It is essential for organizations to invest and improve employee outcomes to enhance
organizational competitiveness and growth in today's world. However, most organizations
place management objectives above the career competencies of employees. Therefore,
this study investigated 1. the effect of high-performance work practices on employee
career competencies in the banking industry. 2. the mediating effect of employee career
competencies on the relationship between high-performance work practices and employee
outcomes in the banking sector. The study adopted a quantitative approach with a total
of 340 respondents from various banks in Tanzania. The data was analyzed using Covariance
Based Structural Equation Modelling (CB-SEM). The results of the finding indicate
that high-performance work practices have a significant effect on employee career
competencies. Similarly, employee career competencies significantly impact service
quality, creative performance, and extra-role performance in banks. Also, employee
career competency does not mediate the relationship between high-performance work
systems and service quality in the banking industry.
