A theory of HR co-creation

We introduce HR co-creation as a continuous process in which HR and stakeholders optimize value through collaborative efforts to innovate in the design and use of HR practices to better satisfy multiple stakeholder needs. This positions stakeholders as users of HR practices who co-create value in partnership with HR, and highlights that value only arises through the use of practices. We outline the conditions for HR co-creation, and argue that HR co-creation generates greater value than practices designed by HR and used by stakeholders independently by maximizing value at the level of the business system. HR co-creation is inspired by the service-dominant logic, and builds on existing multi-stakeholder perspectives of HR, HR process research, and research on employee participation and involvement. We discuss the theoretical and practical implications of this perspective on value creation. •HR practices generate value through use; users are therefore creators of value.•HR co-creation involves HR and users in co-design and collaborative use.•The goal of HR co-creation is to maximize the total value created by users.•HR co-creation needs ability-based trust, psychological safety and power.