Integrating Employee Wellbeing into Strategic HRM: A Framework For Sustainable Organizational Performance
Keywords:
Employee wellbeing, strategic HRM, sustainable HRM, organizational performance, mental health, engagement, sustainable work systemsAbstract
Employee wellbeing has moved from being a “soft” concern of organizations to a strategic imperative that directly shapes sustainable performance. This paper develops an integrative framework that embeds employee wellbeing into Strategic Human Resource Management (SHRM) and Sustainable HRM. Drawing on recent empirical evidence and conceptual work, the paper shows that wellbeing-focused HR practices—covering work design, staffing, learning and development, performance management, rewards, employee voice, and digital HR—can simultaneously enhance employee health, engagement, and long-term organizational outcomes such as productivity, innovation, retention, and employer reputation. Meta-analytic evidence indicates that happier and more engaged employees are associated with higher productivity, customer loyalty, profitability, and lower turnover, supporting wellbeing as a mediating pathway between HR systems and performance. Harvard Business School+2ResearchGate+2 The paper synthesizes key theoretical lenses (Job Demands–Resources model, Ability–Motivation–Opportunity framework, social exchange theory, and sustainable HRM) and proposes a multi-level framework linking SHRM practices, employee wellbeing, and sustainable organizational performance. Illustrative tables and figures clarify the relationships between HR practices, wellbeing dimensions, and outcomes. Practical implications are offered for HR leaders, line managers, and policy makers, along with directions for future research on wellbeing-centred HR architectures.
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