This study investigates the critical role of employee selection processes in organisational success, focusing on the impact of cultural diversity (CD) and ethical climate (EC) within Higher Education Institutions (HEIs) in Northern Malaysia. Employing a quantitative methodology and a descriptive research design, data were collected from academic staff through a structured questionnaire. The analysis using SPSS software reveals strong positive correlations among employee selection, CD, and EC. The Kaiser-Meyer-Olkin (KMO) measure and Bartlett’s Test of Sphericity confirm the data's suitability for factor analysis, while Cronbach’s alpha coefficients indicate robust internal consistency. The findings underscore the importance of aligning employee selection processes with organisational strategies and values to attract competent employees. Additionally, effective management of CD enhances financial performance, competitive advantage, and profitability. An EC significantly promotes ethical behaviour, job satisfaction, and organisational performance. The study highlights practical implications for integrating diversity and ethical considerations into selection strategies, providing valuable insights for human resource management and organisational behaviour. The research emphasises the need for a holistic approach to talent acquisition by demonstrating how selection practices influence organisational outcomes. This approach fosters inclusivity and ethical leadership, ultimately contributing to long-term organisational success. These findings comprehensively understand employee selection, CD, and EC dynamics in enhancing institutional effectiveness and achieving strategic goals in HEI settings.
