Chapter 12: Effect of HRM Practices on Circular Economy of the Banking Sector

In the present business environment, organizations pay close attention to the concept of circular economy, which has gained significant interest within the highly competitive business arena by adopting different human resource management (HRM) practices. This study assumes that environment-oriented HRM practices significantly affect circular economy-based performance. The article determines the factors influencing the circular economy and mainly focuses on the banking workforce. The researcher used a standardized questionnaire to gather the primary data from 132 banking industry personnel. The staff members were chosen using a basic random sample method. The study uses confirmatory factor analysis to examine the relationship between HRM practices and circular economy in banks. The model fit indices were adequate and acceptable. The study shows a relationship between the circular economy and HRM practices. HRM procedures at the companies gave workers more authority and increased their level of engagement, which improved their job performance. The results show that pay and fringe benefits, relation with coworkers, employee empowerment, supervision, performance appraisal, and nature of the job are the main factors that substantially impact the circular economy in the bank. To empower workers and maintain their engagement in their job duties and responsibilities, businesses are always seeking to implement innovative workplace techniques and initiatives. Organizations should prioritize and execute HRM techniques to foster the circular economy and engagement. This study makes an effort to examine the relationship between the circular economy and HRM practices in this environment.