Why Cultural Diversity Matters in the Workplace

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cultural diversity in the workplace

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More people are now supporting diversity in the workplace. According to Diversity Council Australia, about 75% of Australian workers back their organisation’s efforts to create a more inclusive and diverse environment, while only 3% are against it.

Even with this progress, there’s still work to do. Half of Aboriginal and Torres Strait Islander workers have faced discrimination or harassment in the past year. High rates are also reported among workers from non-Christian religious backgrounds (48%), people with disabilities (45%), and LGBTIQ+ employees (45%), compared to lower rates among Christian workers (28%), those with no religion (23%), workers without disabilities (22%), and non-LGBTIQ+ employees (23%).

So, what can workplaces do to improve these numbers? And why is diversity important not just for individuals but for the overall success of an organisation?

What is Cultural Diversity?

Culture defines how people behave according to values, beliefs, and customs. Workplace cultural diversity is a result of the difference in the employees’ race, age, ethnicity, religion, and gender.

Due to globalisation, the workplace is growing diverse, bringing together people of various backgrounds, beliefs, and nationalities. The majority of employers now recognise that diversity brings practical along with social benefits. To reap the benefits of a diverse workforce, employers need to show their commitment to inclusion and respect. By embracing and celebrating differences in a positive way, they can create a more inclusive and positive work environment.

Why Does a Culturally Diverse Workplace Matter?

cultural diversity

A diverse workplace brings together employees from different backgrounds, including race, gender, age, education, and abilities. Such diversity of thought not only makes the workplace inclusive—it also makes a company stronger in many ways.

  1. More Ideas and Creativity
    When people from different backgrounds come together, they bring unique viewpoints. This variety leads to fresh ideas and creative solutions, making teams more innovative.
  2. Higher Productivity
    Employees who feel valued and appreciated for their differences are usually happier. Happier employees tend to be more motivated and productive.
  3. Better Customer Service
    Multicultural staff makes businesses more inclusive. Customers are comfortable when they talk to someone who understands their language or tradition.
  4. Stronger Reputation
    A diverse and inclusive work environment increases employee satisfaction and encourages innovative thinking. This attracts customers as well as talent, as most job applicants look for employers who embrace diversity.
  5. Increased Profits
    Studies have shown that financially successful companies have diverse leadership. More cultural and ethnic diversity in executives has been shown to be associated with above-average profits.

Encouraging diversity in the workplace doesn’t just benefit businesses—it also creates a healthier, more inclusive work environment where everyone thrives.

Also read: The Importance of Mental Health at Work

Common Workplace Challenges with Cultural Diversity

Firms that successfully embrace cultural diversity are likely to face challenges when bringing together individuals from different backgrounds. It becomes necessary for the HR departments and top management to address these issues in a positive manner.

The following are common workplace diversity issues:

  • Conflict – Disrespect, prejudice, and discrimination can create tension among employees. If not addressed by organisations, these issues can escalate to become severe conflicts. There need to be clear policies to prevent any form of discrimination.
  • Harassment – Employees should be trained properly to understand what harassment is. Complaints should be handled seriously and dealt with according to company policy. Harassment can hurt the employees as well as the image of the company.
  • Ignoring Employee Needs – Some workplaces fail to accommodate employees with disabilities by not providing the right tools or facilities. Companies should take steps to ensure all employees have the support they need to do their jobs comfortably.

By addressing these issues, one is able to establish a respectful and inclusive working environment where all can succeed.

Managing Cultural Diversity in The Workplace

A diverse workplace can be orderly when employers put in some effort to practice tolerance and inclusiveness. Here are some ways to manage diversity effectively:

  • Clear Policies – Include a diversity policy in the employee handbook. This should cover non-discrimination rules, expected behavior, and company benefits.
  • Sensitivity Training – Educate employees in respecting alternative perspectives, understanding offensive behavior, and managing conflicts accordingly.
  • Accountability Plan – Conduct regular surveys to track progress and ensure employees follow diversity policies.
  • Address Microaggressions – Train employees to recognise and avoid subtle, everyday comments or actions that may be offensive, such as assumptions about language skills or appearance.
  • Zero-Tolerance Policy – Make it clear that discrimination and poor behavior will not be tolerated. All complaints need to be taken seriously.

By taking these steps, companies can create a more inclusive and respectful work environment.

Making the Workplace More Multicultural

why cultural diversity matter

Promoting diversity in the workplace is more than telling them it’s a good thing. People have biases that they are not even aware of, so simply telling them to be more open-minded may not be enough.

Most companies rely on mandatory diversity training, but Harvard Business Review studies show that it barely leaves a lasting impression. Workers might learn the “right” responses to a survey and then promptly forget them. Mandated training even perpetuates bias in some cases and leads to resistance.

A more effective strategy is to involve managers actively in diversity initiatives. Getting them to work closely with employees from diverse groups, implementing mentorship programs, and creating diversified project teams have been found to be more effective. Targeted recruitment and social responsibility initiatives also help improve workplace diversity.

If a company wants to offer diversity training, having it optional is a better choice. Those who go in a willing manner will likely be more serious about it. Also, asking minority workers whether these programs benefit them and hosting social events can make the workplace feel welcome and inclusive.

Build a Stronger, More Inclusive Workplace with D’Accord OAS

Creating a diverse and welcoming workplace isn’t just the right thing to do—it helps businesses grow. At D’Accord OAS, we provide expert solutions to promote inclusivity, prevent workplace discrimination, and ensure compliance with diversity policies. From sensitivity training to zero-tolerance policies, we help organisations build a respectful and productive work environment.

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Gino Carrafa

Gino Carrafa is a psychologist with over 25 years of experience in injury management, clinical psychology, and corporate consulting. He specializes in resilience, stress management, and psychological well-being, with published work in leading journals. 

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