How language barriers lead to lower productivity 

Effective communication is crucial for business success. A Forbes study revealed that over 40% of senior executives attributed collaboration difficulties to miscommunication, while a similar percentage linked productivity issues to language barriers. 

Conversely, the study found that a resounding 80% of respondents believed employees were more productive when their managers communicated in their native language. 

Clearly, using local languages can significantly enhance communication in global businesses. Fostering clear communication with overseas workforces strengthens collaboration, and ultimately boosts productivity – a win for both HR and operations departments alike. Cultural 

Miscommunications in Global Workforces 

Communicating with employees in their native tongue goes beyond language itself; it’s about fostering a deeper understanding of cultural nuances and norms. Misunderstandings often stem not just from linguistic differences but also from divergent cultural practices and expectations. 

By developing a deep understanding of local languages and cultures, organisations can foster effective communication and collaboration between management and employees, and across global teams. This enables them to navigate potential cultural misunderstandings and build stronger, more productive relationships. 

The Institute of Labour Economics underscores this point, stating: “Organisations with a high degree of multilingualism – not to mention, an understanding of and respect for other cultures – will commit fewer mistakes and increase efficiency, productivity, and quality.”

Building Trust and Fostering ESG 

A shared language fosters trust and rapport. Research shows that a common language boosts collaboration, trust, and relationships. When employees can communicate effectively with their employers in their native tongue, they feel valued, respected, and more engaged. 

This translates into a positive impact on employee morale and satisfaction – a key focus for HR professionals. However, prioritising local languages isn’t just social responsibility, it’s strategic. By demonstrating a genuine commitment to employee well-being and success in their home countries, businesses can significantly enhance their reputations as employers. 

This, in turn, simplifies recruitment by making the organisation more appealing to top talent in local markets, which in today’s competitive landscape is crucial. Moreover, a strong ESG profile is essential for securing funding for international growth. Investors increasingly use ESG criteria to assess risk and long-term potential. 

By investing in language and cultural competence, organisations not only improve employee satisfaction but also strengthen their financial position and future-proof their business.