Corporate relocations of employees has drastically increased over the last decade with more and more companies deciding to send their employees abroad. The reason motivating Human resource departments to relocate employees is often to address imbalances in their work forces, however it can also stem from a need to hire new employees for a new location or as a way to develop an employee’s competencies to improve their career path.
As mentioned in our previous article Global mobility: beneficial for both employees and employers, relocation is beneficial to all parties and increases a company’s effectiveness and productivity. However, a key factor that is often overlooked is the fact that it brings diversity to the workforce.
A Gallup study of more than 800 units from two companies from two different industries showed that businesses with a more gender diverse work force have on average 57% better financial outcomes overs workforces dominated by one gender.
Gender diversity is not the only type of diversity in the work place that leads to beneficial results. An age neutral work force, where different generations work hand in hand can lead to better communication between different age groups and the business reaps the benefits of the strengths and values of each group.
According to research led by the Harvard Business school, companies with diverse work forces made 18 to 69% more net income and 91% reported that customer satisfaction was higher. Sales performance was also proven to be higher at companies with a diverse team.
Through diversity a company appeals to a larger customer base, which improves the image of the business. Furthermore, this diversity allows the company to have different perspectives on issues both internally and externally and source ideas from a larger more creative group. Diversity in a work force also proves that the company does not discriminate which can increase its appeal to new candidates.
Increasing diversity in a work force can be a challenge as conflicts between the different members of the group can occur. Differences in opinions and work styles can lead to difficulties with teamwork and unproductive arguments.
By communicating with the workforce and giving all employees time to adapt, the difficulties companies encounter should be minimized. Relocating employees and adding more diversity to a business are a great way to improve effectiveness and are worth considering.