The role of human resources management in enhancing the economic sustainability of Jordanian banks

Abstract

PurposeThe purpose of this study is to examine the role of human resources management (HRM) on economic sustainability in Jordanian banks. To achieve this goal, data were collected from 23 Jordanian banks listed at the ASE from 2014 to 2019.Design/methodology/approachA regression model was employed using four independent variables that represent the HRM (i.e. managing the environment of human resources, human resources acquisition and preparation, human resources assessment and development and human resources compensation) and using economic sustainability as the dependent variable. The study also controlled for banks’ age, size, leverage and return on equity.FindingsResults show that all independent variables are positively correlated with economic sustainability. The results imply that HRM is an important tool to enhance economic sustainability within the banking sector.Originality/valueThis study provides practical implications for banks’ managers, future researchers and policymakers. This is achieved by investigating the impact of the independent variables, including managing the human resources environment, the acquisition and preparation of human resources, the assessment and development of human resources and the compensation of human resources on the economic, social and environmental sustainability in Jordanian banks.