Impact of HR Practices on Employee Engagement and Organisational Performance: A Comprehensive Review
Keywords:
Employee engagement, Human resource management, Organizational performance, Organizational culture, Leadership, Job satisfaction, Work-life balanceAbstract
Employee engagement is a key driver of success for modern organizations, and human resource management (HRM) plays a central role in building and sustaining it. This review paper explores how HRM practices such as recruitment and selection, training and development, performance management, rewards, and supportive leadership help employees feel motivated, valued, and emotionally connected to their work and workplace. Using a systematic review of recent studies, the paper summarizes evidence showing that higher employee engagement is linked with better productivity, profitability, customer satisfaction, retention, and employee well-being. The review also highlights important factors that shape this relationship, including organizational culture, communication, job design, and work-life balance. It further identifies gaps in existing research, such as challenges in measuring engagement and differences across industries, and offers directions for future studies and practical guidance for HR professionals and leaders. The paper suggests that employee engagement should be treated as a strategic HR priority and well-designed HR initiatives are needed to maintain and strengthen engagement as well as performance over time.
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