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Canada has a rich history of cultural diversity that helps create its identity and drive business success. People from diverse backgrounds continue contributing to all areas, including the arts, sciences, sports, business, and government sectors.

In this article, we define cultural diversity, discuss its benefits, and explain how to manage cultural diversity in the workplace.

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What is cultural diversity?

Cultural diversity generally refers to the phenomenon of a mixture of cultural and ethnic groups shaping beliefs, behaviours, and identities. In the workplace, it can include employees of different races, sexual orientations, and political views that foster inclusive environments where they can collaborate better. For example, May is Asian and Jewish Heritage Month. These celebrations honour, celebrate, and explore the accomplishments of Asian and Jewish Canadians.

Why is cultural diversity in the workplace important?

Understanding the importance of cultural diversity in the workplace can involve acknowledging and valuing everyone’s perspectives, backgrounds, and contributions. While HR forms capture basic demographic data, true cultural diversity can cover many more characteristics defining individuals’ identities and experiences. Below is a list of the most common diversity types:

  • Gender: There are more women in the workforce today than ever, and there is still a significant pay gap and an unbalanced percentage of men versus women in leadership roles.
  • Race and ethnicity: Standardized HR forms and hiring practices can lack details for employees to self identify. Understanding the population of your workforce is important. to create programs and strategies that are inclusive.
  • 2SLGBTQI: This group can face various challenges, has varying backgrounds, and unique experiences. Pay careful attention to the strategies you use as you work toward eliminating discrimination in your organization.
  • Age: Employers and coworkers can have preconceptions causing discrimination toward older and younger employees. You can address these issues by providing cross-generation mentoring and allowing apprenticeships to be open to all ages.
  • Disabilities: The word disability can have various meanings, from physical to neurodivergent and anxiety disorders. Providing neurodiversity programs and ensuring you include everyone can help eliminate negative opinions.
  • Mental health: Focusing on workplace wellness, work/life balance and mental health can help increase engagement, decrease absenteeism, create a safe space and build loyalty.
  • Neurodiversity: Providing a supportive environment to recognize those with neurological differences, including autism, dyslexia, and Tourette’s, can help your organization celebrate the differences and benefits they offer.
  • Thought style: Coordinating thoughts and personalities with specific jobs or roles can enhance employee productivity and satisfaction. There are typically seven thought styles: critical, analytical, abstract, concrete, creative, divergent, and convergent.

Benefits of cultural diversity in the workplace

Cultural diversity can benefit your organization in several ways. Below are some advantages of embracing diversity:

Developing and maximizing skill sets

Improving cultural diversity can lead to a more innovative and inclusive workplace culture through enhanced skills, such as:

  • Better communication: When employees experience different cultures, languages, and communication styles, they can develop strong interpersonal and cross-cultural communication skills.
  • Increased adaptability: Exposure to diverse cultural backgrounds can challenge your employees to adapt to new situations and understand different viewpoints.
  • Improve psychological safety: Providing team-building exercises can help employees get to know each other and find similarities rather than focusing on differences. Understanding the challenges others face can increase empathy, patience and create psychological safety. 

Better recruitment

Developing a cultural diversity recruitment strategy can help you attract more candidates, expanding your reach to top-tier talent.

Increased retention

Cultural diversity can offer a sense of inclusivity and belonging, leading to higher job satisfaction and engagement. Employees who feel valued and respected for their cultural backgrounds and perspectives are more likely to stay with your company.

Improved creativity

People with varying life experiences and perspectives typically have different ways of thinking, and when they collaborate, they bring various ideas, approaches, and solutions to the forefront. Brainstorming can introduce innovation and creativity by challenging conventional thinking, encouraging fresh insights and considering alternative viewpoints.

Increased employee engagement

Cultural diversity can promote open communication, collaboration, and teamwork, as employees learn from each other and work together to achieve common goals. Camaraderie and shared purpose can strengthen bonds among team members and enhance overall job satisfaction, morale, and engagement.

Better company reputation

Cultural diversity in the workplace can significantly enhance your company’s reputation in several ways, it:

  • Reflects commitment to inclusivity: Diversity and inclusion can improve your company’s reputation as a socially responsible and ethical organization.
  • Attracts top talent: Candidates seeking inclusive and diverse work environments often view companies that embrace diversity as attractive employers.
  • Strengthens brand image: A diverse workforce can boost your brand image by showcasing your company’s commitment to diversity, equality, and social responsibility.
  • Drives innovation and creativity: Employees typically perceive companies that practice diversity as more forward-thinking, further improving their reputation as industry leaders.
  • Builds stronger community connections: When your company prioritizes cultural diversity and engages with various communities through outreach programs, partnerships, and initiatives, it can strengthen its ties to the community and enhance its reputation as socially responsible corporate citizens.

How to manage cultural diversity in the workplace

There are many strategies for managing cultural diversity in the workplace. Below are some of the most common:

Be culturally sensitive from the start

It can be beneficial to prioritize cultural sensitivity from hiring through to onboarding. Assessing your candidate’s cultural sensitivity during interviews can help you hire the right employees, particularly in diverse work environments. You can incorporate cross-cultural training into your onboarding process to establish multicultural values, providing your new hires with the skills to thrive in their new environment. Regularly reinforcing these values and clear communication can improve employee engagement and participation.

Accommodate cultural traditions

Acknowledging and honouring diverse cultural practices can help you build stronger relationships and bridge gaps between individuals from different backgrounds. Below are some ways to accommodate cultural traditions:

  • Flexible scheduling: Allow employees to take time off or adjust their work schedules to observe religious or cultural holidays and traditions.
  • Celebrate differences: Organize events and activities to celebrate cultural holidays and traditions, by bringing in speakers, sharing resources, planning educational sessions or hosting in office celebrations.
  • Respect religious practices: Show consideration for employees’ religious practices by providing quiet rooms, flexible break times for religious observances and options for dietary restrictions.
  • Encourage sharing: Create opportunities for employees to share their cultural traditions with colleagues through presentations, workshops, or cultural exchange programs.
  • Inclusive policies: Develop policies that respect and make room for cultural diversity, such as flexible leave policies, guidance around specific practices, when they occur and how to accommodate requests.

Understand different communication styles

Learning communication styles within a culturally diverse company can reduce misunderstandings and conflicts and promote a more inclusive environment. Employees can tailor their interactions to accommodate other perspectives by recognizing and respecting cultural nuances. Understanding different communication styles can enhance teamwork, productivity, and mutual respect within the organization.

Respect time zone differences

When collaborating across continents, awareness of when team members start and end their working day can help improve coordination. Respecting religious practices, such as prayer times, can ensure inclusivity when scheduling meetings and tasks.

Cultural awareness training

You can train employees and managers to improve their understanding of cultural traditions, customs, and practices. Below are some “how to” tips you might consider highlighting:

  • How to avoid preconceptions and prejudices
  • How to minimize cultural barriers
  • How to excel in active listening
  • How to foster appreciation of diverse cultures
  • How to find commonalities rather than differences
  • How to enhance social skills

Avoid stereotyping

Some employees may need help distinguishing between cultural differences and stereotypes. To prevent stereotyping, you can get to know your team personally and understand how culture can influence behaviour without imposing stereotypes.

Managing cultural diversity in the workplace can promote inclusivity and appreciation among employees. Embracing diversity generally has many benefits, including increased creativity, higher employee engagement, and a positive reputation. You can manage cultural diversity by implementing strategies such as accommodating traditions, respecting time zone differences, and avoiding stereotypes. A culturally diverse organization can foster collaboration, productivity, and mutual respect among employees.

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.