This developmental paper examines the role of skills-based contingencies in the UK service sector (i.e., the service sector segment within which the organisation operates and workforce differentiation within organisations) that may influence pre-recession adoption of High Performance Work Practices (HPWPs) and the extent to which different bundles of HPWPs improve post-recession organisational performance over time. The study is informed by the Workplace Employment Relations Surveys (WERS), which provides panel data from 812 UK service sector organisations. Preliminary findings show that ability- and motivation-enhancing practices are of particular importance for improving service quality for organisations that rely on low-skilled work. The study highlights the role of skills-based contingencies that are relevant for skills demand and utilisation in the service sector as significant precursors of HPWP adoption