Nonprofit leaders and managers are recognizing the benefits of creating inclusive organizations in which everyone feels valued and appreciated, yet little is known about how leaders can foster workplace inclusion. This study examined the relationships among leader engagement, inclusion, innovation, job satisfaction, and perceived quality of care in a diverse nonprofit health care organization. Data were collected at three points in 6-month intervals from a U.S. nonprofit hospital. Multilevel path analysis indicated significant direct associations between leader engagement, inclusion, and innovation. Innovation was directly linked to improved job satisfaction and perceived quality of care. Significant indirect effects were found from leader engagement to increased job satisfaction and perceived quality of care through increased climates for inclusion and innovation. Findings suggest that nonprofit leaders who engage others in critical organizational processes can help foster an inclusive climate that leads to increased innovation, employee job satisfaction, and perceived quality of care.
