Photo Credit ( Pexels )
Successful firms must continue to think inclusively and globally while national politics and discourse in America and Europe appear to become more inward-looking and polarising. An essential first step for companies looking to compete globally is embracing cultural diversity in the workplace.Businesses from a variety of sectors, like PricewaterhouseCoopers, Disney, and the Virgin Group, are recognising the advantages of having a diverse staff. However, collaborating across borders, cultures, and languages always presents obstacles in addition to its advantages.
Diversity and a global perspective are ingrained in our DNA at Hult. Our goal is to equip our students to succeed in a business climate that is fast-paced, uncertain, and essentially global. Our kids will undoubtedly face these 13 major advantages and difficulties of cultural diversity in the workplace as they grow into tomorrow’s world business leaders.
- Advantage: Diverse cultural viewpoints can stimulate innovation and creativity.
Our perception of the world is influenced by our culture. Diverse perspectives and the diverse personal and professional backgrounds of an international team can provide fresh insights that encourage coworkers to perceive the workplace—and the world—in new ways.
It has been demonstrated that diversity of opinion fosters creativity and innovation, enabling problem-solving and customer demands to be met in novel and exciting ways. For instance, the multinational product development teams at cosmetics behemoth L’Oréal are largely responsible for the company’s remarkable success in emerging markets.
When different voices, viewpoints, and personalities bounce off one another, creative thinking can result. Businesses may maximise the advantages of workplace diversity by providing a forum for the free flow of ideas. This viewpoint was supported by a Forbes study, which found that “having a diverse and inclusive workforce is the best way to ensure the development of new ideas.”
- Advantage: Local market expertise and understanding boost a company’s profitability and competitiveness.
An organisation can gain a significant competitive advantage when entering new markets by having a multicultural workforce. To be successful abroad, a product or service frequently needs to be modified. A firm can succeed by being aware of local laws, rules, and customs as well as the competitive environment. Furthermore, native language proficiency, cultural awareness, and local ties can greatly accelerate the growth of global businesses.
Furthermore, being more profitable eventually translates into being more competitive. Every year, DiversityInc names the top 50 most diverse businesses and evaluates their performance against the market as a whole. The fact that diversity improves a company’s financial performance is further supported by McKinsey research. It has been demonstrated that ethnically diverse businesses have a 35% higher chance of generating profits over the national industry median.
- Advantage: Better, more focused marketing results from cultural sensitivity, understanding, and local expertise.
When combined with local market knowledge, cross-cultural understanding facilitates the creation of more successful marketing strategies and collateral. For instance, it is crucial to translate websites, brochures, and other materials into a high standard while taking cultural sensitivity into consideration. However, without a native speaker’s input, these can be missed.
Even brand slogans might be severely mistranslated. One often-cited example is from KFC in China, where their chicken was advertised as being so delicious that you would “eat your fingers off!” (The brand tagline, “Finger lickin’ good,” is poorly translated.)
Additionally, market-specific expertise and understanding are crucial for design and imagery. What might be effective for a British company’s billboard might not function or be offensive in other places. Locals may have thought a classic McDonald’s print commercial in Finland was creative, but consumers abroad found it perplexing and even hideous.
Hiring a diversified workforce with local marketing expertise can help reduce the risk of making a major marketing error that could harm a company or brand overseas.