- In this paper we investigate how hospitals can create a more inclusive climate in their organizations that can foster an environment where all employees and, in turn, patients feel welcome. We ask the question of whether it is leaders or employees that have the agency to create this climate that is so essential to the fabric of an organization’s culture. To test this question, we looked at the impact both inclusive leadership and diversity self-efficacy among employees had on creating a climate for inclusion and to which degree both predictors were moderated by racial diversity. Results evidenced that inclusive leadership is imperative for developing this climate for inclusion regardless of group racial diversity. Employee diversity self-efficacy, however, was found to have a compensatory effect with group racial diversity in developing a climate for inclusion. These results necessitate the development of inclusive behaviors among leaders and intentional hiring practices to construct a strong climate for inclusion.