The findings arrive at a time when companies across industries are facing increasing challenges in retaining skilled employees. Global competition, changing workforce expectations, and the emergence of multigenerational workplaces have made employee retention a strategic priority. Organizations are no longer evaluated solely by financial performance. Employees increasingly expect workplaces that value inclusion, fairness, participation, and personal recognition.
Many companies continue to struggle in creating genuinely inclusive work environments. Employees often report limited opportunities to participate in decision-making, insufficient recognition of diverse backgrounds, and inconsistent perceptions of fairness regarding rewards, task allocation, and organizational procedures. These conditions can weaken employee commitment and eventually increase turnover intentions.
Researchers from Universitas 17 Agustus 1945 Surabaya investigated these issues by examining employees at PT Kareb Alam Sejahtera. The study explored how inclusive leadership, diversity climate, and organizational justice influence employee loyalty, while also analyzing whether Organizational Citizenship Behavior serves as a bridge connecting these organizational factors with loyalty outcomes.
The research employed a quantitative explanatory design involving all 130 employees in the company's management division. Rather than selecting only a portion of employees, the researchers surveyed the entire population using a census approach. Data were collected through structured questionnaires and analyzed using path analysis with SPSS 27 statistical software to identify both direct and indirect relationships among the variables.
Inclusive leadership, according to the study, refers to leadership characterized by openness, accessibility, and availability. Leaders who actively listen to employees, appreciate differences, and encourage participation create stronger emotional connections within organizations. Diversity climate describes employees' perceptions regarding how well an organization values differences in culture, background, gender, and perspectives. Organizational justice reflects employees' perceptions of fairness in reward distribution, decision-making processes, and interpersonal treatment. Meanwhile, Organizational Citizenship Behavior refers to voluntary actions such as helping colleagues, maintaining positive workplace relationships, and contributing beyond formal job descriptions.
The findings revealed that all three organizational factors significantly improved Organizational Citizenship Behavior and employee loyalty.
Key findings include:
- Inclusive leadership significantly increased Organizational Citizenship Behavior (t = 5.344).
- Diversity climate positively influenced Organizational Citizenship Behavior (t = 4.508).
- Organizational justice positively influenced Organizational Citizenship Behavior (t = 3.294).
- Inclusive leadership directly improved employee loyalty (t = 4.448).
- Diversity climate strengthened employee loyalty (t = 2.929).
- Organizational justice increased employee loyalty (t = 2.395).
- Organizational Citizenship Behavior strongly enhanced employee loyalty (t = 4.800).
Among all variables examined, inclusive leadership emerged as the most influential factor affecting loyalty directly. Employees who perceive their leaders as approachable, supportive, and willing to involve them in organizational decisions are more likely to remain committed to the organization over the long term. The study suggests that leadership accessibility and openness foster a strong sense of belonging that reduces employees' intentions to leave.
The research further demonstrated that Organizational Citizenship Behavior acts as an important psychological and behavioral mechanism connecting organizational practices with employee loyalty. Employees who voluntarily assist colleagues, take initiative beyond assigned duties, and contribute positively to organizational life develop stronger emotional attachment to their workplace. Such employees are also less likely to seek employment elsewhere.
Mediation analysis confirmed that Organizational Citizenship Behavior significantly strengthened the relationship between all three organizational factors and employee loyalty. The Sobel test showed significant mediation effects for inclusive leadership (3.562), diversity climate (3.275), and organizational justice (2.642). These findings indicate that leadership practices, diversity initiatives, and fairness policies become substantially more effective when they encourage employees to engage in voluntary, extra-role behaviors.
Overall, the study's model explained 64.2 percent of the variation in employee loyalty, highlighting the strategic importance of inclusive leadership, diversity climate, and organizational justice in retaining employees. The remaining variation may be explained by additional factors such as compensation, career development opportunities, organizational culture, and work-life balance policies.
According to Moch. Baharrudin and colleagues from Universitas 17 Agustus 1945 Surabaya, organizations seeking long-term employee retention should prioritize leadership openness, establish transparent and fair systems, and cultivate inclusive environments where employees feel valued and respected. The researchers emphasized that loyalty grows most effectively when employees are encouraged to contribute beyond their formal roles and perceive themselves as integral members of the organization.
The findings have important implications for businesses, human resource professionals, and policymakers. Companies may strengthen employee retention by investing in inclusive leadership training, implementing transparent reward systems, promoting diversity initiatives, and recognizing employees who demonstrate strong Organizational Citizenship Behavior. In increasingly competitive labor markets, organizations that successfully combine inclusion, fairness, and employee engagement may achieve stronger workforce stability and sustainable organizational performance.
Author Profiles
Moch. Baharrudin, S.E. is a researcher at the Faculty of Economics and Business, Universitas 17 Agustus 1945 Surabaya, specializing in human resource management and organizational behavior.
Ibnu Nafi Ahmad, S.E., M.M. is an academic at the Faculty of Economics and Business, Universitas 17 Agustus 1945 Surabaya, with expertise in organizational management and human resource development.
Prof. Dr. Siti Mujanah, S.E., M.M. is a professor at the Faculty of Economics and Business, Universitas 17 Agustus 1945 Surabaya. Her research focuses on strategic management, organizational behavior, and human resource management.
Nanis Susanti, S.E., M.M. is a lecturer and researcher at the Faculty of Economics and Business, Universitas 17 Agustus 1945 Surabaya, specializing in human resource management and organizational studies.
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