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Over the last 20 years, the notion of diversity climate has gained popularity as it is purported to play a key role in maximizing the positive effects of workforce diversity. However, it remains an a‐contextual, unclear and unstable concept relying on a variety of conceptualizations and subsequent operationalizations. We conducted a literature review to highlight the inconsistencies of diversity climate research and as a result the limited validity of its findings. We then develop a new conceptualization for diversity climate, articulated around three components: intentionality, programming and praxis, that integrate the different perspectives adopted in diversity climate research. This study has significant implications for both research and practice, providing a robust reconstruction of the concept. We ultimately identify relevant avenues for future research.