Introduction
Multinationals can gain a competitive advantage by aggressively hiring talented members of excluded social groups in each market. This practice is known as diversity recruiting which allows companies to access a broader range of skills and perspectives available in that market. According to Siegel et al. (2014), multinationals can exploit the social divide in the host market to gain an advantage considering that the system provides a pool of talented employees who can also help establish customer loyalty, understand local markets, and foster a creative work environment. Therefore, multinationals can gain a competitive edge by taking advantage of the social discrimination in the host market.
Discussion
Inclusive hiring is a strategic approach whereby people are recruited from various backgrounds and experiences. This factor indicates that multinationals can access a larger pool of qualified and talented individuals who may have been excluded from traditional appointment practices (Siegel et al., 2014). Multinationals can also benefit from the diverse perspectives these individuals bring to the company. By hiring individuals from various backgrounds and experiences, multinationals can better understand their customers and the markets they operate (Siegel & Poliquin, 2013). This engagement style promotes effective marketing and product development strategies, leading to a competitive advantage.
Diverse enrolment can also help multinationals create a competitive advantage. An inclusive workforce allows multinationals to understand the local markets better and identify new opportunities (Siegel et al., 2014). The benefits of inclusive appointment of employees can be seen by looking at the work of multinationals which has used inclusive recruitment of minority groups and the impact it has on identifying new markets in other countries. Appointing minority groups into the organizational workforce system enables a company to tap into new markets and gain a competitive advantage.
In addition to providing a better understanding of local markets, diverse enrolment can also help multinationals to create a more innovative and creative workforce. Multinationals can draw on a broader range of perspectives and approaches to problem-solving through the inclusive engagement of secluded groups. This strategy can lead to the developing of innovative solutions that are more likely to succeed in the global marketplace. Additionally, the need to prove valuable to society can significantly increase the quality of services provided, which increases value. Siegel & Poliquin (2013) posits that when women are appointed to managerial positions, they feel the pressure to prove themselves, pushing them to give their best to enhance the company’s competitive edge. This factor indicates that taking advantage of diversity issues can help an organization maximize its potential.
Inclusive engagement of the minority community also helps multinationals better understand the culture and values of their host countries. By recruiting minority community members, multinationals can gain insights into the needs and wants of their customers in each market (Siegel & Poliquin, 2013). This information can help them to tailor their products and services better to meet the needs of the local population, giving them a competitive edge. For companies to maintain a strong base, they must continue recruiting and have employees who can face new challenges for care development and experience (Siegel & Poliquin, 2013). This strategy helps the company realize the potential of the host country and maximize available talent.
Conclusion
Multinational companies can benefit from diversity recruiting, considering that nations experiencing social prejudice provide a strategic ground for business expansion. The reason is that minority populations always feel the pressure to prove their worth and expertise, which could result in high performance, efficiency, and creativity which works in favor of productivity and profitability in an organization. Therefore, companies looking to hire employees should consider the minority to gain a competitive advantage.
References
Siegel, J., Pyun, L., & Cheon, B. Y. (2014). Multinational firms, labor market discrimination, and the capture of outsiders’ advantage by exploiting the social divide. Administrative Science Quarterly, 64(2), 370-397.
Siegel, J. I., Xi, M., & Poliquin, C. (2013). Baxter’s Asia Pacific “Talent edge” initiative. HBS No. 9-711-408. Harvard Business School Publishing.