Globalization is a process where organizations take their businesses to an international stage. In today’s world, companies are more interested to operate on a global scale as they find that, there is demand for their products. There is also another reason behind this phenomenon. The prices of raw materials also vary all over the world. Different countries offer different tax breaks to companies too. Keeping all these factors in mind, companies find it a very profitable venture to open their offices in different parts of the world.
This creates an interesting situation. While getting more inexpensive raw material and tax breaks is fine, a company soon realizes that it’s impractical to send its entire workforce from their home-state to another country. The logistics just won’t add up. So, what they do is, they tap into the abundant local labor in that country which works both ways. It reduces the upfront capital of the company, as well as provides employment opportunities to the locals. However, to get people work together so that there is one common output, the company has to send supervisors who can instruct the indigenous people on the specifications and designs. This creates a diverse workplace by default.
In today’s world, talent shortage is a huge issue when every other company is offering extremely competitive wages. Organizations now know that, they have to attract, motivate and retain their talent force. Increasing diversity in the workplace not only increase turn-over but also reduces absenteeism.
Globalization has also brought in a wave of increased product awareness and consumer need. Companies now know that their products can have an appreciable market demand in a country that’s far away from the place they are located in. They understand that they have to employ people from various backgrounds so that they can connect better with different markets that they are familiar with, and increase the business potential of the company.