Why you should employ a refugee or migrant

 

As we celebrate Cultural Diversity Week and Harmony Day, Cath Scarth, CEO, AMES Australia, shares why employing a migrant or refugee could be the best decision you make for your business.

The rough definition of a refugee is someone who has removed themselves from the dangers posed by conflict, persecution, trauma or dire security circumstances. In almost all cases this involves a degree of resilience, resourcefulness, imagination and agency.

Migrants are generally people who have left behind everything they know in search of better opportunities. This speaks volumes about their enterprise and ambition.

It is no surprise then that there is a raft of research pointing to the benefits of hiring refugees and migrants.

And while Australia is reporting rates of employment not seen for 50 years, not everyone is sharing in this. The level at which migrants and refugees secure jobs commensurate with their skills and qualifications lags far behind that for Australian-born job seekers.

The benefits of a culturally diverse workforce

But the research shows that having a diverse workforce increases innovation and creativity, encourages a variety of perspectives and faster problem-solving. It shows that hiring refugees and migrants increases innovation, fosters better decision-making and increased profits.

A diverse workforce also delivers higher employee engagement and reduced turnover as well as enhanced reputation.

Innovation

A report by US HR guru Josh Bersin found that diverse companies are 1.7 times more likely to be innovation leaders in their markets.

He says: “In a diverse workplace, employees are exposed to multiple perspectives and world views. When these various perspectives combine, they often come together in novel ways.”

Problem-solving and decision-making

A Harvard Business Review report found diverse teams are able to solve problems faster than cognitively similar people.

“Employees from diverse backgrounds have different experiences and views, which is why they are able to bring diverse solutions to the table. Thus, the best solution can be found sooner, which leads to faster problem-solving,” the Review said.

A white paper from decision-making platform Cloverpop found a direct link between workplace diversity and decision-making. The report cited data which showed that when diverse teams made a business decision, they outperformed individual decision makers up to 87 per cent of the time.

“When employees with different backgrounds and perspectives come together, they come up with more solutions which leads to more informed and improved decision-making processes and results,” the paper said.

More profits

A report from global management consultants McKinsey found companies with more diverse teams were also the best financial performers. The research looked at 180 companies in France, Germany, the UK and the US and concluded that a diverse workforce constituted a serious advantage over competitors and, as a result, achieve better business results and reap more profit.

Employee engagement

Recent research by consulting firm Deloitte established a firm link between diversity and employment. The study canvased 1,550 employees across three large Australian businesses.

It found improved engagement was an outcome of diversity.

“The link between workplace diversity and employee engagement is pretty straightforward – when employees feel included, they are more engaged,” the study said.

Reduced turnover and better hiring results

A raft of research has found that diversity and inclusion in the workplace cause all employees to feel accepted and valued. When employees feel accepted and valued, they are also happier in their workplace and stay longer with a company. As a result, companies with greater diversity in the workplace have lower turnover rates.

By creating commitment to diversity, employees develop a sense of belonging to the company they work for and are less likely to leave.

Diversity in the workplace also boosts a company’s employer brand and presents a company as a more desirable place to work. Workplace diversity is an especially beneficial asset for attracting top talent from diverse talent pools.

According to a survey conducted by job search firm Glassdoor, 67 per cent of job seekers said a diverse workforce is important when considering job offers. A study in the US by refugee advocacy group Tent Foundation found that, overall, refugees had a lower turnover rate than other employees.

Company reputation

Companies that are dedicated to building and promoting diversity in the workplace are seen as good, more human and socially responsible organisations which ultimately creates a better reputation for their brand.

Workplace diversity also makes an employer more interesting. A diverse workforce makes it easier for different people to relate to an organisation and brand, opening doors to new markets, customers and business partners.

Professional growth

A recent Gallup report on millennials’ attitudes to work found that 87 per cent said career and professional growth was important to them. The report said companies that embrace ideas and practices from different perspectives create an inclusive culture where the employees become ambassadors for the company.

“Internal company advocacy attracts talented, ambitious, and diverse professionals. Roughly 64 per cent research a company online before applying for an opening,” the report said.

Part of the research asked what made a company or organisation an attractive place to work. Thirty per cent of respondents said they would not apply for a position in a company that lacks diversity.

Employing refugees – the big picture

An International Monetary Fund study calculated that investment in supporting refugees brings a return more than 1.8 times the initial investment within five years.

In Australia, the Centre for Policy Development calculated that if the labour market outcomes for just one year’s intake of humanitarian migrants improved by 25 per cent, then over the subsequent decade, those new arrivals would be $465 million better off and the Australian government would bank $175 million in budget savings.

Deloitte Research found that the Queensland economy would be $250 million larger in ten years if it tapped into the under-utilised talent and experience of skilled migrants and refugees working in jobs they were overqualified for.

More generally, Deloitte also said that the economic dividend from Australia having a more inclusive society could be estimated to be worth $12.7 billion annually as a result of higher productivity and better employment and health outcomes.

From a personal point of view, my organisation AMES Australia benefits materially and culturally from having a diverse workforce. AMES Australia supports migrants and refugees settle successfully in Australia. As such, our own diversity is critical to the success of the work we do. About half of our 600 staff members and 400 volunteers were born overseas and collectively we speak 52 languages.

Many of our staff are former migrants and refugees, and indeed many are former clients of AMES, who have themselves walked the resettlement journey.

As we celebrate Cultural Diversity Week, it’s worth remembering how lucky we are to have such a successful multicultural society and enjoy the high levels of social cohesion that we do.

But these things are no accidents. They are the results of a nation that values inclusivity, diverse ideas and outlooks, and a fair go for all.

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