The Impact of HRM Practices on Job Satisfaction and Work Engagement in the Hospitality Industry of Saudi Arabia

Abstract

The purpose of this study was to investigate how Human Resource Management (HRM) practices affect job satisfaction and work engagement in Saudi Arabia’s hospitality industry, which has been framed by the Kingdom’s Vision 2030 reforms and is growing exponentially. According to Herzberg’s Two-Factor and Social Exchange Theory, this study examines four dimensions of HRM: recruitment and selection, performance management, training and development, and compensation and benefits. A qualitative, exploratory approach using secondary data was undertaken, which comprised peer-reviewed literature, policy documents, and organisational reports. The most important findings of the analysis are that HRM practices can influence employee outcomes. However, cultural, institutional, and structural factors shape the effectiveness of these HRM practices in Saudi Arabia. Key findings highlight the challenges of Saudisation-driven recruitment, hierarchical and opaque appraisal systems, symbolic training initiatives, and compensation structures misaligned with cultural expectations. The effectiveness of HRM largely depends on psychological mediators, such as perceived fairness, trust in leadership, and psychological safety among employees. The paper makes a theoretical contribution to the context of HRM models in the non-Western settings. It also makes a practical contribution through competency-based recruitment, a clear performance management system, inclusive training, and a culturally calibrated compensation system. With the aid of these insights, the decision-makers can prepare such HRM strategies that help in properly engaging the employees, satisfying them, and improving competitiveness