From inclusion to engagement: the psychological safety role in mediating inclusive leadership and diversity initiatives in the Indonesian workplace

https://doi.org/10.35912/ahrmr.v5i2.2795
Published: Jun 18, 2025

Abstract:

Purpose: This study explores how inclusive leadership and Diversity, Equity, and Inclusion (DEI) initiatives influence employee engagement and how psychological safety acts as a mediating factor.

Methodology/approach: This study used quantitative research methodology. Data were analyzed using SmartPLS 4.0 from a sample of 151 participants who participated in this study between August and October 2024 from private, government, and service organizations in Indonesia. The questionnaire used Likert scales to collect quantitative data on the constructs of interest, including inclusive leadership, DEI initiatives, psychological safety, and work engagement

Results/findings: The findings reveal that inclusive leadership and well-implemented DEI initiatives significantly enhance employee engagement, largely through the sense of psychological safety they foster. Employees who feel psychologically safe and confident in contributing ideas or expressing concerns without fear maintain higer levels of engagement in their work.

Conclusions: The findings of this study provide actionable insights for practitioners and policymakers, suggesting that fostering psychological safety through inclusive leadership and DEI initiatives can be a strategic approach to improving employee engagement.

Limitations: the study is limited by its reliance on self-reported data, a cross-sectional research design, and a focus on primarily service-related sectors in Indonesia, which restrict its generalizability. Future research should address these limitations by adopting longitudinal designs and exploring diverse industries and cultural settings to validate and extend these findings.

Contribution: This study provides a substantial addition to the extant literature on leadership, diversity and inclusion (DEI), and psychological safety by highlighting the intricate interactions between these concepts and their influence on employee motivation and performance. Companies are encouraged to implement inclusive leadership practices and DEI programs to nurture an organizational culture where employees feel confident in expressing their authentic opinions without fear of negative consequences.

Keywords:
1. DEI Initiatives
2. Inclusive Leadership
3. Organizational Culture
4. Psychological Safety
5. Work Engagement
Authors:
1 . Indra Fahrizal
Asa Indonesia University, Jakarta, Indonesia
https://orcid.org/0000-0002-7257-6354
2 . Aris Budiono
Asa Indonesia University, Jakarta, Indonesia
3 . Jamaluddin Khalid
Asa Indonesia University, Jakarta, Indonesia
4 . Budi Santoso
Jakarta State University
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How to Cite
Fahrizal, I., Budiono, A. ., Khalid, J. ., & Santoso, B. (2025). From inclusion to engagement: the psychological safety role in mediating inclusive leadership and diversity initiatives in the Indonesian workplace. Annals of Human Resource Management Research, 5(2), 243–260. https://doi.org/10.35912/ahrmr.v5i2.2795
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Issue & Section
Vol. 5 No. 2 (2025): June
Articles
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References

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    Hossain, A., Khatun, M., & Shanjabin, S. (2023). Impact of person-job fit and person-organization fit on employee engagement: Moderating role of supervisor support. Annals of Human Resource Management Research, 3(2), 97-114. doi:https://doi.org/10.35912/ahrmr.v3i2.1885

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  1. Amir, M., Ali, K., Ali, D., & Ali, A. Z. (2022). Human resource practices and employee performance: mediating role of work engagement and training sessions. JISR management and social sciences & economics, 20(1), 187-208. doi:https://doi.org/10.31384/jisrmsse/2022.20.1.10
  2. Bakker, A. B. (2011). An evidence-based model of work engagement. Current directions in psychological science, 20(4), 265-269. doi:https://doi.org/10.1177/0963721411414534
  3. Bakker, A. B., & Demerouti, E. (2008). Towards a model of work engagement. Career development international, 13(3), 209-223. doi:https://doi.org/10.1108/13620430810870476
  4. Brauchli, R., Jenny, G. J., Füllemann, D., & Bauer, G. F. (2015). Towards a Job Demands?Resources health model: empirical testing with generalizable indicators of job demands, job resources, and comprehensive health outcomes. BioMed Research International, 2015(1), 959621. doi:https://doi.org/10.1155/2015/959621
  5. Camlian, M. M., & Baron, J. V. (2025). Workplace health and safety, social support, and turnover intention in Private Higher Education Institutions in the Philippines. Annals of Human Resource Management Research, 5(1), 1-14. doi:https://doi.org/10.35912/ahrmr.v5i1.2661
  6. Carmeli, A., Reiter-Palmon, R., & Ziv, E. (2010). Inclusive leadership and employee involvement in creative tasks in the workplace: The mediating role of psychological safety. Creativity research journal, 22(3), 250-260. doi:https://doi.org/10.1080/10400419.2010.504654
  7. Christian, M. S., Garza, A. S., & Slaughter, J. E. (2011). Work engagement: A quantitative review and test of its relations with task and contextual performance. Personnel psychology, 64(1), 89-136. doi:https://doi.org/10.1111/j.1744-6570.2010.01203.x
  8. Cohen, R. F. (2023). How inclusive leaders can influence employee engagement Inclusive Leadership: Equity and Belonging in Our Communities (pp. 145-153): Emerald Publishing Limited.
  9. Creon, L. E., & Schermuly, C. C. (2024). Feeling safe to be empowered: Psychological safety and psychological empowerment in threatening work environments. German Journal of Human Resource Management, 23970022241284536. doi:https://doi.org/10.1177/23970022241284536
  10. Creswell, J. W. (2014). Research design: qualitative, quantitative, and mixed methods approaches. London: Sage Publications.
  11. Edmondson, A. (1999). Psychological safety and learning behavior in work teams. Administrative Science Quarterly, 44(2), 350-383. doi:https://doi.org/10.2307/2666999
  12. Edmondson, A. C., & Bransby, D. P. (2023). Psychological safety comes of age: Observed themes in an established literature. Annual Review of Organizational Psychology and Organizational Behavior, 10(1), 55-78. doi:https://doi.org/10.1146/annurev-orgpsych-120920-055217
  13. Elamin, A. M., Aldabbas, H., & Ahmed, A. Z. E. (2024). The impact of diversity management on innovative work behavior: the mediating role of employee engagement in an emerging economy. Frontiers in Sociology, 9, 1441109. doi:https://doi.org/10.3389/fsoc.2024.1441109
  14. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50.
  15. Gupta, M., Kuknor, S., & Sharma, K. (2024). Is inclusive leadership a journey through tolerance, acceptance, value and celebration?–An exploratory study. Journal of Asia Business Studies, 18(6), 1567-1583. doi:https://doi.org/10.1108/JABS-01-2024-0057
  16. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate Data Analysis: Cengage.
  17. Hair, J. F., Howard, M. C., & Nitzl, C. (2020). Assessing measurement model quality in PLS-SEM using confirmatory composite analysis. Journal of Business Research, 109, 101-110. doi:https://doi.org/10.1016/j.jbusres.2019.11.069
  18. Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (Vol. 2nd Edition): Sage Publications.
  19. Hashemi Toroghi, H., Denney, F., & Simpson, A. V. (2024). Cultivating staff equality, diversity, and inclusion in higher education in the post-pandemic era: an organizational compassion perspective. Frontiers in Sociology, 9, 1378665. doi:https://doi.org/10.3389/fsoc.2024.1378665
  20. Helgesen, S. (2021). Leading by inclusion: A road forward. Leader to Leader, 2021(100), 48-51. doi:https://doi.org/10.1002/ltl.20562
  21. Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A New Criterion for Assessing Discriminant Validity in Variance-Based Structural Equation Modeling. Journal of the academy of marketing science, 43, 115-135. doi:https://doi.org/10.1007/s11747-014-0403-8
  22. Hofhuis, J., Van Der Rijt, P. G., & Vlug, M. (2016). Diversity climate enhances work outcomes through trust and openness in workgroup communication. SpringerPlus, 5, 1-14. doi:https://doi.org/10.1186/s40064-016-2499-4
  23. Hossain, A., Khatun, M., & Shanjabin, S. (2023). Impact of person-job fit and person-organization fit on employee engagement: Moderating role of supervisor support. Annals of Human Resource Management Research, 3(2), 97-114. doi:https://doi.org/10.35912/ahrmr.v3i2.1885
  24. Hoxha, S., & Ramadani, R. (2024). The Impact of Intrinsic Motivation on the Sustainable Extra-Role Performance with the Mediating Role of Job Engagement. Sustainability, 16(17), 7643. doi:https://doi.org/10.3390/su16177643
  25. Hunt, V., Layton, D., & Prince, S. (2015). Diversity matters. McKinsey & Company, 1(1), 15-29.
  26. Juutinen, S., Sjöblom, K., Dollard, M. F., & Mäkikangas, A. (2023). Psychosocial safety climate: Measurement and relationship with well?being in a four?wave longitudinal study during remote work. Scandinavian journal of psychology, 64(4), 504-511. doi:https://doi.org/10.1111/sjop.12917
  27. Kabalina, V., & Makarova, A. (2022). Employee engagement: systematization of approaches to the definition and measurement. Organizational Psychology, 12(3), 110-137. doi:https://doi.org/10.17323/2312-5942-2022-12-3-110-137
  28. Kahn, W. A. (1990). Psychological Conditions of Personal Engagement and Disengagement at Work. Academy of management Journal, 33(4), 692-724. doi:https://doi.org/10.5465/256287
  29. Karmarkar, G. M. (2024). DEIA: On Paper or in Practice? A Study on the Impact of Authentic and Inauthentic Diversity, Equity, Inclusion, and Accessibility (DEIA) Initiatives in Indian Organizations. International Journal of Innovative Science and Research Technology (IJISRT), 9(9), 1474-1481. doi:https://doi.org/10.38124/ijisrt/IJISRT24SEP1124
  30. Kato, Y., Chiba, R., Shimazu, A., Hayashi, Y., & Sakamoto, T. (2023). Antecedents and outcomes of work engagement among psychiatric nurses in Japan. Paper presented at the Healthcare.
  31. Khattak, S. R., Zada, M., Nouman, M., Rahman, S. U., Fayaz, M., Ullah, R., . . . Contreras-Barraza, N. (2022). Investigating inclusive leadership and pro-social rule breaking in hospitality industry: Important role of psychological safety and leadership identification. International journal of environmental research and public health, 19(14), 8291. doi:https://doi.org/10.3390/ijerph19148291
  32. Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration (ijec), 11(4), 1-10.
  33. Kwon, K., & Kim, T. (2020). An integrative literature review of employee engagement and innovative behavior: Revisiting the JD-R model. Human Resource Management Review, 30(2), 100704. doi:https://doi.org/10.1016/j.hrmr.2019.100704
  34. Lee, S. E., & Seo, J. (2024). Effects of nurse managers' inclusive leadership on nurses' psychological safety and innovative work behavior: The moderating role of collectivism. Journal of Nursing Scholarship, 56(4), 554-562. doi:https://doi.org/10.1111/jnu.12965
  35. Ly, B. (2024). Inclusion leadership and employee work engagement: The role of organizational commitment in Cambodian public organization. Asia Pacific Management Review, 29(1), 44-52. doi:https://doi.org/10.1016/j.apmrv.2023.06.003
  36. Nembhard, I. M., & Edmondson, A. C. (2006). Making it safe: The effects of leader inclusiveness and professional status on psychological safety and improvement efforts in health care teams. Journal of Organizational Behavior: The International Journal of Industrial, Occupational and Organizational Psychology and Behavior, 27(7), 941-966. doi:https://doi.org/10.1002/job.413
  37. Newman, A., Donohue, R., & Eva, N. (2017). Psychological safety: A systematic review of the literature. Human Resource Management Review, 27(3), 521-535. doi:https://doi.org/10.1016/j.hrmr.2017.01.001
  38. Niswaty, R., Wirawan, H., Akib, H., Saggaf, M. S., & Daraba, D. (2021). Investigating the effect of authentic leadership and employees' psychological capital on work engagement: evidence from Indonesia. Heliyon, 7(5). doi:https://doi.org/10.1016/j.heliyon.2021.e06992
  39. Nittrouer, C. L., Arena Jr, D., Silver, E. R., Avery, D. R., & Hebl, M. R. (2025). Despite the haters: The immense promise and progress of diversity, equity, and inclusion initiatives. Journal of organizational behavior, 46(1), 188-201. doi:https://doi.org/10.1002/job.2835
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