Role of High-Performance Work System in Turnover Intention through Mediating Effect of Employee Outcomes

Abstract

Purpose—Many well-renowned companies adopted high-performance practices like GM, Google, etc. The main objective of this research study is to analyze the role of High-Performance Work System (HPWS) in turnover intentions through the mediating effect of employee outcomes of trust and job satisfaction.

Study Design/methodology/approach—The analysis is based on primary data, where 310 respondents from five big banks were consulted, and data were collected using convenience sampling. The study adopted cross cross-sectional design. CFA, correlation analysis, and regression analysis under first and second-order structural models were made.

Findings—The results of this research show that the firms using different practices under HPWS can enhance trust and job satisfaction to limit the turnover intentions of employees. This research is expected to enhance the knowledge of HPWS in the banking sector of Pakistan.

Practical Implications—It is also expected that it will add to the contribution in the sense that the firms that are not using HPWS can get the lesson on how they can reduce the transaction cost of employees’ turnover intention.

Originality/value—The research, in South Asian countries and especially Pakistan, is on the deficient side about high-performance practices. Specifically, there is no such prominent study to examine the effect of HPWS on turnover intentions in Pakistan. This study will fill the gap by examining the banking sector regarding the High Performance with Turnover Intention through the mediating effect of employee outcomes.