Bridging the gap between sustainable HRM & firm performance

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Adopting a sustainability approach in human resource management has become an imperative for companies. To facilitate managers in what practices they should incorporate for achieving sustainability, Diaz-Carrion et al. (2018) have identified 98 practices that would foster sustainability in the field of HRM. Out of the 98 sustainable HRM practices identified by Diaz-Carrion et al. (2018), the database with ESG indicators as provided by the Thomson Reuters Eikon database measured 14. Of these 14 variables selected from the database, only some were a close match to the definitions as provided by the theory (Diaz-Carrion et al., 2018) while others were only loosely aligned but were included in the study, as they did fall clearly within the definition of the overarching categories, even if they did not align with an individual sustainable HRM practices. The data revealed issues, mainly with regard to missing data, the level of measurement and some data errors, implicating that the currently available data is not sufficient for measuring the components of sustainable HRM. Nevertheless, the research contributes to the academic field of sustainable HRM by highlighting pitfalls of quantifying sustainable HRM. The research provides practical advice to include businesses and organisations in the debate about sustainable HRM. Consequently, recommendations are made to follow the steps of the Global Reporting Initiative such that revealed issues (e.g. reporting bias, signaling, poor quality of measurement levels) are prevented.
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