Probing the Links between Workforce Diversity, Goal Clarity, and Employee Job Satisfaction in Public Sector Organizations

A considerable body of research substantiating the importance of workforce diversity to public organizations has accrued over the past two decades. However, research on workforce diversity has also been narrow in scope and frequently fails to link diversity to important individual and organizational outcomes. Using data (n = 1,109,134 employees from 500 sub-agencies) collected in three waves (2010, 2011, and 2012) of the Federal Employee Viewpoint Survey (FEVS), this study examines whether (1) increased diversity influences organizational goal clarity, (2) diversity and goal clarity, in turn, influence employee job satisfaction, and (3) diversity management policies influence job satisfaction by clarifying organizational goals for workers. FEVS is administered yearly by the U.S. Office of Personnel Management (OPM) and is designed to assess whether and to what extent federal employees believe the characteristics of successful organizations are present in their agency. Results from a multi-level structural equation model (MSEM) suggest diversity is associated with greater goal clarity and that diversity management policies, by clarifying organizational goals, positively affect job satisfaction. Findings also indicate that the type of diversity matters.