This study investigates the impact of human resource management (HRM) practices - recruitment and selection, training and development, rewards, and employee empowerment - on employee loyalty in medical institutions in Lahore, Pakistan, with job satisfaction as a mediating variable. A quantitative, cross-sectional design was employed, and data were collected through a structured online survey using purposive sampling to select faculty members with relevant experience of institutional HR practices. The sample size (N = 350) was determined using the Krejcie and Morgan formula. Partial Least Squares Structural Equation Modeling was applied to test the proposed relationships. The findings reveal that recruitment and selection, training and development, and employee empowerment have significant positive effects on employee loyalty, whereas rewards show no significant impact. Additionally, job satisfaction does not mediate the relationship between HRM practices and employee loyalty, indicating that these practices exert a direct influence on loyalty. Theoretically, this study extends the HRM and employee loyalty literature by providing empirical evidence from the healthcare education sector in a developing country context and by clarifying the non-mediating role of job satisfaction in this relationship. Practically, the findings guide institutional policymakers and administrators in prioritizing strategic recruitment, continuous professional development, and empowerment initiatives to foster long-term faculty commitment beyond monetary incentives. However, the study is limited by its cross-sectional design, which restricts causal inferences, and its focus on a single geographical context, which may limit generalizability. Future research is recommended to adopt longitudinal designs, include multiple sectors or regions, and examine additional mediating or moderating variables to better understand the complexity of HRM-loyalty relationships.
Farooq et al. (Tue,) studied this question.