Well-being-Oriented HRM, Employee Well-being, and Employee Retention: A Mixed-Methods Study in the Saudi ICT Sector

Abstract

Purpose: This thesis investigates whether well-being-oriented HRM (WBHRM) practices are associated with employees' intention to stay through the potential contributions of psychological well-being (employee satisfaction), social well-being (perceived organisational support), and physical well-being (emotional exhaustion). It addresses persistent gaps in the HRM, well-being and performance literature, specifically the predominance of organisation-centred HRM perspectives and the narrow conceptualisation of employee well-being that typically reduces it to job satisfaction alone, particularly within the rapidly transforming and highly competitive Saudi information and communications technology (ICT) sector, where national development plans have intensified competition for skilled talent and elevated external mobility.

Methods: Guided by Job Demands-Resources (JD-R) theory, this thesis conceptualises WBHRM practices as job resources that are associated with satisfaction, perceived organisational support, emotional exhaustion and employees' intention to stay. The study employed an explanatory sequential mixed‑methods design. A survey of 238 employees across three Saudi ICT companies was analysed with partial least-squares structural equation modelling (PLS-SEM) to test hypothesised paths and importance-performance map analysis (IPMA) to prioritise actionable levers. Subsequently, a nested subsample of 12 survey participants was interviewed to acquire richer insights into the contextual factors influencing employee well-being and turnover intentions.

Findings: Quantitative findings indicated that WBHRM practices were positively associated with employee satisfaction and perceived organisational support and negatively associated with emotional exhaustion. However, they showed no direct association with employees' intention to stay. Employee satisfaction and emotional exhaustion jointly accounted for the WBHRM-intention to stay association, whereas perceived organisational support did not operate as a mediator. The IPMA report yielded four key findings: (1) emotional exhaustion was highlighted as highly important yet remains the lowest-performing area; (2) WBHRM practices function as key job resources; (3) job satisfaction is already performing well; and (4) perceived organisational support contributes little to retention decisions. Narratives from the interviews supported these patterns, showing that employees appreciated such supportive practices. However, unclear promotion processes, lagging market compensation, and intensive work demands frequently undermine WBHRM practices' potential benefits, prompting employees to pursue external opportunities despite valuing flexible working arrangements and a supportive work environment.

Contributions: This thesis expands the HRM-well-being-performance literature by investigating employee-centred HRM practices (i.e., WBHRM) and integrating three distinct dimensions of employee well-being: satisfaction, perceived organisational support, and emotional exhaustion, through an explanatory sequential mixed-methods design. Although WBHRM practices were linked to lower exhaustion and higher satisfaction, these findings demonstrate that employees still leave if core structural issues, such as unclear or unfair promotion criteria, lag‑market compensation, and job strains and pressures, remain unaddressed. The study offers new insights into rapidly changing labour markets undergoing national transformation and increasing talent competition.