The role of workforce diversity in shaping employee inclusion in organizations

https://doi.org/10.35912/ahrmr.v5i4.3459
Published: Dec 24, 2025

Abstract:

Purpose: This study investigates how Generational Diversity (GD), Gender Diversity (GE), Disability Orientation (DO), Socioeconomic Status (SES), and Cultural Values (CV) influence Employee Inclusion (EI) in medium- and large-scale organizations in Indonesia.

Research Methodology: A quantitative, causal-explanatory design was applied using survey data from 150 employees collected via structured questionnaires on a 5-point Likert scale. Data were analyzed using PLS-SEM with bootstrapping (1,000 resamples) to assess measurement reliability/validity and test structural relationships.

Results: Findings indicate that all five diversity-orientation constructs positively and significantly affect Employee Inclusion. Cultural Values and Generational Diversity show the strongest effects, while Gender Diversity, Disability Orientation, and Socioeconomic Status also contribute meaningfully. The model explains about 66% of the variance in EI (R² ? 0.661), and all paths meet significance criteria (t > 1.96; p < 0.05).

Conclusions: Employee inclusion is strengthened when organizations intentionally cultivate culturally respectful environments, encourage intergenerational collaboration, ensure gender equity, support employees with disabilities, and reduce SES-based barriers through fair HR practices.

Limitations: The study is cross-sectional, context-specific, and relies on self-reported data, which may limit causal inference and generalizability.

Contribution: This research integrates multiple diversity dimensions into a single predictive framework, offering evidence-based priorities for leaders and policymakers to design targeted inclusion strategies that enhance engagement and organizational effectiveness.

Keywords:
1. Disability Orientation
2. Employee Inclusion
3. Gender Diversity
4. Partial Least Squares–Structural Equation Modeling (PLS-SEM)
5. Socioeconomic Status
Authors:
1 . Anthonius Karsudjono
STIE Pancasetia Banjarmasin, Kalimantan Selatan, Indonesia
2 . Abdul Kadir
STIE Pancasetia Banjarmasin, Kalimantan Selatan, Indonesia
3 . Noor Ritawaty
STIE Pancasetia Banjarmasin, Kalimantan Selatan, Indonesia
4 . Hardika Muhammad Fatih
STIE Pancasetia Banjarmasin, Kalimantan Selatan, Indonesia
5 . Ali Audah
STIE Pancasetia Banjarmasin, Kalimantan Selatan, Indonesia
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How to Cite
Karsudjono, A., Kadir, A., Ritawaty, N., Fatih, H. M., & Audah, A. (2025). The role of workforce diversity in shaping employee inclusion in organizations. Annals of Human Resource Management Research, 5(4), 281–299. https://doi.org/10.35912/ahrmr.v5i4.3459
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Issue & Section
Vol. 5 No. 4 (2025): December
Articles
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References

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    Arthachinda, P., & Charoensukmongkol, P. (2024). Effect of Perceived Group Inclusion on Innovative Behavior and its Subsequent Impact on Team Performance: Moderating Effects of Team Characteristics. Management Research Review, 47(9), 1341-1359. doi:https://doi.org/10.1108/MRR-09-2023-0708

    Cahyono, N. D. (2025). The Role of Inclusive Organizational Culture in Enhancing Job Satisfaction and Employee Commitment in Multinational Companies. The Journal of Academic Science, 2(2), 632-641. doi:https://doi.org/10.59613/nw7zd618

    Chaudhry, I. S., Paquibut, R. Y., & Tunio, M. N. (2021). Do Workforce Diversity, Inclusion Practices, & Organizational Characteristics Contribute to Organizational Innovation? Evidence from the UAE. Cogent Business & Management, 8(1), 1-24. doi:https://doi.org/10.1080/23311975.2021.1947549

    Chen, C. (2022). Naming the Ghost of Capitalism in Sport Management. European Sport Management Quarterly, 22(5), 663-684. doi:https://doi.org/10.1080/16184742.2022.2046123

    Cooke, F. L., Schuler, R., & Varma, A. (2020). Human Resource Management Research and Practice in Asia: Past, Present and Future. Human Resource Management Review, 30(4), 1-13. doi:https://doi.org/10.1016/j.hrmr.2020.100778

    Cunha, H. C. d., Singh, V., & Farrell, C. (2023). Host Country Cultural Profile and the Performance of Foreign Subsidiaries in Latin America. International Journal of Cross Cultural Management, 23(3), 531-555. doi:https://doi.org/10.1177/14705958231204728

    Ezeafulukwe, C., Onyekwelu, S. C., Onyekwelu, N. P., Ike, C. U., Bello, B. G., & Asuzu, F. (2024). Best Practices in Human Resources for Inclusive Employment: An in-Depth Review. International Journal of Science and Research Archive, 11(1), 1286-1293. doi:https://doi.org/10.30574/ijsra.2024.11.1.0215

    Farashah, A., & Blomqusit, T. (2021). Organizational Culture and Cultural Diversity: An Explorative Study of International Skilled Migrants in Swedish firms. Journal of Global Mobility: The Home of Expatriate Management Research, 9(2), 289-308. doi:https://doi.org/10.1108/JGM-11-2020-0072

    Gabriel, K. P., Ezerins, M. E., Rosen, C. C., Gabriel, A. S., Patel, C., & Lim, G. J. (2025). Socioeconomic Status and Employee Well-Being: An Intersectional and Resource-Based View of Health Inequalities at Work. Journal of Management, 51(6), 2549-2588. doi:https://doi.org/10.1177/01492063241311869

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    Kaur, N., & Arora, P. (2020). Acknowledging Gender Diversity and Inclusion as Key to Organizational Growth: A Review and Trends. Journal of Critical Reviews, 7(6), 125-131. doi:https://doi.org/10.31838/jcr.07.06.25

    Khan, M. S., Saengon, P., Charoenpoom, S., Soonthornpipit, H., & Chongcharoen, D. (2021). The Impact of Organizational Learning Culture, Workforce Diversity and Knowledge Management on Innovation and Organization Performance: A Structural Equation Modeling Approach. Human Systems Management, 40(1), 103-115. doi:https://doi.org/10.3233/HSM-200984

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    Kumar, R., Mishra, P., & Shukla, B. (2024). Diversity Management and Organisational Citizenship Behaviour: A Sequential Mediation Effect of Inclusive Climate and Affective Commitment. Organizational Psychology, 14(3), 178-192.

    Lima, S. A., Rahman, M. M., Bhuiyan, M. I. H., & Rahman, Z. (2025). The Role of HRM in Shaping Inclusive Cultures: Navigating Cross-Cultural D&I Challenges in US Organizations. Journal of Business and Management Studies, 7(1), 263-272. doi:https://doi.org/10.32996/jbms.2025.7.1.21

    Luu, T. T. (2021). A Tale of Two Countries: How Do Employees with Disabilities Respond to Disability Inclusive HR Practices in Tourism and Hospitality Industry? Journal of Sustainable Tourism, 30(1), 299-329. doi:https://doi.org/10.1080/09669582.2021.1876073

    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

    Lyons, S. T., Schweitzer, L., Urick, M. J., & Kuron, L. (2019). A Dynamic Social-Ecological Model of Generational Identity in the Workplace. Journal of Intergenerational Relationships, 17(1), 1-24. doi:https://doi.org/10.1080/15350770.2018.1500332

    Miswan, Wiratih, H. W. R., Ngintang, S. D. D., Arman, A., & Wadud, M. (2024). Diversity and Inclusion in the Workplace: A Global Perspective. Join: Journal of Social Science, 1(5), 182-198. doi:https://doi.org/10.59613/14cxrq11

    Nasarasiddi, K. (2024). Impact of Organizational Diversity on Safety Culture and Performance in PT. UVW Indonesia. Journal of Multidisciplinary Academic Business Studies, 1(4), 765-782. doi:https://doi.org/10.35912/jomabs.v1i4.2317

    Nishii, L. H. (2013). The Benefits of Climate for Inclusion for Gender-Diverse Groups. Academy of management Journal, 56(6), 1754-1774. doi:https://doi.org/10.5465/amj.2009.0823

    Okatta, C. G., Ajayi, F. A., & Olawale, O. (2024). Enhancing Organizational Performance Through Diversity and Inclusion Initiatives: A Meta-Analysis. International Journal of Applied Research in Social Sciences, 6(4), 734-758. doi:https://doi.org/10.51594/ijarss.v6i4.1065

    Robinson-Garcia, N., Corona-Sobrino, C., Chinchilla-Rodríguez, Z., Torres-Salinas, D., & Costas, R. (2025). The Use of Informetric Methods to Study Diversity in the Scientific Workforce: A Literature Review. Quantitative Science Studies, 6, 1-34. doi:https://doi.org/10.1162/qss_a_00367

    Roy, S. K. (2022). The Impact of Age, Gender, and Ethnic Diversity on Organizational Performance: An Empirical Study of Bangladesh's Banking Sector. International Journal of Financial, Accounting, and Management, 4(2), 145-161. doi:https://doi.org/10.35912/ijfam.v4i2.905

    Shams, M. S., Niazi, M. M., & Asim, F. (2020). The Relationship Between Perceived Organizational Support, Employee Engagement, and Organizational Citizenship Behavior: Application of PLS-SEM Approach. Kardan Journal of Economics and Management Sciences, 3(1), 35-55. doi:https://doi.org/10.31841/kjems.2021.37

    Shore, L. M., Cleveland, J. N., & Sanchez, D. (2018). Inclusive Workplaces: A Review and Model. Human Resource Management Review, 28(2), 176-189. doi:https://doi.org/10.1016/j.hrmr.2017.07.003

    Stahl, G. K., & Maznevski, M. L. (2021). Unraveling the Effects of Cultural Diversity in Teams: A Retrospective of Research on Multicultural Work Groups and an Agenda for Future Research. Journal of International Business Studies, 52(1), 4-22. doi:https://doi.org/10.1057/s41267-020-00389-9

    Syafri, M. (2025). Hubungan Antara Keragaman Generasi dan Konflik Antarpribadi di Tempat Kerja. Jurnal Manajemen Ekonomi dan Bisnis, 4(1), 27-40. doi:https://doi.org/10.61715/jmeb.v4i1.117

    Trochmann, M., Stewart, K., & Ragusa, J. (2023). The Impact of Employee Perceptions of Inclusion in a Racially Diverse Agency: Lessons From a State Government Survey. Public Personnel Management, 52(4), 543-565. doi:https://doi.org/10.1177/00910260231187544

    Wardi, A., Fitriani, N., Purwanti, K., Saipudin, A., & Rasminto, H. (2024). Impact of Diversity and Inclusion Policies on Organizational Performance in Multinational Companies: A Quantitative Analysis. Journal of Management and Informatics, 3(3), 549-567. doi:https://doi.org/10.51903/jmi.v3i3.60

    Zhang, L. (2020). An Institutional Approach to Gender Diversity and Firm Performance. Organization Science, 31(2), 439-457. doi:https://doi.org/10.1287/orsc.2019.1297

  1. Adler, N. E., Epel, E. S., Castellazzo, G., & Ickovics, J. R. (2000). Relationship of Subjective and Objective Social Status with Psychological and Physiological Functioning: Preliminary Data in Healthy, White Women. Health Psychology, 19(6), 586. doi:https://psycnet.apa.org/doi/10.1037/0278-6133.19.6.586
  2. Andrawina, L., Amelia, M., & Rizaldi, A. (2024). Empowering Disability-Inclusive MSMEs through Triple Helix Innovation: A PLS-SEM based Modeling Approach. IEEE International Conference on Industrial Engineering and Engineering Management (IEEM), 1084-1088. doi:https://doi.org/10.1109/ieem62345.2024.10857045
  3. Arthachinda, P., & Charoensukmongkol, P. (2024). Effect of Perceived Group Inclusion on Innovative Behavior and its Subsequent Impact on Team Performance: Moderating Effects of Team Characteristics. Management Research Review, 47(9), 1341-1359. doi:https://doi.org/10.1108/MRR-09-2023-0708
  4. Cahyono, N. D. (2025). The Role of Inclusive Organizational Culture in Enhancing Job Satisfaction and Employee Commitment in Multinational Companies. The Journal of Academic Science, 2(2), 632-641. doi:https://doi.org/10.59613/nw7zd618
  5. Chaudhry, I. S., Paquibut, R. Y., & Tunio, M. N. (2021). Do Workforce Diversity, Inclusion Practices, & Organizational Characteristics Contribute to Organizational Innovation? Evidence from the UAE. Cogent Business & Management, 8(1), 1-24. doi:https://doi.org/10.1080/23311975.2021.1947549
  6. Chen, C. (2022). Naming the Ghost of Capitalism in Sport Management. European Sport Management Quarterly, 22(5), 663-684. doi:https://doi.org/10.1080/16184742.2022.2046123
  7. Cooke, F. L., Schuler, R., & Varma, A. (2020). Human Resource Management Research and Practice in Asia: Past, Present and Future. Human Resource Management Review, 30(4), 1-13. doi:https://doi.org/10.1016/j.hrmr.2020.100778
  8. Cunha, H. C. d., Singh, V., & Farrell, C. (2023). Host Country Cultural Profile and the Performance of Foreign Subsidiaries in Latin America. International Journal of Cross Cultural Management, 23(3), 531-555. doi:https://doi.org/10.1177/14705958231204728
  9. Ezeafulukwe, C., Onyekwelu, S. C., Onyekwelu, N. P., Ike, C. U., Bello, B. G., & Asuzu, F. (2024). Best Practices in Human Resources for Inclusive Employment: An in-Depth Review. International Journal of Science and Research Archive, 11(1), 1286-1293. doi:https://doi.org/10.30574/ijsra.2024.11.1.0215
  10. Farashah, A., & Blomqusit, T. (2021). Organizational Culture and Cultural Diversity: An Explorative Study of International Skilled Migrants in Swedish firms. Journal of Global Mobility: The Home of Expatriate Management Research, 9(2), 289-308. doi:https://doi.org/10.1108/JGM-11-2020-0072
  11. Gabriel, K. P., Ezerins, M. E., Rosen, C. C., Gabriel, A. S., Patel, C., & Lim, G. J. (2025). Socioeconomic Status and Employee Well-Being: An Intersectional and Resource-Based View of Health Inequalities at Work. Journal of Management, 51(6), 2549-2588. doi:https://doi.org/10.1177/01492063241311869
  12. Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) Second Edition. New York: Sage Publications.
  13. Kaur, N., & Arora, P. (2020). Acknowledging Gender Diversity and Inclusion as Key to Organizational Growth: A Review and Trends. Journal of Critical Reviews, 7(6), 125-131. doi:https://doi.org/10.31838/jcr.07.06.25
  14. Khan, M. S., Saengon, P., Charoenpoom, S., Soonthornpipit, H., & Chongcharoen, D. (2021). The Impact of Organizational Learning Culture, Workforce Diversity and Knowledge Management on Innovation and Organization Performance: A Structural Equation Modeling Approach. Human Systems Management, 40(1), 103-115. doi:https://doi.org/10.3233/HSM-200984
  15. Kulkarni, M., & Lengnick?Hall, M. L. (2011). Socialization of People with Disabilities in the Workplace. Human Resource Management, 50(4), 521-540. doi:https://doi.org/10.1002/hrm.20436
  16. Kumar, R., Mishra, P., & Shukla, B. (2024). Diversity Management and Organisational Citizenship Behaviour: A Sequential Mediation Effect of Inclusive Climate and Affective Commitment. Organizational Psychology, 14(3), 178-192.
  17. Lima, S. A., Rahman, M. M., Bhuiyan, M. I. H., & Rahman, Z. (2025). The Role of HRM in Shaping Inclusive Cultures: Navigating Cross-Cultural D&I Challenges in US Organizations. Journal of Business and Management Studies, 7(1), 263-272. doi:https://doi.org/10.32996/jbms.2025.7.1.21
  18. Luu, T. T. (2021). A Tale of Two Countries: How Do Employees with Disabilities Respond to Disability Inclusive HR Practices in Tourism and Hospitality Industry? Journal of Sustainable Tourism, 30(1), 299-329. doi:https://doi.org/10.1080/09669582.2021.1876073
  19. 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
  20. Lyons, S. T., Schweitzer, L., Urick, M. J., & Kuron, L. (2019). A Dynamic Social-Ecological Model of Generational Identity in the Workplace. Journal of Intergenerational Relationships, 17(1), 1-24. doi:https://doi.org/10.1080/15350770.2018.1500332
  21. Miswan, Wiratih, H. W. R., Ngintang, S. D. D., Arman, A., & Wadud, M. (2024). Diversity and Inclusion in the Workplace: A Global Perspective. Join: Journal of Social Science, 1(5), 182-198. doi:https://doi.org/10.59613/14cxrq11
  22. Nasarasiddi, K. (2024). Impact of Organizational Diversity on Safety Culture and Performance in PT. UVW Indonesia. Journal of Multidisciplinary Academic Business Studies, 1(4), 765-782. doi:https://doi.org/10.35912/jomabs.v1i4.2317
  23. Nishii, L. H. (2013). The Benefits of Climate for Inclusion for Gender-Diverse Groups. Academy of management Journal, 56(6), 1754-1774. doi:https://doi.org/10.5465/amj.2009.0823
  24. Okatta, C. G., Ajayi, F. A., & Olawale, O. (2024). Enhancing Organizational Performance Through Diversity and Inclusion Initiatives: A Meta-Analysis. International Journal of Applied Research in Social Sciences, 6(4), 734-758. doi:https://doi.org/10.51594/ijarss.v6i4.1065
  25. Robinson-Garcia, N., Corona-Sobrino, C., Chinchilla-Rodríguez, Z., Torres-Salinas, D., & Costas, R. (2025). The Use of Informetric Methods to Study Diversity in the Scientific Workforce: A Literature Review. Quantitative Science Studies, 6, 1-34. doi:https://doi.org/10.1162/qss_a_00367
  26. Roy, S. K. (2022). The Impact of Age, Gender, and Ethnic Diversity on Organizational Performance: An Empirical Study of Bangladesh's Banking Sector. International Journal of Financial, Accounting, and Management, 4(2), 145-161. doi:https://doi.org/10.35912/ijfam.v4i2.905
  27. Shams, M. S., Niazi, M. M., & Asim, F. (2020). The Relationship Between Perceived Organizational Support, Employee Engagement, and Organizational Citizenship Behavior: Application of PLS-SEM Approach. Kardan Journal of Economics and Management Sciences, 3(1), 35-55. doi:https://doi.org/10.31841/kjems.2021.37
  28. Shore, L. M., Cleveland, J. N., & Sanchez, D. (2018). Inclusive Workplaces: A Review and Model. Human Resource Management Review, 28(2), 176-189. doi:https://doi.org/10.1016/j.hrmr.2017.07.003
  29. Stahl, G. K., & Maznevski, M. L. (2021). Unraveling the Effects of Cultural Diversity in Teams: A Retrospective of Research on Multicultural Work Groups and an Agenda for Future Research. Journal of International Business Studies, 52(1), 4-22. doi:https://doi.org/10.1057/s41267-020-00389-9
  30. Syafri, M. (2025). Hubungan Antara Keragaman Generasi dan Konflik Antarpribadi di Tempat Kerja. Jurnal Manajemen Ekonomi dan Bisnis, 4(1), 27-40. doi:https://doi.org/10.61715/jmeb.v4i1.117
  31. Trochmann, M., Stewart, K., & Ragusa, J. (2023). The Impact of Employee Perceptions of Inclusion in a Racially Diverse Agency: Lessons From a State Government Survey. Public Personnel Management, 52(4), 543-565. doi:https://doi.org/10.1177/00910260231187544
  32. Wardi, A., Fitriani, N., Purwanti, K., Saipudin, A., & Rasminto, H. (2024). Impact of Diversity and Inclusion Policies on Organizational Performance in Multinational Companies: A Quantitative Analysis. Journal of Management and Informatics, 3(3), 549-567. doi:https://doi.org/10.51903/jmi.v3i3.60
  33. Zhang, L. (2020). An Institutional Approach to Gender Diversity and Firm Performance. Organization Science, 31(2), 439-457. doi:https://doi.org/10.1287/orsc.2019.1297