The Effect of Diversity Management on Employee Engagement in the Manufacturing Sector

Abstract

In Indonesia's manufacturing industry, which employs the third-largest workforce in the country, employee engagement is a critical measure of labor's contribution. Despite the industry's importance, diversity management—a key driver of engagement—lags, with low representation of women and persons with disabilities and persistent ethnic and racial discrimination in a nation known for its multiculturalism. Additionally, ageism is prevalent, manifesting as discrimination across different age groups. This study investigates the influence of four principal dimensions of diversity management—ethnic, gender, disability, and age—on employee engagement within the sector. Conducted as a field study in a manufacturing industry in Cilegon with 218 participants, the research provides insightful findings. Notably, it identifies age diversity management as the sole dimension with a significant impact on employee engagement, while the other three—ethnic, gender, and disability diversity management—do not show a substantial effect.