MEAN RACIAL-ETHNIC DIFFERENCES IN EMPLOYEE SALES PERFORMANCE: THE MODERATING ROLE OF DIVERSITY CLIMATE

Using data from a sample of 6,130 workers employed in 743 stores of a large, U.S. retail organization, this study assessed whether diversity climate moderated mean racial-ethnic differences in employee sales performance. Findings indicated Whites exhibited significantly higher sales performance than Hispanics but not Blacks, as moderated by diversity climate. As hypothesized, racial-ethnic disparities disfavoring Blacks and Hispanics were largest in stores with less supportive diversity climates and smallest in stores with highly pro-diversity climates. Financial analysis of these interactions revealed sizable increments in sales per hour in response to effective diversity management, with strong organizational bottom-line implications. Limitations of the study and future research needs are noted.