Sustainable HRM Practices on Employee Performance
Introduction
Managing HR is challenged in the current global context due to globalization, demographic changes, technological development, changes in educational background of employees and their expectations regarding working conditions, work-life balance. As a result of these challenges Work stress and employee burnout situations have risen making management of HR more challenging.
In the Sri Lankan context, ageing labour force, increasing demand for skills due to globalization whilst at the same time the redundancies which happen due to the technological development adding more onto unemployment in the country. Under utilization of skill, not adequate training opportunities for adult learners are also other challenges faced by the HR managers. These challenges create extreme pressure on the business that the human side of HR is also challenged nowadays.
As per De Prins
et.al (2014), some scholars argue that sustainable HRM could serve as a
possible solution for bringing humanity back into HRM, while sustainability
refers to resource regeneration, development, and renewal. Sustainable HRM
highlights the importance of HR practices for organizational outcomes that go
beyond financial performance. Employee performance is defined as “the level of
productivity of an individual employee, relative to his or her peers, on
several job-related behaviors and outcomes”
Sustainable HRM Practices
By integrating sustainability into HRM, a new branch emerged
as Sustainable HRM (Opatha,2019). The word sustainability means “longer” or
“durable”; it means that what you do today has a positive effect on tomorrow.
According to Ehnert et al. (2016), Sustainable HRM is referred as “the adaption
of HRM strategies and practices that enables the achievement of financial,
social, and ecological goals, with an impact inside and outside of the
organization and over a long-term time horizon, while controlling for
unintended side effects and negative feedback”. Ehnert (2008) states that
sustainable HRM is aimed at attracting and retaining motivated and talented
employees as well as providing them with a healthy work environment and
opportunities to develop. According to him, sustainable HRM is another option
for employment relationships, and it contributes to corporate development.
According to Paille et al. (2014), sustainable HRM contributes to improving
green performance of staff members and has direct and indirect effects on the
organization and employees. As per Wikhamn (2019), customer satisfaction in
Swedish hotels has positively affected with sustainable HRM practices within
the organizations and sustainable HRM practices have played a significant role
in enhancing the organizational performance. Guerci et al. (2014) viewed
sustainable HRM from the stakeholder perspective. According to him, HRM
practices are challenged with the integration of growing number of
stakeholders’ needs and to aid the long-term viability of organizations,
organizations keep gradually adopting a stakeholder perspective in their
sustainability strategy, an HRM function that operates solely towards the value
creating for the bottom-line employees. Manzoor et al. (2019) revealed that sustainable
HR Practices, i.e. selection, training, participation, and employee
empowerment, 1424 17th International Conference on Business Management have a
significant and positive effect on job performance and training has a positive
moderating role on job performance. A study by Arman (2017), assesses how these
various instruments of sustainable HRM create an impact on organizational
performance. According to him, human resource recruitment and selection, human
resource marketing and misemployment have positive impact on organizational
performance.
Sustainable Recruitment and Selection
Employee
selection is an important activity in organizations and aims to assess
individual characteristics which are considered as important in predicting
applicants’ future effectiveness as employees and it is an important practice
which selects right employees with necessary characteristics for the
organization (Manzoor et al.,2019). Recruitment and selection of a new employee
is costly for an organization and obviously it is a lengthy process. To eliminate
the unwanted costs related with recruitment and selection, sustainable
recruitment and selection is used which goes beyond traditional recruitment and
selection. According to Kepha et al. (2014), recruitment and selection affect
personal performance of employees and the relationship between recruitment and
selection and employee performance was highly significant. Manzoor et al.
(2019) have investigated that sustainable selection process is positively
related to employee performance. Mwita and Kinemo (2018) found that green
recruitment and selection practices contribute to attracting more qualified job
candidates.
Sustainable Training and Development
Training
is organized attempt at which an employee is trying to acquire efficient
performance in activities. Development is a process of planning and preparing
employees for future challenges. Sustainable training and development help to
correct the behaviors of employees as well as help in adopting new technologies
(Khan et al., 2016).
Sustainable Motivation and Rewards
Motivation
is a force that enables an individual to act towards a particular goal. It is
meant to facilitate behavior alteration of individuals (Shahzadi et al., 2014).
Asim (2013) has concluded that employee performances are enhanced with employee
motivation. A study of Shahzadi et al. (2014) has showed a significant positive
relationship between employee motivation and employee performance. Rewards have
positive impact on employee performance in organizations because rewards
increase the work efficiency of workers of the organization 1425 University of
Sri Jayewardenepura (Ajila & Abiola, 2004). Rewards promote the happiness
and job satisfaction and thereby employee performances (Boehm &
Lyubomirsky, 2008). Monetary and nonmonetary rewards motivate the workers of
any organization and these rewards also resulted in higher growth and
productivity (Reio & Callahon, 2004).
Conclusion
According
to the findings of the study, most tested sustainable HRM practices are
available and willing to be implemented in companies, except the practices
which require high IT knowledge and resources (practices like using video conferencing
for interviews, holding web seminars and online courses). Highly practiced sustainable
recruitment & selection practice is the usage of online advertisements for recruitment.
Highly practiced sustainable training & development practice is selection
of trainers from within the company. Highly practices sustainable motivation
& rewards practice is giving recognition and accomplishment for employees.
From the selected sustainable HRM practices, sustainable recruitment &
selection has a significant negative impact on employee performance,
sustainable training & development has no significant impact on employee performance
and sustainable motivation & rewards have a significant positive impact on employee
performance. From among the identified constraints for practicing sustainable
HRM practices, lack of knowledge was the most affecting constraint. There were
few empirical limitations of this study. Use of one private sector company for
the analysis was the major limitation. This has limited the possibility of
generating accurate conclusion for whole private sector is limited. Future
research studies are recommended to include more private sector companies as
well as public sector organizations. Selecting only three sustainable HRM
practices was another limitation. Future research is encouraged to consider
other HRM practices including employee empowerment, employee participation, pay
for performance, fair evaluation systems etc.
References
Opatha, H. D. N. P. (2019), ‘Sustainable Human Resource
Management: Expanding Horizons of HRM’, Department of Human Resource
Management, University of Sri Jayewardenepura, Colombo, Sri Lanka.
Stankeviciute, Z. and Savaneviciene, A. (2014)
‘Sustainability As a Concept for Human Resource Management’, Economics and
Management, 18(4), pp. 837–846. doi: 10.5755/j01.em.18.4.5631.
Stankevičiute, Ž. and Savanevičiene, A. (2018) ‘Designing
sustainable HRM: The core characteristics of emerging field’, Sustainability
(Switzerland), 10(12). doi:
10.3390/su10124798. Wikhamn, W. (2019), ‘Innovation,
sustainable HRM and customer satisfaction’, International Journal of
Hospitality Management. Elsevier, 76(March 2018), pp. 102–110. doi:
10.1016/j.ijhm.2018.04.009.
This is a clear and detailed study. You have explained the topic well with good examples and research support
ReplyDeleteThank you so much for taking the time to share that feedback. I’m really glad the study came across clearly and that the examples and research added value. My aim was to make the topic not just informative but also practical, so it means a lot to hear that it resonated with you.
DeleteA well-researched exploration of sustainable HRM within the Sri Lankan context, demonstrating how recruitment, training, and reward systems impact performance. The discussion on empirical limitations and future research directions adds rigor and credibility. This post offers a meaningful contribution to sustainable HRM literature and practice.
ReplyDeleteThank you so much for engaging with the piece so thoughtfully. I really value how you’ve highlighted the balance between practical HR systems—like recruitment, training, and rewards—and the need for ongoing empirical rigor. For me, the Sri Lankan context makes these questions especially urgent, because sustainable HRM isn’t just about performance metrics, it’s about dignity, wellbeing, and long-term trust in our institutions. Your recognition of the limitations and future research directions is encouraging—it reminds me that this is a shared journey of inquiry and practice, not a finished conversation
DeleteThis article highlights how sustainable HR-practices can improve employee performance and loyalty in Sri Lanka. It also links to my experience at a state-owned bank, where applying long-term HR strategies could help strengthen staff engagement and retention.
ReplyDeleteyou’ve made such an important connection here. Sustainable HR isn’t just about policies—it’s about creating workplaces where people feel valued and respected over the long term. Your reflection on the state-owned bank really resonates, because institutions like that often struggle with short-term fixes instead of investing in deeper engagement strategies. When staff see that leadership is committed to their growth and wellbeing, loyalty and performance naturally follow. Thank you for bringing your lived experience into this conversation—it’s exactly these insights that make the case for long-term HR reform in Sri Lanka feel real and urgent.
DeleteThis is a comprehensive, research-driven, and academically strong blog that effectively explores the connection between Sustainable HRM practices and employee performance. The work stands out for its use of credible academic literature, clear explanation of key HRM dimensions, and meaningful contextualization to Sri Lanka’s workforce and business environment.
ReplyDeleteThank you so much for taking the time to share this generous reflection. I’m really glad the blog resonated with you, especially in connecting sustainable HRM practices to the realities of Sri Lanka’s workforce. My aim was to move beyond theory and make the research feel practical and relevant for professionals and institutions here, so it means a lot to hear that the balance of academic grounding and local context came through clearly. Your encouragement reinforces the importance of continuing to bridge credible scholarship with lived workplace experiences
DeleteThis is a very insightful summary that clearly explains how sustainable HRM practices improve both employee performance and organizational success. It highlights the importance of ethical recruitment, training, and rewards in creating a motivated and productive workforce.
ReplyDeleteThank you for sharing such thoughtful feedback. I really appreciate how you’ve captured the essence of sustainable HRM—it’s exactly about linking ethical practices with both people’s wellbeing and organizational strength. When recruitment, training, and rewards are handled with fairness and care, employees feel valued, and that energy naturally translates into better performance and long-term success. It’s encouraging to see this perspective resonate, because it shows we’re moving toward workplaces that prioritize dignity alongside productivity
DeleteInteresting read! The point about globalization and technological changes putting pressure on HR resonates strongly. Sustainable recruitment and selection practices could be a game-changer, ensuring that the workforce is not only skilled but also aligned with long-term organizational goals. It would be great to explore measurable KPIs that reflect sustainable HRM’s impact on performance.
ReplyDeleteYou’ve raised such an important point. Globalization and tech shifts really do challenge HR to move beyond short-term fixes and think about sustainability in how we bring people into organizations. Recruitment and selection aren’t just about filling vacancies anymore—they’re about shaping a workforce that can thrive in the long run. I love your idea of measurable KPIs. Imagine tracking not only retention or productivity, but also indicators like employee wellbeing, diversity of hires, and alignment with organizational values. Those kinds of measures would show whether HR is truly building resilience and purpose into the workforce, rather than just chasing numbers.
DeleteIt’s interesting to see which sustainable HRM practices companies use most, especially the focus on online recruitment and internal trainers. The results about motivation and rewards having a positive impact on performance are very insightful.
ReplyDeleteI agree, it’s encouraging to see how sustainable HRM practices are evolving in real workplaces. Online recruitment and internal trainers show that companies are investing in both efficiency and people development, which is a powerful combination. And the link between motivation, rewards, and performance really highlights that when employees feel valued, they give their best. It’s a reminder that sustainability in HR isn’t just about systems—it’s about creating environments where people can thrive.
DeleteThe study's focus on a single private-sector organisation severely restricts the findings' transferability, even if it offers insightful information about how sustainable HRM practices affect employee performance. The detrimental effects of sustainable hiring and selection can call into question methodological or contextual elements that were not thoroughly examined. Furthermore, the study ignores other significant components, including employee empowerment, involvement, and equitable evaluation methods, due to its limited focus on just three HRM practices. Future research's validity and applicability would be strengthened by a more comprehensive, multi-sector approach.
ReplyDeleteI really appreciate your thoughtful feedback. You’re absolutely right that focusing on a single private-sector organisation limits how far the findings can be applied, even if they do shed light on the link between sustainable HRM practices and employee performance. Your point about the potential downsides of sustainable hiring and selection is especially important—it reminds us that context and methodology need to be examined more carefully to avoid unintended consequences. I also agree that leaving out areas like empowerment, involvement, and fair evaluation narrows the scope of the study. These are critical dimensions of sustainable HRM that deserve equal attention if we want a fuller picture of how people experience these practices. Your suggestion for a broader, multi-sector approach is very valuable. It would not only strengthen the validity of future research but also make the insights more relevant across different organisational settings. Thank you for highlighting these gaps—it helps frame the next steps in a way that’s both practical and meaningful.
DeleteInsightful post! Sustainable HRM practices not only support long-term business goals but also boost employee performance and engagement. A timely and important discussion
ReplyDeleteThank you for sharing your thoughts! I completely agree — when HR practices are designed with sustainability in mind, they create a ripple effect that benefits both the organization and its people. It’s encouraging to see more conversations highlighting how employee well-being and long-term business success go hand in hand
Delete