Imagine, if you will, a scene from an international business person’s nightmare: You’re sitting across the table at dinner with a prospective client, who, if all goes well, could help you generate millions of dollars in revenue through a fruitful partnership for both parties.
But there’s a problem—you don’t know how to navigate the conversation, and your counterpart’s stony gaze and lack of non-verbal communication provide you with absolutely zero insight into how the interaction is playing out. If only there were a way to prevent the awkward fumbling, cultural faux pas, and missed opportunity.
Luckily, there is cultural awareness training. With cultural awareness, you recognize your counterpart’s cultural norms and understand that they come with the territory. Your cultural competence courses, language learning, and immersion in different cultures, instead, allow you to navigate the conversation in your favor, leading to a multi-million dollar union.
Learn all about the importance of cultural awareness and the current landscape of the practice across the world.
The Importance of Cultural Awareness in Business
Whether you employ people from different cultures or you operate in global markets, cultural awareness improves relationships and fosters success. Countless tangible benefits are available to businesses willing to make the investment; benefits that include:
- Increased market presence – Businesses that value the cultures they operate in and the people who work for them establish positive reputations in the minds of consumers. Build a positive reputation for long enough, and you’ll carve out an unmovable market presence.
- Lower turnover rates – Being culturally aware means creating a work environment where everyone feels welcome and a sense of belonging. That welcoming atmosphere is one employees find difficult to leave.
- Better decision-making – Culturally inclusive organizations make better decisions 87% more often than their peers (IMD). Better decision-making is a strategic business move that generates stronger bottom-line profits.
- Improved problem-solving – Culturally diverse and aware businesses seek perspectives from traditionally silenced voices. Those additional worldviews and experiences help solve problems and create products and services.
- Deeper talent pools –Businesses that are culturally aware seek diverse talent and open positions to qualified candidates from anywhere. These deep talent pools allow you to source the best possible individuals for your organization.
HR officers and management consulting teams are the first to witness these benefits, but they permeate through the organization when others see the results. Teams also experience greater empathy for their colleagues, leading to greater productivity and cohesion.
Cultural Awareness in Action: Asia and Europe
While it’s easy to see the progress and opportunities still lingering in America, it’s worth considering what cultural awareness looks like across the Eurasian continent. Here are some examples of what you’d find:
Asia
Centuries of tradition shape contemporary business practices in Asian countries. The indirect nature of Chinese, Korean, and Japanese business leaders can make it challenging for other cultures to decipher their true emotions. These cultures strongly emphasize respect, and respecting hierarchy in negotiations is paramount, especially in Japan.
On the other hand, India’s Tata Sustainability Group demonstrates a commitment to social responsibility, investing millions to help underserved communities and positively impacting millions of lives. This highlights the diverse ways in which Asian countries balance tradition with modern business practices and social consciousness (Tata).
Europe
European nations, particularly Scandinavian ones, value their free time, and since these countries are the happiest in the world, it makes sense why (Fortune). Places like Denmark and Sweden prioritize employee well-being and flexibility, which are rubbing off onto multinational companies, enhancing employee satisfaction.
Infineon, Germany’s largest semiconductor manufacturer, embodies culturally diverse employees, employing significantly more employees outside of the country than from within (Infineon). The value of external cultural groups contributes to technological advancements.
Overcoming Cultural Barriers: Middle East and Latin America
While North America and Western Europe carry the culturally aware torch, several regions carry harmful misconceptions about others. In many cases, it’s because of religious beliefs or cultural norms that cause people with disabilities, people with “non-traditional” sexual orientations, and even those practicing other faiths to face discrimination, disparities, and bias.
Despite this perception, some companies are going against the grain to show it’s possible to be a light in dark times.
Middle East
Middle Eastern countries like the United Arab Emirates found financial success through natural resource exports, namely oil. In these same companies, global firms found success in breaking the tough shell of trust and loyalty through dedicated personal relationship building.
Latin America
The role of family is massive in Latin American and Hispanic cultures, bleeding into how leaders handle business interactions. Business leaders often take personal responsibility for protecting employees in a paternalistic relationship (UPenn). That relationship frequently leads to companies operating like a family—for better or worse.
Strategies to Enhance Cultural Awareness
Building a culturally aware organization takes time and effort, but the end results are worth the investment. To kick start that investment, implement some of these strategies with proven track records in the organizations listed above:
- Define your cultural awareness goals – When you have a clear vision of how you want cultural awareness to look in your organization, you can enact policies and initiatives to make those goals a reality. Set clear and time-specific goals for maximum impact.
- Invest in cultural competence training – Cultural knowledge requires a level of competence and self-awareness. A cultural competence training course gives your team the knowledge, techniques, and tools to navigate diverse cultures.
- Offer immersive language courses – Effective communication invites connection, and what better way to communicate than by learning another language? English as a second language (ESL) and Immersive language courses can prevent language barriers while also giving your traveling employees an advantage when doing business in partner countries.
- Celebrate diverse cultures with activities – Diverse employees may long for a taste of home, and you can create a sense of belonging by celebrating cultural practices with inclusive activities. These activities will also invite employees to connect and bond over cultural differences.
This handful of strategies can enhance cultural awareness in your organization. Remember, the process is a never-ending investment, but Coach Diversity Institute can be your partner through the long haul.
Measuring the Impact of Cultural Awareness Initiatives
Whenever you implement changes, you need a way to track your progress, especially when money is at stake. These metrics can tell you what practices are working the best and which ones need further refinement to produce the desired results.
Here’s a look at a few popular metrics businesses use to track and measure cultural awareness:
- Geographic location distribution of your team.
- Customer satisfaction rates by region and net promoter scores (NPS).
- Employee referral rates.
- Employee ethnicity and demographic makeup.
- Turnover and retention rates.
Of course, your metrics tracking regimen must include qualitative measurements, such as employee surveys and international team feedback. To keep stakeholders updated, be sure to mention your progress during meetings and celebrate wins with team members to encourage continued effort.
Advance Global Understanding: Partner with Coach Diversity Institute
Understanding different cultural backgrounds provides insight into one’s own cultural identity. Bumping your and your employees’ cultural competence also has tangible benefits, from better cross-cultural communication skills to increased market presence. Cultural diversity and respect can even lead to higher profits.
An investment in cultural sensitivity is a must to create an inclusive and diverse environment. Various strategies, like offering language learning or celebrating cultural differences, can highlight the diverse backgrounds of the employees you work with, the communities you serve, and the international businesses you partner with.
Ready to take the next step in your cultural awareness journey? Enroll in a diversity educational course through Coach Diversity Institute and start improving your international relationships today.