What is it about?
This study shows that increased investments in human resource (HR) practices can lead to a 7.2% increase in workforce productivity. This translates to an impressive $26 million increase in sales and $1 million in profits for an average-sized company. What is particularly interesting in this study is the concept of synergies between HR practices. When strategically aligned HR practices are implemented together, they create powerful synergies. This implies that the economic impact of HR practices is far greater than previously thought.
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Why is it important?
This study not only offers a more accurate assessment of the economic benefits of HR systems but also provide practical guidance on creating more effective HR systems.
Perspectives
For many years, I've been curious about whether HR practices truly work together as a system to create synergies. This study explores this very question. I hope our new approach and findings will stimulate additional research to further understand the intricate effects of HR systems on employee and organizational outcomes.
Saehee Kang
Florida State University
Read the Original
This page is a summary of: Do human resource systems indeed have “system” effects? The dual internal fit model of a high-performance work system., Journal of Applied Psychology, October 2024, American Psychological Association (APA),
DOI: 10.1037/apl0001241.
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