Integrating Sustainability into Workforce Development: Examining Organisational Performance Through Staff Training Practices

Abstract

Organisations are increasingly implementing sustainability into staff training to strengthen resilience, capability, and long-term performance. In Higher Education Institutions (HEIs) sector, sustainability-integrated staff training is important due to growing institutional pressures related to governance, inclusivity, and sustainable organisational management. This study examines the role of sustainability practices in enhancing organisational performance through staff training within Malaysian public universities. Grounded in Human Capital Theory and Sustainable Human Resource Management (HRM), the study conceptualises sustainability practices as strategic organisational capabilities. A quantitative cross-sectional survey was conducted involving 317 administrative staff from Malaysian public universities, and the data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that staff training significantly influences sustainability practices (β = 0.58, p < .01) and organisational performance (β = 0.76, p < .01). Sustainability practices were also found to mediate the relationship between staff training and organisational performance (VAF = 56.46%). Among the sustainability dimensions, social sustainability is the strongest mediating factor, followed by environmental, institutional, and economic sustainability. This study contributes to Sustainable HRM research by showing how sustainability practices function strategically within workforce development. The findings also provide important information for universities and organisations seeking to improve organisational effectiveness, institutional resilience, and sustainability-driven performance.