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Pros & Cons of Diverse Work Backgrounds

The Power of a Patchwork Career: Unpacking the Pros & Cons of Diverse Work Backgrounds.

5^th August 2024 by Mark Holt

Elmer the Patchwork Elephant (image may be subject to copyright).

While organisations spend a lot of time on obvious diversity characteristics such as gender and race, we're big belivers that creating a diverse workforce needs to embrace diversity in all it's forms.

We've already written about neurodivrsity, menopause, generational diversity, mental health and social mobility, but one super-interesting, and often looked characteristic is understanding whether our employees having a diverse work background. i.e. have they traversed industries, company sizes, and even geographical locations

When junior members of staff ask me "what should I do to enhance my career", my answer is always the same: "Go and learn as much as you can. Work for a big company, work for a startup, work for a scale-up; work for a B2b SaaS business, work for an investment bank, work for a b2c retailer; work for an American company, and a British company; oh but never work for a French company 🤣".

Consequently, our constantly evolving EDI Survey Questions include questions on our colleague's work background.

Fun Fact: Across thousands of Divrsity EDI surveys, organisations in the Property sector are consistently the worst for employing colleagues who have only ever worked in the property sector.

In this article, we'll delve into the positives and negatives of having a team with diverse work experiences, backed by insights from UK-based research and studies.

The Power of Diverse Work Backgrounds: Unlocking Benefits

1. Innovation and Creativity Boost

A workforce with diverse work backgrounds can be a hotbed of innovation and creativity. Each person brings unique insights, exposing the organisation to a range of practices, processes, and ideas. According to the constantly cited McKinsey report, UK companies with above-average diversity had a 53% chance of reporting higher-than-average profitability. By fostering an environment where employees can share their diverse experiences, organisations can encourage creative problem-solving and innovative thinking.

For example, consider an employee who has worked for both a large corporate bank and a small fintech startup. They could introduce innovative ideas to a mid-sized financial services firm by blending the stringent security practices of the former with the agile decision-making and customer-centric design typical of the latter. This cross-pollination of ideas can drive significant improvements and unique offerings in an increasingly competitive market.

2. Enhanced Problem-Solving

Employees with diverse work backgrounds can approach challenges from multiple angles, enhancing problem-solving capabilities. They bring a range of skills and strategies gained from navigating various work cultures and systems. For instance, someone who has worked for both a well-established public sector organisation and a dynamic tech scaleup will have experienced contrasting ways of working, managing stakeholders, and making decisions.

This diversity in problem-solving approaches can be especially beneficial when organisations face complex issues that require adaptability and flexibility. By embracing these varied experiences, employers can encourage collaborative solution-finding, leveraging the best practices from different sectors.

3. Broader Skill Sets and Knowledge Transfer

A diverse workforce facilitates knowledge transfer across industries and domains. Employees with a range of work backgrounds can bring unique skill sets and expertise to their teams, enhancing overall capability. For instance, an employee joining a retail business after working in hospitality may introduce superior customer service skills or effective upselling techniques learned from that industry.

Additionally, those who have worked across small, medium, and large companies can offer insights into the advantages of each setup—such as the agility often found in smaller firms versus the structured processes common in larger enterprises. This knowledge sharing can help organisations identify and implement best practices to improve efficiency and performance.

3. Access to Extended Networks

A team with diverse work backgrounds can tap into an expansive network of contacts across different industries and company sizes. This extended network can facilitate valuable connections, partnerships, and business opportunities.

4. Adaptability and Resilience

Employees with a diverse work history are likely to possess a higher degree of adaptability, benefiting organisations operating in dynamic markets [5]. They have navigated different workplace cultures, structures, and hierarchies, developing resilience and the ability to handle ambiguity. This experience can be especially valuable during times of change or crisis when quick adjustments are needed to ensure business continuity.

For instance, an employee who has worked across various sectors may more easily adapt their sales approach based on whether they are dealing with a conservative financial services firm or an adventurous marketing agency, contributing to better client relationships and ultimately, improved revenue streams.

5. Enhanced Employee Engagement

A diverse work background can also contribute to employee engagement by providing a sense of challenge and continuous learning within the organisation. Employees can learn from each other's experiences, fostering a culture of curiosity and growth. This not only enhances individual performance but also contributes to improved teamwork as colleagues collaborate more effectively.

Additionally, when employees feel their diverse backgrounds are valued—and when organisations actively seek out their insights—a sense of belonging is fostered, leading to higher retention rates and increased productivity from a more committed workforce according to a 2017 report on employee engagement by the UK government.

The Challenges of Managing Diverse Work Backgrounds: Potential Drawbacks

1. Inconsistent Practices and Standards

While diversity brings varied perspectives, it can also lead to inconsistencies in how work is done. Employees may have differing opinions on processes, standards, and best practices due to their unique backgrounds [9]. For example, one person's experience of "effective communication" could vary significantly based on whether they are used to the formal structures of a large corporate or the casual, direct style common in small startups.

Such inconsistencies can lead to misunderstandings, especially if employees are not open to adapting their ways of working. To mitigate this challenge, organisations should establish clear guidelines and expectations while also encouraging flexibility. Providing opportunities for cross-functional collaboration and knowledge sharing can help align practices without stifling innovation.

2. Cultural Clashes

When employees join from different sectors or company sizes, they bring with them distinct cultural norms and values that could potentially clash. For example, an individual moving from a creative agency to a law firm may struggle with the more traditional and formal work environment. They might find the pace of decision-making frustratingly slow compared to their previous role, impacting their motivation and productivity.

Similarly, someone who has worked mostly in large corporates might feel lost in a small business setting where there is less structure and more autonomy. Employers need to be mindful of these cultural adjustments when onboarding employees with diverse backgrounds. Open conversations about expectations on both sides can help smooth the transition process for new hires.

3. Collaboration Complexities

While diversity brings different strengths, it can also create challenges in collaboration and teamwork due to differing communication styles and work approaches. For example, someone who has worked primarily in flat-structured startups might struggle to adapt to the more hierarchical decision-making processes common in larger corporates. This could lead to misunderstandings or delays in project delivery if not managed effectively.

To encourage effective collaboration, organisations should emphasise the value of diversity and provide training on how to leverage individual strengths for better team performance. Encouraging open dialogue about potential challenges and providing forums for cross-functional teams to align can also help improve overall collaboration.

4. Training and Development Needs

Employees with diverse work backgrounds may require additional training and development support as they adjust to their new roles, especially if they are moving across industries or functional areas. For example, an individual joining a data analytics team after working in marketing will need support to develop the technical skills required for their new role.

Organisations should invest in tailored training programmes that address specific skill gaps arising from diverse work histories. Mentorship and coaching can also play a crucial role in helping employees navigate their career transitions successfully. By offering this support, companies can ensure they are getting the best from their diverse talent pool while also boosting employee satisfaction and retention.

5. Resistance to Change

Despite the benefits of diversity, some individuals may resist change or be uncomfortable with new ways of working. They might prefer to stick to what they know, resisting input from colleagues with different backgrounds. This resistance can hinder innovation and create a negative work environment.

To address this challenge, it's important to foster a culture that values diversity and encourages experimentation. Leaders play a key role in promoting an inclusive environment where everyone feels comfortable sharing their ideas and experiences without fear of judgement or dismissal. Openly celebrating diverse perspectives through internal communications channels can also help reinforce the value of different work backgrounds.

Making It Work: Strategies for Success

1. Set Clear Expectations

To manage the challenges that come with diversity, it's important to establish clear guidelines and expectations. This includes defining company values, culture, and behaviours that are expected of all employees regardless of their background [19]. Setting these parameters will help ensure that while individuals bring their unique perspectives, they also understand the organisational framework within which they must operate.

2. Encourage Knowledge Sharing

Foster a culture of continuous learning by encouraging employees to share their experiences and insights. This can be done through mentorship programmes, cross-functional projects, or simply creating forums for open dialogue. For instance, regular "lunch and learn" sessions where employees from different backgrounds present on topics outside their team's expertise can help spread knowledge and build understanding among colleagues.

3. Embrace Flexibility

Rigid processes and structures may hinder the benefits of diversity. Instead, embrace flexibility by allowing diverse teams to adapt practices that work best for them while ensuring alignment with overall company goals. This could mean providing autonomy in decision-making or customising communication styles to suit different team dynamics without sacrificing quality or consistency.

4. Provide Support

Recognise the challenges of adjusting to a new role and provide support through tailored training programmes, mentorship, and regular check-ins. By addressing specific skill gaps arising from diverse backgrounds, you'll help employees feel more confident in their roles while also benefiting from their unique perspectives.

5. Celebrate Diversity

Promote an inclusive culture by celebrating the diversity of your workforce through internal communications channels such as newsletters or intranet sites. Highlighting employee stories and successes that showcase the value of different work backgrounds can help reinforce a sense of belonging among employees while also serving as an educational tool for others.

Conclusion

In conclusion, managing diverse work backgrounds presents both opportunities and challenges for organisations. By embracing flexibility, providing support, celebrating diversity, setting clear expectations, and encouraging knowledge sharing, companies can harness the power of different perspectives to drive innovation and improve performance. While cultural clashes and inconsistencies may arise, they can be mitigated through proactive leadership and a commitment to inclusivity at all levels.

The benefits of diverse work backgrounds are clear: increased creativity, improved decision-making, and enhanced problem-solving abilities among teams. By embracing these differences and implementing effective strategies for success, organisations can unlock the full potential of their workforce while also fostering a culture that values and respects individuality.