Human resource management, employee well-being, and performance: A systematic review

Abstract

Background Employee well-being in the workplace benefits both individuals and organizations. Nevertheless, despite ongoing focus on this subject, there is no clear agreement regarding the exact role of employee well-being in human resource management (HRM) and its impact on organizational performance. Objective This study investigates and determines how employee well-being contributes to HRM practices and organizational performance through a systematic review of existing research. Methods To achieve the study's aims, the review and systematic reporting of empirical findings were standardized using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines. This systematic review includes 20 studies published up to 2023. Results Our results indicate a positive connection between HRM and organizational performance, such as job satisfaction and engagement, but also negative effects like exhaustion. Leadership moderates and mediates these effects, with employee well-being playing a key role. Employee voice and leadership can help mitigate negative outcomes. Conclusions This review contributes to existing evidence on employee well-being. Its relevance and impact depend on subsequent empirical research utilizing appropriate methodologies to address key questions within the developing field exploring the link between HRM and organizational performance.

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