Impact of Workforce Diversity and Inclusion Practices on Employees’ Performance Level in Hotels: The Moderating Role of Leadership Styles

Rapid environmental and organizational changes have compelled contemporary organizations to recognize the critical role of leadership in fostering creativity and innovation among employees. Leaders who value creativity must build mutual trust with employees, empower them with appropriate authority, support distinctive ideas, and guide creative efforts toward organizational goals, as leadership style and managerial philosophy significantly influence creativity levels. This study examines the contribution of workforce diversity and inclusive practices to employee performance levels in hotel establishments, with a focus on the role of leadership styles. Using the Estinian questionnaire, data were collected from employees in various departments across four- and five-star Egyptian hotels. The results confirm that workforce diversity positively impacts employee innovation and prevents marginalization, while inclusive practices act as a mediator, enhancing these effects and reducing commitment behaviors such as conflict and the intention to leave. Leadership diversity should not be compared to overall strategies and interactions, but rather should be evaluated to ensure alignment between diversity, inclusion, and performance outcomes, positively impacting the variability of leadership improvements. This highlights the importance of strategic diversity management, inclusive practices, and leadership in enhancing organizational effectiveness and excellence in the hospitality sector.