Should high performance work systems include diversity management practices?

In this article we expand the definition of high performance work systems to include diversity and equality practices. Using data gathered from 132 organisations in Ireland, we examine the impact of this new bundle of high performance HR practices on firm-level performance. Our results reveal that inclusive high performance management practices are positively associated with labour productivity and workforce innovation, and negatively associated with voluntary employee turnover. Diversity and equality management practices were found to add significantly to these relationships over and above the effects of a more traditionally defined system of high performance work practices. Our results are supportive of the International Labour Office (ILO) assertion that high-performing organisations are those that not only adopt the practices associated with traditional HPWS but also emphasise diversity and equality management.