Employees who know their customers improve the bottom line

Hiring a diverse workforce may seem an exercise in political correctness, but in retail employment especially, it is actually a smart strategy that can grow the bottom line.

The reasons why are as varied as the customers who walk through the door. Those customers now come from increasingly varied backgrounds themselves, and many have cultural expectations about how things are done that people not of those cultures may not know.

Take giving change, for instance. While they may not say anything about it, Asian customers consider it a sign of disrespect if a cashier does not count out the change when handing it to the customer. Some African-Americans feel the same way about clerks who place the change on the counter rather than in the customer's hand. Asian and African-American store employees would know about and be sensitive to these expectations and could educate their co-workers on these and related matters. A diverse workforce also sends a signal to customers that they are welcome in the store and will be treated with respect.

Employees from varied cultural backgrounds can also offer insights into consumer tastes and trends that might otherwise go unnoticed because other staff are not in touch with the different communities that give rise to those trends. Managers who tap such employees for their knowledge and insights can reap the rewards of increased business and a larger customer base.

As America becomes even more multiethnic, smart retailers are finding that hiring talent from every ethnic group improves customer loyalty, expands markets and boosts sales and profits. Far from being a feel-good gesture, building a diverse workforce makes good business sense, especially in the highly competitive retail sector.