Diversity: Helping companies leverage the power of diversity to improve the bottom line

Companies today can no longer afford to do business as they did even 5 years ago. The expansion of the global marketplace is forcing companies to face the reality that developing cultural competency skills is no longer a luxury, but a business imperative.

The factors that are driving this change are three fold:

1. Demographic changes in the United States and around the world

2. Customers who are demanding products and services that are tailored to their specific needs

3. Vendors, customers and employees are now around the world

US Demographics
The United States will only become more diverse in the future. The fundamental demographic shifts happening now in the US are just the tip of the iceberg. At the moment racial minorities make up 33% of the population. The foreign-born population is an additional 12% of the population. Thus, a full 45% of the population is racially non-white, Hispanic/Latino or they were born in a foreign country. Thus, what we have seen as minority populations in the past are no longer a minority, but a significant portion of the marketplace.

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%. In addition, with 19% of the US population speaking a foreign language at home the demand for employees who speak foreign languages is growing rapidly.

The business implications are staggering in terms of recruitment, retention, training and marketing to the changing US marketplace.

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. Given this new emphasis on 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. 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.

Marketplace Key Points

- Minority consumers are demanding niche products and services

- An inclusive corporate culture is a recruitment and retention tool

Global Workforce and Marketplace
Given the changes in the US and world 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.

In addition to workforce diversity, cultural issues are showing up on a global scale as well. Daily interactions on an international level used to be restricted to people at the highest level of an organization. With globalization managers and staff at all levels of a company interact with customers, vendors or other employees around the world. This trend is happening not just in large multinational firms, but also in small and mid-sized companies who are seeking to capitalize on potentially lucrative overseas markets. Capitalizing on the overseas markets increasingly means that companies are posting employees overseas.

When posting employees overseas, the question becomes how they can be best equipped with the skills and support to not only make their assignment a success, but also how to ensure that their reintegration back to the US is a positive one.

With cultural differences that impact not only communication styles, but also attitudes about teamwork, authority, sales and marketing, 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.

Impact of the Global Workforce and Marketplace

- Employees at all levels now interact on a global level

- Cultural competency is now a critical business skill ¥ International postings require special training and cultural skills

All of these factors mean that culture is impacting your bottom line. The question is, what side of the ledger sheet do you want it to be on?