Being inclusive boosts impact of diversity practices on employee engagement Ser inclusivo estimula o impacto das pr  aticas de diversidade no engagement dos trabalhadores Ser inclusivo estimula el impacto de las pr  acticas de diversidad en el engagement de los trabajadores Helena Mateus Jer onimo and Paulo Lopes Henriques ISEG, School of Economics and Management, Universidade de Lisboa and Advance/CSG, Lisboa, Portugal, and Sara Isabel Carvalho ISEG, School of Economics and Management, Universidade de Lisboa and Worten, Lisboa, Portugal Abstract Purpose – This study aims to analyse the relationship between diversity practices and employee engagement in the specific context of a telecommunications company. Design/methodology/approach – Using simple and multiple linear regressions, the authors test the mediating effect of the perception of inclusion and the moderating role of inclusive leadership, as well as whether this style of leadership promotes the perception of inclusion among employees. Findings – The results are based on a sample of 238 responses and show that a positive correlation exists between the perception of diversity practices and engagement which is mediated by the perception of inclusion. However, inclusive leadership fails to moderate this relationship, although it does positively influence employees’ perception of inclusion. Practical implications – The study emphasises: the importance of employees’ perceptions of diversity and inclusion as a strategic priority of their organisations and the importance of its embeddedness in the The authors gratefully acknowledge financial support by FCT - Fundação para a Ciência e Tecnologia (Portugal), through research grant UIDB/04521/2020. Diversity and employee engagement 129 Received 8 May 2021 Revised 2 September 2021 4 November 2021 Accepted 5 November 2021 Management Research: Journal of the Iberoamerican Academy of Management Vol. 20 No. 2, 2022 pp. 129-147 © Emerald Publishing Limited 1536-5433 DOI 10.1108/MRJIAM-05-2021-1175 The current issue and full text archive of this journal is available on Emerald Insight at: https://www.emerald.com/insight/1536-5433.htm