From high-performance work systems to retention: the engagement, proactivity, and performance bridge

Abstract

This quantitative study explores the effects of high-performance work systems on employee retention through individual factors such as job engagement, employee proactive behavior, and employee performance. The study utilizes a sample of 279 employees employed in the healthcare sector in Saudi Arabia. For hypotheses testing, structural equational modeling was used through SmartPLS4. The findings highlight the influence of HPWS on increased employee proactive behavior, employee performance, and job engagement, resulting in increased employee retention. Additionally, a serial indirect effect of employee proactive behavior, job engagement, and employee performance was found to positively influence the relationship between high-performance work systems and employee retention. High-performance work systems can promote job engagement in Saudi organizations by offering challenging work, autonomy, skill development, and performance feedback. Engaged workers stay longer. Job engagement promotes a positive work environment and community, which increases employee retention. Employee proactive behavior also makes employees feel valued and invested in their work, which can increase retention. The study enhances current knowledge on the role of high-performance work systems in the Saudi healthcare sector considering Vision 2030 by examining the potential mediators between high-performance work systems and employee retention.