Title: Workplace Diversity and Organizational Performance: The Mediating Role of Employee Engagement
Authors: Emmanuel Yusuf Attah, PhD, Sunday Paul Etuh, PhD
Volume: 10
Issue: 4
Pages: 375-381
Publication Date: 2026/04/28
Abstract:
In today's dynamic business environment, workplace diversity has become a strategic imperative for organizations seeking competitive advantage. However, the mechanisms through which diversity translates into performance outcomes remain underexplored. This study investigates the mediating role of employee engagement in the relationship between workplace diversity and organizational performance. Drawing on social exchange theory and the job demands-resources model, a conceptual framework was developed and tested using survey data from 320 employees of multinational firms in Nigeria's service sector. Structural equation modelling (SEM) was employed to analyse the hypothesized relationships. The results reveal that workplace diversity has a positive and significant effect on both employee engagement and organizational performance. Moreover, employee engagement partially mediates the diversity-performance nexus, indicating that diverse workplaces foster higher engagement, which in turn enhances performance outcomes. The study contributes to the diversity literature by unpacking the underlying psychological mechanism that links diversity to performance. Practical implications suggest that organizations should not only recruit diverse talent but also invest in inclusive practices that drive engagement. The study further offers recommendations for policy and future research.