Examine Impact of Diversity Management & Inclusive Leadership on Retention and Performance in banking sector of rural Sindh

Abstract

This paper reviews how diversity programs and inclusive leadership increase employee retention and a team s performance in the banking sector of rural Sindh which is highly dominated by tribal culture, lacks women work force (16.3%), and suffers other difficulties due to its geographical isolation. Employing quantitative data on 350 employees (in 6 districts i.e. Jacobabad, Kashmore, Shikarpur, Ghotki, Khairpur, Sanghar), regression models became applicable to understand the effects of structured diversity efforts (e.g. fair hiring, ERGs created through a digital platform) on turnover intention (β = 0.756, p < 0.001) and team performance (β = 0.806, p < 0.001), explaining 76% and 65% Complementary yet smaller effects were shown when it came to inclusive leadership (retention: 0.262; performance: 0.193). There was almost a perfect relation between performance and retention (r = 0.876) proving the fact that employee stability is the basis of operational efficiency. Results show that within exclusionary environments, diversity programs are proving to have exponential returns and inclusive leadership is a cultural enricher. Study calls on hyper-localized policy (e.g., Sindhi-language training, gender-norm-sensitive interventions), and digital solution to fill the gaps in implementation. Such limitations are sampling restrictions and cross-sectional design.