High performance work practices, employee outcomes and organizational performance: a 2-1-2 multilevel mediation analysis

Abstract

This study examines the mediating role of employee outcomes in terms of the relationship between high-performance work practices (HPWP) and organizational performance. The study presents a 2-1-2 multilevel meditation model in which HPWP and organizational performance (staff absenteeism and patient satisfaction) are measured at the organizational level (Level-2), and employee outcomes at the individual level (Level-1). Using secondary data from the British National Health Service, evidence was found for a direct positive relationship between HPWP and employee outcomes (job satisfaction and employee engagement). Both job satisfaction and employee engagement mediated a negative relationship between HPWP and staff absenteeism, but the positive relationship between HPWP and patient satisfaction was mediated by job satisfaction only. We outline the research methodology and discuss practical implications for our findings.