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.