This research aims to examine the effect of diverse workplace environment (inclusion and equity) practices on employee competitiveness. It investigates the role of work group inclusion (WGI) and diversity-oriented leadership (DOL) in this relationship. The purposive sampling technique was used to conduct a primary survey of 542 employees of the hospitality industry through a closed-ended questionnaire. The partial least squares structural equation modeling technique was employed to analyze the data. The findings of this research indicate that in a diverse environment, inclusion and equity practices play a constructive role in employee creativity, allowing the development of novel ideas and innovative products. They build employees’ resilience skills to deal with unprecedented situations (e.g., COVID-19). The findings also suggest that WGI plays a positive mediating role by enabling the exchange of ideas within teams in diverse workplace environments, which leads to employee competitiveness. Results also suggest that DOL has a significant moderating effect on the relationship between diversity and employee competitiveness, but an insignificant effect on the relationship between diversity and WGI. This research opens new avenues for scholars to conduct separate studies on the three validated competencies (creativity, productivity, and resilience). Finally, it informs practitioners about the development of inclusive and equitable practices to build employee competitiveness.