Drawing on the theoretical framework proposed by Konrad et al. (2021), we explore how integrating identity-conscious (IC) diversity practices into exclusive and inclusive talent management (TM) systems influences employee's fairness perceptions. This analysis is done across a disadvantaged and advantaged employee group classification of local and migrant talent and non-talents to explore effects and inter-group differences. We conducted a large-scale structured survey with 351 employees from a Danish MNE and 374 employees across various organizations in Denmark, supplemented by an experimental vignette study. The results provide insights into the diversity-meritocracy paradox and offer actionable recommendations for organisations aiming to enhance inclusiveness and diversity in the workplace. Our findings reveal that inclusive TM systems are generally perceived as the most positive contributors to fairness. However, integrating IC practices into inclusive TM systems can negatively impact fairness perceptions among certain employee subgroups, while integrating IC practices into exclusive TM systems positively affects fairness perceptions.
