This study uses PLS-SEM analysis to examine how employee engagement mediates the link between HR practices and organizational performance in the Indian ITES industry. A standardized questionnaire measuring corporate performance, employee engagement, and HR procedures was used to gather data from 300 ITES experts. The findings show that employee engagement has a high impact on organizational success (β = 0.580), whereas HR practices have a lesser but beneficial direct effect on organizational performance (β = 0.164). With a substantial indirect impact (B = 0.3017) in the –HR-performance link, mediation analysis validates the partial mediating function of employee engagement. With intermediate explanatory power, the model was able to explain 43.5% of the variance in organizational performance and 14.3% of the variance in employee engagement. The results highlight how good HR procedures increase em-employee engagement, which significantly enhances organizational results and is consistent with social exchange theory. In addition to offering HR managers useful advice on how to create engagement-centric HR strategies to boost organizational competitiveness in the dynamic ITES sector, this study adds empirical support for the HR–engagement–performance route to the body of knowledge in HRM.
Sangeetha et al. (Mon,) studied this question.