The Business Risks of Language Barriers

Rosetta Stone The Business Risks of Language Barriers Business risks and challenges associated with language barriers will continue to grow as the domestic population becomes more culturally diverse and global markets become more tightly integrated. Most Americans speak only English. This is becoming a significant business problem for companies trying to remain competitive and successful in an increasingly diverse and international marketplace. The solution: recruiting, training, and retaining a multilingual workforce that reflects the diversity of this global business environment. Here is an inside look at the communication challenges facing today's businesses... Market Expansion For many companies, success depends on capturing market share in the fastest growing markets at home and abroad-markets which are frequently in communities and countries that don't speak English. 95% of the world's consumers live outside the U.S. 95% Only 5.6% of the world population speaks 5.6% English as a primary language. 70% 16% 30% 50% 16% of the U.S. population is Hispanic. By 2042, Hispanics will comprise 30% of the population. 70% of world economic Nearly 30% of the U.S. Half of U.S. growth since the growth over the next few economy is now engaged in end of the recession in 2009 years will come from international trade. has come from exports. emerging markets. %24 Between 2010 and 2015, the buying power of minorities in the U.S. will increase by more than %24 2015 24 $. $1 trillion 69 %24 $4 %24 %24 %24 Customer Service As a company's non-English speaking customer base grows, language barriers prevent employees from providing the consistent, high-quality service that leads to satisfied, loyal, and profitable customers. 11.4% of the population is fluent in more than one language. This presents real challenges for employers looking to hire domestically sourced multilingual customer service reps. 72% Globally, 72.4% of consumers are more likely to buy a product with information in their İ156.2% own language. of consumers say the ability to obtain information in their own language is more important than price. Speaking to customers in their native language improves retention outcomes 5% 85% to increase in customer retention rates can increase profits from 25% Workplace Safety Workplace injury and fatality incidents increase in work environments where safety warnings, signs, and instructions are not clearly communicated or understood by all employees. 6/10 Hispanic construction workers were injured at a rate 70% higher than their non-Hispanic counterparts (this rate was 69% higher for foreign-born workers). Hispanic workers speak little to no English. 25% of job site accidents can be attributed to language barriers. Of the 7 million construction workers in the U.S., roughly 25% are Hispanic. 6 out of 10 of these workers speak little to no English. Workplace Development Skilled and experienced needed to achieve business goals without offering employees personal and professional development opportunities. orkers continue to be in high demand. is increasingly difficult to act and retain the talent Companies that spend $218 or less on training per employee have more than a 16% voluntary turnover. Those that spend over $273 have turnovers of less than 7%. %24 Companies that don't train their %24 %24 16% AA employees are more than three times as likely to lose them. %24 %24 Worldwide, corporate demand is for skills in languages other than English. 45% Companies that invest in learning outperform the market by more than 45%. Companies that don't, under-perform by 22%. IMAGRATION OFFICE Average Market Performance 22% 25 NLC 2C0 %24 0.26321453214223 44.5% 693215 Investing in four key areas-having a language strategy, appointing native speakers, training staff in language skills, and using translators-is associated with 44.5% greater success in export sales. 456214223 For businesses, competing in a world of many languages means facing increasing pressure to recruit multilingual employees and equip monolingual staff with language skills. Failure to hire or train a multilingual workforce will put companies at a competitive disadvantage as they look to capture market share, serve customers, protect workers, and attract and retain the skilled and experienced people necessary for success. Sources Why Do Many Americans Speak Only English? by Dr. David Sigsbee (2011)| America's Foreign Language Deficit, by David Skorton and Glenn Altschuler (Forbes, 2012)| User Language Preferences Online: Analytical Report (European Commission, 2011) | Tracking Global Trends (Ernst & Young, 2011) | U.S. Delegation is Seeking Deals in India, by Vikas Bajaj and Heather Timmons (New York Times, 2011) | Making American More Innovative at Home and Competitive Overseas, by Gary Locke (The Hill, 2010) | Quick Facts (U.S. Census Bureau, 2012) | World Languages and Cultures (Vistawide, 2012) | Hispanic and Asian Buying Power Expected to Surge (UGA Selig Center, 2010) | Global Trade in Services, by Brad Jensen (2011)| Tongue Tied, by Ruth Mantell (MarketWatch, 2007) | Data on Hispanic Population, Homeowners, and Construction Workers (NAHBEconomics Group, 2006) | Hispanic Workers Dying at Higher Rates Than Others (HealthDay News, 2008) | Morbidity and Mortality Weekly Report (CDC, 2010) | ELAN: Effects on the European Economy of Shortages of Foreign Language Skills in Enterprise (National Centre for Languages, 2006) | Performance Study on Talent Management Maturity (Hackett Benchmarking and Research, 2009) Rosetta Stone $4