Workplace diversity and job satisfaction

Abstract

PurposeThis article estimates the empirical relationship between workplace diversity in terms of nationality and individual worker job satisfaction in the context of a multicultural country. It also examines the role of the level of communication between coworkers in moderating this relationship.Design/methodology/approachUsing merged survey and administrative data, the paper estimates OLS and ordered Probit regression estimates of the correlations between two measures of workplace diversity and self-reported job satisfaction.FindingsThe relationship between nationality diversity and job satisfaction is negative. While there is some evidence of a nonlinear relationship, it depends on the specification and measure of diversity used. Contrary to expectations, the level of interaction between colleagues does not moderate this relationship.Practical implicationsThe research highlights the need for employers to actively manage the diversity within their firms.Originality/valueThe paper adds to the diversity and job satisfaction literature by focusing on the nationalities of coworkers. It also is the first to measure the impact of the levels of interactions with coworkers on the diversity-satisfaction relationship.