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Although existing literature emphasizes the significance of diversity and inclusion in management roles for employees, there is a notable absence of a standardized scale to assess employees’ perceptions of an inclusive climate, particularly in relation to practices that encourage acceptance of demographically diverse leaders. This study aims to bridge this gap by developing the perceived inclusion climate for leader diversity (PICLD) scale.

The scale development process was carried out in five phases which included: qualitative component (interviews); test for face validity; check for content validity; construct and criterion-related validity; and nomological network testing.

Following the first three phases of scale development, 12 measurement items were produced. Phase four results indicate that PICLD is distinct from both the intercultural group climate scale and diversity-oriented leadership scale, in which all three scales were found to be positively correlated with job satisfaction. Phase five results show that PICLD positively correlates with organizational justice. Organizational justice also mediates the relationship between PICLD and three employee outcomes (performance, engagement and turnover intention).

Organizations are encouraged to be open to suggestions made by managers from historically marginalized groups that motivate diverse leaders to voice their concerns to foster inclusionary climate perceptions among employees. Welcoming diverse managerial perspectives can dismantle systemic barriers, enabling marginalized leaders to thrive while fostering employees’ perceptions of an inclusionary workplace.

This study introduces the PICLD Scale to enhance comprehension of how policies supporting leader demographic diversity impact employee perceptions of inclusive climate. This research also contributes to the advancement of social exchange theory and literature on organizational justice, performance and engagement.