Abstract:
Workforce diversity is increasingly recognized as a critical factor in contemporary organizations, offering potential benefits such as enhanced innovation, improved decision-making, and increased overall performance. Findings aim to provide actionable insights for organizations managing diversity for improved employee outcomes and organizational success. However, the relationship between workforce diversity and employee performance is complex and often influenced by various contextual factors. This study investigates the effects of workforce diversity on employees' performance within Ethio Telecom Central West Region. Specifically, the research examines the impact of gender diversity, age diversity, educational background diversity, social integration at work, and total life space on employee performance. Utilizing a descriptive and explanatory research design with a mixed research approach, primary data was collected through structured questionnaires administered to a sample of employees from Ethio Telecom Central West Region. The study employed simple random sampling to select 180 participants from a target population of 344 employees. Data analysis was conducted using Statistical Package for Social Science (SPSS), incorporating descriptive statistics, correlation, and multiple regression analysis to assess the relationships between the independent variables (dimensions of workforce diversity) and the dependent variable (employee performance. The result of this thesis indicates that workforce diversity has a significant and generally positive impact on employee performance within Ethio Telecom Central West Region. The study examined various dimensions of diversity—namely gender, age, educational background, social integration, and total life space—and found that increases in these areas are associated with improvements in employee performance. The study recommends implementing targeted diversity policies, inclusive leadership, and ongoing monitoring to maximize these benefits.
