The effect of diversity-oriented HRM policies on employee job performance in the hospitality sector is examined in this paper. It also investigates how the quality of leader-member interactions (LMX) controls the relationship between performance results and a supporting diversity climate. We assessed interactions using the Process Macro and a confirmatory factor analysis using data on 311 hospitality employees. The results show that diversity-oriented HRM practices greatly improve job performance, particularly in a favorable diversity climate. Moreover, strong leader-member ties magnify these results, thereby underlining the need for leadership in utilizing diversity projects. These findings underline how companies should support inclusive policies and develop strong leader-employee relations to maximize the advantages of diversity management. Our study presents a fresh contribution through an integrated model linking diverse climates, LMX, and employee performance, thereby providing organizational leaders in the hospitality industry with practical advice.