When diversity signals matter : understanding diversity branding and leadership in organizations

Abstract

As workforces become increasingly diverse, diversity and inclusion have become more central to contemporary organizations. Specifically, organizations increasingly use diversity branding to signal their commitment to diversity and inclusion, raising important questions about when such diversity signals are effective and what implications they have for prospective and current employees. This dissertation develops a deeper understanding of diversity branding by examining the conditions under which it helps or hurts organizations in attracting and retaining employees. Drawing on signaling theory as an overarching theoretical lens, it first reviews the emerging literature on diversity branding, synthesizing its conceptual and theoretical foundations, empirical findings, and key gaps in existing research. Building on this review, the dissertation addresses several of these research gaps through three empirical studies, showing how diversity branding and board Black–White diversity jointly shape organizational attractiveness among Black and White job seekers, as well as how diversity branding in job vacancies relates to early turnover depending on the organization’s inclusive climate. Recognizing the important role leaders can play in fostering such an inclusive climate, the dissertation then shifts its focus from diversity branding to inclusive leadership. It examines how age-inclusive leadership, which can be understood as an ongoing diversity signal, supports employees’ work motivation and explores how this relationship varies depending on leader–member age differences. Overall, the dissertation advances our understanding of when diversity signals matter in organizations, showing that the implications of diversity branding depend not only on whether commitments to diversity and inclusion are communicated but also on who receives these signals and their consistency with other diversity signals.