Perceived diversity and employee well-being: mediating role of inclusion

While literature cites several distinct studies on workforce diversity and employee well-being (EWB), attention to their combined significance has been limited. Extant work highlights cognitive outcomes of diversity, while its impact on affect-related outcomes is underexplored. The purpose of this paper is to examine how employee perceptions of diversity (based on surface and/or knowledge attributes) influence their well-being and how perception of inclusion mediates this relationship.,In total, 248 full-time employees from large organizations across varied industries in India have participated in this survey-based study.,Structural equation modeling results indicate surface and knowledge diversity to significantly impact EWB. Surface diversity adversely affected well-being, while knowledge diversity had favorable impact. Besides, inclusion was found to be a significant mediator between knowledge diversity and well-being but not between surface diversity and well-being.,Present study explores the diversity–well-being link through the lens of perceived inclusion. Future research should consider contextual factors that will influence these relationships.,Managerial nudging can enhance employee self-control, intrinsic motivation and well-being. Further, managers should note how knowledge diversity aids in well-being toward constructive cross-functional synergy building.,Study conceptualizes diversity from Indian social and employment perspectives, while incorporating inclusion as a contextual factor currently under-researched empirically in the Indian context. Further, the authors contribute to the limited literature on affect-related effects of diversity.