When managed well, diverse teams are typically more productive and innovative than broadly homogenous ones. A 2023 global study by McKinsey found diverse companies were 39% more likely to be in the top quartile of financial performers, although it can take work to achieve. 

"Evidence suggests that homogenous teams in the early stages outperform diverse ones. When bringing together people of different perspectives, experiences, backgrounds, thinking and communication styles it can initially feel disruptive or disjointed," says Baker Tilly Staples Rodway Hawke's Bay Human Resources director Andrea Stevenson. 

"However, diverse teams, when well managed by inclusive leaders, can significantly outperform well-managed homogenous ones over time.”

So, what’s the answer to helping diverse teams perform at their best, right from the start?

Andrea says inclusive leadership is a huge factor. 45% of employees in one Catalyst study consider managers’ ability to lead effectively can be attributed to how they provide an inclusive experience. "There are four simple things that make a real difference to how people from all backgrounds perform as a team – feeling welcomed, feeling valued, feeling included and feeling connected," she explains.

Addressing communication barriers

Baker Tilly Staples Rodway Auckland Audit & Assurance Services partner Reina Banno has seen how this works in practice. The audit team has taken on new members from Fiji, South Africa, Sri Lanka, the Philippines and various European countries during the past few years.

While it was a requirement that all employees be able to communicate well in written and spoken English, some initial barriers were noted. "In my own Japanese culture, traditionally, speaking out in meetings or interrupting is seen as rude. Even though I’ve lived in New Zealand since I was nine, I still feel hesitant at times," she says.

"To promote inclusion, we introduced a rotating chairperson policy in management meetings so that everyone can experience ownership and has a chance to drive positive change from their own unique perspective. We also record all trainings so people who may have missed things can review the content afterwards."

Our network is also using AI tools such as Microsoft Copilot across the network, to boost the efficiency of email writing and help speakers of other languages achieve the right nuance.

Efforts have also been made to understand the unique challenges migrants face. Flexible leave policies allow members to work remotely where practical, enabling them to return overseas to look after unwell parents when needed. While this won’t be possible in every workplace, Reina says any challenges this presents, such as juggling responsibilities among other team members, are far outweighed by the benefits of having diverse perspectives and increased staff retention.

"We think a culture of having each other’s backs and being confident to try new things and approach them differently is important – and it’s seen real results. When staff members from Sri Lanka joined us recently, they introduced us to a range of digital tools they regularly use. We took the time to understand and adapt our audit procedures to incorporate these, and it boosted the productivity and efficiency of our processes," she says. 

Building cultural competence

Andrea agrees being willing to learn and be influenced by others is key to leading inclusive teams, as is providing ongoing learning opportunities related to diversity and inclusion.

"Cultural competence is the ability to understand and interact effectively with people from other cultures. It’s fair to say that you can probably never be fully competent in anyone’s else’s culture. However, as leaders, having humility around this and around others is a great step," she says.

"To have a level of cultural competence, you need a basic understanding of your own culture, a willingness to learn about the cultural practices and worldviews of others, a positive attitude toward differences and a readiness to accept and respect those differences. None of us are inherently culturally competent in every case – it requires work.”

Even small things such as celebrating different cultural occasions can make a big difference to how teams work together, fostering understanding. The network’s Hawkes Bay team recently celebrated South Indian festival Onam with shared food, games and an educational component to help everyone learn more about it. 

A truly inclusive environment is now non-negotiable for today’s businesses, and the future of the country will be far more diverse still. A quick glance at the latest census data shows the Indian community is now the third-largest in the country, the Filipino community has grown by nearly 50 per cent since 2018 and the Pasifika community is growing twice as fast as the rest of the population.

"As leaders and organisations, embracing diversity and adapting to other cultures will ensure a sustainable business. The talent shortage has at least taught us that," Andrea says.

"If leaders take the right steps, from challenging their unconscious or more accurately ‘unexamined’ bias, to understanding and talking about how inclusion connects to their mission as a business, to being willing to challenge their thinking and practices, the dividends from greater cohesion, productivity and staff retention will be significant."

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