Mutual gains through sustainable employability investments: integrating HRM practices for organisational competitiveness

Purpose: This study aims to examine the reciprocal relationship between employee and employer, focusing on the role of human resource management (HRM) practices in enhancing both employee career potential and organisational competitiveness. It aims to provide a comprehensive understanding of how these practices interact to foster mutual growth in dynamic organisational environments. Design/methodology/approach: A multiple-case study design of 10 food industry firms in the Netherlands and Belgium was employed, combining semi-structured interviews with archival analysis to generate in-depth insights. Findings: The study highlights how balanced HRM strategies – integrating employee-centric practices, such as training and well-being programmes, with employer-centric practices, such as performance management and strategic recruitment – drive mutual benefits. Our findings underscore the importance of aligning these practices to enhance workforce adaptability, reduce turnover and support innovation. Digital transformation is identified as a key enabler, facilitating flexible work arrangements, personalised training and efficient talent acquisition. Practical implications: The study provides actionable insights for HR practitioners, emphasising the need for strategic HRM approaches that integrate employability and sustainability and employability. These strategies can foster a resilient workforce capable of adapting to evolving organisational and environmental challenges. Originality/value: This research advances our theoretical understanding in this domain by applying social exchange theory, resource-based view and stakeholder theory to the study of sustainable HRM. It offers a multi-dimensional framework to explore the reciprocal dynamics between employer and employee, contributing to ongoing discussions on sustainable workforce development and organisational competitiveness.