Will you value me and do I value you? The effect of phenotypic racial stereotypicality on organizational evaluations

• Racial stereotypicality is a social identity contingency cue for minorities.
• Blacks expressed trust toward organizations with racially stereotypic members.
• Identity-related trust affected their desire to work in organizations.
• Diversity should be considered at both the within group level and group level.

This paper investigates whether within-group differences in phenotypic racial stereotypicality (i.e., extent to which individuals possess physical features typical of their racial group) of ingroup members serve as social identity contingency cues for Blacks evaluating organizations. It is hypothesized that Blacks draw information about whether their social identity would be valued based on the represented phenotypic racial stereotypicality of Black organization members. Participants viewed organizations that included high phenotypically stereotypic (HPS) Black (e.g., darker skin tones, broader facial features), low phenotypically stereotypic (LPS) Black, or only White employees. Results confirmed that Black, but not White, evaluators reported more diversity, salary, desire to work, and social identity-related trust toward the HPS, compared to LPS and White, organizations. The relationships between phenotypic racial stereotypicality condition on organizational attractiveness and diversity perceptions were mediated by identity-related trust. Results suggest considering diversity at both the group level and within group level to achieve broader benefits.