Diversity signal sets: implications for organizations and individuals

Organizations send multiple signals to communicate their support for diversity. Questions of how organizations communicate diversity and how such communication relates to organizational and individual outcomes have been of emerging interest to scholars and practitioners. Research on diversity signaling tends to focus on isolated expression-based signals, (i.e., statements made about diversity); however, less is known about evidence-based signals (i.e., diversity performance facts and statistics). I set out to examine different forms of expression-based signals and evidence-based signals and how such diversity signals are related to corresponding organizational performance outcomes and individual job-seeker outcomes of racial/ethnic minority group members. I argue that when organizations communicate diversity signal sets incorporating both expression-based and evidence-based signals positive organizational and individual outcomes will result. Drawing on Spence's (1971) signaling theory, I conduct three studies following the exploratory sequential mixed methods design. I find that organizations communicate multiple diversity signal sets, and such communication has positive implications for organizations and racioethnic minorities. I contribute to organizational research on diversity signaling by introducing the concept of diversity signal sets and by identifying the affective mechanisms behind the influence of multiple diversity signal sets on racioethnic minorities job-related outcomes. Study One shows that US Fortune 500 firms signal four types of expression-based signals: equal opportunity (EO), business case (BC), value-and-integration (VI) and mixed, and three types of evidence-based signals: third-party bestowed diversity awards or recognition, employee demographics; and leadership demographics. These findings inform the selection of variables in the subsequent studies – Studies Two and Three. Study Two examines the association between different types of expression-based signals and their association with evidence-based signals and organizational outcomes. Findings demonstrate that companies with no diversity signals on their corporate websites have negative financial (ROA and ROIC) and diversity-related performance (measured by external recognition/awards of diversity). I find the relationship between companies communicating VI type of expression-based signals and their diversity-related performance significantly positive. Study Three explores organizational diversity signal sets and their influence on racioethnic minorities' job-related outcomes. I determine that diversity signal sets comprising of both expression-based and evidence-based signals significantly influence racioethnic minorities’ organizational attraction and leadership aspirations through different affective mechanisms (i.e., perceptions of inclusion and perceptions of affective trust). My research contributes to signaling theory by introducing diversity signal sets and by testing their organizational and individual implications. It opens future research avenues for investigation of diversity signal sets in global companies and their organizational and individual implications for multiple diversity groups in the workplace.