The Impact of Employee Secondment on Employee Performance of Banks: The Mediating Effect of Employee Engagement

Abstract

The aim of this study is to investigate the impact of employee secondment as one practice of employee development practices within the implementation of strategic human resource management on one critical of facet of employee outcomes, which is employee performance through employee engagement as a mediator. Data were collected using a questionnaire administered to a sample of managers of six banksof Saudi Arabia. Two-hundred and forty-three responses were used for the purpose of data analysis. The results unfold a significant effect of employee secondment on employee engagement, which in turn showed a significant effect on employee performance. Interestingly, employee secondment had no significant direct effect on employee performance, but had a significant indirect effect on employee performance. The study contribution is that it adds to the literature that on an element of the strategic human resource management, which is employee development practices such as employee secondment are not necessarily improving employee performance. Other influential factors such as employee engagement should be considered.