Cultural Diversity in the Workplace

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Michael DoolinManaging Director at Clover HR

16 November 2020

Globalization has seen a once static marketplace, confined by its borders, become a global arena; one of the key driving forces behind the cultural diversity we see today.

Article 4 Minutes
Cultural Diversity in the Workplace

Cultural diversity identifies the differences among our workforce and focuses on the recognition and representation of these differences including race, religion, nationality, gender, age, sexual orientation, socioeconomic status and more, within the workplace. Following the increasing internationalization of businesses and their workforce, several legal standards have been put in place to encourage and maintain a more inclusive and fairer labor market.

A culturally diverse workforce is a highly valuable commodity in today’s marketplace and a far cry from a ‘tick box exercise’ to meet a quota, gain a label or avoid a lawsuit. Diversity within your workforce can ultimately change the way you do business; it enables new ideas, perspectives and approaches that stem from a range of experiences, backgrounds and educations encouraging continued innovation from within.

Innovation, creativity and collaboration

Different people with different backgrounds and experiences bring different perspectives. With different perspectives come different approaches so those with a culturally diverse workforce have an advantage when it comes to innovation, creativity and problem-solving. Deloitte’s 2018 Millennial Survey shows us that 74% of these individuals believe their organization is more innovative when it has a culture of inclusion.

When an organization ardently promotes the value in diversity and inclusivity among its workforce, it ensures this value remains pertinent across departments and teams alike. This sees an increase in effective internal collaboration and overall knowledge sharing as individuals understand the value in different perspectives, approaches and ways of working.

Employee engagement

When employees work for a diverse and inclusive organization, they’re more likely to feel included and comfortable in themselves. Alongside this comes a reduced level of fear and anxiety of their voice, opinions or ideas being marginalised or a pressure to confirm. A Deloitte study shows that 47% of people believe that ‘an atmosphere where they can be themselves’ is the most crucial part of workplace culture when choosing an organization to work for. Encouraging a working environment where employees are valued, comfortable and confident leads to happier, more engaged and crucially more productive employees.

Employer branding and corporate reputation

It’s often perceived that companies are focusing on diversity “because it’s is the right thing to do”. However, with sincere intentions, placing value and focus on creating a culturally diverse workforce can enhance your overall employer branding and corporate reputation.

Organizations have a connection with the communities in which they both operate and serve. With increasing diversity in these societies, there’s been a shift in expectations for employers to reflect this within their workforce. Organizations who actively promote their cultural diversity and inclusivity are also perceived to be more progressive. In addition, the commitment to diversity shows a value of equality and fairness highly valued and sought-after characteristics in business partnerships, and both supplier and customer relations.

Recruitment

67% of job seekers said a diverse workforce is important when considering job offers and over 86% of job seekers say workplace diversity is an important factor when looking for a job. With an enhanced employer brand and the overall reputation for being a culturally diverse organization, you’re in an attractive position for those currently searching for a new role, passively or actively, as well as having potential leverage over a competitor.

Not only does cultural diversity and inclusivity make you more attractive to candidates, but it also provides access to the wider labour market. Recruiting from such a varied range of candidates enables you to recruit the best and most qualified people in the industry due to the ability to cast the net far and wide.

Marketing and service offering

Having employees with such varied skills sets, knowledge and experience not only means increased innovation and engagement among your workforce but also enables you to understand the needs of different markets more effectively and thus respond with better-informed marketing campaigns for existing products. Not only are you able to hone your marketing opportunities, but the diversity within your workforce can impact the diversity of your products and services themselves to become more adaptive, versatile and potentially internationally scalable.

A culturally diverse workforce additionally enables you to provide improved service to your customers on a global scale as you may have individuals who can better relate to, understand and therefore accommodate their clients.

Considerations

For a culturally diverse workforce to be effective and to deliver value to an organization, there are a few key considerations. Your intentions as a brand must be sincere- hiring a diverse group of people to obtain a label a meet a quota will be unproductive and possibly detrimental to your reputation internally and externally. Diversity and inclusivity must be truly valued by the organization and reflected in all aspects, for example in the way that discrimination is managed and the training and learning it provides to overcome this and progress further.

Michael Doolin

Michael created Clover HR with the ambition of demonstrating the value the HR function can add to SME businesses. He has more than 30 years of diverse Human Resources experience and is a subject matter expert in the areas of HR employment law, Reorganisation and Change, HR infrastructure, and policy and procedure development. He has held board director positions and designed and developed HR strategy for some of Europe’s leading brands.

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