SUSTAINABLE HRM PRACTICES AND PSYCHOLOGICAL WELL-BEING OF EMPLOYEES: A CASE OF PRIVATE SECTOR BANKS IN PAKISTAN

Abstract

The paper aims at investigating the relationship between HRM practices on the psychological well-being of employees. This research is explanatory in nature and deductive approach is being employed. This study used a survey questionnaire to gather information from the respondents on a Likert scale. For data analysis, SPSS was used. The target population for the study was the employees currently working in the private sector banks in Pakistan specifically Islamic banks. The outcomes of the studies show that there is a significant impact of all sustainable human resource management practices including sustainable recruitment and selection, sustainable training and development, and sustainable career planning except sustainable performance appraisal on the psychological well-being of employees. The outcomes of this research are specific to Islamic banks, so other organizations can only use them as guidance. Banking sectors need to recognize that sustainable HRM greatly affects the psychological well-being of employees. Human resource management in the organization must understand that having sustainable practices is crucial for promoting higher levels of psychological well-being among employees.