 most diverse companies and measures their success against the broader market. Each year, DiversityInc selects the 50 most diverse companies. Colleagues from different cultures can also bring with them different workplace attitudes, values, behaviors, and etiquette. Today, she writes on topics including business, higher education, healthcare, and culture. Page calls it the "diversity paradox." Workplace diversity refers to the division of the workforce into distinction categories that have a perceived commonality within a given cultural or national context and that impact potentially … An inability to see where the other person is coming from can prohibit effective resolution of conflicts. For example, high quality and culturally sensitive translations of websites, brochures, and other assets are essential. What Is the Advantage for a Business to Have Diversity Training for Its Employees? In today’s volatile and uncertain global business environment, nimble and adaptable organizations are the ones that thrive. 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. But the potential benefits can only be realised if organisations foster a conducive atmosphere for their diverse workforce. Cultural diversity is becoming an increasingly important issue for companies in the U.S. More women and men of different ethnicities, … Written by Hult contributing blogger Katie Reynolds who is a freelance writer based in London. Providing diversity training and creating a cooperative culture takes on going effort for time and management. Diversity can lend a competitive advantage to an organization if skillfully managed, but if not, an organization can be negatively affected by having an unwelcoming work environment. 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