Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of WERC.
Intercultural training (ICT) is an essential investment for multinational organizations navigating the complexities of global expansion, mergers and acquisitions (M&A), and workforce mobility. As organizations become more interconnected, they must manage culturally diverse teams, expand into foreign markets, and execute cross-border M&A. While digital connectivity can help reduce some barriers, it cannot erase deeply rooted national, regional, and organizational cultures that shape how employees think, communicate, and work together. These differences can be sources of synergy or discord, affecting everything from team performance to successful post-merger integration. Developing global people skills through intercultural training is essential for maintaining a competitive advantage and driving sustainable growth.
In today’s competitive global business environment, people skills are as critical as technical skills. Intercultural training goes beyond teaching dos and don’ts; it builds self-awareness, helps employees recognize cultural missteps, understand the implications of behaviors, and develop the ability to build relationships, communicate effectively, and lead strategically across cultures.
Value to Organizations
- Enhanced collaboration and communication: ICT sharpens communication skills, both verbal and non-verbal, reducing misunderstandings and enabling teams to leverage diverse perspectives for better innovation.
- Stronger leadership and agile teams: ICT helps teams adapt quickly to new geographies or functions, supporting inclusive, high-performing, and agile workforce models.
- Competitive edge in new markets: Cultural awareness accelerates trust-building, negotiation, and market entry, strengthening reputation and partner preference.
- Reduced M&A risk: Culture clash is one of the most-cited reasons for M&A failures. ICT minimizes culture clash, supports integration, and helps teams align values, boosting success in mergers, restructurings, and new culture creation.
- Stronger global mobility outcomes: ICT improves adaptation, lowers assignment failure rates, and increases ROI, linking international experience to broader talent and skills strategies.
- Quantifiable business impact: ICT contributes to lower turnover, higher engagement, and greater productivity; culturally aligned organizations outperform peers in meeting synergy and value targets.
- Supports talent acquisition: ICT equips recruiters with cultural and regulatory insight, improving hiring effectiveness across markets. For example, Sirva has trained non-U.S. based talent acquisition leaders to understand U.S. culture and the key differences between their hiring locations. The training focused on local regulations, laws, and recruitment methods, improving overall recruitment efforts for the US market.
Value to Global Talent and Their Dependents
- Accelerated adjustment and performance: Training helps employees and their families realistically anticipate life in the host culture, reducing culture shock and accelerating adjustment for all family members.
- Developing a global mindset: Employees build awareness and skills critical for working in diverse workplaces and improving their leadership capabilities. Many organizations deliver initial training in modules over time, following the assignment life cycle and providing ongoing coaching to support continued development.
- Career growth: Employees with intercultural skills are better positioned for international career advancement and more likely to succeed in global projects or postings.
- Family integration: Family dissatisfaction is a leading cause of international assignment failure. Supporting the entire family helps employees stay focused on business needs and reduces early repatriation due to adjustment challenges by providing partners and dependents with social and practical tools for adaptation.
- Well-being and retention: Providing support to relocating families enhances satisfaction and retention, benefiting workforce stability and knowledge continuity.
ICT Business Value: M&A, Expansion, and Workforce Mobility
Mergers and Acquisitions
- Cultural due diligence: Assessing cultural compatibility during due diligence can predict and mitigate culture clash, safeguarding deal value. Clients who neglect this step often face cultural clashes that require remedial training later.
- Post-merger integration: Cross-cultural training aligns values and behaviors between merged entities, supporting smooth integration, minimizing talent loss, and preserving productivity. There is a growing demand for training that supports vision creation and integration of heritage and legacy businesses, extending from executives to plant workers.
Global Expansion
- New territory expansion: Entering new markets or responding to talent shortages means companies must deploy skilled teams quickly and confidently. Intercultural training conducted before expanding can assist in decision-making and negotiations, drive effective customer engagement, and accelerate market entry. For example, we worked with clients expanding into East Africa or India who recognized the need for targeted training for both relocating talent and local leadership.
- Local employer brand: Adapting internal culture and policies to reflect local customs improves employer reputation, aiding recruitment and retention.
- Improved sales: Tailoring marketing to cultural differences can accelerate sales, for example, a European marketing group we worked with adjusted its cultural approach for the U.S. market.
Workforce Mobility
- Global talent success: ICT is linked to more successful international assignments, characterized by faster adaptation, increased effectiveness, and lower repatriation distress. Removing ICT from mobility policy has led to challenges and even legal issues, prompting organizations to reinstate or customize training for all relocating talent.
- Cost efficiency: Avoiding failed assignments protects your significant investment in relocation, as failed global relocations can cost more than $250,000. Proactive ICT training is a fraction of this cost and can prevent the expense of early repatriations.
Organizational Value: Building a Learning Organization
Ongoing cultural awareness drives innovation, improves teamwork, breaks down silos, and enables knowledge sharing, all qualities at the heart of agile, future-ready organizations. ICT, especially when coupled with digital tools and ongoing coaching, ensures skill retention and fosters continued learning.
Inclusive Culture and Engagement
Organizations with employees who have a global mindset and an inclusive, culturally intelligent workplace see greater engagement, creativity, and satisfaction, fostering higher loyalty and customer-centricity. Organizations with a strong focus on inclusion and partnerships with ICT providers ensure employees can apply these principles in diverse settings.
Driving Measurable Strategic Value Through Intercultural Training
Intercultural training offers measurable outcomes and strategic benefits for organizations of any scale, especially those with international business goals. The benefits, ranging from reduced assignment failure and increased speed to productivity, to enhanced M&A integration and improved talent retention, underscore its necessity.
Organizations must prioritize intercultural fluency as a core business capability, which is best achieved by investing in ICT as a standard mobility policy element for all employees and their families on assignment. Corporate talent development should also focus on global mindset skills, emotional and cultural intelligence, global leadership, and communication.