Attuned HRM Systems for Social Enterprises

Silvia Dorado, Ying Chen, Andrea M. Prado, Virginia Simon

Journal of Business Ethics · 2022 · Volume 178 · Issue 3

Abstract

This paper is motivated by a puzzling observation made when conducting a case study of ProCredit (PC), a well-known social bank. The HR practices that this social enterprise (SE) adopted to cultivate mission identification were unfavorably impacting its retention rate. Building on prior research and our analysis of the case, we argue the need for SEs to embrace HRM systems that are both mission-identification proactive and employee-retention preemptive. It theorizes that these HRM systems should beattunedto the labor market conditions (e.g., market segmentation and competition for employees) that frame how SEs develop and sustain Person-Organization (P-O) fit.AttunedHRM systems areadaptedto labor market conditions andtunedto support SEs’ adeptness to operate against the grain of country and industry norms.

Keywords

Social enterprises, Person-organization fit, Human resource management, Retention in mission-driven organizations

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