Diversity climate promises in ideological psychological contracts: racial differences in responses to breach and fulfilment

Abstract

ABSTRACTDiversity, a major societal force that exerts an important influence on contemporary workplaces, may play a role in shaping present-day workers’ psychological contracts. In two studies, we explored diversity as an ideological commitment in psychological contracts and its impacts on workers and organizations. In Study 1, a three-wave longitudinal study following workers from pre- to post-hire, organizations’ use of diversity recruitment was positively associated with job-seekers’ perceptions that ideological diversity climate promises were made pre-employment. In addition, we found that subsequent perceptions of breaching these promises have negative effects on worker attitudes and behaviours above and beyond the consequences of traditional (i.e., transactional and relational) psychological contract breach. Unexpectedly, fulfilment and breach of ideological diversity climate promises were more weakly related to racial minority than majority group workers’ attitudes and behaviours. In Study 2, using both between- and within-person experimental designs, we largely replicate this counter-intuitive moderating effect and uncover that racial minority versus majority workers’ differential reactions can be explained by their prior experiences with racial discrimination. Our work substantiates that diversity is an important ideological commitment and provides novel insights as to the mechanisms and consequences of ideology for workers’ psychological contracts.