The Influence of Human Resource Management Practices on the SMEs Performance: Mediating Role of Employee Engagement

Abstract

Recently, human resource practices have been considered as the foremost solution for high organizational performance and attained the focus of recent studies and regulators. Therefore, the present study investigates the impact of human resource practices such as recruitment and selection, training and development, reward and compensation, and performance management on SMEs performance in Pakistan. The present research also examines the mediating role of employee engagement among the nexus of recruitment and selection, training and development, reward and compensation, performance management, and SMEs performance in Pakistan. This research has adopted the questionnaires to collect the data and executed the smart-PLS to analyze the data. The results revealed that recruitment and selection, training and development, reward and compensation, and performance management have a positive association with SMEs’ performance. The findings also exposed that employee engagement positively mediating the links among recruitment and selection, training and development, reward and compensation, performance management, and SMEs performance in Pakistan. This study has provided the guidelines to the policymakers that they should extend their focus towards human resource practices that improve organizational performance.