Mixed-method study shows HR practices focusing on employee well-being boost customer satisfaction through enhanced employee behaviours, suggesting actionable HR strategies.
Using the Service-Profit Chain framework as a foundation, this research investigates how human resource management practices that focus on employee well-being impact employee job satisfaction and employee behaviour, ultimately affecting customer satisfaction in the retail sector. This study used a mixed-method design consisting of an initial qualitative exploration followed by a quantitative validation phase. Using data from 16 semi-structured interviews, survey items and constructs were developed for the quantitative phase of the study. The findings support a comprehensive model in which well-being-focussed HRM practices ultimately enhance customer satisfaction indirectly by increasing employee satisfaction and behaviours; also, psychological availability serves as a reinforcement factor. In addition, employee behaviours such as loyalty boosterism, service delivery, and participation provided a mediating role in the relationship between employee and customer satisfaction. Overall, this research adds to HRM and service management literature by showing how investments made in employee well-being generate organisational value through enhanced employee-customer interactions and provides practical implications for retail executives who wish to improve both employee and customer satisfaction with specific HRM strategies.
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Agarwal et al. (2026) studied this question.
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