Do High Performance Work Systems Always Help to Retain Employees or Is There a Dark Side?

This study considers both the positive and possible negative impacts of high performance work systems (HPWS) by investigating their relationship with job demands, job satisfaction and job search behavior. The parallel mediation effect of job satisfaction and physiological job demand on the link between HPWS and job search behavior is also examined. Data was collected in two phases from 22 branches of Iranian private banks from 269 employees in 2016. Results from a covariance -based structural equation modeling (CB-SEM) shows that HPWS positively relates to job satisfaction, physiological job demand and job search behavior. Job satisfaction negatively relates to job search behavior and also mediates the link between HPWS and job search behavior. However, job demand did not have any mediation effect on the link, which means that employees exposed to high job demand do not necessarily engage in the search for alternative jobs. The results offer practical implications for managers and policy makers in the service industry to balance between job demands – resources in workplace and provide adequate resources for their employees to buffer specific negative effects of job demands.