Based on the fundamental principles of social identity theory, this study examines how inclusive leadership can help build employees' organizational identification, stimulate leader-directed helping behavior, and improve task performance by facilitating insider status and relational coordination. Furthermore, we explored how these relationships are conditional on the synergy diversity climate in a moderated mediation model. We collected temporally segregated data (n = 300) from employees in diverse workforces at three time intervals with a 2-week gap between intervals. The results support the indirect effects of inclusive leadership on employee outcomes through the development of perceived insider status and relational coordination. Additionally, these indirect effects are more pronounced at higher levels of a synergy diversity climate. In conclusion, our study offers critical insights into the diversity and leadership literature by answering why and under what conditions an inclusive leader can generate favorable employee outcomes.
