We investigate the engagement benefits of high-performance work systems (HPWS) for long-tenured employees compared with short-tenured ones. Using a social exchange lens and building upon hedonic adaptation research, we propose that HPWS are less effective for engaging longer tenured employees, unless they are administered at high levels.
Multiple regression and post-estimation analyses of marginal effects on a sample of 30,375 employees, based on data from the 6th European Working Conditions Survey.
(1) Employee tenure negatively moderates the HPWS-engagement relationship; (2) this effect is contingent on the level of HPWS, with long-tenured employees responding comparatively better than short-tenured ones to exposure to high levels of HPWS; (3) HPWS have decreasing marginal effects on engagement—greater exposure to these systems does not linearly translate into higher employee engagement, with their decreasing returns being more noticeable for short- than long-tenured employees.
The study provides novel insights into the value of HPWS as motivational tools and advises managers to promote tenure-differentiated HPWS investments. It also illuminates critical issues related to the sustainability of HPWS.
