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While companies in developed countries are increasingly turning to indigenous employees, integration measures have met with mixed results. Low integration can lead to breach of the psychological contract, i.e. perceived mutual obligations between employee and employer. The purpose of this paper is to identify how leadership and organizational integration measures can be implemented to promote the perceived insider status (PIS) of indigenous employees, thereby fostering fulfillment of the psychological contract.

A search for relevant literature yielded 128 texts used to identify integration measures at the level of employee–supervisor relationships (leader-member exchanges, inclusive leadership) and at the level of employee–organization relationships (perceived organizational support, pro-diversity practices).

Measures related to leadership included recruiting qualified leaders, understanding cultural particularities, integrating diverse contributions and welcoming questions and challenges. Organizational measures included reaching a critical mass of indigenous employees, promoting equity and participation, developing skills, assigning meaningful tasks, maintaining good work relationships, facilitating work-life balance, providing employment security, fostering support from communities and monitoring practices.

While PIS has been studied in western and culturally diverse contexts, it has received less attention in indigenous contexts. Yet, some indigenous cultural values are incompatible with the basic assumptions of mainstream theories. Furthermore, colonial policies and capitalist development have severely impacted traditional indigenous economic systems. Consequently, indigenous people are facing many barriers to employment in ways that often differ from the experiences of other minority groups.

The aim of this paper is to study the effects of pro‐diversity practices on perceived insider status, and explore the moderating role of leader‐member exchange in this relationship. The main and interactive effects on PIS are studied for cultural minority and majority groups.

Research hypotheses are tested with a questionnaire administered to 210 employees working in three Canadian organizations engaged in diversity management.

Results indicate that the main and interactive effects of organizational fairness and leader‐member exchange on perceived insider status are significant. The interactive effect on perceived insider status is higher for cultural minorities than for other employees.

This study shows the importance of perceived insider status in the field of diversity, identifies organizational fairness and leader‐member exchange as two significant organizational antecedents to perceived insider status, and describes the mechanisms linking these antecedents to perceived insider status (the interaction effects).

The main contribution of the research resides in the identification of perceived insider status as a variable that deserves more attention in the field of diversity. The article invites future research to explore the behavioral consequences of perceived insider status in diverse teams, and to pursue the understanding of mechanisms leading to feelings of inclusion.