Sustainable HRM, training for employability and organizational outcomes: the moderating role of competitive intensity

Date18 July 2023
Pages79-102
DOIhttps://doi.org/10.1108/ER-02-2022-0072
Published date18 July 2023
Subject MatterHR & organizational behaviour,Industrial/labour relations,Employment law
AuthorMattia Martini,Egidio Riva,Elisabetta Marafioti
Sustainable HRM, training for
employability and organizational
outcomes: the moderating role
of competitive intensity
Mattia Martini
Department of Business and Law, University of MilanBicocca, Milan, Italy
Egidio Riva
Department of Sociology and Social Research,
Universit
a degli Studi di Milano - Bicocca, Milan, Italy, and
Elisabetta Marafioti
Department of Business and Law, University of MilanBicocca, Milan, Italy
Abstract
Purpose The present study connects the literature on sustainable HRM with that on employability to
investigate the relationship between sustainability-oriented human resource actions and organizational
outcomes. More specifically, this study explores how training for employability affects the employeremployee
relationship and employee retention. Furthermore, this study considers competitive intensity as a potential
moderator in these relationships.
Design/methodology/approach The analyses draw on the fourth European CompanySurvey (ECS 2019)
with a sample of 21?869 firms with more than ten employees. Two separate logistic regression models were
used to test the hypothesis.
Findings The results show that training for employability contributes to improving the employeremployee
relationship and that competitive intensity positively shapes this relationship. Contextually, training for
employability reduces the overall employee retention of the firm.
Originality/value Although this study supports the potential winwin nature of employability support,
especially for companies that operate in competitive markets and an uncertain environment, it also highlights
the existence of paradoxical sustainability tensions that should be managed by employers.
Keywords Competitive intensity, Employee retention, Employer/employee relationship, Sustainable HRM,
Training for employability
Paper type Research paper
1. Introduction
Sustainable human resource management (HRM) is an emerging approach to HRM that
focuses on designing organizational and HR processes to embrace the principles of
sustainable development and improve the working conditions and welfare of employees
(De Prins et al., 2014;Ehnert et al., 2014). The growing importance of adopting sustainable
HRM practices is widely recognized because they might lead to a winwinsituation for
employers and employees. By adopting sustainable HR practices, organizations signal their
consideration of employees as a long-term investment rather than just a financial cost
(DixonFowler et al., 2020). In doing this, organizations can perform better through improved
Sustainable
HRM and
employability
79
© Mattia Martini, Egidio Riva and Elisabetta Marafioti. Published by Emerald Publishing Limited. This
article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may
reproduce, distribute, translate and create derivative works of this article (for both commercial and non-
commercial purposes), subject to full attribution to the original publication and authors. The full terms of
this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/0142-5455.htm
Received 10 February 2022
Revised 5 February 2023
23 June 2023
Accepted 23 June 2023
Employee Relations: The
International Journal
Vol. 45 No. 7, 2023
pp. 79-102
Emerald Publishing Limited
0142-5455
DOI 10.1108/ER-02-2022-0072
employment relationships, engagement and employer branding (see, e.g. Jeronimo et al., 2020;
Lombardi et al., 2020;Onkila and Sarna, 2021;Sorribes et al., 2021).
Sustainable HRM means striving to meet the emerging needs of employees, including
security and continuity of employment (De Prins et al., 2014). Sustaining employability and
then equipping employees with skills and abilities that help individuals to obtain, retain and
develop employment opportunities within and between employers (see, e.g. Forrier et al.,
2015;Van der Heijde and Van der Heijden, 2006) represents an action of sustainability-
oriented social responsibility (Ehnert et al., 2014;Jarlstrom et al., 2018;Kwan, 2019). Thus, by
enhancing employability, employers help their employees face work uncertainty and create
the conditions for them to realize sustainable careers with a long-term vision (De Vos and Van
der Heijden, 2017;De Vos et al., 2020).
Despite the growing attention focusing on employability at the organizational level, to
date, it remains unclear whether its development generates benefits for employers in a win
win logic. On the one hand, training and development opportunities are highly appreciated by
employees and could be an effective strategy to attract and retain talent and improve
employee commitment and performance on the job. Contextually, investment in
employability may increase the value of employees and their chances in the external labor
market, which in turn could increase the risk for employers of employee turnover (Nelissen
et al., 2017;Rodrigues et al., 2020). Accordingly, although research demonstrates that
employability exerts a positive effect on employees and organizational outcomes (Arocena
et al., 2009;De Cuyper and DeWitte, 2011;De Cuyper et al., 2011), the debate about the
existence of an employability paradoxremains open (Van Harten et al., 2020).
The present study explores the relationship between sustainable HRM and organizational
outcomes by considering employability support as a specific sustainability-oriented action.
The employer-employee relationship and the organizations retention capacity are considered
in terms of organizational outcomes. While the former concerns the quality of the internal
climate and detects the degree of trust and mutual commitment that exists between the
employer and its employees (Lee et al., 2021), the latter refers to the organizational ability to
retain workers and reduce involuntary turnover.
In addition, the present study investigates under which circumstances employability
enhancement is an effective strategy for employers. The relationship between employee
development and organizational outcomes may depend on contextual dimensions, such as
countryculture, industrycharacteristics,technology intensityand organizationalsize (Garavan
et al., 2021).Accordingly, sustainableHRM, and employabilityenhancementin particular, could
be an effectivestrategy in specificcontexts, whereasit may not be in other contexts (or it may be
less effective). In this regard,the current research is quitelimited (see, e.g. Arocena et al.,2009)
and does notestablish when or in whichcircumstances investingin employability is ofinterest
to employers(Fugate et al., 2021). However,recent studies also revealthat competitiveintensity,
and thenthe intensity of competitiona firm faces in its environment(Spanos and Lioukas, 200 1),
may moderate the relationship between sustainable HRM, development practices and
organizational outc omes (see Haar et al., 2022;Zhang et al., 2020).
Thus, by using data from the fourth European Company Survey (2019), the present study
investigates (1) how training for employability affects the employeremployee relationship
and employee retention and (2) the role of competitive intensity as apotential moderator in the
relationship between training for employability and organizational outcomes. This paper
contributes to the current literature in several ways: First, it adds evidence to the emerging
literature on the relationship between sustainable HRM and organizational outcomes and its
potential mutual gains (Jeronimo et al., 2020;Onkila and Sarna, 2021). Furthermore, the study
focuses on training for employability as a specific sustainable HR practice that deserves to be
investigated as the labor market becomes ever more flexible and unstable (Fugate et al., 2021;
Van der Heijden et al., 2021). This research provides additional evidence regarding
ER
45,7
80

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