The Importance of Cultural Diversity in the Workplace
What is cultural diversity?
Culture is considered to be the underlying values that direct how people behave. Cultural diversity in the workplace is a result of practices, values, traditions, or beliefs of employees based on race, age, ethnicity, religion, or gender.
Economic globalization is one of the driving forces of cultural diversity in the workplace. The modern workforce is made up of people of different genders, ages, ethnicity, religions, and nationalities. Employers have realized that workforce diversity provides both material and intangible benefits. In order for employers to reap the benefits of cultural diversity in the workplace, they must communicate their commitment to addressing the challenges of a diverse workforce. Employers must be seen to be celebrating their employees’ diversity to avoid workplace issues, like awkwardness and hostility.
Although some big-name brands have shown diversity in the workplace, companies of any size can also provide positive examples of diversity. Smaller companies may not receive public recognition for their diversity initiatives, but you can still experience the advantages of a diverse workforce.
Here are some workplace diversity examples:
Nike joined other companies who have marked Juneteenth a paid company holiday. Juneteenth commemorates the ending of slavery in the United States.
Reddit co-founder and former CEO, Alexis Ohanian, stepped down from Reddit’s board in 2020 with the request that his seat go to a Black board member.
Johnson & Johnson appeared on the number one spot on Diversity Inc’s top companies for diversity in 2018. Starting with recruitment, Johnson aimins to stop gender bias with the use of technology. Interviewers are also trained to fight bias during interviews. The company works with Harvard University to train their managers on how to reduce unconscious bias. This training is supplemented by additional resources that remind managers of the concepts that they’ve already learned.
AT&T has also received nods for its commitment to diversity in the workplace. Initiatives such as Peace Through Business, which provides business education to women entrepreneurs in Rwanda and Afghanistan, has helped to demonstrate that AT&T is a positive example of diversity in the workplace. AT&T has also worked with a job placement agency to provide internships for adults with cognitive disabilities at their Dallas headquarters. As AT&T celebrated its 50th anniversary, it has spent about $158 billion working with women, minority groups and service disabled veteran businesses through its supplier diversity program.
Kellogg Company is another example of diversity in the workplace. The Kellogg Company appears at number 18 on the Diversity Inc’s list. The Kellogg Company has been earmarked as one of the most diverse companies in 2018 due to the fact that it has a third more women in top management positions in comparison to the national average. The company has also implemented a new parental leave policy in North America, which increased the amount of parental leave from one week to a possible four weeks. Additionally, paid maternity leave increased from 10 weeks to 14 weeks.
Benefits of cultural diversity
It’s important to review the benefits that both the company and employees can enjoy when answering the question “why is cultural diversity important in the workplace?”
The advantages of cultural diversity include:
Leadership - Diversity in the workplace can have a powerful impact on your leadership. From building company culture to attracting diverse candidates during recruitment, your leadership is the face and the voice of your company.
Innovation – Where everyone in a company is from the same background, they’re likely to have similar ideas. In order to remain competitive, companies need new ideas and concepts. A diverse workforce brings unique perspectives on how to solve problems and innovate to gain a competitive edge.
Respect – A diverse workforce enables team members to appreciate the differences in others because of the positive contribution that different people bring. Where co-workers are open to learning from each other, they appreciate that diversity enables them to function better as a team. Therefore, gain a mutual respect for colleagues who are different.
Reputation – A commitment to diversity demonstrates that a company values fairness and equality. These characteristics have a positive effect on its reputation with suppliers and consumers. A company that openly recruits the best candidates for a job, irrespective of which group they are in, will gain customer loyalty and a good reputation.
Productivity – The diversity of a company is an indication of how productive its employees will be. The Forbes Global Diversity and Inclusion Fostering Innovation Through a Diverse Workforce report found that 77% of companies used productivity as a measure to gauge the success of diversity programs. Respondents in the Forbes research advised that their companies have experienced an increase in productivity due to a diverse workforce.
Growth – Where a company has a diversified workforce, they position themselves to build relationships with people from different cultures. Diverse employees can advise the companies about the best strategies to use to gain new customer bases. Employees who speak different languages and are aware of the cultural norms of international markets can be vital to a company’s growth.
Recruitment – Research shows that 67% of job seekers advised that a company’s diverse workforce is a key factor when evaluating job offers. These findings demonstrate that diversity is a key aspect when recruiting the best talent. Job seekers are aware of the importance of a diverse workforce and want to be part of a company that will value and appreciate their difference.
Compliance – Companies need to comply with both federal and state laws that ban them from carrying out discriminatory practices. Promoting a diverse workplace where everyone is respected helps companies to obey the law and also ensures that every employee is treated with the respect he or she deserves.
Why diversity is important in the workplace
The importance of cultural diversity in the workplace can’t be understated. Having diverse employees increases the bottom line and also assists in staying on the right side of the law. Companies that have a clear diversity and inclusion policy (and are seen to enforce this policy) benefit from happier and more productive employees and a great reputation.