The Multicultural Marketplace
Our workplaces and marketplace are becoming more diverse every day. Developing a culturally competent workforce is becoming a business necessity. Below are the leading reasons for developing a culturally competent workforce.

Companies today can no longer afford to do business as they did 15 years ago. The expansion of the global marketplace is forcing companies to come to face the reality that either they develop the critical skills to navigate the changing landscape or they will be left behind.

The factors that are driving this change are three fold: demographic changes in the United States and around the world, vendors and employees that are often half way around the world and customers who are demanding products and services that are tailored to their specific needs and desires. These changes are demanding changes in the internal corporate culture and how the company interacts with its vendors and customers.

US Demographics
The United States is the least diverse now than it will be in the coming years. The fundamental changes happening in the US culture is just the tip of the iceberg of what is to come in future. At the moment racial minorities make up 33% of the population plus an additional 12% of the population which is foreign born making a total of a full 45% of the population is a non-white Hispanic/Latino or they were born in a foreign country.

According to the US Census Bureau 75% of the population growth in the coming two decades will come from immigrants and their children which means that the demand for products and services that are culturally and ethnically appropriate will soar. By 2014 according to the US Labor Bureau 36% of the US workforce will be a racial or ethnic minority, and that isn't taking into account the foreign born population that is racially white which could boost the numbers to almost as high as 45%. The implications are staggering. Currently 19% of the US population speaks a foreign language at home so the demand for employees who speak foreign languages is growing rapidly. In addition, if the definition of diversity is expanded to more than race and ethnicity to include members of the disability or the gay/lesbian/bisexual/ transgender population than an additional 11% and 10% are respectively added to the diversity numbers in the workforce.

Marketplace Forces
As the minority population in the United States has grown, so has the interest of these populations in having products and services that are tailored to their needs. They are also seeking companies that reflect their ethnic or cultural values and whom are actively involved in their communities. Word of mouth in minority communities plays a significant role in the companies that people work for or buy products from. Given this new emphasis of niche markets and away from one size fits all companies are being given an even greater incentive to hire and retain a diverse workforce that reflects the current or future markets of their customers. By hiring a diverse workforce, companies can tap into ethnic/cultural knowledge that allows them to develop the products and services demanded by their new and emerging markets. It is also equally important that an inclusive corporate culture is developed so that diverse employees are retained once they are hired.

Marketplace forces will also greatly impact companies in the coming years as the workforce ages out into retirement and the demand for the skilled workers drives up the demand for qualified employees. For companies that are not aligned with a culture that promotes and respects diversity will find themselves having increased difficulty in recruiting and retaining top talent. As the fight for top talent gets harder, companies will be able to use their cultural competency and an inclusive corporate culture to attract and retain the top talent that they need easier.

Worldwide Reach
Given the changes in the demographics, it is now common for employees to be sitting next to people who come from a different country, culture, ethnicity or racial background than themselves. While this diversity can bring great benefits to a company it is not without its liabilities as employees may experience prejudice, stereotyping or miscommunication due to cultural differences. All of these impact not only employees but they can also expose the company to potential liabilities such as lawsuits.

Interacting on an international level used to be restricted to people at the highest level of an organization. With globalization has come the fact that all levels of a company can and do now interact with customers, vendors or other employees who are around the world. With cultural differences that impact not only communication styles, but also attitudes about teamwork, authority, problem solving, and deadlines to name a few it is now a necessity to equip all employees with the skills necessary to work effectively in a multicultural world.

All of this means that companies are beginning to realize the full impact that culture is having upon their bottom line - either positively or negatively depending upon how they are managing it.