The world's two largest democracies, India and the United States, are also the world's most diverse societies. The demographics and structures of their diversity – and their legal frameworks – differ substantially. Consequently, the diversity challenges and priorities of business in India and the United States differ in many ways.
Demographic Differences
India’s workforce is preponderantly young. Large numbers are entering the professional workforce at a time of rapid economic expansion that provides increased opportunity for the well qualified and well connected.
However, access to professional education, socialization, entry and career advancement is still disproportionately concentrated among social groups that have traditionally dominated the professional fields. Despite its much strength, the educational system doesn’t provide sufficient trained talent for the job market, particularly the IT sector that is the new economy’s engine of growth. This puts special pressures on employers in India around finding, competing for, holding and cultivating the skilled employees they need.
However, access to professional education, socialization, entry and career advancement is still disproportionately concentrated among social groups that have traditionally dominated the professional fields. Despite its much strength, the educational system doesn’t provide sufficient trained talent for the job market, particularly the IT sector that is the new economy’s engine of growth. This puts special pressures on employers in India around finding, competing for, holding and cultivating the skilled employees they need.
Take-Away Tip for U.S. and Indian Managers
When Indian and U.S. corporations work together or operate on each other’s soil, all levels of management need to understand the important differences in workforce demographics, diversity categories, and legal frameworks relating to diversity, employment discrimination and equal employment opportunity. To apply generic “diversity management” and “global multicultural team” principles without understanding the specifics of these differences could lead to unintended negative consequences.
When a company is working globally, good diversity management requires understanding the social, cultural and legal particularities of each country, and navigating the differences while at the same time managing a corporation, division or team in a manner that is internally consistent across the globe.