Exploring the Path to Employee Well-Being: The Role of Inclusivity Policies and Diversity Climate in the Workplace

Abstract

Within the current study, we aimed to assess the relationship between employees’ perceptions of inclusivity policies and employee well-being (i.e., psychological well-being, job satisfaction, turnover rates, social support, and work-life balance). We also examined diversity climate as a potential mediator of this relationship. Diversity climate pertains to an employee’s perceptions of how well their organization demonstrates support and promotion to diverse employees. The conceptualization of diversity climate is rooted in social identity theory, the interactional model of cultural diversity (IMCD), and organizational justice theory. The study sample consisted of 361 faculty and staff from a large Southeastern university. The findings revealed that positive perceptions of inclusivity policies were associated with a more positive diversity climate which, in turn, influenced certain well-being outcomes such as: psychological well-being, job satisfaction, turnover rates, and work-life balance. However, the relationship between diversity climate and social support was not significant. These results highlight the importance of not only implementing inclusive policies, but also ensuring employees perceive them as fair and effective. The findings also suggest that organizations should implement and engage in workplace interventions to foster an inclusive work environment. Fostering an inclusive work environment can help strengthen the organization’s diversity climate, which can ultimately improve employee health and well-being.