Improving Organisational Performance Through High‑Performance Work Systems
October 2024
High-Performance Work Systems (HPWS) have attracted considerable attention internationally over the last 10-20 years, with evidence showing a positive relationship between the adoption of HPWS, and employee performance and organisations’ financial outcomes. Despite the compelling business case for HPWS, there is relatively little information on the extent to which they have been adopted by Australian organisations.
AHRI has therefore produced a report on HPWS to examine the take-up of HPWS in Australian workplaces. The research indicates that just under half of Australian workplaces have adopted HPWS and highlights a correlation between HPWS adoption and higher financial performance. These findings suggest that not adopting HPWS may limit many Australian businesses’ potential for improved financial outcomes.
Key Findings
1. High-Performance Work Organisations
Organisations that have adopted at least five of the eight High Performance Work (HPW) practices to either a large or a very large extent are classified as HPW organisations. Almost half (48%) of organisations are identified as HPW organisations. Large organisations (60%) are far more likely to be classified as HPW organisations than small organisations (33%).
2. Financial Performance
The survey data suggests that there is a relationship between the use of High-Performance Work Systems (HPWS) and financial performance, even when controlling for the size of the organisation. More than three-quarters (76%) of HPW private sector organisations report a better-than-average financial performance for their sector. By comparison, only 43% of private sector organisations that are non-High-Performing Work organisations (organisations who have not adopted at least five of the eight HPW practices to either ‘a large extent’ or ‘a very large extent’) report a better-than-average financial performance.
3. Other Benefits
Other perceived benefits of introducing HPWS include improved quality of service (cited by 50% of employers), improved customer feedback (44%) and increased productivity (43%).
For media enquiries, please contact:
Julie McNamara
Media Specialist, Mahlab
[email protected]
0419 595 688
