Businesses around the world today are ever-evolving, and many now use outsourcing as a key strategy towards success. Outsourcing, as you might know, involves hiring people or teams to perform tasks you normally wouldn’t have the resources to take care of. Usually, outsourced teams are hired from partners abroad, allowing you to hire talent from places beyond your horizon. By outsourcing a team from abroad, you create a multicultural workforce.
Does a multicultural workforce perform well? Your outsourcing strategy’s effectiveness hinges on several factors: including communication and cultural compatibility. In this blog, let’s explore why a multicultural workforce can be a game-changer for your business, especially when you’re looking to achieve exceptional results through outsourcing.
The Importance of Cultural Compatibility in Outsourcing
If you’re contemplating outsourcing, the usual considerations that come to mind are cost savings, technological capabilities, and data security. One criteria that’s often overlooked by many, however, is the culture fit between you and your offshore team. Cultural compatibility is a critical aspect to drive your team to success — and it shouldn’t be treated as an afterthought.
Cultural compatibility encompasses things like shared values and beliefs, business practices, work ethics, and social norms. Aligning your cultures can significantly contribute to business growth, since you are more likely to facilitate the exchange of ideas, foster seamless collaboration, and reduce communication breakdowns.
Why Multicultural Workforces Work
1. Jobseekers Desire Multicultural Workforces
The job market these days is competitive, thus, prospective employees prioritize applying to companies that have multicultural environments. According to a recent survey, a staggering 67% of job-seekers consider a diverse workforce to be a crucial factor when they decide whether to accept or reject a job offer. This underscores the importance of cultural diversity and its appeal in attracting talent: people of different backgrounds want to work where they feel welcome.
2. Diverse Teams Excel Financially
The positive impact of diversity goes beyond just attracting talent. It’s projected that around 75% of organizations with diverse and inclusive decision-making teams are expected to surpass their financial targets. This highlights how diversity can tangibly boost your company’s financial performance on your bottom line.
3. Ethnically-Diverse Teams Drive Profitability
Moreover, companies with executive teams made up of a high count of ethnically diverse members tend to perform exceptionally well, with a 33% more likelihood of exceeding their business’s EBIT (Earnings Before Interest and Taxes).
4. Informed Decision-Making Through Diversity
Diverse teams tend to make better decisions 66% of the time. What’s more, teams composed of individuals from diverse age groups and geographic locations saw better decisions 87% of the time. These companies with diverse boards and executive leadership earn more in profits.
5. Inclusive Cultures: Enhanced Work Engagement
Employees of different cultural backgrounds being included within their organizations are about three times more engaged than their peers. These employees are excited and committed to being a part of their company’s mission.
In conclusion, your outsourcing journey will succeed only when you as a business recognize the importance of cultural compatibility. As you consider your outsourcing options, don’t forget that a multicultural workforce fosters collaboration, drives financial success, and attracts top talent.
Top outsourcing destinations like the Philippines, with their English proficiency and cultural alignment, offer a promising avenue for businesses aiming to leverage the power of diversity in their offshore endeavors.
FGC+ is happy to provide exceptional outsourced teams from the Philippines, enabling you to reach your business goals and transform your business’ potential. Explore our services at www.fgcplus.com, or estimate your potential savings through outsourcing with our Cost Savings Calculator.