Diversity and Inclusion Initiatives: Influence on Organizational Performance

Bambang Purwoko

doi:10.62207/w5fsnn95

Authors

Bambang Purwoko Universitas W R Supratman Author

DOI:

https://doi.org/10.62207/w5fsnn95

Keywords:

Diversity, Inclusion, Employee Retention, Job Satisfaction

Abstract

Employee retention is an important challenge for organizations today. This study proposes a research framework for understanding how diversity and inclusion can influence employee retention through job satisfaction. The theoretical basis of this research is based on existing literature on inclusive leadership, quality of work life, work-life balance, leaders' emotional intelligence, and compensation as factors that influence job satisfaction. The proposed model proposes that diversity and inclusion have a positive indirect effect on employee retention through job satisfaction. Further research using this framework can help organizations develop strategies to increase employee retention by building more diverse and inclusive work environments.

References

Alam, M. and Shin, D. (2020). A moderated mediation model of employee experienced diversity management: openness to experience, perceived visible diversity discrimination and job satisfaction. International Journal of Manpower, 42(5), 733-755. https://doi.org/10.1108/ijm-06-2019-0286

Alzyoud, A., Ahmed, U., AlZgool, M., & Pahi, M. (2019). Leaders’ emotional intelligence and employee retention: mediation of job satisfaction in the hospitality industry. International Journal of Financial Research, 10(3), 1. https://doi.org/10.5430/ijfr.v10n3p1

Aman-Ullah, A., Aziz, A., Ibrahim, H., Mehmood, W., & Aman-Ullah, A. (2022). The role of compensation in shaping employee’s behaviour: a mediation study through job satisfaction during the covid-19 pandemic. Revista De Gestão, 30(2), 221-236. https://doi.org/10.1108/rege-04-2021-0068

Aman‐Ullah, A., Ibrahim, H., Aziz, A., & Mehmood, W. (2022). Balancing is a necessity not leisure: a study on work–life balance witnessing healthcare sector of pakistan. Asia-Pacific Journal of Business Administration, 16(1), 127-147. https://doi.org/10.1108/apjba-09-2020-0338

Ashikali, T. and Groeneveld, S. (2013). Diversity management in public organizations and its effect on employees’ affective commitment. Review of Public Personnel Administration, 35(2), 146-168. https://doi.org/10.1177/0734371x13511088

Barak, M., Luria, G., & Brimhall, K. (2021). What leaders say versus what they do: inclusive leadership, policy-practice decoupling, and the anomaly of climate for inclusion. Group & Organization Management, 47(4), 840-871. https://doi.org/10.1177/10596011211005916

Bezrukova, K., Jehn, K., & Spell, C. (2012). Reviewing diversity training: where we have been and where we should go. Academy of Management Learning and Education, 11(2), 207-227. https://doi.org/10.5465/amle.2008.0090

Bharadwaj, S., Khan, N., & Yameen, M. (2021). Unbundling employer branding, job satisfaction, organizational identification and employee retention: a sequential mediation analysis. Asia-Pacific Journal of Business Administration, 14(3), 309-334. https://doi.org/10.1108/apjba-08-2020-0279

Boyce, A., Tovey, T., Onwuka, O., Moller, J., Clark, T., & Smith, A. (2022). Exploring nsf-funded evaluators’ and principal investigators’ definitions and measurement of diversity, equity, and inclusion. American Journal of Evaluation, 44(1), 50-73. https://doi.org/10.1177/10982140221108662

Carter, D., D’Souza, F., Simkins, B., & Simpson, W. (2010). The gender and ethnic diversity of us boards and board committees and firm financial performance. Corporate Governance an International Review, 18(5), 396-414. https://doi.org/10.1111/j.1467-8683.2010.00809.x

Chaudhry, I., Paquibut, R., & Tunio, M. (2021). Do workforce diversity, inclusion practices, & organizational characteristics contribute to organizational innovation? evidence from the u.a.e. Cogent Business & Management, 8(1). https://doi.org/10.1080/23311975.2021.1947549

Chordiya, R. (2018). Are federal child care programs sufficient for employee retention? critical examination from a gendered perspective. The American Review of Public Administration, 49(3), 338-352. https://doi.org/10.1177/0275074018804662

Dahleez, K., Aboramadan, M., & Fattah, F. (2023). Inclusive leadership and job satisfaction in omani higher education: the mediation of psychological ownership and employee thriving. International Journal of Educational Management, 37(4), 907-925. https://doi.org/10.1108/ijem-07-2022-0274

Downey, S., Werff, L., Thomas, K., & Plaut, V. (2014). The role of diversity practices and inclusion in promoting trust and employee engagement. Journal of Applied Social Psychology, 45(1), 35-44. https://doi.org/10.1111/jasp.12273

Feitosa, J., Hagenbuch, S., Patel, B., & Davis, A. (2022). Performing in diverse settings: a diversity, equity, and inclusion approach to culture. International Journal of Cross Cultural Management, 22(3), 433-457. https://doi.org/10.1177/14705958221136707

Ferdman, B. (2013). Toward enhancing industrial and organizational psychology's contributions to diversity and inclusion practice. Industrial and Organizational Psychology, 6(3), 237-242. https://doi.org/10.1111/iops.12041

Gotsis, G. and Grimani, A. (2016). The role of servant leadership in fostering inclusive organizations. The Journal of Management Development, 35(8), 985-1010. https://doi.org/10.1108/jmd-07-2015-0095

Gould, R., Harris, S., Mullin, C., & Jones, R. (2020). Disability, diversity, and corporate social responsibility: learning from recognized leaders in inclusion. Journal of Vocational Rehabilitation, 52(1), 29-42. https://doi.org/10.3233/jvr-191058

Gould, R., Mullin, C., Harris, S., & Jones, R. (2021). Building, sustaining and growing: disability inclusion in business. Equality Diversity and Inclusion an International Journal, 41(3), 418-434. https://doi.org/10.1108/edi-06-2020-0156

HANIF, M., Athar, M., Rehman, Z., Anwar, A., & Ali, M. (2023). Diversity management and organizational performance in pakistan. Reviews of Management Sciences, 4(2), 95-116. https://doi.org/10.53909/rms.04.02.0203

Hoang, T., Suh, J., & Sabharwal, M. (2022). Beyond a numbers game? impact of diversity and inclusion on the perception of organizational justice. Public Administration Review, 82(3), 537-555. https://doi.org/10.1111/puar.13463

Holmes, M. (2023). Inclusion in public-sector workplaces: charting a path for theory and practice. Public Personnel Management, 52(4), 491-497. https://doi.org/10.1177/00910260231191273

Jaiswal, A. and Dyaram, L. (2019). Perceived diversity and employee well-being: mediating role of inclusion. Personnel Review, 49(5), 1121-1139. https://doi.org/10.1108/pr-12-2018-0511

Jansen, W., Otten, S., & Zee, K. (2015). Being part of diversity: the effects of an all-inclusive multicultural diversity approach on majority members’ perceived inclusion and support for organizational diversity efforts. Group Processes & Intergroup Relations, 18(6), 817-832. https://doi.org/10.1177/1368430214566892

Jirincova, M. (2013). Potential future managers and their opinion on the issue of diversity, inclusion and their possible use in management. Journal of Competitiveness, 5(2), 37-50. https://doi.org/10.7441/joc.2013.02.03

Kapoor, C. (2011). Defining diversity: the evolution of diversity. Worldwide Hospitality and Tourism Themes, 3(4), 284-293. https://doi.org/10.1108/17554211111162408

Khan, K. and Jabeen, S. (2019). Investigating the impact of workplace diversity on organizational citizenship behavior: the mediating role of inclusion. Journal of Management and Research, 6(2), 18-50. https://doi.org/10.29145/jmr/62/060202

Leijen, Ä., Arcidiacono, F., & Baucal, A. (2021). The dilemma of inclusive education: inclusion for some or inclusion for all. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.633066

Li, W., Wang, X., Haque, J., Shafique, M., & Nawaz, M. (2020). Impact of workforce diversity management on employees’ outcomes: testing the mediating role of a person’s job match. Sage Open, 10(1), 215824402090340. https://doi.org/10.1177/2158244020903402

Li, Y., Perera, S., Kulik, C., & Metz, I. (2019). Inclusion climate: a multilevel investigation of its antecedents and consequences. Human Resource Management, 58(4), 353-369. https://doi.org/10.1002/hrm.21956

Lightfoote, J., Fielding, J., Deville, C., Gunderman, R., Morgan, G., Pandharipande, P., … & Macura, K. (2014). Improving diversity, inclusion, and representation in radiology and radiation oncology part 1: why these matter. Journal of the American College of Radiology, 11(7), 673-680. https://doi.org/10.1016/j.jacr.2014.03.007

Liu, J., Zhu, Y., & Wang, H. (2023). Managing the negative impact of workforce diversity: the important roles of inclusive hrm and employee learning-oriented behaviors. Frontiers in Psychology, 14. https://doi.org/10.3389/fpsyg.2023.1117690

Madera, J., Dawson, M., & Guchait, P. (2016). Psychological diversity climate: justice, racioethnic minority status and job satisfaction. International Journal of Contemporary Hospitality Management, 28(11), 2514-2532. https://doi.org/10.1108/ijchm-06-2015-0304

Martins, L. (2020). Strategic diversity leadership: the role of senior leaders in delivering the diversity dividend. Journal of Management, 46(7), 1191-1204. https://doi.org/10.1177/0149206320939641

Nivet, M. (2015). A diversity 3.0 update. Academic Medicine, 90(12), 1591-1593. https://doi.org/10.1097/acm.0000000000000950

Ohunakin , F. , Adeniji , A. , Ogunnaike , O. , Igbadume , F. , & Akintayo , D. (2019). Тhe effects of diversity management and inclusion on organizational outcomes: a case of multinational corporation. Verslas Theory Going Practice, 20, 93-102. https://doi.org/10.3846/btp

Panicker, A. and Khandelwal, U. (2018). Inclusive workplace and organizational citizenship behavior. Equality Diversity and Inclusion an International Journal, 37(6), 530-550. https://doi.org/10.1108/edi-03-2017-0054

Pink‐Harper, S., Davis, R., & Burnside, R. (2016). “justice for all”: an examination of self‐identified lgbt job satisfaction in the us federal workforce. Canadian Journal of Administrative Sciences / Revue Canadienne Des Sciences De L Administration, 34(2), 182-197. https://doi.org/10.1002/cjas.1420

Pirchio, S., Arcidiacono, F., & Passiatore, Y. (2022). Editorial: inclusive schools for a diverse world: psychological and educational factors and practices harming or promoting inclusion at school. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.1049129

Pitts, D. (2009). Diversity management, job satisfaction, and performance: evidence from u.s. federal agencies. Public Administration Review, 69(2), 328-338. https://doi.org/10.1111/j.1540-6210.2008.01977.x

Ross, F., Wells, J.T., & Clarke, A.T. (2014). A Pipeline for Diversity: Initiative Spearheads Profession Wide Effort to Attract Underrepresented Minorities to Accounting. Journal of accountancy, 218, 48.

Rubel, M., Kee, D., & Rimi, N. (2023). Quality of work life and employee work outcomes: a hierarchical model with mediation analysis. International Journal of Business and Society, 24(1), 421-439. https://doi.org/10.33736/ijbs.5625.2023

Sabharwal, M. (2014). Is diversity management sufficient? organizational inclusion to further performance. Public Personnel Management, 43(2), 197-217. https://doi.org/10.1177/0091026014522202

Schmidt, S., Githens, R., Rocco, T., & Kormanik, M. (2012). Lesbians, gays, bisexuals, and transgendered people and human resource development. Human Resource Development Review, 11(3), 326-348. https://doi.org/10.1177/1534484312447193

Shore, L., Randel, A., Chung, B., Dean, M., Ehrhart, K., & Singh, G. (2010). Inclusion and diversity in work groups: a review and model for future research. Journal of Management, 37(4), 1262-1289. https://doi.org/10.1177/0149206310385943

Wagner, M.S., & Boyle, M.E. (2022). Defining employee pro-environmental, social and governance behaviors. The Business and Management Review.

Williams, S., Eden, S., Megdal, S., & Joe‐Gaddy, V. (2023). Diversity, equity, inclusion, and justice in water dialogues: a review and conceptualization. Journal of Contemporary Water Research & Education, 177(1), 113-139. https://doi.org/10.1111/j.1936-704x.2022.3386.x