The Impact of Green HRM Practices on Circular Economy-Based Performance in Banking Organizations

Abstract

This study hypothesizes that human resource management strategies that are focused on the environment have a substantial impact on performance based on the circular economy. The goal of the investigation is to determine the contribution of five specific green HRM components to the circular economy-based performance of environmentally conscious financial businesses. Circular economy-based performance has been a focal subject of research, garnering much attention among businesses operating in the cut-throat competitive environment and scholars and environmentalists. This study employs 130 workers of commercial banks as the unit of analysis. The survey data was collected from respondents across the Pakistan Banking Industry employed at different ranks using a structured questionnaire. Data collected was encoded in Statistical Package for the Social Sciences (SPSS) while analysis was done in Partial Least
Square Structural Equation Modeling 4 (PLS-SEM 4). The findings of the study show that every aspect in green of HRM practice such as recruitment, hiring process, training, benefits condition, and employment design significantly influences the banking industry’s possibility to implement circular economy. The integration in this area shows that the activities of green HRM practices enhance not only environmental outcomes inside banks but also enhance innovation and  competitiveness too. This research determined that advancing the link between HRM practices and sustainability objectives encourage banks to run sustainably. This approach is beneficial not
only for the minimization of risks associated with environment but also for the management of increasingly emerged difficult issues in developing countries where the quests for growth and environmental conservation are inseparable. Therefore, the conclusions establish green HRM a as a strategic tool in sustainable business development in the banking sector while promoting environmentally sustainable results.
Keywords: GHRM, circular economy-performance connection, bank organization, emerging economy.