Strategies and Impacts of Diversity, Equity, and Inclusion (DEI) in the Workplace: Evidence from the Private Sector of Saudi Arabia

Abstract

This paper investigates the impact of Diversity, Equity and Inclusion (DEI) on employee engagement in Saudi private sector using Social Identity Theory and Inclusive Leadership as theoretical lenses. The analysis was done based on survey data of 701 employees with structural equation modeling. Findings indicate that DEI activities have a substantial impact on employees’ feeling of inclusiveness/being treated fairly, and the perception of leadership support to its long timeemployees around the world. The comparative results suggest that cultural value systems are a stronger moderator of the relationships than policies for Saudization; this reflects the greater influence of social norms in comparison to regulatory-based measures. While the research is located in the context of Saudi Arabia’s transformations, it adds to international (DEI) literature by applying theory-building concepts to a non-Western hierarchical policy-driven backdrop. The resultsalso provide pragmatic implications for organizations and policymakers, specifically in the integration of DEI initiatives with Vision 2030 towards increasing female workforce involvement, fostering diversity at leadership positions and promoting sustainable localization.