Abstract Background As diverse organizations, hospitals require an inclusive culture that respects and promotes ethnic diversity. Violence, a threat to this diversity, hampers effective organizational functioning. Our study delves into the positive influence of cultural diversity policies and communication about violence on the perception of the hospital’s atmosphere regarding ethnic differences among health employees. It enhances hospital labor relations and mitigates the risk of workplace violence. Methods 372 hospital employees with an average tenure of 6.5 and an average age of 38 filled out an online close-ended questionnaire (83% are Israeli Jews, 68% are female). 91% report working closely with people from different ethnic origins. Respondents ranked the atmosphere in the hospital regarding ethnic differences between employees and patients, the hospital’s cultural diversity policy, and organizational communication about violence. Data were analyzed by SPSS 28. Results Positive correlations were found between variables. A positive atmosphere was significantly related to the hospital’s cultural diversity policy (r=.14, p=.002) and to organizational communication about violence (r=.22, p< .001). However, the regression analysis (with control variables age, sex, and managerial role) revealed that despite employees acknowledging the hospital’s efforts to address diversity and violence, these factors only predict 10% of the variance of the hospital atmosphere [F(5, 366) = 8.346, p < .001; R²=.10]. Conclusions The hospital should increase actions that will improve the ethnic atmosphere in the hospital. Understanding how the encounter, where employees and patients from diverse ethnic backgrounds interact, influences the hospital’s atmosphere is crucial. These interactions can lead to tensions and offensive behaviors toward employees if not managed well. Hospitals can create an inclusive and harmonious work environment by addressing these tensions. Key messages • A cultural diversity policy and communication are necessary to maintain harmonious working relationships. It is essential, particularly in health organizations characterized by ethnic diversity. • Reducing the perception of ethnic differences may increase well-being and decrease violence. While hospitals often don’t prioritize these issues, this study forefront their influence and importance.