Do high-performance work systems always help to retain employees or is there a dark side?

Abstract

This study considers both the positive and possible negative impact of high-performance work systms (HPWS) by investigating its relationship with job demands, job satisfaction and job search behavior. The parallel mediation effect of job satisfaction and physiological job demand on the link between HPWS and job search behavior is also examined. Data were collected in two phases from 22 branches of Iranian private banks (n = 269) employees in 2016. Results from a covariance-based structural equation modeling (CB-SEM) shows that HPWS positively relates to job satisfaction, physiological job demand and job search behavior. Job satisfaction negatively relates to job search behavior and mediates the link between HPWS and job search behavior. The results offer practical implications for managers and policy makers in the service industry to balance between job demands - resources in workplace and provide adequate resources for their employees to buffer specific negative effects of job demands.