Despite being a core function in most organisations, human resource management (HRM) is often met with scepticism regarding its actual impact on performance and business outcomes. This scepticism raises concerns about the necessity of HR departments and whether their contributions translate into measurable benefits for businesses. This evidence review uses a rapid evidence assessment (REA) of the scientific literature to discover whether HR practices meaningfully influence organisational performance or key workplace outcomes such as turnover, absenteeism and employee engagement.

Impact of human resource management | Scientific summary

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Key insights

  • HR practices are positively associated with a wide range of performance outcomes.
  • The association between HR practices and workplace and organisational outcomes is stronger for bundles of practices (systems) than for individual practices.
  • The relationship between HRM practices and workplace outcomes are affected by employees’ perceptions.
  • High-performance work practices may decrease employee wellbeing.
  • There is limited evidence on variables that moderate or mediate the relationship between HR practice bundles and workplace and organisational outcomes.

As noted in the scientific summary, given the limitations around some of the research reviewed, care should be taken not to present the findings in this review as conclusive. We will continue to examine research as it evolves and inform the profession of the latest developments. 

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