Diversity-related psychological contract breaches and turnover intention: a moderated-mediation model of diversity HR practices and engagement

Purpose This study examines the relationship between diversity practices and significant workplace behavioral outcomes, precisely turnover intention and engagement. The hypothesis posited that the relationship between diversity practices and turnover intention would be influenced by engagement and that this influence would be less significant when there is a psychological contract breach and more significant in the presence of supervisor support. Design/methodology/approach Time-lagged data were collected using a field survey research design. The participants included 856 employees from eight leading software organizations in India. Findings Using diversity-related psychological contract breach as a first-level moderator and perceived supervisor support as a second-level moderator, the research checks for the moderating effect on diversity-related HR practices, engagement and turnover intention. The study findings revealed a positive correlation between diversity-related HR practices, engagement and employee retention in organizations. Further, the positive correlation between diversity practices, engagement and turnover intention, which is adversely influenced by the psychological contract breach, is diminished in the presence of perceived support from supervisors. Research limitations/implications This study enhances understanding of the mechanisms underlying the diversity-related HR practices – turnover intention model by identifying the mediating role of engagement. The results also demonstrate the moderating role of diversity-related psychological contract breach in reducing the effects of diversity HR practices. However, along with a cross-sectional design, the survey design was not longitudinal, which limits the study’s ability to confirm causality. Practical implications The present study offers empirical information about the implementation of diversity-oriented HR practices, such as recruiting and selection, training and development, performance appraisal and compensation. These practices have been found to lead to a decrease in employees’ intention to leave their jobs. Moreover, the results suggest that the connection between HR practices that prioritize diversity and a decrease in the intention to leave a job is influenced by the support provided by supervisors. The study provides important implications for senior executives, diversity experts and organizations functioning in both the Indian and global contexts. Originality/value This study addresses the unexplored moderated mediating mechanism of the relationship between diversity-related HR practices, engagement and turnover intention and offers new directions for diversity-related psychological contract breach and the consequences.