Tapping the Cultural Knowhow for Growth
By Dr Belle Lim, Associate Director, MindTribes
The diverse, 6.5-million-strong Asian diaspora represents a vast, underutilised opportunity in Australia’s productivity growth. Despite apparent diversity in the workforce, the cultural literacy of Anglo leaders, who overwhelmingly still fill executive offices and board rooms, remains low. Perhaps not surprisingly, this implicitly forces Asian employees to mask their identities to fit into workplace norms. This failure to leverage the cultural insights and diverse perspectives of Asian employees is a missed, costly opportunity for Australian businesses.
Cultural and racial literacy gap
Our work at MindTribes, reveals that while leaders often rate themselves as comfortable discussing race, culture, and racism, this comfort vanishes when confronted with the real-life experiences of their racially diverse employees. This cognitive dissonance exposes a troubling gap in cultural and racial literacy.
Without fail, leaders react to the insights we gathered about the experience of structural and behavioural racism shared by Asian employees with surprise and shock, a sign that racially diverse employees have accepted a certain level of discrimination as part and parcel of being in the workplace. The follow up responses from leaders are crucial. They commonly range from sadness and disappointment to disbelief and defensiveness. When leaders are motivated by this knowledge to act constructively to dismantle barriers for Asian employees, the level of trust increases, and employees find an enhanced sense of belonging in the organisation.
Sometimes, leaders respond defensively, driven by persistent low racial literacy and closed-mindedness. This is a high-risk scenario where they reinforce the lack of cultural safety for Asian employees in the organisation. The result is that Asian employees are faced with the choice to double down on their masking at work or start to withdraw and seek to leave the organisation – or both. The lack of inclusion undermines any efforts to improve diversity of voices and ideas.
Covert racism and lack of voice
Covert racism is prevalent in Australian workplaces. Asian and other racially diverse employees face subtle discrimination in recruitment, development opportunities, and daily interactions. This gap between stated pursuit of equity and practice is glaring. It has considerable impacts on their career progression and psychological safety.
Our data shows that Asian employees frequently perceive their career progression as stymied by biases and stereotypes, making them less likely to be promoted or offered leadership roles compared to Anglo-Saxon peers. Structural barriers such as biased recruitment processes, Western leadership preferences, and limited mentorship continue to hinder Asian employees' career progression. Indeed, the 2024 Board Diversity Index shows only 6.6 per cent of board members in Australia come from culturally and linguistically diverse, non-European backgrounds.
Additionally, Asian employees often report feeling invisible and undervalued, with their contributions overlooked and pressure to conform to Western norms. This perceived unfairness and disempowerment lead to disengagement and loss of wellbeing, hindering innovation and growth. Organisations that turn a blind eye to unfair, discriminatory practices also risk breaching their positive duty under workplace health and safety legislation.
Accountability and group dynamics
Leaders often deflect responsibility for fostering inclusivity to human resources or seek additional data before acting, as a way of delaying actions. This deflection is often a sign of fear out of not knowing how to deal with race-related issues, and/or their failure to prioritise the safety and wellbeing of their Asian colleagues. In both cases, it highlights the need for better cultural competency and capability for leaders understand their blind spots, know how to counter bias, and create psychologically safe environments.
It is also worth noting that individual leaders’ mindsets and behaviours are influenced by the broader leadership team and their peers. Leaders must be mindful that groupthink and hierarchical influences can suppress diverse perspectives in all kinds of discussions. Creating safe spaces for open dialogues about race, culture, and inclusion from the top is crucial for encouraging Asian employees to share their experiences without fear of retribution.
Inclusion matters. Leaders must take full responsibility for creating an inclusive organisational culture where everyone can bring their full value and potential to work. Tapping into the cultural knowledge of the Asian diaspora drives innovation, enhances problem-solving, and boosts productivity. Conversely, failing to leverage this diversity perpetuates biases, stifles creativity, and limits organisational growth in a competitive global market, particularly given the emerging fragile geopolitical context.
Implications of low/lack of cultural awareness and literacy
KNOWN TO
AUSTRALIAN ORGANISATIONS
NOT KNOWN TO
AUSTRALIAN ORGANISATIONS
KNOWN TO ASIAN EMPLOYEES
Open Area (Shared Knowledge)
Openly shared knowledge, values, and practices, fostering mutual understanding and collaboration
- Business Practices: Shared understanding of meeting etiquette, such as punctuality and preparation. Common language usage in professional settings, like English as a business language.
- Cultural Celebrations: Joint participation in cultural events of different Asian diaspora groups. Company-wide celebrations of cultural diversity days.
- Promotion of Diversity: Organisations often promote diversity through policies and initiatives like diversity statements and training programs that highlight the importance of a diverse workforce but may lack depth in addressing the real issues faced by Asian employees.
Open dialogue and shared experiences can increase mutual understanding and expand open area.
Blind Area
Cultural insights that Anglo-Australians might not be aware of about themselves but are recognised by members of the Asian diaspora; and cultural aspects that Asians are aware of but choose not to share with other Australians due to fear of judgment or misunderstanding
- Implicit Bias and Stereotyping: Australians may not realise that their hiring and promotion practices favor those who fit Western norms, inadvertently excluding Asians. Leaders might be unaware that their assumptions about communication styles can lead to unfair assessments of Asian employees’ contributions.
- Cultural Sensitivity: Anglo-Australians may not recognise that their casual approach to sensitive topics can be perceived as disrespectful or dismissive by Asian colleagues. They might not see that their emphasis and expectations on individualism can conflict with the collectivist values of many Asian cultures.
- Cultural Identity and Practices: Asian employees may hide cultural practices or traditional dress to avoid standing out or being judged. Asians might not share their cultural holidays or religious observances, fearing they might not be respected or accommodated.
- Personal Challenges: Asian employees might not disclose experiences of racism or discrimination, fearing backlash or being perceived as complainers. Asians may downplay their difficulties in adjusting to Australian workplace norms, which can lead to feelings of isolation.
Through genuine productive cultural exchange, Anglo-Australian leaders can receive feedback and become aware of their blind spots.
NOT KNOWN TO ASIAN EMPLOYEES
Hidden Area
Cultural aspects and advantages that Anglo-Australians are aware of due to their dominant cultural position, but which Asian employees may not recognise
- Access to Informal Networks: Anglo employees may have access to informal networks and social and professional connections that are not as readily available to Asian employees.
- Cultural Norms and Behaviors: Anglo leaders might be aware of the expected leadership styles and communication norms that align with Western preferences, giving them an advantage in professional settings.
- Opportunities for Visibility: Anglo employees may be more likely to be included in high-visibility projects and roles, providing them with opportunities to showcase their skills and advance their careers.
Recognising, challenging, and dismantling unfair processes and behaviours are crucial in enhancing inclusion and equity for Asian employees.
Unknown Area (Areas of Mutual Ignorance)
Cultural traits, behaviours, or knowledge that neither groups are aware of
- Innovation Potential: Collaborative projects might reveal unique problem-solving approaches that neither Australians nor Asians had considered independently. Joint ventures could uncover new market opportunities that leverage the strengths of both cultures.
- Learning Opportunities: Cross-cultural training sessions can highlight previously unrecognised competencies, such as negotiation styles or conflict resolution techniques. Exchange programs might reveal hidden talents or skills in employees that can be nurtured and developed.
- Synergistic Practices: Combining different cultural approaches to teamwork could lead to more effective project management strategies. Blending Asian meticulousness with Australian pragmatism might result in innovative products or services.
Through continuous learning and interaction, these unknowns can be discovered and explored.
Dr Belle Lim is an Associate Director at MindTribes, a specialist diversity, equity and inclusion consulting firm that work extensively with senior leaders and racially and ethnically diverse employees across private and public organisations.
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