Diversity Climate Perceptions and Turnover Intentions: Evidence From the Indian IT Industry

The present research aims to examine the sequential mediating effect of inclusion and job satisfaction in the relationship between diversity climate and employee turnover intentions. Data has been collected from 302 full-time employees working in the Indian IT industry using a self-administered questionnaire. Current research work tests the hypothesized connection using the structural equation modeling (SEM) approach. Further, the proposed indirect effect was determined using the PROCESS program. Study results revealed that employee sense of inclusion and job satisfaction sequentially mediates the relationship between diversity climate and turnover intentions. Taking into consideration the practical implications of the research, the present study stresses the importance of enforcing inclusive HR policies for the establishment of a positive climate for diversity. The present study adds up to the literature database by assessing the fundamental mechanism that clarifies the relationship between diversity climate and turnover intentions. This study elucidates how employee effect is shaped by the diversity climate, with inclusion as a main contextual element. By embracing this element, the study contributes to the inclusion literature which is empirically under-researched in India’s diverse context. Our findings indicate that employees who have a more favorable view of the diversity climate report lower intention to quit not only directly but also indirectly through inclusion and job satisfaction. Inclusion exemplifies how a diversity climate can be leveraged to enhance employee affective outcomes such as job satisfaction which is further associated with lower turnover intentions. The results were congruent with Brimhall et al., 2014. The trajectory of connections appears to be entirely positive among diversity climate, inclusion, and job satisfaction, concluding that positive employee behavior can be achieved by creating and managing a climate for diversity. Thus, we profess that the study results will help in advancing the research on diversity climate by providing sequential insights for building a positive workplace environment and minimizing employee turnover.