BCG study: Cultural diversity strengthens affiliation and corporate success

The debate on diversity has long since left the fundamental issue behind: Managers in Germany, Austria and Switzerland recognize the importance of diversity on a broad basis. Nevertheless, one central aspect remains largely ignored: cultural and ethnic diversity. It is all too often reduced to demographic characteristics, yet it has a major influence on the way people think, work together and perform.

In a recent survey on ethnic and cultural diversity in the DACH region, the Boston Consulting Group (BCG) examined the influence of different cultures within companies on the attitudes and sense of belonging of employees and the success of the organization. To this end, BCG surveyed more than 1,000 specialists and managers from the DACH region.

Diversity is already a reality in the DACH region

Workplaces in Germany, Austria and Switzerland already bring together a wide range of cultural and ethnic backgrounds. Just under a quarter of respondents categorize themselves in more than one cultural context of origin, while almost half have no roots in the DACH region. The majority come from other European countries. Overall, the respondents are spread across 16 regions worldwide - from Europe to Asia and North Africa.

Of the approximately 950 respondents, 46 percent stated that they work in very diverse teams in which at least half of the members have different cultural and ethnic backgrounds. 35 percent work in teams with a medium level of diversity. Overall, around 80 percent of employees work in diverse teams with a noticeable cultural and ethnic mix. When asked whether diversity and inclusion have become more important in their company over the past three years, 52% stated that they had become more important or somewhat more important.

Diversity promotes authenticity for all

The data shows a recognizable pattern: in more diverse companies, people feel freer to be themselves. In companies with a high level of cultural and ethnic diversity, 70 percent of employees state that they can fully contribute at work - in environments with a low level of diversity, this figure is only 59 percent. This effect is particularly pronounced among employees without a DACH background: their well-being increases from 42% to 63%. The authenticity of team members from the DACH region also improved from 66% to 75%.

At the same time, this comparison shows how much development potential still exists. Less than half of employees without a DACH background feel confident enough to bring their own personality fully into the workplace. There is a noticeable inclusion gap of 12 to 24 percentage points between employees who come from the DACH region and those who do not have a DACH background. Qualitative feedback confirms this picture and points to experiences with stereotypes and cultural attributions, for example in relation to language or origin.

Majority society recognizes the value of diversity

Across all areas, employees most strongly associated the benefits of diversity with creativity and innovation, attractiveness as an employer for top talent and employee engagement. Similarly, a majority recognized diversity as a driver for better market understanding and deeper customer insights. The corporate context plays a decisive role here: in organizations with a higher level of team diversity, more employees are convinced that diversity has a positive impact in almost all areas.

Contrary to popular belief, the study shows that in many areas, employees from the majority society (DACH) in particular often recognize diversity as a driver of entrepreneurial success. In highly diverse companies, employees from the DACH region even rate the contribution of diversity to creativity, decision-making quality and market understanding higher than their colleagues with an international background - in the area of customer understanding, the difference is up to 16 percentage points.

"Being noticed is one of the strongest motivating factors for people. An inclusive environment takes people seriously - it listens to what is important to them, what interests them and what they bring to the table. This creates a real win-win situation between the company and its employees," says a Chief People Officer of a European mobility company.

Three fields of action for managers

The BCG study identifies three central fields of action: Firstly, beliefs should be translated into everyday actions. Create teams in which differences are visible and collaboration actually takes place - bring different perspectives together in projects, rotate responsibilities and ensure that employees experience the benefits of diversity directly.

Secondly, it is important to win over majority employees as active supporters. The data shows that employees from the majority community are often particularly convinced of the benefits of diversity. This potential must be exploited by involving them as credible ambassadors for diversity.

Thirdly, perception should be measured, not just counted as belonging. Pure representation figures show who is in the room - but they say little about how employees experience their working environment. Therefore, regularly record assessments of affiliation, authenticity and perceived fairness.

Cultural diversity goes beyond mere representation; it generates conviction, promotes authenticity and increases performance. Companies that embrace cultural diversity reflect a constantly evolving world - and are also pioneers of this development.