Benefits of cultural diversity and addressing racism in the workplace

Benefits of cultural diversity

A culturally diverse work environment recognises and respects the unique perspectives, experiences and knowledge of employees from different backgrounds, including First Nations peoples. Employees with diverse cultural backgrounds can offer unique insights, approaches and ideas that you may not have otherwise considered.

Employing First Nations peoples promotes cultural diversity in the workplace, contributing to a more inclusive environment. Cultural diversity encourages creativity, improves decision-making, and enhances a business's ability to connect with a diverse range of customers and stakeholders.

A culturally diverse organisation can have positive impacts on business performance. Cultural diversity can drive innovation, market expansion, decision-making effectiveness, employee engagement, and customer satisfaction. Embracing and leveraging cultural diversity can provide your business with a competitive advantage and contribute to long-term business success.

Focus on building cultural awareness across your workforce to increase the benefits of cultural diversity.

Learn about working with Aboriginal and Torres Strait Islander employees.

Benefits of employing First Nations people

First Nations peoples enrich the workplace by adding cultural diversity and fostering a more inclusive environment.

The diverse cultural backgrounds, traditions, and ways of knowing of First Nations peoples bring different perspectives that can challenge conventional thinking and enhance problem-solving.

Employing First Nations peoples fosters stronger connections with local Indigenous communities. This engagement can lead to partnerships, collaborations, and mutually beneficial relationships with Indigenous organisations and businesses, enhancing social responsibility and promoting cultural awareness.

Culturally diverse and aware organisations tend to have higher levels of employee engagement.

When employees feel included, respected, and appreciated for their cultural identities, they become more committed to their work and the organisation's goals. Increased engagement leads to higher productivity, improved performance, and a positive impact on the bottom line.

Employing First Nations peoples can lead to improved relationships, trust and cultural competency in work with Indigenous customers or stakeholders for business sectors such as service providers, labour hire, mining and resources, and construction.

Supporting Indigenous employment aligns with the broader goals of reconciliation, equity and inclusion. It also demonstrates a commitment to addressing historical injustices and working towards a more equitable society, while also creating positive social impacts and breaking down systemic barriers.

Racism in the workplace

The Diversity Council of Australia (DCA) defines racism as 'when an individual or organisation with race-based societal power discriminates, excludes or disadvantages a racially-based person because of their race, colour, descent, nationality, ethnicity, religion or immigrant status. Racism can be conscious or unconscious, active or passive, obvious or subtle.'

Racism can be:

  • interpersonal – a person's beliefs, attitudes and actions that discriminate, exclude or disadvantage people from racially marginalised groups
  • systemic – organisational policies, procedures and practices that directly or indirectly discriminate, exclude, or disadvantage people from racially marginalised groups.

Racism can also be unconscious, when a person isn't aware that they have negative attitudes and stereotypes towards different racial groups, often without conscious awareness. These biases can influence perceptions, decisions, and actions, perpetuating systemic inequities and perpetrating unintentional harm.

First Nations peoples have historically faced discrimination, dispossession and marginalisation. This has led to ongoing disparities in employment and education opportunities. Racism in the workplace towards First Nations peoples is still a significant issue.

Understanding and addressing unconscious and overt racism is an important step to foster inclusivity, equality, and social justice in our societies.

The DCA provides a range of resources and videos to help you identify and address racism in the workplace.

Racism toward First Nations peoples

Many First Nations peoples report experiencing racism in the workplace, including:

  • being overlooked for promotions
  • receiving lower pay than their non-Indigenous colleagues
  • being subjected to racist jokes or comments
  • experiencing prejudice from customers/clients.

These experiences can have a significant impact on someone's mental health and job satisfaction and contribute to ongoing poverty and disadvantage.

Businesses that are committed to providing a safe and inclusive workplace will actively address racism in the workplace towards First Nations peoples. To address racism in your business, you should:

  • provide training for leaders and supervisors on how to address and resolve racism and exclusion in the workplace
  • provide training to all staff on what constitutes racist behaviour and how to respond appropriately to a person raising concerns
  • develop and promote ways for staff to report racism and discrimination and anti-discrimination compliance training.

Learn more about anti-discrimination and equal opportunity.

To promote understanding of First Nations peoples, you should:

Unconscious bias

Unconscious biases are deeply ingrained stereotypes or prejudices that someone can have without being aware.

These biases can come from the culture and society we grow up in. They can influence our attitudes, understanding, actions and decision-making processes, including those related to promotions and professional development opportunities.

These biases are often ingrained in our cultural and social upbringing and can influence our perceptions of certain groups of people, including First Nations peoples in Australia.

Examples of unconscious bias

Unconscious biases can affect our judgement and may cause us to make decisions that favour 1 person or group and disadvantage others. Unconscious biases can occur in the workplace in different ways.

First Nations peoples may face stereotypes that portray them as less competent, educated or capable than their non-Indigenous colleagues. These stereotypes can lead to the perception that they're unsuitable for certain roles or opportunities.

People may tend to gravitate towards other people like them in terms of background, culture or experiences. This can lead to a preference for promoting or supporting people with similar characteristics, unintentionally excluding First Nations employees who may have different backgrounds or experiences.

Unfamiliarity with Aboriginal and Torres Strait Islander cultures, histories, and perspectives can lead to biases based on ignorance or misunderstandings. Lack of awareness about First Nations traditions and values can create barriers and limit opportunities for First Nations employees.

Unconscious biases can also be influenced by an employee's overall perception of a person. For example, if a First Nations employee has made a mistake or received criticism in the past, it may lead to a negative perception that affects future promotion or development opportunities, overshadowing their other skills and achievements.

Tokenism occurs when an individual or group is included or promoted to create an appearance of diversity or inclusivity without genuinely valuing their contributions. First Nations employees may face situations where their presence is seen as a symbolic gesture rather than a true recognition of their abilities and potential for growth.

Unconscious biases may also lead to assumptions about First Nations employees' cultural commitments and obligations. This can create barriers to their career advancement. For instance, assuming First Nations employees will prioritise community responsibilities over professional development opportunities without considering their individual aspirations and goals.

Limited representation of First Nations leaders or mentors within an organisation can reinforce unconscious biases. If individuals do not have positive role models to observe and interact with, they may subconsciously question their potential for success and growth.

These biases can also affect employment and education opportunities, leading to a cycle of disadvantage and marginalisation. These biases are unintentional and often come from stereotypes in society and historical contexts.

You can create a fair and inclusive workplace by being aware of unconscious biases and implementing strategies to reduce or avoid their influence.

Addressing unconscious bias

Unconscious bias exists in everyone. It's important to understand how it may impact the way you work and the decisions you make.

To address unconscious bias, raise awareness about its existence and effects through education and training programs. This will help leaders, employees and stakeholders recognise their biases and develop strategies to address them.

Ensure your policies and practices are designed to be inclusive and culturally responsive to First Nations peoples' needs and perspectives. Use these strategies to address unconscious bias and promote a more inclusive and equitable work environment in your business.

Review your policies in consultation with an external Aboriginal and Torres Strait Islander subject matter expert to uncover any potential unconscious biases in your work practices. Consider how you can adjust policies related to promotions, performance evaluations, and professional development to minimise the influence of unconscious bias.

Provide comprehensive training on unconscious bias and how it can impact decision-making processes. This training should raise awareness, challenge stereotypes and provide practical strategies for avoiding bias in the workplace.

Increase diversity in recruitment and promotion processes by establishing clear criteria and evaluation methods that focus on skills and potential rather than subjective judgements. Consider blind recruitment techniques, such as removing names and personal information from resumés during initial screening.

Hold decision-makers accountable for recruitment decisions and addressing unconscious bias. Establish transparent and inclusive processes for promotions and development opportunities, ensuring that decisions are based on merit and fair evaluation criteria.

Form internal committees or working groups focused on diversity and inclusion. These committees can develop initiatives, policies and practices to combat bias, guide  employees and monitor progress toward inclusion goals.

Establish mentoring and sponsorship programs that connect individuals from underrepresented groups, including First Nations employees, with senior leaders who can provide guidance, support, and advocacy. These programs can help break down barriers and provide opportunities for career growth.

Continuously evaluate the effectiveness of initiatives and strategies that address unconscious bias. Collect feedback from employees, measure progress and adjust as necessary.

Unconscious bias can be harmful and can lead to discrimination, disengagement and negatively impact the performance of First Nations peoples in the workplace.

Addressing unconscious bias is an important step towards promoting equity and social justice for Aboriginal and Torres Strait Islander peoples in Australia.

Lateral violence in First Nations communities

Lateral violence refers to the harmful behaviours (e.g. bullying, gossiping and undermining) that occur as a response to ongoing systemic oppression.

Lateral violence (or internalised colonialism) happens when people who have been oppressed for a long time feel powerless and unleash their fear, anger and frustration against their own community members rather than against their 'oppressor'.

For First Nations communities, lateral violence can stem from:

  • historical trauma, such as the impacts of colonisation, dispossession and forced assimilation
  • social and economic disparities
  • limited access to resources and opportunities
  • systemic racism contributing to frustration and power imbalances.

These behaviours can occur both in the community and in the workplace.

Read more about lateral violence in Aboriginal and Torres Strait Islander communities.

Impact of lateral violence

Lateral violence has severe consequences for individuals and communities, perpetuating cycles of violence and trauma. According to the Australian Human Rights Commission (AHRC), lateral violence undermines community cohesion, erodes trust and hinders collective efforts toward empowerment and self-determination.

For First Nations employees, lateral violence may have the following impact on their performance and wellbeing at work.

Employees who experience or witness lateral violence may become less motivated, distracted and less engaged in their work, as their focus shifts from work tasks and goals to managing conflicts and hostile interactions in the community or workplace.

Individuals who experience or observe lateral violence may  leave the workplace to seek a healthier and more supportive environment. This turnover affects team dynamics, recruitment and training costs, and impacts workplace morale.

Lateral violence affects employees' mental health and wellbeing. It creates a stressful and emotionally draining atmosphere, leading to  anxiety, depression, and burnout. The negative impact on mental health can worsen absenteeism and decrease employee satisfaction.

Lateral violence also erodes trust and damages interpersonal relationships among colleagues.

It creates suspicion and hostility, hindering effective communication, collaboration, and teamwork. Employees may hesitate to seek support or share ideas, based on their experience at home, or in the community, leading to decreased innovation and problem-solving.

Lateral violence undermines employee engagement and job satisfaction. When employees do not feel safe or respected at work or home, their commitment and loyalty may be affected. This can result in a lack of enthusiasm, decreased productivity, and a negative impact on the overall organisational culture.

Understanding and addressing lateral violence

You can manage the impact of lateral violence by:

  • recognising that lateral violence is a response to structural oppression—this is crucial for understanding its origins and developing effective interventions
  • developing community-led approaches to engagement, cultural healing practices and trauma-informed frameworks that support your employees and stakeholders
  • promoting culturally safe spaces, fostering supportive relationships and providing workplace support to all employees.

Benefits of addressing racism and unconscious bias

Providing a workplace that calls out racism and addresses unconscious bias in the workplace can have several positive impacts on your business, including employee engagement, productivity and staff attendance.

By taking action to educate about racism and bring awareness to unconscious bias you will create a more inclusive and equitable work environment, boosting employee morale and engagement.

  • Fostering an inclusive environment where all employees feel respected and valued can create a sense of belonging and psychological safety. When employees are free from the negative effects of racism, they can:
    • fully engage in their work
    • contribute their diverse perspectives
    • collaborate effectively with their colleagues.
  • This leads to increased productivity, improved teamwork and collaboration, and a positive impact on the organisation's bottom line.
  • When your employees feel valued, respected and supported, they are more likely to be motivated, productive and committed to their work. Addressing racism fosters a sense of belonging and encourages individuals to bring their authentic selves to the workplace.
  • A by-product of creating a more inclusive and equitable work environment is a culture of respect and trust among employees and reduced turnover. When individuals feel safe to express their opinions, share ideas and challenge each other constructively, it leads to more effective communication, better decision-making, and improved overall performance.
  • Efforts to address racism in the workplace also contribute to improved staff attendance and retention rates. When employees feel valued, respected, and supported, it fosters loyalty, and they are less likely to leave. Reducing turnover also saves recruitment and training costs and helps maintain corporate knowledge.

Fostering an inclusive workplace that addresses racism helps create a psychologically safe environment that allows employees to focus on their work without the added burden of discrimination or bias. This, in turn, positively impacts the business's bottom line by optimising efficiency and output.

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  • Last reviewed: 16 Feb 2024
  • Last updated: 16 Feb 2024