How Language Skills Drive Growth
In today’s global market, businesses that fail to invest in bilingualism are leaving money on the table. Language gaps cost opportunities—and profits. A study by the An American Council on the Teaching of Foreign Languages (ACTFL) revealed that nine out of 10 U.S. employers rely on employees with language skills beyond English. Yet, many face a critical gap between the skills they need and what their employees can offer.
As the CEO of a company operating across 20 global markets, I’ve seen firsthand how bilingualism fuels growth and innovation and our experience mirrors the ACTFL findings. In a survey we conducted among C-Suite and HR professionals to better understand the importance of bilingualism in the American workforce, over 90% of respondents agreed that language skills are essential. They emphasized that bilingual employees enhance customer experience, boost engagement, and optimize service delivery—all of which directly affect profitability.
The ACTFL study also found that nearly one in four employers lost or couldn’t pursue business opportunities due to a lack of foreign language skills. For companies with a pronounced language gap, that figure jumps to 50%. These missed opportunities aren’t just frustrating—they’re preventable. Implementing language training can immediately improve cross-functional collaboration, reduce miscommunication, and open up new markets. In fact, more than 70% of HR professionals in our survey believe language training programs improve communication and positively impact business outcomes.
Spanish is particularly valuable in the U.S. market, where 85% of companies say they rely on it for business. Since Spanish is the most widely spoken language in the U.S. after English, offering employees the opportunity to learn it can help businesses better serve their Spanish-speaking customers, ultimately boosting profits. At Open Education, we have responded to this need with our Open Spanish program, which provides employees with online Spanish lessons from native speakers.
On the global stage, English remains dominant for business. Jovana Arguelles, Head of People Development at Scania, a global leader in sustainable transportation, noted that English is essential for her company’s international projects. By providing language training, Scania has improved communication between employees and clients, enabling employees to take on new roles and transfer to other markets.
Our own organization, where over 70% of employees work remotely, has observed that continuous learning programs, including language training, significantly improve employee engagement. The 2023-24 SHRM State of the Workplace Report highlights that upskilling and maintaining engagement are two of the most critical challenges organizations face today. Employee development programs, like language training, directly address these issues. Companies that invest in employee growth see higher levels of satisfaction, productivity, and retention. According to Forbes, businesses with comprehensive training programs—including language skills—achieve 218% higher income per employee and 24% higher profit margins.
In conclusion, integrating language training into employee benefits is not just an advantage—it’s a necessity in today’s global market. Both ACTFL’s research and our own findings show that bilingualism is a critical driver of business success. Over 90% of industry leaders agree that language proficiency enhances customer interactions and improves organizational performance. With U.S. companies increasingly relying on Spanish and English essential for international operations, language skills open doors to new opportunities, boost profits, and foster a more engaged workforce.
The gap between language skills and business needs represents both a challenge and an opportunity. In a world where every competitive edge counts, bilingualism is no longer optional—it’s essential. Companies that prioritize language training now will not only future-proof their workforce but also seize opportunities others miss.
- The Profit Potential of Bilingualism – by Andres Moreno - October 15, 2024