Effects of HRM on client satisfaction in nursing and care for the elderly

PurposeHRM is supposed to increase job satisfaction. But does it also increase client satisfaction? Sets out to discuss this issue.Design/methodology/approachThe unit of analysis is the home. Using data from a benchmark study among Dutch homes for elderly care, 154 homes were scored on three groups of indicators: HRM activities as experienced by employees, employee satisfaction, and client satisfaction. Scores were based on interviews with 3,542 patients and surveys of 12,193 employees.FindingsHRM does affect job and client satisfaction. Correlations between HRM and client satisfaction were generally rather low. Employees’ satisfaction with their organisation is a better predictor of client satisfaction than job satisfaction. Job‐related training showed no relation with job satisfaction, but a clear relation with client satisfaction, while leadership style of their manager had a significant relation with job satisfaction, and a more limited one with client satisfaction. Regular performance reviews are important for job satisfaction and client satisfaction. Employee and client satisfaction can also conflict: more regular schedules increase employee satisfaction, but decrease client satisfaction.Research limitations/implicationsTo decide on best practices the correlations found need to be explained. For instance, why do performance reviews correlate with employee satisfaction and with client satisfaction about employee expertise?Practical implicationsThese results confirm the importance of the leadership style of line managers. Helping middle management to develop a supportive and transparent leadership style can improve employee satisfaction. The HRM activity most relevant for client satisfaction seems to be job‐related training.Originality/valueThe paper is unique in combining data on employee and client satisfaction. It is of interest both to HRM researchers and to health‐care management.