The HRM literature provides robust evidence that HR practices must account for workforce diversity and create opportunities derived from their differences (e.g., Guillaume et al., 2017; Wang et al., 2020). That is, leveraging diversity helps organizations better respond to market changes, attract top talent, and improve decision-making, ultimately contributing to their competitiveness and sustainability. Accordingly, diversity-oriented HR practices (DHRP) refer to practices that directly try to communicate to the employees the organization's values regarding diversity and inclusion (Jehn and Bezrukova, 2004), and thus, they may strengthen the value of workforce diversity for an organization (Ashikali and Groeneveld, 2015). These practices aim to create an inclusive environment that values and respects individual differences, leading to a more engaged and innovative workforce. As a result, these human-oriented practices may positively influence employees' job satisfaction, creativity, work engagement, and organizational commitment, as well as moderate their turnover intentions (Luu et al., 2019; Madera et al., 2017; Trong Tuan, 2020). They aim not only to foster diversity and inclusion, but also to transform these differences into drivers of organizational success (e.g., financial performance, corporate social responsibility, innovation, satisfaction and loyalty of diverse customers, competitive edge; Gomez and Bernet, 2019; Manoharan and Singal, 2017). DHRP are characterized by empathy, anthropocentric orientation, respect, justice, social-emotional support, and trust (Meena and Vanka, 2017), and hence, they may assist employees navigate the frictions that come with organizational change (Gomez and Bernet, 2019). Quite similarly, Ford et al. (2008) suggest that a change agent who may repair damaged relationships and restore trust both before and during a change (i.e., by embracing employees' diversity and inclusion) is less probable to encounter resistance to change than an agent who doesn't employ such anthropocentric approaches during change efforts.

Change management literature indicates that employee adaptive performance is essential for every organizational change endeavor (e.g., Vakola et al., 2021). That is, when employees are adaptable, they are more likely to embrace change, navigate uncertainty, and contribute to the smooth implementation of new strategies or processes. Adaptive performance refers to employees' adaptability to the changes and evolutions in their work environment (Park and Park, 2019). Jundt et al. (2015) describe it as an individual behavior that can be displayed both in anticipation of and in reply to a change effort. On the individual level, this may foster several beneficial outcomes, including heightened work engagement (Kaya and Karatepe, 2020) and greater job satisfaction (Marques-Quinteiro et al., 2019). It may also cause significant organizational outcomes such as managing change and organizational learning (Dorsey et al., 2017). Adaptive performance studies have mainly focused on skill-based adaptation (Jundt and Shoss, 2023); however, adaptive performance can also encompass adjustments in interpersonal and emotional behaviors aligned with organizational change. This study examines adaptive performance as the cognitive, emotional, and behavioral efforts individuals employ to navigate change.

Provided that we are living in an era of unprecedented challenges and opportunities, only a handful of studies have investigated how diversity and inclusion affect employee responses to change (e.g., Moncloa et al., 2019). That is, diversity and inclusiveness within organizational settings may act as powerful tools in managing VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) by enhancing adaptability, innovation, and resilience in the face of rapid and unpredictable changes (O'Donovan, 2018). That is, a diverse and inclusive workplace may promote novelty and creativity and bring about new perspectives and approaches to challenges and/or opportunities (Abbas, 2023). Within this context, Rodriguez (2022) notes that positive transformations need the infusion of new perspectives, and thus, initiatives that boost diversity, equity, and inclusion may cultivate organizational agility and serve as transformative forces in driving change, and Li et al. (2020) have found that that effective workforce diversity management is positively associated with employees' job match, job satisfaction, and job performance.

Further, the social exchange theory suggests that when employees experience positive behavior from others, they are likely to reciprocate with actions of comparable significance (Blau, 1964), and the norm of reciprocity posits that when employees are treated positively by their organization, they experience an inherent obligation to reciprocate through constructive workplace attitudes (Gouldner, 1960). Thus, if employees receive respect, honesty, fairness, empathy, justice, social-emotional support, and trust from their organizations during change (Meena and Vanka, 2017), they will feel compelled to reciprocate by exhibiting positive behaviors that support organizational change (Garba et al., 2018). Overall, DHRP are expected to be positively related to employee adaptive performance because they may create a workplace where employees are more adaptable, innovative, and resilient (Showkat and Misra, 2022), which are all key components of strong adaptive performance. Drawing on the above rationale, we hypothesize:

H1. Diversity-oriented HR practices are positively related to employee adaptive performance.

The diversity, equity, and inclusion (DEI) literature highlights that inclusion at the individual level reflects employees' perceptions of organizational fairness and the recognition of both their belongingness and uniqueness (e.g., Downey et al., 2015; Mor Barak et al., 2022). It refers to the degree to which employees feel valued, appreciated, and accepted within their organization and it encompasses employees' sense of belongingness, fairness, and being part of a supportive, inclusive workplace culture. That is, when employees perceive high levels of inclusion, they sense that their efforts are appreciated and that they are empowered to take part wholeheartedly in organizational initiatives. Hence, it reflects whether employees feel appreciated and supported in their work environment and whether they believe they can freely contribute to the organizational goals. In this context, Shore et al. (2011), by using Brewer's (1991) optimal distinctiveness theory, conceptualized employee perception of inclusion, on the one hand, as satisfying the need for belongingness (e.g., recognition, acceptance by others, and a sense of shared identity), and on the other hand, a counteracting need for uniqueness (e.g., the desire to sustain a distinct personal identity). Employees in organizations perceived as inclusive, with supportive HR practices, tend to demonstrate greater psychological safety (i.e., lower psychological distress; Aslan et al., 2021), higher job satisfaction (Brimhall and Mor Barak, 2018), stronger organizational citizenship behaviors (Aboramadan et al., 2021), enhanced work engagement (Katsaros, 2024a), and improved job performance in contexts of change (Vakira et al., 2023). Further, workplace inclusion is also related to workplace happiness (Mousa, 2020) and culturally agile organizations (Selzer and Foley, 2018). Thus, it is not surprising that more than 90% of Fortune 500 companies have instituted formal DEI initiatives aligned with critical organizational goals, and that over 70% of Fortune 1,000 companies maintain formal DEI programs (Mondal, 2021). Numerous studies today try to identify which HR practices may enhance employees' perception of inclusion. Chaudhry et al. (2021) argue that inclusion practices encompass fairness, belongingness, uniqueness, and a diverse workplace climate, while Nguyen et al. (2024) describe an inclusive climate as one characterized by fair practices, the integration of differences, and participation in decision-making. Accordingly, quite a few inclusive practices have been proposed to build such a climate, including DEI training (Leslie, 2019), the establishment of employee resource groups or identity-conscious programs (Li et al., 2019), and the implementation of reverse mentoring (Chaudhuri et al., 2022).

Given that we are in an era of constant change, it is becoming increasingly essential to identify the factors that drive successful adaptation. Many organizations today try to employ inclusive approaches in the workplace that may improve employees' change related attitudes and behaviors (Katsaros, 2024a). That is, prior research suggests that inclusive HR practices can enhance employee wellbeing and foster innovative behavior (Choi et al., 2017), while also stimulating engagement during organizational change (Zeng et al., 2020). For example, drawing on affective events theory, Qurrahtulain et al. (2022) found that vigor at work mediates the relationship between inclusive leadership and adaptive performance. Similarly, Bataineh et al. (2022), in a study of 169 nurses, demonstrated that inclusive leadership exerts a direct and significant predictive effect on adaptive performance, as well as an indirect effect through innovative work behavior. To sum up, on the one hand, it is suggested that diversity and inclusion are interdependent, with diversity serving as a vital precursor to inclusion (e.g., without diversity in the first place, there is nothing to include) and inclusion being a vital antecedent for realizing the benefits of diversity (e.g., individuals are given the opportunity to contribute their unique perceptions, opinions, skills, and talents; Nguyen et al., 2024; Oswick and Noon, 2014). On the other hand, it is suggested that should leaders and managers employ inclusive strategies, practices, and procedures, they are expected to enhance employees' adaptive performance in the context of organizational change (Bataineh et al., 2022). Thus, diversity-oriented HR practices drive employee perceived inclusion, which enhances employee engagement, trust, and psychological safety, ultimately fostering adaptive performance in changing environments. Based on the above rational and research findings, we suggest that employee perceptions of inclusion may serve as a key mechanism for explaining the connection between diversity-oriented HR practices and employee adaptive performance. Therefore, we hypothesize:

H2. The positive relationship between diversity-oriented HR practices and employee adaptive performance is mediated by employee perceived inclusion.

Employees' work engagement is considered as a critical factor in contexts of organizational change, as it supplies the personal energy, focus, resilience, and persistence needed to navigate transitions (Vakola et al., 2021). It is a positive, fulfilling, work-related state explained by vigor, dedication, and absorption (Schaufeli et al., 2002). Vigor is a personal resource that embodies the personal drive to channel energy, resilience, and enthusiasm into one's work commitments (Obuobisa-Darko, 2020). It is viewed as a key workplace resource, enabling greater energy, resilience in difficulties, and a sense of job enthusiasm (Timms et al., 2015). Dedication refers to a deep psychological commitment to one's work, characterized by a sense of interest, significance, passion, inspiration, pride, and challenge (Green Jr et al., 2017). Extant organizational research has repeatedly demonstrated its capacity to diminish negative consequences while amplifying positive results (Prodanova and Kocarev, 2022). Further, absorption describes a state of deep focus, concentration, and attachment to one's work (Obuobisa-Darko, 2020). Wood et al. (2020) liken this experience to being so immersed in a task that everything else fades into the background. Empirical evidence further shows that engaged employees tend to display positive work-related attitudes and behaviors (e.g., Brokmeier et al., 2022). Common outcomes include greater job satisfaction, stronger organizational commitment, improved performance, better work–life balance, as well as heightened happiness and enthusiasm (Neuber et al., 2022; Pleasant, 2017; Wood et al., 2020).

There is a high degree of consensus amongst HR researchers that engaged employees usually experience feelings of inclusion and belongingness in the workplace. That is, employees who are actively involved and emotionally invested in their work are more likely to experience feelings of respect and acceptance (Katsaros, 2024a). Within this context, Downey et al. (2015), using a sample of 4.597 health sector employees, have demonstrated that diversity practices foster a climate of trust, which subsequently enhances employee engagement, as well as that inclusion moderates the link between diversity practices and the trust climate. In the same vein, Jerónimo et al. (2022), drawing on a sample of 238 responses, demonstrated a positive correlation between employees' perception of diversity practices and engagement, mediated by perceptions of inclusion. Their findings also indicate that inclusive leadership enhances employees' perception of inclusion. Thus, truly diverse and inclusive workplaces may augment employee engagement (Shuck and Reio Jr, 2014).

Accordingly, work engagement is looked upon as an imperative factor in changing times as it may offer the required energy, concentration, and persistence for effective performance (Katsaros, 2024a). According to van den Heuvel et al. (2020), work engagement plays a crucial role during the initial stages of change, as early and rising levels of engagement forecast employees' attitudes toward change both at the end of the transition and in the longer term. Further, Vakola et al. (2021) uncovered that work engagement may enhance the likelihood that ambivalent employees successfully adapt to organizational change, and Katsaros (2024b), by examining 364 exclusively remote employees, concluded that work engagement serves as a bridge between change self-efficacy, support from supervisors, organizational support, and employees' performance outcomes (i.e., task and adaptive). Drawing on social exchange theory and the norm of reciprocity (Blau, 1964; Gouldner, 1960), which emphasize the exchanges between employees and their organization, diversity and inclusion practices may convey that the organization values employees' mental health, happiness, and wellbeing. Overall, highly engaged employees are more committed to their tasks, and in an inclusive environment, this commitment may boost their ability to adapt to change and overcome challenges. Thus, we hypothesize:

H3. Work engagement moderates the relationship between employee perceived inclusion and employee adaptive performance, such that the positive relationship is stronger under high work engagement.

The indirect relationship between diversity-oriented HR practices and employee adaptive performance may be influenced by work engagement because engaged employees are more likely to take full advantage of inclusive practices, which then boosts their ability to adapt to changes (Bakker and Albrecht, 2018). When employees are highly engaged, they demonstrate stronger motivation and organizational commitment, which enhances their responsiveness to diversity-oriented HR practices and increases the likelihood of positive performance during periods of change. Thus, we hypothesize:

H4. The indirect relationship between diversity-oriented HR practices and employee adaptive performance is moderated by work engagement, such that the relationship is stronger under high work engagement than under low one (Figure 1).

The research sample comprised 415 employees and their supervisors in the Greek food and beverage sector, with data obtained in three stages. We used a procedural design suggested by Podsakoff et al. (2003). The study employed a multi-source research design to enhance the robustness and validity of the findings. Participants were assured of confidentiality and academic use only. Data were gathered in three waves, 3 weeks apart, to limit common method bias. During the first phase, employees assessed their organizations' diversity-oriented HR practices. In the second phase, employees' perceived inclusion and work engagement (self-rated) were examined. In the final phase, supervisors evaluated employees' adaptive performance. Utilizing diverse data sources, such as supervisors and employees, contributes to minimizing the potential influence of common method variance (Podsakoff et al., 2003). To enable the alignment of supervisor and employee responses for further analysis, questionnaires included employee identification codes. Participation was voluntary, and all respondents were fully informed of the study's goals via an electronic package outlining directions and instructions. This e-package contained a cover letter and detailed guidance for completion. The research team was present in all phases, online and onsite, to support participants and maintain study quality.

To avoid the common method variance, the confirmatory factor analysis marker technique was used (Williams et al., 2010). Altogether, 456 employees from 29 companies took part in the research study (response rate 64.50%). Subsequently, we removed surveys with missing items, resulting in 415 valid responses for analysis. Further, 55 supervisors took part in the research (response rate 61.11%). The majority of employees were men (67.47%); they had at least a bachelor's degree (54.22%), and they had total experience of 5–10 years (59.52%). Additionally, the majority of supervisors were male (60.00%), they had at least a master's degree (52.73%), and they had total experience of 5–10 years (90.91%). Finally, most of the companies were medium-sized, employing between 50 and 249 people (69%), and 83% of them had been in operation for over 16 years. Additionally, 62% of these companies are considered mature in their lifecycle. Furthermore, all these companies have established HR departments that actively support DEI (Diversity, Equity, and Inclusion) approaches and procedures.

All questionnaire items were assessed using a five-point Likert-type scale, with response options ranging from “Strongly disagree” (1) to “Strongly agree” (5). Diversity-oriented HR practices (employee-rated) were measured with the 12-item scale developed by Shen et al. (2010). An example item is: “All training programs are open to all employees regardless of personal characteristics and backgrounds”.

Inclusion (employee-rated) was measured with the 18-item scale proposed by Jaiswal and Dyaram (2020; i.e., 11 items from Nishii's (2013) climate for inclusion scale and 7 items from Sabharwal's (2014) organizational inclusion scale pertaining to leadership commitment; 2020). That is, inclusion is a multidimensional concept that can be understood from different perspectives (Felder, 2018). An example item is: “In my organization, leadership creates an awareness and appreciation of individual and cultural differences among employees”.

Work engagement (employee-rated) was measured with the 18-item scale developed by Rich et al. (2010). An example item is: “I am enthusiastic in my job”.

Adaptive performance (supervisor-rated) was measured with the 3-item scale developed by Griffin et al. (2007). An example item is: “This employee has adapted well to the changes in his/her core tasks”.

We first utilized SPSS Statistics v.22.0 to run exploratory factor analyses and compute descriptive statistics. Next, confirmatory factor analysis was carried out with AMOS v.24, followed by hierarchical regression analyses to examine the hypotheses.

From a theoretical perspective, our findings highlight the importance of employee perceived inclusion during change, an aspect that may have been earlier oversaw. The current study suggests that that perceived inclusion serves as a valuable personal resource, strengthened by DHRP and subsequently contributing to higher adaptive performance. This finding also contributes to change management literature's search for mechanisms to achieve greater employee adaptation in changing times (Vakola et al., 2021).

Moreover, the research findings have several implications for sociological and psychological theories such as social exchange theory and the norm of reciprocity. Research emphasizes that perceived inclusion and work engagement critically influence employee behavior, particularly under conditions of ambiguity, uncertainty and organizational transition. Such factors align with social exchange theory, which suggests that perceptions of fairness and inclusion influence employees' commitment and performance. Likewise, reciprocity norms imply that employees engage more positively when they feel valued and included. The findings extend these theories by showing that during times of change, inclusion and engagement become even more crucial in motivating employees, helping organizations navigate through challenging situations.

From an applied standpoint, this study has three important implications for leaders and change management practitioners. First, it notes that employee-perceived inclusion functions as a mediating mechanism between diversity-oriented HR practices (DHRP) and employee adaptive performance (EAP). Consequently, leaders should actively cultivate inclusive and collaborative practices throughout change initiatives. Such practices may include stakeholder engagement, transparent communication, fostering psychological safety, encouraging involvement within work groups, ensuring that employees feel respected and valued, enabling influence in decision-making, demonstrating authenticity, recognizing and advancing diversity, and establishing feedback loops, evaluation, and reflection (Shore et al., 2018). By embedding these practices, organizations can create a supportive climate in which employees remain engaged and valued, and thus, strengthen their adaptive performance during periods of change.

Second, firms and managers should try to increase the level of their employees' work engagement. For example, they should try to promote work-life balance (e.g., flexible work hours, remote work options, vacation time etc.), foster a supportive culture (e.g., inclusion, diversity, equity, anthropocentric and open communication etc.), implement wellness programs (e.g., fitness classes, mental health resources, stress management workshops, counseling services, employee assistance programs etc.), encourage professional and personal development (e.g., training, workshops, career advancement opportunities, mentorship programs etc.), increase job satisfaction (e.g., clear roles and responsibilities, opportunities for autonomy and creativity etc.), cultivate positive relationships (e.g., team-building activities, social events, culture of collaboration etc.), regularly evaluate employees' wellbeing (e.g., surveys, check-ins, feedback etc.) and/or provide healthy work environments (e.g., comfortable and safe physical workspace, ergonomics, lighting, access to natural elements etc) especially in turbulent times (American Psychiatric Association, 2024; Kraszewski, 2024).

Third, organizations may significantly benefit if they train their managers to be supporters and enablers of inclusion in the workplace. According to Roepe (2024) this could happen if they encourage their managers to effectively model the following four behaviors: (a) curiosity (e.g., if an employee is frequently late, instead of assuming that the employee is just indifferent, the manager should ask what is making him/her late and how the manager may help), (b) adaptability (e.g., if a manager says something that doesn't fit well with another employee, the manager should make an apology), (c) personalized approach (e.g., employees need their managers to be empathetic, but that empathy will be diverse for everyone on the team), and (d) employees' ambitions understanding (e.g., managers should ask what their employees aspire to and subsequently, coach them toward that goal/achievement).

There are always limitations in scientific research, and this study is no different. The social desirability effect might have had an impact on the participants (Podsakoff et al., 2003). That is, the tendency to respond in a way that will be viewed positively by others, hence not providing completely clear-cut answers. Furthermore, the current study does not adequately reflect the potential complexity of employee adaptive performance, which is unquestionably a multifaceted construct. Accordingly, future research that extends these findings by employing larger and more representative samples would be of unquestionable importance. Another key limitation is that the descriptive correlational design cannot establish causality. Although the study identifies significant associations between diversity-oriented HR practices, inclusion, and adaptive performance, it cannot determine whether these practices actually cause changes in employee outcomes.

Similarly, additional study is required to clarify the connection between diversity-oriented HR practices and employee adaptive performance. For instance, researchers may examine the role of other essential contextual (e.g., opportunities to participate in the change, role clarification, change information, team support, organizational support, change leadership support etc.) and/or personal (e.g., self-motivation, resilience, persistence, self-efficacy, optimism etc.) change resources. The latter would be rather helpful for both the theory and practice of change management. Ultimately, we encourage scholars to draw upon diverse theoretical frameworks to capture the full spectrum of interactions shaping employees' perceptions of workplace inclusion, thereby advancing this field of inquiry.