High performance work systems and employees’ intention to leave: Exploring the mediating role of employee outcomes

Abstract

Purpose

This paper aims to advance the research on relationship between high performance work systems (HPWS) and employees’ intention to leave by examining the mediating role of trust, motivation and organizational citizenship behaviour.

Design/methodology/approach

Primary data based on 563 respondents were analysed to investigate the relationship between HPWS, employee outcomes and employees’ intention to leave. Statistical techniques like confirmatory factor analysis, correlations, regression and bootstrapping were used to analyse the data.

Findings

The study has revealed that the application of HPWS in the form of rigorous staffing, extensive training, performance-based appraisal and compensation, employee relations, self-managed teams, flexible work arrangements and empowerment results in enhanced employee work-related outcomes and decreased intention to leave among employees. The results have indicated that the relationship between HPWS and employees’ intention to leave is serially mediated by employee outcomes.

Practical implications

The study gives strong indications that investments in creating bundles of high performance HR practices will enhance the value of the human capital by eliciting favourable employee attitudes and behaviours and therefore will prove beneficial for the organizations operating in India.

Originality/value

This study has attempted to provide new insights in the underlying mechanism existing in the relationship between HPWS and employees’ intention to leave by using multiple mediators in sequence.

Citation

Kundu, S.C. and Gahlawat, N. (2016), "High performance work systems and employees’ intention to leave: Exploring the mediating role of employee outcomes", Management Research Review, Vol. 39 No. 12, pp. 1587-1615. https://doi.org/10.1108/MRR-04-2015-0088