Human resource practices as a means of developing business productivity: A case study of Cyprus

This study examines the impact of human resource practices on the productivity of businesses in Cyprus, focusing on three key factors: employee training and development, rewards and benefits, and recruitment and selection processes. Through a literature review, it is found that the lack of appropriate training limits the capabilities of employees, negatively affecting their flexibility, self-confidence and adaptability. At the same time, insufficient rewards reduce trust and participation in corporate processes, while deficiencies in recruitment processes make it difficult for employees to fully align with the company’s strategy. The research was conducted in 46 medium-sized and large businesses in Cyprus. A total of 1516 questionnaires were used as the basis for analysis. The results indicate that best human resource practices contribute significantly to increasing productivity, while it is confirmed that there are positive relationships between the three factors and productivity. Finally, specific strategies are proposed for optimizing these practices in order to enhance business performance.