The Relationship of Staffing Practices to Organizational Level Measures of Performance

Scholars have noted the relative lack of research on the contribution of effective staffing practices to organizational level measures of performance (Schmitt & Schneider, 1983). We collected survey data from the heads of the HRM departments of 201 organizations regarding the extent of use of five staffing practices supported by the academic literature. We also investigated whether organizations that used more of these practices had higher levels of profitability and sales growth than organizations that used fewer of them. We found a significant positive relationship between organizations’use of the five staffing practices and both annual profit and profit growth across all industries. However, the strength of the relationship between the use of the staffing practices and organizational performance was found to vary by industry type. We also found that the extent of use of the staffing practices was related to both industry type and organizational size. Our study provides some initial data on the possible positive impact of these staffing practices on organizational level outcomes.