DIVERSITY, EQUITY, AND INCLUSION: MEASURING ITS IMPACT ON ORGANIZATIONAL PERFORMANCE IN GLOBAL WORKFORCES

Abstract

This study investigates the impact of Diversity, Equity, and Inclusion (DEI) on organizational performance, with employee engagement and team innovation serving as mediating variables. Using a quantitative approach, data were collected from 90 employees of PT. Graha Prima Energy and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that DEI significantly influences team innovation, which, in turn, positively affects organizational performance. However, the mediating role of employee engagement was found to be insignificant in this relationship. These results underscore the importance of fostering team innovation as a key mechanism through which DEI drives organizational success. The study contributes to the existing body of knowledge by highlighting the varying mediating effects of employee engagement and team innovation, providing practical insights for organizations aiming to optimize DEI strategies. Future research is recommended to explore contextual factors, such as leadership styles and organizational culture, that may enhance the mediating role of employee engagement in achieving better performance outcomes.