Gone are the days when people had to commute to the office to get their work done. Now, work is wherever people can open their laptops. This globalization facilitates cross-cultural teams dispersed across different geographical locations, bringing diversity and creativity into workplace dynamics.

However, it also brings about complexities for team leaders and upper management. Getting it right requires a proactive approach to managing cultural differences positively and enhancing workforce cohesion while reducing potential conflicts.

5 Key Challenges in Managing Cross-Cultural Teams

When people from diverse nationalities, belief systems, thought patterns and socioeconomic statuses work together, there are bound to be misunderstandings. There might even be legal disputes involved. The first step to fostering a productive remote working culture is to understand and address these areas.

1. Communication Styles

In globally diverse settings, communication barriers can stem from language differences. A non-native English speaker might have difficulty comprehending what’s being said, which can impact their output. Additionally, nuances, slang and fluency levels vary even among multicultural teams that speak the same language.

Cultural differences can also create confusion. For instance, a harmless or even funny phrase in one culture might be deemed offensive in another. Some cultures might favor a more direct form of communication, while others prefer a more subtle approach.

Non-verbal expressions also present unique challenges. Though there is no consensus yet, the prevailing belief is 65%–93% of communication is non-verbal. Hand gestures, eye contact and body language can easily be misinterpreted due to differing cultural standpoints.

2. Work Habits and Time Zone Variances

Different cultures have unique work styles and time-management attitudes, especially regarding work-life balance. Some cultures are big on punctuality and fixed schedules, whereas others may take a more relaxed approach if the end goals are still being met. These differences could create tension among teams, leading to bigger problems down the line.

Working across different time zones can also complicate everyday processes. For example, team leaders might struggle to schedule meetings that cater to everyone’s geographical situation, potentially causing delays and miscommunication.

3. Motivation Factors

People from different cultures tend to be motivated by various things. A reward system may be effective for workers in one country but hold less appeal in another. Upper management often has to figure out how to develop a motivation system that drives multicultural teams to deliver their best work.

4. Local Laws and Regulations

Employment laws vary from one country to another and can impact how companies should treat remote workers. For example, Filipinos expect 13th-month pay even from overseas employers because it’s ingrained in their labor laws. This can create a challenge in the sense that if an employer provides such pay, are they now obligated to do the same for employees from other countries?

5. Religious Practices

Praying times, religious holidays or dietary restrictions can vary widely across cultures. Even countries with similar religions might have different approaches to practices and requirements. Being mindful and accommodating of these differences is essential to developing an inclusive workplace where team members feel comfortable and respected.

How to Manage a Culturally Diverse Remote Workforce

Research shows 22% of the workforce will become remote by 2025, underscoring the need for a sound strategy to overcome cultural barriers in the globalized workplace. These six tips can help employers do just that.

1. Acknowledge the Differences

Awareness is the foundation of respectful and effective communication. By acknowledging the cultural differences, leaders can better understand the nuances of communicating with each team member. It’s easy to assume professionalism and shared experiences from the occasional virtual meetings will level out these variances, but this is not likely the case.

Instead, managers have to get proactive in communicating with remote employees in a sensitive, informed way. Most of the time, the best way to do this is simply to ask. What is their preferred mode of communication? Are they more comfortable with emails or video calls? How would they like to be addressed? Basic questions like these can help break the ice and forge a mutually beneficial and productive relationship.

2. Develop a Global Work Environment

This means aligning all members of multicultural teams with the same goals and boundaries, regardless of their location. The best way to do this is to set a global culture with well-defined expectations. Holding remote teams to the same standard fosters a sense of belonging, making them more likely to uphold the workplace culture and stay motivated.

You can also utilize tools to help bridge the gap – such as CultureBot, an application that can help your team, no matter the timezone, in celebrating people and their unique cultures at the right time, in the right way.

3. Address Conflicts Right Away

Disagreements and disputes are inevitable in any team setting. What’s important is how managers react to them. The key is addressing these conflicts as soon as they occur, even if they involve uncomfortable conversations. Leaving things unresolved could lead to worse outcomes that damage team morale.

4. Steer Clear of Stereotypes

Relying on stereotypes to form certain opinions can be highly detrimental to multicultural team management. While knowing a particular culture is essential, getting to know remote workers as individuals is more important.

Everyone has distinct traits and opinions regardless of their cultural upbringing. Leaders must make the effort to know their team members beyond work. Genuine care is a universal language that can go a long way in eliminating communication barriers among cross-cultural workers.

5. Leverage Cultural Diversity

Despite the challenges, a workforce comprising people from many cultural backgrounds is an asset. Each person brings something unique to the table, whether it’s a refreshing perspective, a more efficient solution or a poignant observation. The manager's role is to identify what that is and align it to business goals and values.

6. Invest in Face Time

In a physical workplace, managers can sense when their team or specific members are struggling and provide some encouragement. It’s also easier to enhance communication through facial expressions and body language, like a quick smile or a passing nod to a colleague. These are much more difficult to accomplish in a virtual setting.

Face time is the next best thing to a physical meeting. Managers need to leverage it as much as possible to foster stronger interpersonal relationships among remote team members.

Close the Cultural Gap in Remote Teams

Appreciation for cultural diversity is at the core of developing and leading a thriving remote team. This process requires intention and practice, but each deliberate effort brings business leaders a step closer to creating a dynamic and inclusive work environment.