Cross-Cultural Leadership: Leading

a Diverse Workforce
November 20, 2020

Whether you’re leading a global team of culturally diverse individuals or

overseeing an office in a foreign country, you may face unique management
obstacles, from communication and decision-making to motivation and
teamwork. Managers and leaders can take steps to develop cross-cultural
leadership skills to work through the challenges of managing diverse teams
of different cultures, ethnicities, religions, and races.

To learn more, check out the infographic below created by Maryville

University’s Online Bachelor of Arts in Organizational Leadership program.
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The Growth and Benefits of Cultural

Diversity in the Workplace
Workplaces around the world are becoming more diverse as individuals
immigrate and relocate.

Statistics Highlighting Diversity Around the Globe

A Pew survey of more than 30,000 people in 27 countries found that nearly
70% of respondents said their countries have become more diverse over the
past 20 years. In 2017, there were 66.2 million expatriates around the world,
according to the most recent data from market research firm Finaccord.
Some 71.1% of these individuals were workers, and 14.1% were non-
employed spouses and children. Students made up 8.5% of the pie, and 1%
were associated with corporate and other transferees. Some of the countries
with the largest expatriate populations included Saudi Arabia, the United
Arab Emirates, and Germany.

Finaccord also projects an increase of expatriates between 2017 and 2021,

from 66.2 million to 87.5 million. Additionally, the number of multinational
enterprises worldwide is predicted to grow by 3.2%, reaching 13,900.

Furthermore, market research company Technavio reports that between

2020 and 2024, the global market for cross-cultural training services is
expected to expand by $1.2 billion. Reasons for this growth include
increased expatriate assignments, a growing emphasis on corporate cultural
awareness, and new opportunities due to COVID-19.
Ethnic Composition of the American Workforce,
2018
White (non-Hispanic or Latinx) individuals make up 63% of the country’s
workforce. Another 17% of the workforce is Hispanic or Latinx; this figure
consists of 61% Mexican, 10% Central American, 8% Puerto Rican, 7% South
American, 4% Cuban, and 9% other countries or regions of origin. Black (non-
Hispanic or Latinx) individuals make up 11% of the American workforce.
Another 6% of the workforce consists of Asian (non-Hispanic of Latinx)
individuals; this figure breaks down to 24% Asian Indian, 22% Chinese, 15%
Filipino, 11% Vietnamese, 7% Korean, 5% Japanese, and 16% other countries
of other origin. These groups are followed by American Indian and Alaska
Native (1%), Native Hawaiian and other Pacific Islander (0.5%), and two or
more races (2%).

The Benefits of Culturally Diverse Teams

There are numerous advantages to embracing culturally diverse teams. One
of these benefits includes greater innovation, as companies with diverse
workforces are 1.8 times more likely to embrace change and are 1.7 times
more likely to be market leaders. Another perk is improved employer
reputation; a ZipRecruiter survey indicates 86% of job candidates consider
workplace diversity important when seeking a new job.

Other key benefits include increased creativity, collaboration, productivity,

and engagement. These ultimately can coalesce into increased profits, as
companies in the top quartile for racial and ethnic diversity are 36% more
likely to have financial returns that exceed their respective industry medians.

Complex Challenges in Cross-Cultural

Leadership
Business leaders in multicultural environments must confront challenges and
obstacles.

7 Challenges for Cross-Cultural Leadership

One of the key challenges facing cross-cultural leaders is working with
differing communication styles and forms of expression utilized in different
cultures, such as the use of open-ended questions. Another challenge
involves understanding diversity in the individual frame of reference, such as
geographic location, childhood experience, and educational opportunities. A
third challenge involves adjusting to work styles dictated by cultures, like
work schedules and acknowledging vacation expectations.

Business leaders must also learn how to navigate differences in motivational

factors, such as considering the personal values of employees when creating
team goals. Additionally, business leaders must be prepared to address
prejudice and cultural stereotypes. Another challenge involves overcoming
cultural and language barriers. Finally, business leaders must understand
varying expectations toward respecting hierarchy and status.

How to Improve Your Cross-Cultural

Leadership Skills
Every leader can take steps to identify their weaknesses in cross-cultural
leadership and commit to improving their skills.

10 Tips for Cross-Cultural Leadership Success

An important step leaders can take to move toward effective cross-cultural
leadership is to obtain an external assessment of their competence as a
leader and communicator. It’s also important for leaders to be curious and
open to adjusting their leadership style. Additionally, leaders must remain
nonjudgmental when dealing with conflict. Another key tip for leaders is to
have one-on-one conversations with employees to learn about their decision-
making processes. It’s also important to minimize the language barrier by
avoiding colloquialisms and slang.

Leaders should also work to accommodate an employee’s cultural customs.

Additionally, leaders should avoid creating artificial divisions and focus on
building commonality-driven relationships. It’s also crucial for leaders to
understand that the smallest unit of any culture is the individual. Leaders
should also constantly strive to respect differences. Finally, it’s important for
leaders to foster a sense of community in the workplace.

Striving Toward Better Leadership

As leaders improve their cross-cultural leadership skills, they will
undoubtedly make mistakes. Rather than becoming discouraged, leaders
should seek to learn from every misstep or error and remain committed to
growing personally and professionally.

Sources
Association for Talent Development, The Simple Key to Cross-Cultural
LeadershipExternal link:open_in_new
Business News Daily, How to Best Lead a Multicultural or International
TeamExternal link:open_in_new
Business Wire, Global Cross-Cultural Training Market 2020-2024 – Rise in
Expatriate Assignments to Boost Market Growth – TechnavioExternal
link:open_in_new
ExpatNetwork, Number of Expat Workers Over One Million by 2021External
link:open_in_new
Finaccord, Global Expatriates: Size, Segmentation and Forecast for the
Worldwide MarketExternal link:open_in_new
Forbes, The Benefits of Cultural Diversity in the WorkplaceExternal
link:open_in_new
Harvard Business Review, Being the Boss in Brussels, Boston, and
BeijingExternal link:open_in_new
Harvard Business Review, 3 Ways to Improve Your Cultural FluencyExternal
link:open_in_new
Houston Chronicle, Diversity for Groups & Teams in the WorkplaceExternal
link:open_in_new
Houston Chronicle, Effects of a Cultural Stereotype in the WorkplaceExternal
link:open_in_new
Josh Bersin, Why Diversity and Inclusion Has Become a Business
PriorityExternal link:open_in_new
McKinsey & Company, Diversity Wins: How Inclusion MattersExternal
link:open_in_new
Pew Research Center, A Changing World: Global Views on Diversity, Gender
Equality, Family Life and the Importance of ReligionExternal
link:open_in_new
PR Newswire, Over 86% of Job Seekers Say Workplace Diversity Is an
Important Factor When Looking for a JobExternal link:open_in_new
U.S. Bureau of Labor Statistics, Labor Force Characteristics by Race and
Ethnicity, 2018External link:open_in_new