Cross-Border Catch-Up: Cultural Sensitivity in the Global Workforce

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Skye Hao: Welcome to the Cross-Border Catch-Up the podcast for global employers who want to stay in the know about cutting-edge employment issues worldwide. My name is Skye Hao, and I’m here with my colleague Kate Thompson. We’re cross-border attorneys here at Ogletree, and today we are diving into critical topics—cultural sensitivity in global employment policies. In our increasingly interconnected world, understanding and respecting cultural differences isn’t just a nicety, it’s a necessity for organizational success. Kate, thank you so much for joining us today.

Kate Thompson: Of course, Skye, thank you so much for having me.

Skye Hao: Let’s start with the basics. So why is cultural sensitivity so important in global employment policy? Kate, do you mind answering that?

Kate Thompson: Great question. Thank you, Skye. So, cultural sensitivity is essential because it fosters an inclusive and a respectful work environment and when organizations acknowledge and respect cultural differences, then that can help to improve their communication; it can enhance their team morale and cohesion in the workplace, and it also can increase employee engagement, which is really important for companies. So, for instance, understanding that some cultures value indirect communication can actually help prevent misunderstandings in the workplace and actually promote effective collaboration.

Skye Hao: Thanks, Kate. And that makes so much sense. So, it’s not just about avoiding misunderstanding, but also build a more cohesive and productive workforce. So, how can organizations implement culture sensitivity in their employment policies?

Kate Thompson: Another great question. So, there are really several strategies that organizations can adopt to try and achieve this. The first is try to conduct a cultural competency training, and this is really a regular training program that will help employees understand what’s an unconscious bias, how can we improve cross-cultural communication skills, and how can we just overall encourage inclusive practices?
Another great tip is to localize policies and procedures. So, while it’s really essential to a lot of companies to maintain their core company values, policies related to, for example, recruitment or maybe performance evaluations and also just professional development in the workplace, maybe those are policies where you might want to consider them to align with what are your cultural norms and what are the legal requirements in those jurisdictions.
Another good strategy is to establish clear communication guidelines. So, nonverbal communication, that’s going to vary across cultures. So, establishing clear communication guidelines that will really help to mitigate any misunderstanding and then ensure that you’re having effective interactions with your employees.
And then last but not least, another good strategy is to consult with your local experts. So, you want to collaborate with your local HR professionals or consultants that can provide really valuable insights into those cultural nuances that exist in certain regions. So, this expertise by local experts that can really help to guide the development of policies that you want to include in your handbooks or just generally in your workplace. And by working with a local expert that’s going to ensure that your policies are not only legally compliant, which is always our goal, but also culturally appropriate. And finding that balance is sometimes hard, but I think by implementing these strategies, it’s a great step that employers can take to do so.

Skye Hao: Yeah, thanks, Kate. This is super helpful. So, those strategies have the potential not only to streamline the internal operation, but also significantly elevate the company’s reputation in the eye of external stakeholders. And my next question will be, so what role does leadership play in promoting culture sensitivities?

Kate Thompson: So, leadership is so pivotal in trying to foster a culturally sensitive workplace. So, as we all know, leaders set the tone for organizational culture, and they have so much influence over the adoption of inclusive practices and policies in the workplace. So, when you have leaders who show their commitment to promoting cultural sensitivity, that really not only shapes the employee experience, but it’s going to impact overall organizational performance. So, just to give you an example, leaders who demonstrate cultural sensitivity, they set an example for their teams, their actions, their decisions, the way they communicate, especially as it relates to the importance of embracing diverse perspectives. Overall, leadership plays an absolutely crucial role when we’re talking about cultural sensitivity in the workplace and policies.

Skye Hao: That’s really interesting. So, leadership’s dedication to culture sensitivity has the power to actually profoundly shape the organization’s culture in driving meaningful changes and pave the ways of lasting success. With that said, can you share a real-world example of culture sensitivity in action?

Kate Thompson: Yeah, definitely. So, let’s say we have a global tech company who’s headquartered in the U.S., they’re trying to expand their operations into, let’s use India right now for all intents and purposes, and now they have a handbook in place that includes a policy that says, it prohibits gift giving to clients. However, in India, maybe gift giving is a customary practice like during festivals or significant life events, and that company’s policy inadvertently maybe it causes discomfort among Indian employees and clients, so to address this, the company is going to revise their policy to allow modest gift giving during culturally significant occasions to ensure compliance with local customs while also maintaining those ethical standards. So, at the end of the day, this small adjustment to a policy, it not only improved employee morale, but it also at the end of the day helps to strengthen their client relationships.

Skye Hao: So, with that said, what are the potential consequences of ignoring cultural sensitivity in employment policies?

Kate Thompson: Yeah, so I think that there’s a few that I’ll want to highlight. So, when we fail to consider cultural differences, that can really lead to various challenges. So, first of all, we have our legal issues. It could be non-compliance with local labor laws that potentially can carry significant penalties or damage to the reputation of the company. You can also have employee disengagement. So, employees who feel like their cultural norms are not respected, maybe they’re disengaged, which is going to lead to decreased productivity and high turnover rates, which we don’t want that, and companies don’t want that.
And last is brand damage. So, if there is publicized cultural insensitivities that exists, that can harm the company’s brand and also customer loyalty. So, that’s why it’s really crucial to make sure that we’re integrating the cultural sensitivity into the global employment policies. And don’t view it only as a legal obligation. Of course, we want to make sure that is our priority, but also make sure that it’s a strategic imperative for organizational success. I think that if that’s the angle that you come at this with, then you’re really setting yourself up for success as an organization.

Skye Hao: Yeah, it seems like the culture sensitivity is not just a nice to have, but it’s a really key component of a successful global strategy then.

Kate Thompson: I completely agree.

Skye Hao: As we wrap up, what does the future hold for culture sensitivity in global workplaces?

Kate Thompson: Yeah, so I think that really looking ahead, it’s only going to grow in importance, especially with remote work, with global teams, with companies who are expanding into international markets, companies really are going to have to increasingly integrate cultural intelligence into all aspects their operations. So, we’re seeing a shift from reactive adjustments to proactive adjustments where companies are embedding inclusivity into their technology, their policy development, and their leadership training from the start.

Skye Hao: That’s really exciting. So, it’s about to go beyond awareness to creating systems that naturally support cultural inclusion?

Kate Thompson: Exactly. And I also think that tools powered by AI, that’s such a hot topic, especially in the world that we live in today and those types of tools, they’re actually being used to flag bias language where maybe companies are setting up cross-cultural mentorship programs and the global employee resource groups. So, the organizations that thrive will be those that are seeing this cultural sensitivity not just as a checkbox, but really as a dynamic and a strategic advantage.

Skye Hao: Yeah, that makes so much sense. So, it’s clear that cultural sensitivity isn’t just about today, it’s about building future-ready organizations.
Thanks for everyone, we have explored the importance of cultural sensitivity in global employment policies, and discuss strategies for implementation. Remember, in a globalized world, respecting cultural differences is key to build a harmonized and productive workplace. To everyone, thank you so much for joining us for today’s Cross-Border Catch-Up. Please follow us, stay in the know about cutting-edge employment issues worldwide.

Announcer: Thank you for joining us on the Ogletree Deakins podcast. You can subscribe to our podcast on Apple Podcasts or through your favorite podcast service. Please consider rating and reviewing so that we may continue to provide the content that covers your needs. And remember, the information in this podcast is for informational purposes only and is not to be construed as legal advice.