HOW MUCH DO HIGH‐PERFORMANCE WORK PRACTICES MATTER? A META‐ANALYSIS OF THEIR EFFECTS ON ORGANIZATIONAL PERFORMANCE

TLDR

Although evidence suggests high‑performance work practices influence organizational performance, inconsistent sample characteristics, research designs, and performance measures have made the overall effect size difficult to estimate. The study uses meta‑analysis to estimate the overall effect of HPWPs on organizational performance, test whether effects differ by system versus individual practices, performance measures, and industry type, and then proposes four recommendations for future research. The authors performed a meta‑analysis of 92 studies to estimate effect sizes and examine differences across HPWP systems, performance measures, and industry sectors. The meta‑analysis found an overall correlation of .20, stronger for HPWP systems and in manufacturing firms, but unchanged across operational versus financial performance measures.

Abstract

Although there is growing evidence that high performance work practices (HPWPs) affect organizational performance, varying sample characteristics, research designs, practices examined, and organizational performance measures used has led extant findings to vary dramatically, making the size of the overall effect difficult to estimate. We use meta‐analysis to estimate the effect size and test whether effects are larger for (a) HPWP systems versus individual practices, (b) operational versus financial performance measures, and (c) manufacturing versus service organizations. Statistical aggregation of 92 studies reveals an overall correlation that we estimate at .20. Also, the relationship is stronger when researchers examine systems of HPWPs and among manufacturers, but it appears invariant across performance measures. We use our findings as a basis to offer 4 suggestions intended to shape research practices such that future meta‐analyses might answer today's emerging questions.