Introduction

Hiring in a global economy requires more than just multilingual job ads and remote work policies—it demands cultural awareness. Cultural competency is the ability to effectively interact with people across diverse backgrounds, beliefs, values, and communication styles. In this article, we’ll explore why cultural competency is essential in hiring, how it shapes recruitment outcomes, and strategies to build culturally aware hiring practices that attract top global talent.

Why Does Cultural Competency Matter in Hiring?

The global talent landscape is more connected than ever

In today’s workforce, geographical boundaries are no longer barriers. Remote and hybrid work models have unlocked access to talent from every corner of the world, allowing companies to build teams that are more diverse and dynamic than ever before. However, this incredible opportunity also brings new complexities. Different regions, backgrounds, and communities come with unique cultural expectations—ranging from interview etiquette and professional norms to communication styles and decision-making processes. To successfully engage with this global talent pool, hiring teams must recognize and adapt to these differences, ensuring they foster understanding rather than unintentionally creating distance.

Cultural misunderstandings can hurt candidate experience

When cultural awareness is lacking, even the most well-intentioned hiring processes can go astray. Interviewers may unknowingly ask inappropriate questions, misinterpret a candidate’s communication style, or fail to accommodate diverse needs and expectations. These missteps not only damage the candidate’s experience but can also erode trust and deter top talent from joining the company. By investing in cultural competency, organizations can create inclusive, respectful, and personalized experiences that resonate with candidates across different cultures—strengthening their employer brand and improving their chances of securing the best talent worldwide.

Diversity without inclusion leads to high turnover

Hiring employees from diverse backgrounds is only the first step; the real challenge lies in making them feel valued, heard, and included. Without cultural competency, organizations risk alienating new hires during onboarding, missing key signals of disengagement, and fostering environments where employees feel isolated or misunderstood. This lack of belonging often results in low morale, poor collaboration, and ultimately, high turnover rates. Culturally competent organizations prioritize inclusive onboarding experiences, create spaces for belonging, and implement practices that support long-term retention. They recognize that sustained success comes not just from diversity itself, but from creating an environment where diversity can truly thrive.

Companies with diverse and inclusive cultures outperform

Research consistently highlights that diverse and inclusive organizations are more innovative, agile, and financially successful. Teams that welcome a wide range of perspectives tend to solve problems more effectively, generate more creative ideas, and adapt more quickly to change. Moreover, companies that actively foster DEI (Diversity, Equity, and Inclusion) and demonstrate intercultural competence are increasingly favored by both job seekers and customers. In fact, according to McKinsey’s Diversity Matters report, companies in the top quartile for racial and ethnic diversity are 35% more likely to financially outperform their peers. Similarly, a study published by Harvard Business Review found that diverse companies are 70% more likely to successfully enter new markets.

In today’s competitive hiring landscape, cultural competency isn’t just a nice-to-have—it’s a business imperative. Embedding it into your recruitment strategy drives innovation, improves employer branding, strengthens global performance, and helps create a resilient, future-ready organization where talent from all backgrounds can thrive.

7 strategies to improve cultural competency in hiring

1. Train recruiters and hiring managers on cross-cultural awareness

Offer training on global communication styles, nonverbal cues, time orientation, and cultural values. Culturally competent recruiters can better engage candidates from various backgrounds without unintentionally alienating them.

2. Localize job ads and outreach

Adapt job descriptions and recruitment messaging to resonate with different cultures. This includes tone, benefits, job titles, and communication preferences. What appeals in one country may not translate globally.

3. Standardize interviews while allowing cultural flexibility

Use structured interviews to reduce bias, but allow flexibility for cultural norms—such as eye contact expectations, response time, or comfort with self-promotion. Normalize diverse expressions of competence.

4. Include diverse hiring panels

Having interviewers from varied cultural and professional backgrounds reduces individual bias and improves decision-making. It also signals to candidates that the company values diversity and inclusion.

5. Respect global time zones and holidays

Scheduling interviews across time zones without sensitivity to local holidays or working hours creates friction. Culturally competent hiring teams respect regional calendars and norms throughout the hiring process.

6. Build feedback loops for continuous improvement

Regularly gather feedback from international candidates about their experience. Use this data to identify gaps in cultural awareness and continuously improve your hiring process.

The Measurable Impact of Culturally Competent Hiring

Companies that prioritize cultural competency in hiring see tangible results across multiple areas. They attract stronger global talent, as candidates feel respected, understood, and valued—leading to higher offer acceptance rates. The candidate experience also improves significantly through personalized and inclusive interactions, enhancing the company’s employer brand reputation. Inclusive hiring practices reduce unconscious bias and lead to better job fit, increased engagement, and lower turnover. Finally, culturally aware onboarding enables faster integration of global teams, boosting productivity and fostering stronger team cohesion from the start.

Conclusion

In 2025, cultural competency is a core hiring skill—not just for global companies, but for any organization working across languages, values, and experiences. It shapes how companies attract, engage, and retain the best talent from around the world.

To build a culturally competent hiring process:

• Train your team in cross-cultural awareness
• Localize and personalize outreach
• Use inclusive, flexible interview practices
• Make diversity and belonging part of every step

When you hire with cultural awareness, you don’t just find great people—you create a place where everyone can thrive.

Sources

Harvard Business Review, 2013, How Diversity Can Drive Innovation. Link

McKinsey, 2015, Diversity Matters. Link