The Influence of DEI and Organizational Justice on Employee Engagement: A Comparative Study between Gen Y and Z

Abstract

Aim/Purpose: This study explored how Diversity, Equity, and Inclusion (DEI) practices, specifically through Inclusive Leadership, Diversity Attributes, and a DEI-oriented organizational climate, influenced perceptions of fairness and employee engagement among Generations Y and Z in Bangkok, Thailand. It addresses the need to understand generational differences in responses to DEI initiatives and their impact on workplace engagement. Introduction/Background: Organizations face challenges in addressing the specific needs of multigenerational workforces, and this study offers a framework for understanding how DEI practices can effectively tackle these challenges. The emphasis on generational differences reflects shifting workforce expectations and the growing demand for inclusivity in leadership and decision-making processes. This research bridges the gap between theoretical frameworks and practical applications of DEI, equipping organizations with tools to navigate generational complexities effectively. Methodology: A quantitative methodology was employed in this research study. Self-administered questionnaires were used to collect data from 793 participants, including 392 individuals from Generation Z and 401 from Generation Y. A stratified convenience sample was used to ensure representation across various industries in Bangkok, Thailand. The questionnaire assessed perceptions of inclusive leadership, organizational justice, and employee engagement using validated scales. The Structural Equation Modeling (SEM) technique was applied to analyze relationships among the key variables and evaluate the significance of observed effects. The use of validated scales and SEM analysis enhanced the study’s precision and generalizability, offering valuable insights into the interplay between leadership, justice, and engagement. Additionally, the stratified sampling approach ensured that the data represented a diverse range of industries and organizational settings, broadening the applicability of the findings. Findings: Inclusive Leadership, marked by transparency, approachability, and support, boosts perceptions of fairness, especially among Generation Z. This generation values leadership that fosters trust and inclusivity. Organizational Justice—covering Distributive, Procedural, Interactional, and Informational Justice—is key to engagement for both Gen Z and Gen Y. Gen Z prioritizes fairness in resource allocation, processes, communication, and transparency, while Gen Y focuses on alignment with personal goals. These generational differences highlight the need for DEI-driven leadership and policies that meet diverse expectations, fostering cohesion, reducing conflicts, and improving productivity. Contribution/Impact on Society: This research advances the understanding of employee engagement in diverse workplaces by integrating generational perspectives into DEI and Organizational Justice theories. It underscores the critical role of inclusive and transparent leadership in driving engagement, and highlights the necessity of tailored DEI initiatives to meet the distinct preferences of different generational cohorts. The findings have broader implications for organizational practices, emphasizing equity and inclusivity as essential to enhancing workforce engagement and well-being. This research also provides actionable insights for policymakers and practitioners striving to create equitable and inclusive organizational environments that foster innovation and collaboration. Recommendations: Organizations should invest in leadership development programs that emphasize inclusive leadership styles focused on transparency, approachability, and supportiveness. Creating a positive diversity climate through policies and practices that prioritize equity and inclusion is essential for fostering a sense of belonging and psychological safety among employees. Engagement strategies should be tailored to the unique needs of Generations Y and Z, recognizing their distinct expectations and preferences. Recommendations include implementing mentorship programs, establishing forums for open dialogue on diversity issues, and aligning DEI goals with organizational values and strategies. Organizations should integrate DEI metrics into performance evaluations to ensure accountability and continuous improvement in fostering inclusivity. Leveraging technology to enhance communication and collaboration across generational cohorts can further strengthen engagement and drive innovation. Research Limitations: This study’s reliance on self-reported data may have introduced bias, and it focused on a single geographical area (Bangkok, Thailand). While the sample size was robust, these factors may limit the generalizability of its findings to other cultural or organizational settings. External factors influencing employee engagement, such as economic conditions or industry-specific considerations, were not explored in depth. Future research studies could address these limitations by employing longitudinal designs and incorporating qualitative methods to gain deeper insights into employees’ lived experiences. While the quantitative methods used were rigorous, nuanced or context-specific factors influencing fairness and engagement perceptions may have been overlooked. Future Research: Future studies should broaden the geographical and cultural scope to validate these findings in different contexts. Longitudinal research could provide deeper insights into how generational preferences and engagement evolve over time. Further research also could explore the interplay between DEI practices and organizational factors like innovation, employee retention, and performance metrics. Investigating the impact of technological advancements and remote work on DEI outcomes could offer valuable insights for modern workplaces. Examining cultural diversity within generational cohorts also could help refine strategies. Understanding the influence of macroeconomic trends and global movements on DEI perceptions could provide a holistic view of how societal changes shape workplace dynamics.