Enhancing employee performance and retention: the mediating role of job satisfaction in high-performance work systems

Abstract

PurposeWe build on the main tenets of the social exchange theory and the job demands-resources theory to investigate the black box through which high-performance work systems (HPWS) influence employee outcomes. Specifically, we analyse both direct effects on employees' turnover intentions and job performance and indirect effects through increased job satisfaction.Design/methodology/approachData were gathered from 417 employees working in hotels, restaurants and car rental offices located in the Canary Islands (Spain).FindingsThrough partial least squares structural equation modelling, we confirm that HPWS positively influence job satisfaction, which in turn decreases turnover intentions and enhances performance.Research limitations/implicationsThis study contributes to the human resources management (HRM) literature by empirically validating job satisfaction as a mediating mechanism linking HPWS with employee outcomes in tourism, a relationship previously underexplored. For practice, it offers specific guidance on implementing HPWS to reduce turnover and improve performance, highlighting specific bundles for that aim.Originality/valueThis study is among the first to examine the associations between HPWS and several individual-level variables through job satisfaction. Moreover, it includes a diverse sample of employees from different tourism subsectors. We also extend the HPWS literature by testing the effects of AMO bundles, providing a disaggregated view of HRM practices.