Value of Diversity and Multiculturalism in Business Essay

Value of Diversity and Multiculturalism in Business - Essay Example Diversity and multiculturalism in workforce produce a wide range of considerable benefits for companies. As Holt (2013) states, â€Å"Workplace diversity elevates companies because it provides many different perspectives during decision making, broadens the companys re ach in the market and allows everyone an equal chance to advance†. Some of the main benefits that a company can get by hiring a diverse workforce include improved economic growth, improved share of consumer market, reduced employee turnover costs, increased synergy in teams, and increased levels of productivity and profitability. However, proper employee training is the key to obtain the maximum workforce diversity benefits (Sammour & Karp, 2000). Employees from different ethnic and cultural backgrounds usually have good relationships between them (Kundu, 2003). One of the main benefits of hiring a diverse workforce is that it increases the business of a company in international markets. The reason is that diverse workforce is able to communicate with international business community in an effective manner. Communication is one of the main barriers for a company in achieving international success. However, this issue can be resolved by hiring employees with different cultural and ethnic backgrounds because such employees are able to communicate effectively with citizens and business professionals of foreign countries. A diverse workforce is also able to resolve complex business problems using critical thinking approach. A multicultural workforce is able to understand the political and legislative issues of different countries, as well as the norms and values of different cultures and that understanding helps in growing the bu siness in international markets in accordance with those cultural and political limitations. Moreover, multiculturalism also helps businesses in making