A Diversity Signal Set Perspective: Examining Interactive Effects of Diversity Practices on Women and Racialized Non-Leader and Leader Turnover

Abstract

While organizations often implement multiple diversity practices, our understanding of their interactive effects is limited. Integrating the signal set congruence and incongruence literature with role theory, we theorize three-way interactive effects among diversity practices (resource, non-discrimination, and accountability) on women and racialized non-leader and leader turnover. We examine our model with two studies. In Study 1 (longitudinal panel data from 2010 to 2018; n = 270–280 law firms), we find higher levels of resource practices decreased turnover rates when both safeguarding practices (non-discrimination and accountability) were high and congruent. Further, resource practices are less useful in reducing non-leaders’ turnover rate when safeguarding practices were mixed, whereas they are less useful in curbing leaders’ turnover rate when accountability practices were low. We theorize different underlying mechanisms for non-leaders and leaders at the individual level of analysis, finding initial support in an experimental vignette study (Study 2, n = 650 non-managers and 661 managers). The relationships between the three-way interaction and non-leaders’ and leaders’ turnover intentions were mediated by concerns about unfair treatment and personal relevance, respectively. By focusing on interaction effects, we help disentangle when and how different configurations of diversity practices may be beneficial versus detrimental.