This study examines the indirect relationship between learning climate and employees’ creativity and adaptivity. Utilizing multi‐level modeling analysis techniques and data from a sample of 625 employees from 12 different organizations in Israel, we tested the proposed relationship as mediated by employee engagement and moderated by sector of employment (business versus public). Results were generally consistent with the hypothesized conceptual model in that we found the indirect relationship between learning climate and employees’ creativity and adaptivity to be mediated by employee engagement. In addition, we found that this mediation through engagement is moderated by sector of employment. We conclude that the relationship between learning climate and employee performance behaviors is more complex than previously argued in the learning climate literature. Implications for theory and practice are discussed. This article is protected by copyright. All rights reserved