Cultural intelligence: Building inclusive workplaces

You don’t have to go far to find someone with a background unlike yours. In any given Starbucks line, there stands someone with solid convictions about political issues, a religious belief, the superiority of some movie, the importance of science, or even a dismissal of science as a distraction from absolute truth (whatever that is). There’s no end to the different types out there.

These contrasting differences, however, make us stand out from each other, making that contrast vitally important to each person’s identity. Without differences, we’re all the same, and life gets boring.

Respect for these differences lies at the heart of cultural intelligence—what Harvard Business Review defines as “an outsider’s…ability to interpret someone else’s unfamiliar and ambiguous gestures the way their compatriots would.”

Understanding and working with people of different cultures is an essential business skill. Because remote work often relies on multicultural teams worldwide, cultural intelligence is an X factor for organizations seeking a competitive edge.

So, what exactly is cultural intelligence? Let’s talk about it.

What is cultural intelligence?

Cultural intelligence, or CQ (cultural quotient), means working effectively in different cultural contexts—not just familiarizing yourself with other cultures but adapting and thriving in culturally diverse situations.

The Cultural Intelligence Center defines CQ through four key components:

• CQ Drive: Motivation to learn about and adapt to different cultural backgrounds
• CQ Knowledge: Understanding how cultures are similar and different
• CQ Strategy: Ability to plan for multicultural interactions
• CQ Action: Adaptability of behavior in culturally appropriate ways

According to researcher Soon Ang, having a high CQ means genuinely curious about other people’s experiences and perspectives. It’s not about memorizing customs or stereotypes—it’s about an open and respectful approach to cultural differences.

Culturally intelligent people tend to:

• Ask questions instead of making assumptions
• Find comfort in ambiguity
• Recover quickly from cultural missteps
• Show a genuine interest in others’ backgrounds
• Seek feedback about cross-cultural interactions
• Patiently handle language barriers
• Show respect for different communication styles
• Adapt behavior without compromising values

One could argue that cultural intelligence is basically just emotional intelligence—the ability to perceive and manage emotions with others—but with an added level of cultural sensitivity.

More than emotional intelligence

According to David Livermore, author of Leading with Cultural Intelligence: The Real Secret to Success, emotional intelligence is the first step toward cultural intelligence.

For example, emotional intelligence may help you recognize that someone is upset, but cultural intelligence enables you to understand why they’re upset within their cultural context.

For example, direct feedback is valued in cultures like Germany. In cultures like Japan. However, it’s seen as disrespectful. Someone with high emotional intelligence may better sense a team member’s discomfort in receiving direct feedback.

Still, someone with cultural intelligence would understand why they feel that way and adjust their communication accordingly.

Consider this real-world scenario: A team leader notices that a Japanese team member seems uncomfortable answering questions in team meetings.

Cultural intelligence would inform them that in Japanese business culture, being called upon to speak up in meetings without advance notice is akin to putting someone “on the spot.” Knowing this, the team leader starts providing agenda items in advance to accommodate the Japanese team members.

Understanding & working with differences

Some cultural differences are easier to deal with than others. For example, restaurant servers in the US get annoyed by the lack of tipping culture in the UK and Australia. Their visible irritation at not getting tipped makes Brits and Australians wonder why US servers are so rude.

It’s normal to bristle a little at cultural differences, and it takes effort to calm one’s defensiveness. This is okay.

Cultural intelligence is earned over time by recognizing differences and approaching them without judgment (or with as little judgment as possible). This might mean trying to understand why some team members:

• Don’t participate in happy hours
• Request specific days off for cultural celebrations
• Communicate and make decisions differently
• Prioritize group consensus over individual achievement
• Have different views on hierarchy and authority
• Approach personal space and physical contact differently

These differences are nuanced with job performance. They can raise eyebrows and make people wonder about others’ beliefs, but cultural behaviors are part of people’s identity. Managers who want to get the best from these employees should create an environment where such differences are respected and accommodated.

Sensitive but not overbearing

Cultural competence doesn’t mean fixating on a person’s background. Let’s say you like baseball. Should every conversation people have with you revolve around baseball? Probably not. You might even avoid people who only ever talk about one thing.

Being culturally sensitive means recognizing other people’s interests while letting them grow and change how you do. Sometimes, it requires restraint—you may be fascinated by someone’s dietary restrictions. However, you shouldn’t bring it up every lunch break.

Cultural differences are a normal part of life. They should be addressed with tact. The wrong way to address cultural differences is to:

• Make jokes about cultural practices
• Constantly point out differences
• Treat team members as spokespersons for their entire culture
• Bring up someone’s background when it’s not relevant
• Force others to participate in cultural celebrations
• Assume everyone from the same background shares identical views
• Make assumptions based on stereotypes

Knowing when and when not to bring up cultural differences is a significant indicator of cultural intelligence.

Staying true to oneself

Authenticity matters in intercultural relationships. While there’s value in being willing to change, people are generally put off by cultural chameleons. Being authentically yourself is what gives others the confidence to do the same.

Be genuine in your interactions. Share perspectives from your background when appropriate. You don’t have to hide who you are just because someone else has a rarer background. Remember, always maintain professional boundaries.

Developing cultural intelligence

Creating a culturally intelligent workplace requires intentional effort. The Cultural Intelligence Center offers the following research-backed strategies for improving your organization’s CQ:

• Provide self-assessments to help team members understand their current CQ level
• Offer employee resource groups or cultural committees
• Host cultural awareness workshops
• Participate in diversity training programs
• Mentor or be mentored by someone from a different background

These are high-level strategies that require lots of cooperation within your organization. They may not be as easy to get going as some personal practices of CQ, such as trying to:

• Develop a personal learning plan for cultural intelligence
• Learn another language (even basics of various languages show respect)
• Practice mindful observation in diverse settings
• Practice active listening in cross-cultural settings
• Seek feedback from colleagues of different backgrounds
• Challenge your assumptions and biases

Cultural intelligence is a mindset. By simply familiarizing yourself with the outside world, you can kick-start a pattern of learning and understanding that builds trust across cultures within your workplace.

Realize that we’re mostly the same

It’s easy to let cultural differences take the spotlight. Indeed, much of the company’s diversity programs deal with people’s physical and demographic characteristics. However, most people want the same things in life: inclusion, camaraderie, prosperity, and fulfillment.

The workplace can be a place for people to develop bonds over shared interests while learning to accept each other’s cultural differences. That means it’s still up to the employer to provide:

• Frequent recognition for work
• Opportunities for career growth and professional development
• A good work-life balance
• Fairness
• Job security
• Regular, clear communication from the leadership
• Opportunities for employees to voice their opinions
• Safe working conditions

People may harbor negative opinions about work when a workplace doesn’t value individuals. Occasionally, people direct these opinions at those lacking power or influence over the situation. Consequently, this can escalate and fuel various forms of prejudice.

The business case for cultural intelligence

Unsurprisingly, businesses with a high CQ function better than those with a low CQ. Cultural intelligence understands the long game of business success: loyal workers and customers.

The benefits of CQ extend beyond personal growth. Research shows that organizations with culturally intelligent leadership outperform their peers and can benefit from:

• 20% increase in market share
• Up to 50% contribution to business success
• Improved innovation, creativity, and problem-solving
• Stronger global leadership presence

Evidence also suggests culturally intelligent companies have happier customers, better reputations, and a heightened ability to adapt to market changes. In short, it’s worth finding a way to boost your company’s CQ.

People feel valued for who they are

Organizations that value different cultures enable employees of all backgrounds to feel confident and be themselves at work. This leads to:

• Higher employee engagement
• Higher output
• Less stress at work
• Stronger workplace relationships
• Greater job satisfaction
• Higher retention rates

Cultural intelligence is also crucial to creating equitable workplaces. It helps to drive better decision-making and ease communication across departments.

Buzzwords aside, this means that when people of all backgrounds are treated equally, they take pride in their work and breeze past many of the hang-ups caused by miscommunication.

Conclusion

Remote work and digital communication have made global teams the norm, and more and more companies rely on worldwide collaboration to bring their ideas to life. Cultural intelligence is essential for anyone working with a modern team. There’s no way around it.

However, cultural intelligence is more than just a workplace skill—it’s a life practice that, through intentional repetition, leads to a mature understanding of the world that everyone should aspire to.

Culturally intelligent people are eager to learn new things and can pivot quickly when proven wrong about past beliefs—even ones they held for a long time.

Start with small steps, stay curious, and be open to new perspectives. Becoming more culturally intelligent takes time, but the benefits are significant to individuals and organizations.

More resources:
Foolproof strategies to resolve conflict in the workplace
Diversity recruiting: Two heads are better than one
Employee motivation strategies for any business