Transforming Employee Competencies to Organization Performance through a Mediating Role of HRM Sustainability

Abstract

In today’s service-driven and dynamic business environment, organizational effectiveness depends entirely on how effectively they develop and manage their human resources. This study examines the interplay among employee competency and organizational performance, and HRM sustainability in the tourism industry of Pakistan. Data collected from 420 employees across the tourism industry show how employee competencies contribute to organizational performance. The result shows that the presence of HRM sustainability enhances employee involvement, improving work conditions, and provides long-term career development. HRM sustainability as a mediator highlights how employee competencies effectively improve organizational performance. Overall, this study shows the strategic importance of aligning human capital with sustainable practices of an organization to achieve a competitive edge. It also offers valuable insights to practitioners and policymakers to build high-performing and resilient approaches in an organization.