Drawing on signaling theory, the present study investigates whether and how socially responsible human resource management practices (SRHRMPs), namely legal compliance human resource management practices (LCHRMPs) and employee-oriented human resource management practices (EOHRMPs), contribute toward employees' perception of workplace inclusion. Additionally, the study examines the mediating role of psychological safety between SRHRMPs and perceived workplace inclusion. Lastly, it examines whether responsible leadership acts as a moderator between EOHRMPs and psychological safety.
Using multiple sampling techniques, data were collected from employees working in the banking sector. Both online and offline data collection strategies were employed. Additionally, procedural and statistical techniques were used to address the common method bias issue. A total of 270 samples were included in the final data analysis. Partial least squares structural equation modeling, using SmartPLS 4.0, was utilized to test the hypothesized relationships.
The findings indicate that SRHRMPs, such as LCHRMPs and EOHRMPs, can effectively enhance employees' psychological safety. Moreover, the study highlights that psychological safety is a vital factor in developing employees' perception of workplace inclusion. Additionally, psychological safety mediates the relationship between SRHRMPs and perceived workplace inclusion. However, contrary to expectations, responsible leadership did not moderate the relationship between EOHRMPs and psychological safety.
The present study is among the first to examine the interplay between two key forms of SRHRMPs (e.g. LCHRMPs and EOHRMPs) and their effect on employees' psychological safety and perceived workplace inclusion. Furthermore, the mediating role of psychological safety between SRHRMPs and perceived workplace inclusion has not been previously studied, rendering this study a unique contribution to the literature. Lastly, the unexpected results regarding the insignificant moderating role of responsible leadership provide a different perspective, thereby opening fresh avenues for further research.
