PurposeThe social exchange theory (SET) and the principle of reciprocity advocate the give and take relationship between counterparts. Perceived justice and fairness engage employees in pro-organizational behavior, while perceived injustice or biases invoke anti-organizational behavior. On similar grounds, the current research aims to find the relationship between employee perception regarding “hiring and retention of diverse employees (HRDE),” “affective commitment,” and “counterproductive work behavior (CWB).” Furthermore, assessing differences in the perception of age diversity concerning studied variables.Design/methodology/approachThe data for the current study were collected from various private organizations in India with a sample size (n = 457). The data were further analyzed using factor analysis, regression analysis and analysis of variance.FindingsUnlike previous research, the findings suggested a positive effect of the variable “hiring and retention of the diverse workforce” on both “affective commitment” and “CWB.” Interestingly, “affective commitment” also indicated a positive relationship with CWB. Further, various age groups showed differences in the perception of “affective commitment” and not “HRDE” and “CWB”.Originality/valueThe findings of the study not only focus on the brighter side of becoming a more diverse workplace (i.e. higher affective commitment) but also highlights the side effects (i.e. CWB) aiding management to be mindful for effective, sustainable management and creation of psychological safe work environment for all.