Workplace diversity and positive leadership style: impacts on employee well-being in Australian businesses

Purpose

Increasing workforce diversity requires leadership to ensure employees retain their well-being. This study aims to examine how employees’ and managers’ co-creation of diversity in the workplace influences positive leadership (PL) style, which in turn affects employee well-being (EWB) positively.

Design/methodology/approach

Employees and managers of Australian businesses participated in a cross-sectional survey. EWB was regressed on PL style and diversity dimensions (DDs). Also, the mediation effect of PL style between DDs and EWB was tested.

Findings

Results suggest that Australian organisations appear to have more employee diversity with its partial impact on managers’ PL style, which then positively affects on employee well-being (EWB). Furthermore, the PL style partially mediated the relationship between DDs and EWB.

Practical implications

Managers will better understand workplace diversities and the key role that PL style can play in enhancing EWB.

Social implications

This study will help improve employees' and managers' personal and social lives by developing a better understanding of health and well-being. It will have further economic impacts, such as higher organisational productivity.

Originality/value

This study fills the gap in the literature where PL style will positively affect EWB. Investigating the relationship between DDs, PL style and EWB using PERMA-profiler is a unique contribution.