6 Business Benefits of Having a Multicultural Team in 2022
The pandemic and the subsequent rise of remote work have facilitated the popularity of hiring location-agnostic and multicultural teams. When everyone works partly or fully remote, it no longer makes sense to hire only locals, right?
As we enter 2022, we see more and more employers realizing that having a diverse workforce in terms of employee culture, race, background, and other factors is good for business. Furthermore, the diversity enabled by international hiring is increasingly being included in company corporate strategies.
If you’re still deciding whether hiring multicultural employees is a sound tactic for your company, here we give you 6 reasons to go for it.
1. A wider talent pool
Companies around the world often face the problem of a limited candidate pool, especially for highly specialized positions, fast-growing teams, and in fiercely competitive industries. Businesses that seek highly knowledgeable and motivated talents often find that this is very difficult to achieve within the constraints of one country as no single country can compete with the possibilities that a wider region or the world can offer.
In IT recruitment, international and remote hiring is becoming the norm as employers increasingly realize the enormous potential that international talent can bring to their businesses.
If offering flexible work arrangements and hiring remote employees are still new tactics for you, by learning them you’ll do your business a favor and open doors to people from other cities or even countries who are considering a job change but who don’t want to leave their home.
2. Better employee engagement and productivity
Having a more diverse staff is not only a benevolent and open-minded decision – it’s also good for business. However, simply hiring multicultural and age and gender-wise diverse staff won’t make magic happen. The company should think about ways to facilitate an inclusive culture, frequent and open communication, and openness to new ideas. Inclusion initiatives will favor team spirit, improve empathy, and boost employee satisfaction.
Giving greater flexibility and better work-life balance to your team also increases the overall satisfaction of your staff. And studies show that happy employees are also more motivated, engaged, and productive.
3. Increased creativity
Increased innovation and creativity are unexpected benefits of having multicultural team members. A study by Boston Consulting Group found that companies that reported above-average diversity on their management teams also reported 19 percent higher innovation revenue.
Indeed, employees from different cultures and backgrounds are bound to see a problem from different perspectives and thus – see more than one solution to it. With a multinational staff, it’s crucial to maintain an environment that supports open discussions, welcomes fresh perspectives, and celebrates innovative ideas.
Furthermore, if you have cross-border expansion plans, having international people on board can be a massive win. Their knowledge, skills, and experience can help you enter new markets or decide on a marketing strategy for new regions.
4. Better employee retention
Employee turnover is expensive – especially for specific positions that require in-depth training. Depending on the wage and position, replacing an employee may cost from 16% up to 213% of their annual salary.
Internationally recruited employees are less likely to leave within the first year as they have gone through great lengths to secure the job and potentially even moved themselves and their family to another country. However, also companies that allow remote and flexible work report 25 percent lower employee turnover, contradicting the idea that employee loyalty is tied to a physical presence in an office.
It’s also in the manager’s power to reduce the turnover rate by providing assistance to international employees, for example, by offering language courses or practical support if they have moved.
5. Improved reputation and competitive edge
We live in a candidate-driven job market, and 42% of companies admit they are struggling to find quality tech talent – especially in tech recruitment. In such circumstances, your offer has to stand out – and offering flexible work conditions is a good way to achieve it.
In addition, hiring remote employees and being open to diversity gives you access to more people who might not be willing to do face-to-face interviews or relocate for a job. For example, people with disabilities, working moms, or people from very different cultures. When you hire remote workers from different backgrounds or cultures, don’t forget to implement some kind of a support program for them.
Being a role model, having multicultural staff and inclusive policies and onboarding plans puts the company one step ahead of its competitors and improves its reputation in the job market. This is your chance to jump on the bandwagon and attract the best location-agnostic talent while it’s still available.
6. More fun
Finally, diverse teams are so much more fun. Having leaders and colleagues with the same mentality or background can become boring after a while. Culturally diverse teams have a different dynamic, creating more engagement and more energy in the workplace – be it physical or digital.
In a diverse work environment, teammates have the opportunity to learn from others who are different and can share their unique life stories and perspectives. By promoting the love of learning, you’ll foster creativity, kindness, and engagement within the company culture.
Companies that only hire people who are a tight fit for their company culture risk turning into workplaces where people think too similarly.
Besides opening your company to an even wider talent pool and improving its reputation, cultural diversity adds new perspectives to many aspects of your business, such as entering new markets or finding more rounded and creative solutions to problems.