STRATEGIC HR PRACTICES AS PREDICTORS OF EMPLOYEE LOYALTY: A MULTIVARIATE STUDY OF COMPENSATION, PROMOTION, AND PERFORMANCE MANAGEMENT IN A SOUTH AFRICAN RAIL SOE

Purpose: This study examines the extent to which strategic human resource management (SHRM) practices compensation, promotion, and performance management predict employee loyalty in a South African state owned enterprise (SOE) and investigates the mediating role of job satisfaction. Design/methodology/approach: A quantitative, cross sectional survey was conducted among 209 management level employees in a rail SOE. Data were analysed using IBM SPSS Statistics (Version 20) and PROCESS Macro (Version 4.2). Analytical techniques included descriptive statistics, reliability and factor analysis, Pearson correlation analysis, hierarchical multiple regression, and mediation analysis with bootstrapping. Findings: All three HR practices were positively associated with affective, continuance, and normative commitment. Regression results showed that promotion and performance management were stronger predictors of affective and normative commitment, while performance management was the primary predictor of continuance commitment. Mediation analysis revealed that job satisfaction significantly mediated the relationships between HR practices and all three commitment dimensions. Practical implications: SOEs should prioritise credible performance management and transparent promotion practices to enhance job satisfaction and foster sustainable employee loyalty. Originality/value: The study contributes context specific evidence on SHRM and employee loyalty in South African SOEs, highlighting job satisfaction as a key mediating mechanism.