The power of perception: the impact of inclusivity policies and diversity climate on employee well-being

Purpose The purpose of the current study is to assess the relationship between employees' perceptions of inclusivity policies and employee well-being (i.e. life satisfaction, job satisfaction, turnover intentions and work–life balance). Moreover, we also examine diversity climate as a potential mediator of this relationship. Design/methodology/approach Drawing on the model of inclusive organizations and the signaling theory, we hypothesized that positive perceptions of inclusivity policies would relate to better employee well-being through a more favorable perception of diversity climate. The sample consisted of 361 faculty and staff from a large Southeastern university. A single-level path-analytic mediation model was used to test hypothesized relationships due to the negligible between-college variance. Findings The results revealed that positive perceptions of inclusivity policies were associated with a more positive diversity climate which, in turn, enhanced certain well-being outcomes – life satisfaction, job satisfaction, turnover intentions and work–life balance. Further, diversity climate mediated the relationship between employees' perceptions of inclusivity policies and employee well-being. Our results highlight the importance of not only implementing inclusive policies but, also ensuring that employees perceive them as fair and effective. Originality/value The current study extends prior research by emphasizing employees' perceptions of inclusivity policies rather than just policy presence. Further, demonstrating the role of diversity climate as a mechanism linking inclusivity policies to well-being outcomes, offers a better understanding of how organizational inclusion initiatives can translate into employee attitudes and health.